ORDINANCE NO. BL2017-580

An ordinance amending Title 2 of the Metropolitan Code of Laws authorizing the creation of a Downtown Central Business Improvement District and appointing a corporation to act as an advisory board to the district with the necessary powers and authority to carry out the purposes and intent of the district.

WHEREAS, Ordinance No. O98-1037 created a Central Business Improvement District for downtown Nashville, which will expire on January 1, 2018 pursuant to Ordinance No. BL2007-1312; and,

WHEREAS, pursuant to the Central Business Improvement District Act of 1990, property owners in a confined area within downtown Nashville representing not less than a majority in number of the real property owners and not less than two-thirds of the assessed value of all real property within that area have presented petitions to The Metropolitan Government of Nashville and Davidson County requesting an expanded central business improvement district (“Downtown CBID”) for downtown Nashville to replace the existing CBID upon its expiration on December 31, 2017; and,

WHEREAS, the creation of an expanded Downtown CBID will enhance the local business climate and help mange the area to ensure that it is clean, safe and vibrant and attracting more people to live, work, play and invest in the downtown Nashville area; and,

WHEREAS, among the services and improvements to be funded by the Downtown CBID will be cleaning and safety enhancements, beautification efforts, business, residential and retail recruitment and retention services and overall promotions of downtown.

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

Section 1. Title 2 of the Metropolitan Code of Laws is hereby amended by deleting chapter 2.177 thereof in its entirety and substituting in lieu thereof the following new chapter 2.177 relative to the establishment of the Downtown Central Business Improvement District and appointing a management corporation to act as an advisory board to the Downtown CBID with the necessary powers and authority to carry out the purposes of the Downtown CBID:

Section 2.177.010 District Created; Boundary.

In accordance with the provisions of and established pursuant to Tennessee Code Annotated §7-84-501, et seq., there is hereby created a Downtown Central Business Improvement District (Downtown CBID), which shall include all properties within that area of the city bounded and generally described as follows:

With an eastern boundary centerline of the Cumberland River from James Robertson Parkway the eastern boundary of parcels east of Lea Avenue. The southern boundary is from the Cumberland River, the eastern boundary of parcels east of Lea Avenue to Hermitage Avenue; the centerline of Lea Avenue from Hermitage Avenue to Lafayette Street; the centerline of Lafayette Street from Lea Avenue to 7th Avenue S; the centerline of Lea Avenue from 7th Avenue S to 8th Avenue S; the centerline of 8th Avenue S from Lea Avenue to Gleaves Street. The western boundary is the centerline of the CSX RR from Gleaves Street to Broadway. The northern boundary is centerline of Broadway to 10th Avenue N; centerline of 10th Avenue N to the northern boundary of parcels along Broadway to 9th Avenue N; centerline of 9th Avenue N to Union Street; centerline of Union Street to 6th Avenue N; centerline of 6th Avenue N to Charlotte Avenue; centerline of Charlotte Avenue to 3rd Avenue N; centerline of 3rd Avenue N to James Robertson Parkway; centerline of James Robertson Parkway to the Cumberland River.

Section 2.177.020 Purposes and Mission.

A. The Metropolitan Council hereby finds and declares that the establishment of the Downtown CBID will promote the successful and continued revitalization of downtown Nashville, thereby furthering the health, safety, morals and general economic welfare of Metropolitan Nashville and Davidson County.

B. The purpose and mission of this CBID is hereby declared to be:
To undertake and provide an enhanced level of programs and services not provided by the Metropolitan Government which will help maintain the CBID area of downtown Nashville as a clean, safe and vibrant place to work, live, shop, play and invest.

Section 2.177.030 Liberal Construction.

This ordinance, being necessary to secure and preserve the public health, safety, convenience and welfare, shall be liberally construed to effectuate its purposes.

Section 2.177.040 Definitions.

A. As used in this ordinance, unless a contrary meaning clearly appears:

1. “Assessed value” means value as assessed for municipal tax purposes.

2. “District” or “Downtown Central Business Improvement District” or “Downtown CBID” means the central business improvement district created by this ordinance.

3. “District Management Corporation” means the board or organization created or the organization appointed to act as an advisory board for the purpose of making and carrying out recommendations for the use of special assessment revenues, and for the purpose of administering activities within and for the District and the provision of services and projects within and for the District.

4. “Initiating petition” means the petition filed in the office of the Metropolitan Clerk requesting the establishment of the Downtown CBID.

5. “Owner” means the record owner of real property in fee or a representative of such owner duly authorized to act for and on behalf of said owner.

Section 2.177.050 District Management Corporation.

A. There is hereby authorized a District Management Corporation to be chartered pursuant to the provisions of the Nonprofit Corporation Act of Tennessee for the purpose of administering the special assessment revenues and the activities within and for the Downtown CBID, the making of improvements within and for the Downtown CBID, and the provision of services and projects within and for the Downtown CBID.

B. The District Management Corporation shall be governed by a Board of Directors consisting of at least twelve (12) members. Three members shall be appointed as provided in subsection C below. The Mayor of the Metropolitan Government of Nashville and Davidson County shall appoint a member for a three- year term, after which the Board will request that the Mayor renew the three-year appointment. The Board of Directors shall select the remaining eight members to serve staggered, three-year terms, limited to serving two consecutive full terms. These eight members shall be property owners or have offices within the district. At least two of these eight members shall be large property owners (defined as an owner of a major hotel property or commercial office building in the district) and at least two shall be small property owners (defined as an owner of commercial property other than major hotel or office buildings in the district). At least one member shall be a commercial tenant (defined as any lessee of commercial property within the district) and at least one member shall be a residential condominium owner-resident in the district. The seats shall be filled at an annual meeting upon nomination by the outgoing board members and confirmation by a majority of the owners of real property in the district voting in the election. A property owner may vote by proxy vote.

C. The Speaker of the Senate of the State of Tennessee shall appoint the senator whose senate district includes the majority of the area contained within the Downtown CBID to serve as an ex officio member and the Speaker of the House of Representatives of the State of Tennessee shall appoint the representative whose house district includes the majority of the area contained within the Downtown CBID as an ex officio member. The ex officio members shall serve for the term for which they are elected and shall not be counted in determining the presence of a quorum.

D. Any member(s) of the Council of the Metropolitan Government of Nashville and Davidson County whose council district(s) includes any of the area contained within the CBID shall serve as an ex officio member.

E. Vacancies on the board for elected members shall be filled by the remaining board members present and voting to fill the vacancy.

Section 2.177.060 District Management Corporation Powers.

A. In furtherance and not in limitation of the general powers conferred upon a CBID by Chapter 84 of Title 7 of the Tennessee Code Annotated, and in keeping with the purposes of the CBID set forth herein, it is expressly provided that the District Management Corporation shall have the following powers which shall be exercised at the discretion of the District Management Corporation acting through its Board of Directors, as follows:

1. Maintenance and cleaning services, safety and hospitality services;

2. Streetscape and landscape programs;

3. Communications and marketing, district advocacy and district management;

4. To provide services for the improvement and operation of the District, to supplement those provided by the Metropolitan Government, as follows:

a. Promotion and marketing;
b. Advertising;
c. Health and sanitation;
d. Public safety;
e. Elimination of problems related to traffic and parking;
f. Security services;
g. Recreation;
h. Cultural enhancements;
i. Activities in support of business or residential recruitment, retention and management development;
j. Aesthetic improvements, including the decoration, restoration or renovation of any public space or of building facades and exteriors in public view which confer a public benefit;
k. Professional management, planning and promotion of the District;
l. Consulting with respect to planning, management, and development activities;
m. Furnishing of music in any public place;
n. Design assistance; and
o. Such other services as are authorized by Tennessee Code Annotated, §7-84-520.

5. To enter into contracts and agreements with other persons or entities.

6. To hire employees or retain agents, engineers, architects, planners, consultants, attorneys and accountants.

7. To acquire, construct, install and operate public improvements contemplated by this Ordinance and all property rights or interests incidental or appurtenant thereto, and to dispose of real and personal property and any interest therein including leases and easements in connection therewith.

8. To manage, control and supervise:

a. All the business and affairs of the District.
b. The acquisition, construction and installation and operation of public improvements within the District;
c. The operation of District services therein.

9. To construct and install improvements across and along any public street, alley, highway, stream of water or water course in accordance with state and local laws, rules or regulations.

10. To construct and operate childcare facilities.

11. To accept, administer and comply with the conditions and requirements respecting any appropriation of funds or any gift, grant or donation of property or money to the Central Business Improvement District; and

12. To exercise all rights and powers necessary or incidental to or implied from the specific powers granted in this section.

B. All services to the District listed above shall be provided by the District Management Corporation as a service to and in support of the Metropolitan Government and such services are to be paid for out of revenues from the special assessment. Revenues from special assessments shall be used to supplement and not to pay for the same level of services provided by the Metropolitan Government within the District as are provided throughout the urban services district. In no event will the level of urban services provided to the District by decreased as a result of the enhanced level of services provided through the special assessment revenues; provided, however, the level of urban services may be decreased for other reasons. In carrying out these responsibilities, the District Management Corporation must comply with all applicable provisions of laws, including Chapter 84 of Title 7 of Tennessee Code Annotated, all city resolutions and ordinances and all regulations lawfully imposed by the state auditor or other state agencies.

Section 2.177.070 Annual Budget.

The District Management Corporation shall annually submit to the Metropolitan Council a financial report and a written report of its activities for the preceding year together with a proposed budget for the next year. The annual budget shall include a projection of revenues from the special assessment and a projection of expenditures for projects, services and activities of the District Management Corporation and shall be reviewed and approved by the Metropolitan Council, or if not approved shall be returned to the Board of Directors for revision and resubmission until the Metropolitan Council shall approve the annual budget.

Section 2.177.080 Estimated Costs and Rate of Levy; Special Assessment Procedure.

A. The estimated cost of the initially proposed improvements, services projects and other permitted uses of special assessment revenues is $2,474,943.

B. The initial rate of levy of the special assessment for the Downtown CBID will be calculated from midyear 2017 records of the Metro Tax Assessor, dividing the $2,474,943 budget by the total assessed value in the Downtown CBID to determine the required assessment rate per dollar of assessed property value. The District Management Board by a resolution will request the rate through a Metropolitan Council ordinance process including a public hearing for District property owners. Such rate of levy shall continue in force until changed by the Metropolitan Council in accordance herewith. A change in the rate of levy of such special assessment may be initiated only by a resolution from the District Management Corporation. Upon receipt of this resolution from the District Management Corporation, the Metropolitan Council must hold a public hearing on whether there should be a change in the rate of levy for the special assessment, and no such change shall become effective unless and until it is approved by an ordinance enacted by the Metropolitan Council.

C. Beginning in 2017, special assessments shall be levied against all taxable real property within the Downtown CBID pursuant to a special assessment roll of all owners of real property within the District as shown in the records of the Assessor of Property for the Metropolitan Government of Nashville and Davidson County, including owners of leaseholds on property owned by the Industrial Development Board of the Metropolitan Government of Nashville and Davidson County.

D. Notice of the special assessment shall be issued simultaneously with tax notices for regular Metropolitan Nashville real property taxes, and revenues from the special assessment shall be collected by the Metropolitan Management Corporation to the extent it is empowered by this ordinance.

E. Special assessments shall be imposed and collected annually as set forth hereinabove and changes in the rate or additions to the rate of the special assessment may be made only on an annual basis and only in accordance with the procedure set forth in section 2.177.080(B).

F. Penalty and interest in the amount permitted by state law shall be added to any such assessment or installment thereof not paid on or before the date prescribed by the Metropolitan Government of Nashville and Davidson County.

Section 2.174.090 Dissolution of the District Management Corporation.

The Metropolitan Council may dissolve the Downtown CBID upon receipt of a written petition filed either: (a) by the owners of 75% of the assessed value of the taxable real property in the Downtown CBID based on the most recent certified City property tax rolls; or (b) by 50% of the owners of record within the Downtown CBID.

The Downtown CBID may not be dissolved if the Metropolitan Government has outstanding any bonds, notes or other obligations payable solely from the special assessment revenues levied on the real property within the Downtown CBID in which case such dissolution may occur only at such time as such bonded indebtedness has been repaid in full or the Metropolitan Government pledges to the payment of such indebtedness tis full faith and credit and unlimited taxing power. Upon dissolution of the Downtown CBID, any unencumbered assessment proceeds remaining under the control of the Downtown CBID shall be disbursed to the owners of the Downtown CBID real property pro rata based upon the amounts of the respective assessments.

Section 2. The Metropolitan Council of the Metropolitan Government of Nashville and Davidson County hereby authorizes the Metropolitan Mayor to execute a memorandum of agreement between the Metropolitan Government and the District Management Corporation specifying the level of urban services currently being provided and making assurances consistent with this Ordinance. The Director of the Department of Finance shall approve the method of collection, administration and distribution of the special assessment revenue authorized hereunder.

Section 3. 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: Freddie O'Connell, Erica Gilmore, Sharon Hurt

LEGISLATIVE HISTORY
Introduced:	February 7, 2017
Passed First Reading:	February 7, 2017
Referred to:	Budget & Finance Committee
Passed Second Reading:	February 21, 2017
Public Hearing Scheduled For:	March 7, 2017
Passed Third Reading:	March 7, 2017
Approved:	March 8, 2017
By:

Requests for ADA accommodation should be directed to the Metropolitan Clerk at 615/862-6770.