Does Tenn Have Pre emption ? Haz is right, If the City does the Maintenance then it is NOT private. The area should be boycotted by Citizens and the business owners informed WHY. I see a law suit coming.
MB will go through the ROOF when he sees THIS. 
I believe TN does not have preemption, but because of stupid acts such as this it will be on the agenda in the next session.
As for the street, it all depends on the deal worked between the city and the developer to a degree. It may be an unconstitutional clause that the developer thinks gives them the right to "own" a public thoroughfare.
Boycott and lawsuits - amen!