ORDINANCE NO. BL2010-727

An ordinance appropriating and designating certain funds and hotel occupancy tax revenues to Gaylord Entertainment Co. to assist in flood recovery efforts of the Grand Ole Opry House resulting from the May 2010 flood.

WHEREAS, the Metropolitan County Council (“Council”) adopted Ordinance No. BL2007-1557 authorizing the collection of an additional one percent Hotel Occupancy Tax (“Additional Hotel Occupancy Tax”); and

WHEREAS, the Council adopted Resolution No. RS2007-2084, subsequently amended by Resolution No. RS2007-2117, designating the boundaries of the Gaylord Tourism Development Zone as a secondary tourism development zone pursuant to Tennessee Code Annotated Sections 7-88-101 - 111; and

WHEREAS, Tennessee Code Annotated Section 7-4-102(b)(3) provides that the Additional Hotel Occupancy Tax derived in a secondary tourism development zone be deposited into the local government’s general fund; and,

WHEREAS, the Additional Hotel Occupancy Tax derived from the Gaylord Tourism Development Zone has been deposited into a Account #01103260.502617 (“Hotel Occupancy 2007 1% Secondary TDZ”) in the General Fund; and

WHEREAS, pursuant to Resolution No. RS2007-2118 it has been the intent of The Metropolitan Government of Nashville and Davidson County (“Metropolitan Government”) that the Additional Hotel Occupancy Tax derived from the Gaylord Tourism Development Zone be used for Gaylord tourism development purposes; and

WHEREAS, between May 1 and May 2, 2010, unprecedented rainfall was experienced in the Middle Tennessee region causing extensive flooding and damage throughout the area of the Metropolitan Government; and

WHEREAS, the May 2010 flooding disaster caused extensive damage to one of Nashville’s acclaimed tourist destinations, the Grand Ole Opry House, the undisputed home of country music and America’s longest running radio show; an attraction unique to the cultural identity of Nashville; and

WHEREAS, the Gaylord Entertainment Co. estimates the cost to repair and renovate the Grand Ole Opry House to range between seventeen million dollars ($17,000,000) and twenty million dollars ($20,000,000); and

WHEREAS, future Additional Hotel Occupancy Taxes derived from the Gaylord Tourism Development Zone will be generated as a result of the large investment of Gaylord Entertainment Co. to restore the Opryland Hotel; and

WHEREAS, it is necessary for the general welfare of the inhabitants of the Metropolitan Government and for tourism development to expedite and assist in the recovery of the Grand Ole Opry House by appropriating a portion of the Additional Hotel Occupancy Tax collected and on deposit in a Account #01103260.502617 of the General Fund to Gaylord Entertainment Co. for Grand Ole Opry House renovation expenses directly related to damages caused by the May 2010 flooding disaster; and,

WHEREAS, it is also necessary for the general welfare of the inhabitants of the Metropolitan Government and for tourism development to designate future revenues generated by the Additional Hotel Occupancy Tax derived from the Gaylord Tourism Development Zone to be appropriated to Gaylord Entertainment Co. for Grand Ole Opry House renovation expenses directly related to damages caused by the May 2010 flooding disaster.

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

Section 1: The amount of one million, six hundred thousand dollars ($1,600,000) shall be appropriated to Gaylord Entertainment Co. from the unencumbered fund balance of Account #01103260.502617 (“Hotel Occupancy 2007 1% Secondary TDZ”) for the purpose of repairing and renovating the Grand Ole Opry House due to damages directly caused by the May 2010 flooding disaster.

Section 2: Future revenues generated by the Additional Hotel Occupancy Tax collected in the Gaylord Tourism Development Zone are hereby dedicated and restricted for payment
to Gaylord Entertainment Co. for the purpose of reimbursing expenses, including a five percent per annum interest rate, related to the repair and renovation of the Grand Ole Opry House due to damages directly caused by the May 2010 flooding disaster.

Section 3: Annual appropriations by the Council of such restricted future revenues generated by the Additional Hotel Occupancy Tax collected in the Gaylord Tourism Development Zone to Gaylord Entertainment Co. shall be made in accordance with this Ordinance.

Section 4: The annual appropriations authorized by Section 3 of this Ordinance shall cease to be authorized after July 1, 2025 and shall not exceed the total expenses as provided in Section 2.

Section 5: The authorization to designate and appropriate the Additional Hotel Occupancy Tax revenues by this Ordinance shall terminate upon resolution of the Industrial Development Board to issue its revenue bonds for the purpose of financing an expansion to the Opryland Hotel and Convention Center as contemplated by Resolution No. RS2007-2118.

Section 6: Prior to any disbursement of appropriated funds authorized by this Ordinance, Gaylord Entertainment Co. shall certify the actual itemized expenses related to the repair and renovation of the Grand Ole Opry House in a report to be delivered to and accepted by the Director of Finance; and the Director of Finance shall deliver the certified report to the Council upon receipt.

Section 7: 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: Phil Claiborne, Erik Cole, Ronnie Steine

LEGISLATIVE HISTORY
Introduced:	July 20, 2010
Passed First Reading:	July 20, 2010
Referred to:	Budget & Finance Committee Convention & Tourism Committee
Passed Second Reading:	August 3, 2010
Passed Third Reading:	August 17, 2010
Approved:	August 18, 2010
By: