ORDINANCE NO. BL2017-860

ORDINANCE BL2017-860

An ordinance amending Title 2 of the Metropolitan Code to modify the eligibility requirements for the blighted property grant program and to establish an historic preservation grant program.

WHEREAS, preserving history and culture is vital to growing the economy of Metropolitan Nashville and Davidson County and for attracting a talented workforce; and,

WHEREAS, Nashville’s cultural draw depends on the uniqueness and the vibrancy of its neighborhoods; and,

WHEREAS, preserving historically significant structures is necessary in order to promote economic and community development within the area of the Metropolitan Government; and,

WHEREAS, an historic preservation grant program is a tool to help preserve the character of Nashville’s neighborhoods and ‘main streets’ by providing matching funds to rehabilitate historically significant structures; and,

WHEREAS, historic preservation has the added economic benefit of being environmentally sustainable by employing adaptive reuse instead of demolition (reducing solid waste disposal and energy use); and,

WHEREAS, the reuse of existing buildings also allows landowners to lease space at a lower cost, providing opportunity for local small businesses to lease space within neighborhoods; and,

WHEREAS, T.C.A. § 5-9-101 authorizes county legislative bodies to appropriate funds for economic and community development purposes; and,

WHEREAS, Substitute Ordinance No. BL2017-722, the Operating Budget for Fiscal Year 2017-2018, included an appropriation of $150,000 for Historic Preservation; and,

WHEREAS, in order to promote economic and community development, it is in the best interest of the residents of the Metropolitan Government that a historic preservation grant program be established.

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

Section 1. Section 2.212.030 of the Metropolitan Code is hereby amended by deleting subsections C. and D. in their entirety, and substituting with the following:

C. Such grant funds shall be used for the sole purpose of constructing or rehabilitating the exterior portions of blighted commercial property located within Eligible Census Tracts having a property value not to exceed one million dollars ($1,000,000) at the time the grant application is made to ECD based upon the appraised value of the property as determined by the Davidson County Property Tax Assessor and where the construction or rehabilitation investment exceeds ten thousand dollars ($10,000). Eligible Census Tracts are those where at least 65% of households are at or below 80% AMI. The Mayor's Office of Economic and Community Development shall maintain, on file and open for inspection, a list and map of eligible census tracts to be updated annually.
D. The amount of the grant shall not exceed fifty percent of the documented investment of the developer up to a maximum grant amount of fifty thousand dollars ($50,000).

Section 2. Title 2 of the Metropolitan Code is hereby amended by adding the following new Chapter 2.215 – Historic Preservation Grant Program:

2.215.010 – Definitions.
"ECD" means the mayor's office of economic and community development.
"Historically significant structure" means a structure within the boundaries of the metropolitan government that is used for commercial purposes and that meets one or more of the following criteria:
1. The structure is individually listed or is eligible for listing in the National Register of Historic Places as determined by the metropolitan historic zoning commission of Nashville and Davidson County, or by the Tennessee Historical Commission; or,
2. The structure is within a district listed or eligible for listing in the National Register of Historic Places or is within an historic overlay district, such structure having been determined to contribute to the architectural character of the district by the metropolitan historic zoning commission of Nashville and Davidson County or by the Tennessee Historical Commission; or,
3. The structure is within a historic overlay district, or within a district that meets the criteria for designation as an historic overlay district, such structure having been determined to contribute to the architectural character of the district by the metropolitan historic zoning commission of Nashville and Davidson County.

2.215.020 – Historic preservation grants.
A. The metropolitan government, through ECD, may make grants to property owners who make improvements to the exterior of historically significant structures for the purpose of preserving the historic character of the structures.
B. Such grants shall be made from funds appropriated by the council from the general fund of the general services district for such purpose.
C. Such grant funds shall be used for the sole purpose of rehabilitating the exterior portions of historically significant structures within eligible census tracts. Eligible census tracts are those where at least sixty-five percent of households are at or below eighty percent of the Area Median Income as determined by the U.S. Department of Housing and Urban Development. ECD shall maintain, on file and open for inspection, a list and map of eligible census tracts to be updated annually.
D. The grant agreement shall require a minimum expenditure by the property owner of $5,000, and the grant amount shall not exceed the greater of fifty percent of the cost of improvement(s) to the exterior of the historically significant structure or $50,000. For example, a $20,000 grant would require an investment of at least $20,000 by the property owner, for a total project cost of at least $40,000.
E. The grant shall be paid after the property owner has submitted proof of the required documented expenditures pursuant to the grant agreement.
F. ECD shall make historic preservation grants to qualified developers on a first-come-first-served basis subject to the availability of funding approved for the program by the metropolitan council through the metropolitan government operating budget ordinance.

2.215.030 - Grants subject to funding availability.
All agreements for historic preservation grants to be funded by the metropolitan government shall expressly provide that the metropolitan government's financial obligations thereunder are conditioned upon the appropriation of funds by the metropolitan council. The metropolitan government shall have no obligation to make a historic preservation grant if adequate funds are not available.

2.215.040 - Development of rules and regulations.
ECD shall have the authority and responsibility to develop policies, procedures, rules, and/or regulations to implement this chapter. Such policies, procedures, rules, and/or regulations shall include a mechanism for obtaining proof of eligibility for the historic preservation grant program.

Section 3. That this Ordinance shall take effect immediately after its passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: John Cooper, Fabian Bedne, Burkley Allen, Angie Henderson, Tanaka Vercher

AMENDMENT NO. 1
TO
ORDINANCE NO. BL2017-860

Mr. President –

I move to amend Ordinance No. BL2017-860 as follows:

I. By amending Section 1 by deleting it in its entirety and substituting therefore the following:

Section 1. Section 2.212.030 of the Metropolitan Code is hereby amended by deleting subsections C. and D. in their entirety, and substituting with the following:

C. Such grant funds shall be used for the sole purpose of constructing or rehabilitating the exterior portions of blighted commercial property located within Eligible Census Tracts having a property value not to exceed one million dollars ($1,000,000) at the time the grant application is made to ECD based upon the appraised value of the property as determined by the ~~Davidson County Property Tax Assessor~~ Metropolitan Assessor of Property and where the construction or rehabilitation investment exceeds ten thousand dollars ($10,000). Eligible Census Tracts are those where at least 65% of households are at or below 80% area median income (AMI). The Mayor's Office of Economic and Community Development shall maintain, on file and open for inspection, a list and map of eligible census tracts to be updated annually.
D. The amount of the grant shall not exceed fifty percent of the documented investment of the developer up to a maximum grant amount of fifty thousand dollars ($50,000).

LEGISLATIVE HISTORY
Introduced:	August 15, 2017
Passed First Reading:	August 15, 2017
Referred to:	Budget & Finance Committee Planning, Zoning, & Historical Committee
Passed Second Reading:	September 5, 2017
Deferred:	September 19, 2017
Amended:	October 3, 2017
Passed Third Reading:	October 3, 2017
Approved:	October 4, 2017
By: