Nashville Airport Seeks $1.7M Fee from Boring Co.
The Nashville Business Journal reports that airport officials want The Boring Company to pay more than $1.7 million annually for use of airport property as part of the Music City Loop. The fee would rise each year and include a $5 per-ride surcharge, setting up key negotiations as the downtown-to-airport tunnel project advances. [Read more ➝]
By the LOOP Nashville Editorial Staff
8/24/20252 min read
August 27, 2025 – Nashville, TN
The Nashville Business Journal is reporting that the Metro Nashville Airport Authority (MNAA) has proposed charging The Boring Company an annual licensing fee of more than $1.7 million for use of airport property as part of the planned “Music City Loop” tunnel system.
According to NBJ Senior Reporter Adam Sichko, the proposal was outlined in a draft letter of intent sent by airport CEO Doug Kreulen shortly before the project’s July 28 announcement. While discussions are ongoing, no final agreement has been reached.
What’s on the Table
The fee, initially set at $1.73 million, would rise 3% each year over the life of the license. The agreement could run for 20 years, with two possible five-year extensions. In addition, each passenger drop-off and pick-up at Nashville International Airport (BNA) through the tunnels would be subject to the same $5 surcharge already levied on Uber and Lyft rides.
The Boring Co. also would pay rent for a 20,000-square-foot covered area at the airport to serve as a passenger hub. Currently, that space is used by taxis and limousines, which would be relocated if the project moves forward.
The Tunnel Project
The Music City Loop is envisioned as a 19-mile system of parallel, one-way tunnels connecting downtown Nashville with BNA. The downtown portal sits on state-owned land near the Capitol at 637 Rosa L. Parks Blvd., which the company is leasing at no cost. Governor Bill Lee has said the state will also provide underground rights-of-way at no charge, in exchange for the company’s investment in building and operating the tunnels.
The airport segment, however, is different. Nearly three miles of the tunnel alignment would run beneath airport property. MNAA’s proposed licensing fee is based on that square footage, using the airport’s standard $2.47-per-square-foot rate applied to tenants leasing ground space.
Airport Growth and Competition
BNA is in the middle of a multibillion-dollar expansion and recently set a record with 24.8 million passengers in one year. That growing traffic is a key factor in the potential ridership for the Music City Loop, which promises trips at speeds up to 70 mph while bypassing interstate congestion.
At the same time, the tunnel system could reduce revenue for the airport’s existing parking operations, which currently account for more than 30% of MNAA’s annual budget, projected at $350 million this year. Ride-hailing companies logged about 3.7 million trips to and from the airport last year, meaning Boring Co.’s system would also compete directly with Uber and Lyft.
What’s Next
The letter of intent suggests it could still be several months before the airport authority board votes on any potential licensing agreement.
For now, the Boring Company continues excavation at its downtown site, while negotiations with the airport move forward.
Source: Reporting by Adam Sichko, Senior Reporter, Nashville Business Journal (Aug. 27, 2025).