RESOLUTION NO. RS2011-1782

A resolution repealing Resolution No. RS2011-1707 for the purpose of rescinding the Metropolitan Council’s approval of a grant in an amount not to exceed One Million Six Hundred Ten Thousand Dollars ($1,610,000) for the benefit of IQT, Inc.

WHEREAS, on June 21, 2011, the Metropolitan Council adopted Resolution No. RS2011-1707 authorizing a grant for the benefit of IQT, Inc., in an amount not to exceed One Million Six Hundred Ten Thousand dollars ($1,610,000), comprised of Nine Hundred Sixty Thousand dollars ($960,000) in the form of an economic and community development incentive grant to be administered through the Industrial Development Board of the Metropolitan Government of Nashville and Davidson County (IDB) and Six Hundred Fifty Thousand dollars ($650,000) from revenues designated for economic development in the Capitol Mall Urban Development Action Grant (UDAG) to be administered by the Metropolitan Development and Housing Agency (MDHA); and

WHEREAS, this grant was to provide a financial incentive to IQT, Inc. to locate its U.S. headquarters and operation center within Metropolitan Nashville and Davidson County; and

WHEREAS, Section 5 of Resolution No. RS2011-1707 authorized the Metropolitan Mayor to execute the Grants Agreement by and among the Metropolitan Government, the IDB, MDHA, and IQT, Inc.; and

WHEREAS, to date, the Grants Agreement has not been fully executed by the parties to the agreement; and

WHEREAS, recent developments have raised serious questions about the financial stability and viability of IQT, Inc., and the Metropolitan Government has obtained evidence that IQT, Inc. no longer intends to locate its U.S. headquarters and operation center within Metropolitan Nashville and Davidson County; and

WHEREAS, it is in the best interest of the Metropolitan Government and the taxpayers of Metropolitan Nashville and Davidson County that the Metropolitan Council rescind its approval of the Grants Agreement that would have provided a financial incentive to IQT, Inc.

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

Section 1. That Resolution No. RS2011-1707 is hereby repealed in its entirety and the approval of, and authorization to execute the Grants Agreement by and among the Metropolitan Government, the IDB, MDHA, and IQT, Inc. is hereby rescinded.

Section 2. 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: Megan Barry, Jerry Maynard

LEGISLATIVE HISTORY
Referred to:	Budget & Finance Committee
Introduced:	August 16, 2011
Adopted:	August 16, 2011
Approved:	August 19, 2011
By: