RESOLUTION NO. RS2009-649
A resolution expressing the Metropolitan Council’s intent that the construction of the proposed downtown convention center and convention hotel be funded solely by revenue bonds that are not backed by the full faith and credit of the Metropolitan Government.
WHEREAS, in August 2007, the Metropolitan Council enacted Ordinance No. BL2007-1557 to authorize the collection of four new tourist accommodation taxes to create a funding mechanism for the construction of a new convention center in downtown Nashville; and
WHEREAS, the Metropolitan Council subsequently authorized the Metropolitan Development and Housing Agency to commence pre-construction activities associated with the proposed new downtown convention center; and
WHEREAS, as of January 20, 2009, the tourist accommodation taxes have generated in excess of $15 million in revenue, of which $4 million has been spent on pre-construction activities; and
WHEREAS, the Metropolitan Government is currently enduring the most difficult economic situation in recent memory, with Metropolitan Government departments being requested to submit a proposed fiscal year 2010 budget to the Finance Director showing a ten percent reduction; and
WHEREAS, given the current financial situation of the Metropolitan Government, it is in the best interest of the taxpayers of Nashville and Davidson County that the proposed convention center be constructed with no local taxpayer money whatsoever; and
WHEREAS, requiring the convention center to be constructed using only bonds backed exclusively by the revenues generated from the tourist accommodation taxes and the increased sales taxes within the Tourist Development Zone would provide a true market test of the financial viability of the project; and
WHEREAS, using Metropolitan Government funds to build a convention hotel would cause the Metropolitan Government to essentially construct a facility with taxpayer money that would be in competition with the existing hotels in the downtown area; and
WHEREAS, the Council desires to go on record as expressing its intent that no Metropolitan Government property tax dollars be pledged for the construction of the downtown convention center and the convention hotel.
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 intent that the proposed downtown convention center and convention hotel be funded solely by revenue bonds that are not backed by the full faith and credit of the Metropolitan Government. Specifically, the Council desires that a Convention Center Authority be created to issue the bonds, and that revenue bonds, as opposed to general obligation bonds, be used to construct the convention center and hotel. Such bonds should be backed exclusively by the revenue generated from the four tourist accommodation taxes, the increased hotel occupancy tax, and the increased sales taxes generated within the Tourist Development Zone.
Section 2. The Metropolitan Clerk is directed to send a certified copy of this Resolution to each member of the Davidson County Delegation to the Tennessee General Assembly.
Section 3. 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: Eric Crafton
|Referred to:||Budget & Finance Committee
Convention & Tourism Committee
|Introduced:||February 17, 2009|
|Deferred to March 17, 2009 Council Meeting:||February 17, 2009|
|Deferred:||March 17, 2009|
|Defeated:||April 7, 2009|