ADOPTED 03/16/1999

RESOLUTION NO. R99-1466

A resolution appropriating two million ($2,000,000) dollars to the Country Music Hall of Fame to provide partial funding for a new Country Music Hall of Fame Museum to be located in the Capitol Mall Redevelopment District.

Whereas, the need to promote tourism and tourist related activities within the area of Metropolitan Government is a function of The Metropolitan Government of Nashville and Davidson County, the Metropolitan Tourism and Convention Commission ("Tourism Commission") and the Metropolitan Convention Center Commission ("MCCC"); and

Whereas, the Country Music Hall of Fame Museum will be an integral part of the tourist economy and will promote attendance at other nearby tourist facilities, including the Nashville Arena and the Nashville Convention Center; and

Whereas, Tennessee Code Annotated, § 7-4-101 et seq., and Chapter 5.12 of the Metropolitan Code of Laws authorize one percent (1%) of the proceeds from the tourist accommodation tax to be used for tourist-related activities and, the Tourism Commission and the MCCC have had a working agreement that the proceeds of the tourist accommodation tax which are to be used for tourist-related activities are to be used to benefit the Nashville Convention Center; and

Whereas, in accordance with Substitute Bill No. 082-858, the proceeds from the tourist accommodation tax have been allocated in the following manner: one percent (1%) to the Tourism Commission for tourism promotion; one percent (1%) to the Nashville Convention Center for operations and facility maintenance; one percent (1%) to the Nashville Convention Center for debt service; and, one percent (1%) to the general fund of the Metropolitan Government of Nashville and Davidson County; and

Whereas, the MCCC has tracked, accounted for, and reported on the utilization of the proceeds of the tourist accommodation tax and has operated the Convention Center in a successful and fiscally responsible manner such that no general fund appropriation has been required to operate the Convention Center and, there currently exists reserve funds with which to operate; and

Whereas, the Metropolitan Government, the Tourism Commission and the MCCC have operated through the years with an understanding that the reserve funds are needed for the continued successful operation, for capital expenditures to maintain and improve the Convention Center and for the MCCC to continue to be considered a first class Convention Center that creates maximum economic impact for the Metropolitan Government; and

Whereas, the Nashville Tourism Commission and the Metropolitan Convention Center Commission have determined that a portion of the proceeds of the tourist accommodation tax which are to be used for tourist-related activities may now be used for a one-time appropriation to support the construction of the Country Music Hall of Fame Museum because the construction of such a facility will benefit the Nashville Convention Center; and

Whereas, the Nashville Tourism Commission and the Metropolitan Convention Center Commission have approved the use of a portion of the proceeds of the tourist accommodation tax which are to be used for tourist-related activities for a one-time appropriation to support the construction of the Country Music Hall of Fame Museum; and

Whereas, T.C.A. §7-3-315 enables the Metropolitan Government to appropriate funds for the financial aid of a nonprofit organization which is exempt from taxation pursuant to § 501(c)(3) of the Internal Revenue Code, provided that such funds appropriated shall be used to promote the general welfare of the residents of Metropolitan Government; and

Whereas, the Country Music Hall of Fame is a tax exempt organization under the provisions of §501(c)(3) of the Internal Revenue Code of 1986, as amended; and

Whereas, the funds appropriated herein shall be used to promote the general welfare of the residents of Metropolitan Government and to promote an increase in tourism in the area of the Metropolitan Government; and

Whereas, the Country Music Hall of Fame has filed with the Metropolitan Clerk (1) evidence of its tax exempt status under the Internal Revenue Code of 1986, as amended, (2) a statement of the proposed use of the funds and the program that serves the residents of Metropolitan Government, and (3) a copy of its annual audit of its last fiscal year.

Now, therefore, be it resolved by The Metropolitan Government of Nashville and Davidson County:

Section 1. There is hereby appropriated two million ($2,000,000) dollars to the Country Music Hall of Fame, to be distributed in the amount of five hundred thousand ($500,000) dollars in FY 99-2000, FY 2000-01, FY 01-02 and FY 02-03, from the appropriate account as designated by the Director of Finance, to fund a grant to the Country Music Hall of Fame for the purpose of constructing the Country Music Hall of Fame Museum in the Capitol Mall Redevelopment District. Payments in FY 2000-01, FY 01-02 and FY 02-03 are subject to the approval, by ordinance, of a contract between The Metropolitan Government of Nashville and Davidson County and the Country Music Hall of Fame. Said grant is contingent on collection of tourist accommodation taxes in an amount sufficient to fund the grant.

Section 2. The Metropolitan Government is hereby authorized to enter into a contract with the Country Music Hall of Fame for the initial payment of $500,000, and the Metropolitan Mayor is hereby authorized to execute said contract. Such contract shall specify the terms and conditions under which the grant funds are to be distributed and spent and shall contain a requirement that the grantee shall file with the Director of Finance and with the Metropolitan Clerk a copy of an annual report of its business affairs and transactions and documents detailing the actual expenditures of the funds provided herein.

Section 3. This resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored By: Julius Sloss, Ronnie Steine & Chris Ferrell

LEGISLATIVE HISTORY
Referred to:	Budget & Finance Committee
Introduced:	March 16, 1999
Adopted:	March 16, 1999
Approved:	March 24, 1999
By: