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Bill BL2018-1205

An ordinance prohibiting the Metropolitan Government of Nashville and Davidson County from approving or otherwise entering into the sale, lease, transfer or conveyance of property adjacent to the proposed Major League Soccer stadium to any third party for purposes of private development.

WHEREAS, on November 7, 2017, the Metropolitan Council adopted Substitute Resolution No. RS2017-910, which approved the issuance and sale of public facility revenue improvement Bonds by the Sports Authority of the Metropolitan Government for the purposes of, inter alia, paying costs to acquire, construct, improve, renovate and equip a Major League Soccer stadium and related facilities on a portion of the Nashville Fairgrounds site located at 300 Rains Avenue; and

WHEREAS, in a recital clause, Substitute Resolution No. RS2017-910 further expressed “desires” of the Metropolitan Government to enter into an agreement with Nashville Soccer Holdings, LLC (the “Team”) as an inducement to enter into a lease with the Sports Authority wherein the Team would agree to commence development of certain property adjacent to the stadium consisting of +/- 10 acres, to be leased from the Metropolitan Government and/or Fair Board, as applicable, pursuant to a no-cost 99 year ground lease; and

WHEREAS, Substitute Resolution No. RS2017-910 further expressed the “intent” of the Metropolitan Council that that one-half of the property taxes generated by the +/- 10-acre private development site be annually appropriated to a reserve account to be used for long-term capital expenditures at the fairgrounds; and

WHEREAS, no sale, lease, or conveyance of the +/- 10 acre site was effectuated by virtue of the adoption of Substitute Resolution No. RS2017-910, and the Intergovernmental Project Agreement between The Metropolitan Government and The Sports Authority, attached as Exhibit A thereto, makes no reference to the property; and

WHEREAS, when details of the proposed MLS soccer stadium were initially presented to the Metropolitan Council on August 24, 2017, no mention was made of an “inducement” of +/- 10 acres for development; and

WHEREAS, the +/- 10 acres was not subjected to a Request for Proposals (RFP) process, but rather offered solely to the Team through private negotiations; and

WHEREAS, following adoption of Substitute Resolution No. RS2017-910, it was subsequently disclosed that more than $135,000 for design and planning of the stadium was improperly authorized without prior approval and without the requisite authorization from the Sports Authority; and

WHEREAS, the fairgrounds property has been independently appraised, and the value of the land around the proposed stadium was determined to be $1.7 million dollars per acre, while the value of the land considered developable was appraised at $1.1 million dollars per acre, or $11 million for the entirety of the +/- 10 acres, calling into question the necessity for “inducements” of such magnitude for stadium development.

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

Section 1. That the Metropolitan Government of Nashville and Davidson County is hereby prohibited from approving or otherwise entering into the sale, lease, transfer, or conveyance of the ownership, possession, or legal title to any real property owned by the Metropolitan Government and/or Metropolitan Board of Fair Commissioners adjacent to the proposed Major League Soccer stadium, as described in Resolution No. RS2017-910, to any third party for purposes of private development.

Section 2. This ordinance shall take effect from and after its final passage, the welfare of the Metropolitan Government of Nashville and Davidson County, Tennessee, requiring it.

Sponsor(s)

Steve Glover

Related Documents

Legislative History

IntroducedJune 5, 2018

DeferredJune 5, 2018

Passed First ReadingJune 19, 2018

Referred toBudget and Finance Committee
Codes, Fair, and Farmers Market Committee
Convention, Tourism, and Public Entertainment Facilities Committee

Passed Second Reading-

Passed Third Reading-

Approved-

By-

Next ConsiderationJuly 3, 2018

Requests for ADA accommodation should be directed to the Metropolitan Clerk at 615-862-6770.

Last Modified: 06/22/2018 2:29 PM