RESOLUTION NO. RS2002-1237

A resolution authorizing the filing of a petition with the court to request that The Metropolitan Government of Nashville and Davidson County be allowed to resign as Trustee of the Joseph B. Knowles Trust and recommending the appointment of Senior Citizens, Inc. as successor Trustee.

Whereas, the will of Annie Horton, daughter of Joseph B. Knowles, executed in 1891 (hereinafter the “Will”), left funds to the City of Nashville to be held in trust “for the relief, assistance, and comfort” of aged persons in Nashville; and,

Whereas, the Will requested that the trust funds be used for the erection of a building or buildings for aged persons if none existed; that if such building was erected that the building was to be named the Joseph B. Knowles Home for Aged People; and that any residue of the funds were to be safely and properly invested and its income applied for the benefit of the aged people of Nashville, the fund to be known as the Joseph P. Knowles Fund for Aged People (herein referred to as the “Trust Fund”); and,

Whereas, by resolution of its City Council, the City of Nashville authorized various officials of the City of Nashville to carry out transactions for the Trust Fund between the time the Trust Fund was established and the inception of the Metropolitan Government on April 1, 1963; and

Whereas, in July, 1885, the City of Nashville bought the Tarbox School property; and

Whereas, in February, 1963, by Resolution No. 63-1628, the Nashville City Council approved the sale of the Tarbox School property at 1801 Broadway to the Trust Fund for $120,000.00; and,

Whereas, on March 13, 1963, the City of Nashville, by a deed recorded in Book 3531, page 235, Register’s Office of Davidson County, did convey the Tarbox School property to the Trust Fund; and

Whereas, in September, 1965, the Metropolitan Government, as the successor Trustee of the Trust Fund, authorized the Metropolitan Mayor by Resolution No. 65-755 to lease the Tarbox School property to Senior Citizens, Inc., for nominal rent of $1 each year for 25 years for the purpose of providing a center for aged persons and, further, authorized the Mayor to act as a trustee of the Trust Fund for purposes of executing contracts for the repair and renovation of the former Tarbox School property jointly with Senior Citizens, Inc.; and,

Whereas, on March 7, 1967, the Mayor did execute the lease agreement on behalf of the Trust Fund with Senior Citizens, Inc., for the former Tarbox School property; and

Whereas, in 1992 the Metropolitan Council adopted Resolution No. 92-266 authorizing the Mayor, on behalf of the Trust Fund, to execute a renewal of the lease with Senior Citizens, Inc., for the nominal rent of $1 per year for an additional 25 years; and

Whereas, on March 22, 1992, the Mayor did execute the lease agreement on behalf of the Trust Fund with Senior Citizens, Inc., for the property; and
Whereas, the City of Nashville and the Metropolitan Government have invested the residue of the funds as directed by the Will and, as of July 1, 2002, said funds totaled $998,573.00; and,

Whereas, the City of Nashville and the Metropolitan Government, as the successor to the City of Nashville (Metropolitan Charter §20.03), have performed their obligations to the Trust Fund created by the Will; and,

Whereas, the Metropolitan Government is not organized to administer a trust of this nature and has concluded that the purposes of the Trust Fund would best be served if the court relieves the Metropolitan Government of the responsibility as the Trustee of the Trust Fund and appoints another trustee for the Trust Fund such as a private, non-profit, charitable entity that is organized for the sole expressed purpose of providing services to aged persons; and,

Whereas, under Tennessee law, absent an express authorization in a trust instrument, only a court of competent jurisdiction can relieve a trustee and appoint a successor trustee; and

Whereas, the Will does not have an express provision authorizing the resignation by Metropolitan Government as Trustee or a provision authorizing the appointment of a successor trustee which is currently applicable; and

Whereas the Metropolitan Government wants to request the court to relieve the Metropolitan Government of the responsibilities as the Trustee of the Trust Fund by requesting permission to resign as the Trustee of the Trust Fund; and,

Whereas, Senior Citizens, Inc., is a charitable organization that is organized to provide the services to aged persons such as those that are contemplated by the Will and has ably fulfilled this function and provided these services during the many years it has leased the Tarbox School property from the Trust Fund; and,

Whereas, Senior Citizens, Inc., has entered into a lease with the Metropolitan Government approved by Ordinance No. BL2001-754 for the construction and operation of a senior citizens center on the Tennessee State Fairgrounds; and,

Whereas, Senior Citizens, Inc. has agreed to accept the obligations of the Will by acting as the trustee for the Trust Fund should the court choose to appoint it as the successor Trustee,

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

Section 1: That the Metropolitan Council hereby directs that the appropriate documents be filed with the court having jurisdiction over this matter to request the court to approve the resignation of The Metropolitan Government of Nashville and Davidson County from its position as the Trustee of the Joseph B. Knowles Fund for Aged People as established by the Will and authorizes the Department of Law to cause the initiation of the court proceedings for this purpose.

Section 2: That the Metropolitan Council hereby directs that the documents filed with the court are to advise the court that the Metropolitan Government, as the current Trustee, recommends the appointment of Senior Citizens, Inc., as successor Trustee of the Trust Fund.

Section 3: That 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: Craig Jenkins, Tony Derryberry, Ludye Wallace

LEGISLATIVE HISTORY
Referred to:	Budget & Finance Committee Health, Hospitals, & Social Services Committee
Introduced:	November 19, 2002
Adopted:	November 19, 2002
Approved:	November 20, 2002
By: