WHEREAS, the Metropolitan Council has, pursuant to Chapter 53 of Title 7 of the Tennessee Code Annotated, established and elected members to The Industrial Development Board of the Metropolitan Government of Nashville and Davidson County (IDB); and

WHEREAS, pursuant to Tennessee Code Annotated Section 7-53-305(b), the Metropolitan Council is permitted to delegate to the IDB the authority to accept agreements for payments in lieu of ad valorem taxes (PILOT) upon a finding that the payments are in furtherance of the public purpose of the IDB; and

WHEREAS, state law provides specific conditions for acceptance of PILOT agreements by the IDB; and

WHEREAS, The Downtown Living Initiative (DLI) was a collaborative effort between MDHA, the Downtown Partnership, Metro Planning Commission, the Mayor's Office of Affordable Housing, the Mayor's Office of Economic Development, and the Nashville Civic Design Center that recommended the use of the PILOT incentive to increase development, a public purpose consistent with the requirements of state law; and

WHEREAS, the DLI recommended that the downtown area, geographically defined as the area covering approximately 80 blocks of Nashville's Central Business District that includes the areas from 1st to 9th Avenues and from Union Street to Peabody Street, which due to the intensity and character of existing core development, is an appropriate area in which to focus the attention of the Downtown Living Initiative; and

WHEREAS, in 2002, the Metropolitan Council adopted and the Mayor approved Resolution No. RS2002-1067, a resolution supporting increased downtown housing options and requesting the financial participation of Metro Government and MDHA by means such as tax incentives for private developers to encourage development activity; and

WHEREAS, it is to the benefit of the citizens of The Metropolitan Government of Nashville and Davidson County that this authority be granted.

NOW, THEREFORE BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

SECTION 1: That the Metropolitan Council hereby finds in accordance with Tennessee Code Annotated Section 7-53-305(b) that increasing the availability of all types of housing in the downtown area, including affordable housing, is in furtherance of the public purpose of the IDB and in the best interest of the Metropolitan Government of Nashville and Davidson County.

SECTION 2: That, having made such findings, the Metropolitan Council hereby delegates to the Industrial Development Board of the Metropolitan Government of Nashville and Davidson County the authority to accept agreements for payments in lieu of ad valorem taxes in a manner consistent with the provisions of state law, the terms of the Downtown PILOT Program General Program Description attached hereto and incorporated herein, and for the public purpose of increasing downtown development activity.

SECTION 3. That the IDB shall be specifically limited to acceptance of PILOT agreements for development projects to be located in the downtown area, defined as the area covering approximately 80 blocks of Nashville's Central Business District that includes the areas from 1st to 9th Avenues and from Union Street to Peabody Street.

SECTION 4. That the Metropolitan Development and Housing Agency shall be responsible for the negotiation and administrative functions associated with executing the PILOT agreements that are accepted by the IDB.

SECTION 5. That this Ordinance shall take effect from and after its passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Craig Jenkins, Ludye Wallace

View Attachment

AMENDMENT NO. 1
TO
ORDINANCE NO. BL2003-1533

Mr. President:

I move to amend Ordinance No. BL2003-1533 as follows:

By renumbering the current Section 5 as Section 6, and adding the following new Section 5:

“SECTION 5. That this ordinance shall be effective for ten years from the date of its enactment, and after the expiration of such ten year period it shall terminate and be of no further force or effect, unless extended by Resolution of the Metropolitan Council receiving twenty-one (21) affirmative votes.”

By deleting the phrase “The approval of a PILOT tax abatement is subject to the written approval of the Mayor of the Metropolitan Government of Nashville and Davidson County within fourteen (14) days of the Industrial Development Board meeting where such PILOT is approved”, wherein it appears in the Downtown PILOT Program General Program Description as referenced in Section 2, and substituting in lieu thereof the following new provision:

“Upon the receipt of a PILOT tax abatement application by the Industrial Development Board, written notice shall be sent by mail to the Mayor of the Metropolitan Government of Nashville and Davidson County and to each member of the Metropolitan Council providing a brief description of the proposed project and stating the date and time that the application will be considered by the Industrial Development Board. Once a PILOT agreement has been approved by the Industrial Development Board, a written notice shall be sent by mail to the Mayor and to each member of the Council, informing them of the precise terms of the PILOT agreement. The Mayor shall have fourteen (14) days from the date of his or her receipt of such notice within which to review the terms of the PILOT agreement. If before the passage of said fourteen day period the Mayor feels in his or her sole discretion that the PILOT agreement is in the best interests of the citizens of Nashville and Davidson County, then he or she shall notify the Industrial Development Board in writing of his approval of the PILOT agreement, in which case the Industrial Development Board shall proceed to put such PILOT agreement into effect. In the event that the Mayor does not give notice of his approval to the Industrial Development Board within 14 days, the Industrial Development Board shall take no further action to put such PILOT agreement into effect.

The Council shall have fourteen (14) days from the date of the Council’s receipt of such written notice to file a resolution ratifying the PILOT agreement to be considered at the first Council meeting at which the resolution can properly be placed on the Council agenda in conformance with the Council Rules of Procedure. If the resolution ratifying the PILOT agreement fails to receive twenty-one (21) affirmative votes, then the Industrial Development Board shall take no further action to put such PILOT agreement into effect.”

Sponsored by: David Briley, Leo Waters, Jim Shulman

LEGISLATIVE HISTORY
Introduced:	July 15, 2003
Passed First Reading:	July 15, 2003
Referred to:	Budget & Finance Committee
Amended:	August 5, 2003
Passed Second Reading:	August 5, 2003
Passed Third Reading:	August 19, 2003
Approved:	August 20, 2003
By: