Eminent Domain and the 2026 Transit Plan

Under the 15-year plan, Metro Nashville is investing billions in “All-Access Corridors,” new transit centers, and nearly 100 miles of sidewalks. While many of these improvements utilize existing public rights-of-way, some will require the acquisition of private land.

1. Expanded Scope of “Public Use” (SB2272)

In 2026, the Tennessee General Assembly clarified the definition of “public use” in TCA § 29-17-102. Previously, there were debates about whether seizing land for a bike lane or greenway alone met the high bar for eminent domain.

  • The Change: The law now explicitly includes associated features like sidewalks, bicycle lanes, and “slope development” (retaining walls/grading) as valid public uses if they are part of a larger transportation project.

  • Impact: It is now much harder for a property owner to argue that a transit-related seizure is “not for a public purpose.”

2. Narrower Funding Restrictions (The IMPROVE Act)

A recent Tennessee Court of Appeals ruling (2025/2026) established a significant guardrail for property owners.

  • The Ruling: The court ruled that funds from the transit surcharge cannot be used to seize land for housing or parks, as those fall outside the strict scope of the IMPROVE Act.

  • Impact: If Metro attempts to take your land for a “Transit-Oriented Development” (TOD) that includes a park or residential units using transit-specific funds, they may be overstepping their legal authority.

3. The “East Bank” Exception

One of the most active development areas in Nashville is the East Bank. It is important to note that the East Bank Development Authority has unique constraints:

  • Unlike the Nashville Department of Transportation (NDOT), the East Bank Authority cannot exercise eminent domain.

  • However, Metro (the city itself) still retains that power. If your property is on the East Bank, the city may still seek to acquire land for the East Bank Boulevard project, but they must follow standard municipal procedures.

The Eminent Domain Process in Tennessee

If Metro identifies your property for a transit project, the process generally follows this path:

  1. The Offer: Metro must provide you with a written offer based on an appraisal of “Fair Market Value.”

  2. Negotiation: You have the right to hire your own appraiser and attorney to argue for a higher valuation (including “severance damages” if taking part of your land lowers the value of what remains).

  3. Condemnation: If an agreement isn’t reached, Metro files a “Petition of Condemnation.”

  4. Possession: In Tennessee, the government can often take “quick-take” possession of the land before the final price is even decided, provided they deposit the offered amount with the court.

Developer Warning: Be wary of “inverse condemnation.” If a new transit project (like a raised bus platform) doesn’t take your land but physically blocks access to your business or causes permanent flooding, you may have a claim for compensation even if no “taking” was officially filed.