Tennessee Code Title 49. Education § 49-2-142

(1) “Child care agency” means a child care agency as defined in § 71-3-501 that is licensed to operate in this state by the department of human services;

(2) “Underutilized property” has the same meaning as defined in § 49-13-104;  and

(3) “Vacant property” has the same meaning as defined in § 49-13-104.

(d)(1) A child care agency that is operating in an LEA that does not have one (1) or more public charter schools operating within the geographic boundaries of the LEA has a right of first refusal to:

(2) If one (1) or more public charter schools operate in the LEA in which a child care agency also operates, then a child care agency operating in the LEA has a right of second refusal to purchase vacant property or lease underutilized property or vacant property listed by the LEA in the same manner and to the same extent as provided in subdivision (d)(1).

(3) For purposes of this subsection (d), fair market value for child care purposes is determined by taking the average of two (2) separate appraisals conducted by two (2) independent, qualified appraisers, one (1) selected by the LEA and one (1) selected by the child care agency.

(e)(1) Upon the execution of a lease agreement pursuant to this section, the child care agency has unrestricted use of the property;  provided, that the property must be used to provide child care services.  The child care agency shall provide for routine maintenance and repair so that the leased property is maintained in as good of order as when the lease was executed.  The child care agency is responsible for paying all utilities used by the child care agency at the leased property.  Extensive repairs to buildings or facilities considered capital expenses are the responsibility of the LEA funding body and not the child care agency.  If the owner or operator of the child care agency makes extensive repairs to buildings or facilities considered capital expenses, then the capital expenses must be credited against the cost of the lease.  Any fixtures, improvements, or tangible assets added to leased property by the child care agency pursuant to this section must remain at the leased property upon the child care agency's return of the leased property to the LEA.

(2) If the LEA decides to sell the school building that a child care agency is leasing, then the child care agency must be provided the right of first refusal to purchase the school building at or below fair market value for child care purposes, as described in subdivision (d)(3), less the value of all rental payments made to the LEA during the term of the lease.

(3) If, during the term of the lease, the child care agency closes or ceases using the building, then the building must be placed on the LEA's vacant or underutilized property list pursuant to this section.