RESOLUTION NO. RS2009-986

A resolution expressing the Metropolitan Council’s desire to delay consideration of any and all bond resolutions or other legislative actions that approve financing for the construction of a new municipal convention center for at least six weeks from the date the legislation is filed with the Metropolitan Clerk’s Office.

Whereas, the Mayor’s Office and the Metropolitan Development and Housing Agency have indicated their desire to construct a new municipal convention center and associated hotel (the “Project”) in downtown Nashville; and

Whereas, the City’s plans for a municipal convention center have been progressing forward as evidenced by Council’s recent approval of the following three pieces of legislation:

On June 2, 2009, the Metropolitan Council adopted a resolution approving an intergovernmental project agreement with the Metropolitan Development and Housing Agency (MDHA) for the pre-development activities associated with the Project, and approved an ordinance authorizing the MDHA to acquire the property interests for the Project; and

On August 18, 2009, the Metropolitan Council approved the formation of a Convention Center Authority in accordance with the Convention Center Authorities Act of 2009; and

Whereas, at $635 million, not including the cost of the hotel, construction of the Project represents the largest public works project in the Metropolitan Government’s history and one of the largest in Tennessee’s history; and

Whereas, the financing for this transaction, and the revenue streams that will fund this transaction, are highly detailed and extremely complex; and

Whereas, the Metropolitan Council desires to have a sufficient amount of time to meet with the financing team and the construction team to review the proposed bond issuance and financing transactions for the Project before being asked to approve this transaction.

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

Section 1. That the Metropolitan County Council hereby goes on record as expressing its desire to delay consideration of any and all future resolutions pertaining to the Project, including resolutions for the approval of financing for the Project, for at least six weeks from the date and time that said resolution(s) are filed with the Metropolitan Clerk’s Office.

Section 2. At the time of the filing of the resolution, the Metropolitan Council desires to review documents outlining in detail the Project’s scope, design, budget, capital plan, financing structure, details of how debt shortfalls are to be handled and Metro’s funding obligation, and documentation evidencing the Guaranteed Maximum Price (“GMP”) for the Project.

Section 3. That the Metropolitan Council further desires to schedule and conduct the following public meetings at least three weeks before the Council is asked to approve a bond issuance for the Project:
1. A public meeting with the Project’s financing team for the purpose of reviewing the proposed financing structure, amortization schedule, Metro’s funding obligations and economic impact plan associated with the Project.

2. A public meeting with the convention center construction team for the purpose of reviewing the Project’s scope, design, budget, and GMP contract.

Section 4. That the Metropolitan Council further desires to conduct one public hearing at least three weeks before the Council is asked to approve a bond issuance for the Project to allow the citizens of Nashville and Davidson County to express their questions or concerns associated with the issuance of bonds for the Project.

Section 5. That the Metropolitan Clerk is directed to send a copy of this Resolution to Mayor Karl Dean, to Finance Director Rich Riebeling, to Metropolitan Development & Housing Authority Executive Director Phil Ryan, and to each member of the Board of Directors for the newly-created Convention Center Authority.

Section 6. 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: Jim Gotto, Michael Craddock, Eric Crafton

Amendment No. 1
To
Resolution No. RS2009-986

Madam President:

I move to amend RS2009-986 as follows:
1. By adding the following new sentence at the end of Section 1:

“The Council requests that the financing plan and associated legislation for both the convention center facility and the convention center hotel be filed concurrently so that the Council may consider both components at the same time.”

2. By deleting the first sentence of Section 3 and substituting with the following new sentence:

“That the Metropolitan Council further desires to schedule and conduct the following public meetings at least three weeks before the Council is asked to approve a bond issuance for the Project:”

Sponsored by: Jim Gotto