RESOLUTION NO. RS2016-434
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 Warner Music, Inc.
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 (such area, the “County”) 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, pursuant to Chapter 2.210 of the Metropolitan Code, in order to encourage economic and community development within the County, the Metropolitan Government is authorized to make economic and community development incentive grants with respect to “qualified projects” and “qualified companies” (as such terms are defined in Section 2.210.010 of the Metropolitan Code) if the location of such qualified project or such qualified company’s applicable facility within the County is expected to result in the creation of at least five hundred additional jobs within the County during the first five years of operations or during the first five years of an expansion of operations; and,
WHEREAS, Chapter 2.210 of the Metropolitan Code provides that the actual amount and period of economic and community development incentive grants pursuant to such Chapter 2.210 shall be made by taking into account, among other things, the number of jobs created, 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 in the County (or in the qualified project), and other economic and community development opportunities that the qualified company and/or the qualified project is expected to create; and,
WHEREAS, Warner Music, Inc. (“Warner”), a privately held company with approximately 4,000 employees, including more than 100 employed within the County, that provides music services, has announced its tentative decision to expand its regional headquarters in the County (the “Project”), and in connection therewith, Warner reasonably expects to create over 500 new jobs in the County during the next five years; and,
WHEREAS, in its initial scope and configuration, the Project will consist of a build-out of approximately 30,000 square feet of office space in a building located at 511 Union Street, Nashville, Tennessee (the “Nashville City Center”); and,
WHEREAS, the Metropolitan Government has found that Warner meets the criteria to be eligible to receive the benefits of an economic and community development incentive grant as authorized by Chapter 2.210.020(B) of the Metropolitan; and,
WHEREAS, the Metropolitan Government has found that the expansion of Warner’s presence in the County, including the location of the Project in the County and the related investment and growth in connection therewith will maintain and expand significant employment and other commercial opportunities for area citizens; and,
WHEREAS, in order to promote industry and develop trade and to create jobs and reduce unemployment and to further other public purposes of the Metropolitan Government from the continued location of Warner’s existing presence, and the related investment and growth in connection therewith and other economic and community development opportunities that Warner is expected to create within the County, it is in the best interest of the Metropolitan Government to make an economic and community development incentive grant to IDB for the benefit of Warner in an amount calculated each “Grant Year” by multiplying the number of “Additional Warner Jobs” (as defined in Exhibit A hereto) by $500 for a period of seven years from the commencement of the Project, provided however that should the number of Additional Warner Jobs not exceed 500 as of December 31, 2020, no grant payments will be made for that year or any subsequent Grant Year; and,
WHEREAS, it is in the interest and welfare of the citizens of the Metropolitan Government to approve and execute the Economic and Community Development Incentive Grant Agreement with the Board and Warner in the form attached hereto as Exhibit A (the “Agreement”).
NOW, THEREFORE BE IT RESOLVED BY THE METROPOLITAN COUNTY COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the Metropolitan Government shall make annual economic and community development incentive grant payments to the Board for the benefit of Warner during the seven year Grant Period (as defined in Exhibit A hereto).
Section 2. That the amount of the annual incentive grant payments authorized hereby be calculated by multiplying the number of Additional Warner Jobs (as defined in Exhibit A hereto) for each Grant Year (as defined in Exhibit A hereto) by $500.
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 Warner, the form of which is attached hereto as Exhibit A and incorporated herein by reference, is hereby approved, and the Mayor is authorized to execute the same; provided, however, that such Agreement must be approved as to legality by the Metropolitan Government Department of Law prior to being executed by the Metropolitan Government or the Board.
Section 5. That other than as provided at Section 4 of this Resolution, 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 passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Sponsored by: John Cooper, Nancy VanReece
|Referred to:||Budget & Finance Committee|
|Introduced:||November 15, 2016|
|Adopted:||November 15, 2016|
|Approved:||November 16, 2016|
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