TSU looks to sell property near John C. Tune airport to help bring in more revenue

Tennessee State University is considering selling property the school owns that is located near the John C. Tune Airport. 

TSU’s Board of Trustees gathered on Thursday and Friday to discuss the potential sale. The move would be among school leadership’s most recent efforts to bring in more revenue. 

The university has made significant financial gains in the last year – most notably decreasing its budget deficit by more than $13 million. This is a stark contrast to the financial and administrative struggles TSU previously experienced, which were exacerbated by chronic underfunding, as explored in WPLN’s podcast special “The Debt.”

Much of this fiscal improvement is credited to a five-year turnaround plan focused on implementing cost-saving measures. TSU President Dwayne Tucker has noted plans to monetize some of the school’s property – including 35 acres of land near John C. Tune airport.

Now, that plan appears to be in motion as Dick Tracy, the director of facilities development for the Tennessee Board of Regents – also known as the college system of Tennessee – spoke before TSU’s finance committee on Thursday about the selling process. 

“Our request is to be able to negotiate with Metro Nashville Airport Authority to sell them the property, basically at fair market value,” Tracy said. “They are agreeable to allow us to stay on the property for at least one year at no cost.” 

The property is valued at $15.5 million, and any money TSU makes from the sale must go towards capital investments, like new buildings, dormitories or maintenance. 

Tracy also explained that, technically, the state of Tennessee owns the property, but it allows institutions like TSU to have jurisdiction over the land. Thus, an executive subcommittee of the state buildings commission must approve the sale. 

Tracy expects the subcommittee to discuss the sale of the property at its Sept. 21 meeting.

Board member Charles Traughber questioned why the university was only negotiating with Metro Airport Authority, rather than engaging with other potential buyers to maximize profits.

The answer comes down to getting the money quickly, according to William Radford, TSU Assistant Vice President of Planning, Construction and Design.  

“A $20 million number in two years is not the same as a $15 million number in 30 days,” he said. “I would say that is a motivating factor for TSU in light of the additional housing that will be needed next year and some of the deferred things that are in need of resources right now.”

The property currently houses one building that TSU uses for storage and two other buildings operated by the Tennessee College of Applied Technology. 

If the state commission approves the sale during its Sept. 21 meeting, TSU’s board of trustees will move forward with the final steps.