RESOLUTION NO. RS2011-1535

A resolution authorizing an economic and community development incentive grant to be made to the Industrial Development Board of the Metropolitan Government of Nashville and Davidson County for the benefit of Asurion, LLC, in an amount not to exceed Two Million Four Hundred Thousand dollars.

WHEREAS, the Metropolitan Government of Nashville and Davidson County (“Metropolitan Government”) is vitally interested in the economic welfare of the citizens living within the area of the Metropolitan Government and wishes to provide the leadership necessary to enhance this area's capabilities for growth and development; and

WHEREAS, the provision of quality jobs to area citizens by local business is both necessary and vital to the economic well-being of the Metropolitan Government; and

WHEREAS, pursuant to Tenn. Code Ann. § 5-9-101(26), the Metropolitan Government is authorized to use available funds to make grants for economic and community development purposes; and

WHEREAS, the Metropolitan County Council adopted Ordinance No. BL2010-806 on February 1, 2011, after determining that, in order to promote industry, develop trade, create jobs and reduce unemployment, and in order to further other public purposes of the Metropolitan Government, it was in the best interest of the Metropolitan Government to make economic and community development incentive grants to encourage the location and growth within the boundaries of the Metropolitan Government of manufacturing facilities, offices, distribution facilities, customer support or call center facilities of well known and successful companies, comparable, but not limited to, companies on the Fortune 500 listing, involved in the servicing, manufacturing or assembly of computers, or telecommunications equipment or component parts thereof, if the location within the political boundaries of the Metropolitan Government is expected to result in the creation of at least five hundred new jobs for citizens within the area of the Metropolitan Government during the next five years of operations; and

WHEREAS, Chapter 2.210 of the Metropolitan Code, as amended by BL2010-806, provides that, in order to promote industry, develop trade, create jobs and reduce unemployment, and in order to further other public purposes of the Metropolitan Government, it is in the best interest of the Metropolitan Government to make economic and community development incentive grants to the Industrial Development Board of the Metropolitan Government of Nashville and Davidson County (“Board”) for the benefit of Technology firms (as redefined in BL2010-806) by taking into account, among other things, the amount of revenue from all sources that is anticipated to be received by the Metropolitan Government with respect to the location of the qualified company and its operations within the area of the Metropolitan Government and other economic and community development opportunities that the qualified company is expected to create; and

WHEREAS, Asurion LLC (“Asurion”), a privately held company with more than 5,000 employees that provides technology protection services, has announced its decision to maintain its existing Global Headquarters, to locate its North American Operations Center, and to maintain as least 1,200 employees within the area of the Metropolitan Government; and in connection with such an expanded presence, Asurion expects to create an additional 600 jobs within the area of the Metropolitan Government during the next five years; and

WHEREAS, the Metropolitan Government has found that Asurion meets the criteria to be eligible to receive the benefits of an economic and community development incentive grant authorized by Chapter 2.210.020(B) of the Metropolitan Code as amended by Ordinance No. BL2010-806; and

WHEREAS, the Metropolitan Government has found that the continued location of Asurion’s existing presence in the area of the Metropolitan Government, including its Global Headquarters, the location of Asurion’s North American Operations Center in the area of the Metropolitan Government and the related investment and growth in connection therewith will maintain and expand significant employment and other commercial opportunities for area citizens; and

WHEREAS, the economic and community development incentive grant agreement ("Agreement"), the form of which is attached hereto and incorporated herein by reference, in order to promote public purpose goals recited in Chapter 2.210 of the Metropolitan Code as amended by Ordinance No. BL2010-806, the Metropolitan Government has found that it is in the interest and welfare of the citizens of the Metropolitan Government to make an economic and community development incentive grant to the Board for the benefit of Asurion in an amount not to exceed two million four hundred thousand dollars ($2,400,000.00), of which up to three hundred thousand dollars ($300,000.00) will be provided in an amount calculated by multiplying the number of Additional Jobs (as defined in the Agreement) created by Asurion during the term of the Agreement by five hundred dollars ($500.00), and

WHEREAS, it is in the interest and welfare of the citizens of the Metropolitan Government to approve the economic and community development incentive grant and execute the Agreement with the Board and Asurion.

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

Section 1. That an economic and community development incentive grant shall be made to the Board for the benefit of Asurion in an amount not to exceed two million four hundred thousand dollars ($2,400,000.00).

Section 2. The maximum amount of the annual economic and community development incentive grant payments authorized by this Resolution shall be as follows: $750,000 for grant year one; $750,000 for grant year two, and $600,000 for grant year three as well as any grant amount for Additional Jobs as specified in the Agreement.

Section 3. Notwithstanding anything to the contrary herein, the Metropolitan Government's obligation to make any payments hereunder is contingent upon the annual appropriation of funds for such purpose by the Metropolitan Council.

Section 4. That the Agreement by and among the Metropolitan Government, the Board and Asurion, the form of which is attached hereto and incorporated herein by reference, is hereby approved, and the Mayor is authorized to execute the same.

Section 5. That any material amendments, renewals, or extension of the terms of the Agreement must be approved by resolution of the Metropolitan Council.

Section 6. That this Resolution shall take effect from and after its final passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Greg Adkins, Megan Barry, Rip Ryman, Jim Forkum

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LEGISLATIVE HISTORY

Referred to: Budget & Finance Committee
Introduced: February 15, 2011
Adopted: February 15, 2011
Approved: February 22, 2011
By: