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Resolution RS2019-1609 (as amended)

A resolution authorizing an Economic and Community Development Incentive grant to the Industrial Development Board of the Metropolitan Government of Nashville and Davidson County for the benefit of AllianceBernstein, L.P.

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, 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 companies” (as such term is defined in Section 2.210.010 of the Metropolitan Code); 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, and other economic and community development opportunities that the qualified company is expected to create; and,

WHEREAS, AllianceBernstein, L.P. is a leading global investment-management and research firm with more than 3,400 employees worldwide; and,

WHEREAS, AllianceBernstein, L.P. has announced its decision to establish its headquarters within the County (the “Project”); and,

WHEREAS, AllianceBernstein, L.P. has provided the Project Proposal to the Office of Economic and Community Development as required by Chapter 2.210.030 of the Metropolitan Code; and,

WHEREAS, the Metropolitan Government has found that AllianceBernstein, L.P. 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; and,

WHEREAS, the Metropolitan Government has found that the expansion of AllianceBernstein, L.P.’s existing presence 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, 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 AllianceBernstein, L.P. in an amount calculated by multiplying the number of AllianceBernstein, L.P. jobs (as defined in the Agreement) created by AllianceBernstein, L.P. during the term of the Agreement by five hundred dollars ($500.00), and,

WHEREAS, the Nashville Convention Center Authority (CCA) receives tax revenues from a variety of sources, including portions of a hotel/motel tax (authorized under Tenn. Code Ann. §7-4-110), hotel room occupancy fees (Tenn. Code Ann. §7-4-202), a rental car tax (Tenn. Code Ann. §67-4-1908), campus sales taxes (Tenn. Code Ann. §67-6-103), airport departure taxes (Tenn. Code Ann. §7-88-101), and sales taxes collected within a Tourism Development Zone surrounding and extending beyond the convention center (Tenn. Code Ann. §7-88-101), which zone includes the Fifth and Broadway project designated as the site of the AllianceBernstein L.P. incentive proposal; and

WHEREAS, the project proposal submitted by AllianceBernstein L.P. will generate significant increased inflow of revenue to the CCA from (1) the sales tax revenue associated with the retail and dining spaces (estimated to total 235,000 square feet) to be located at this site and directed to the CCA, as well as (2) additional funds for the CCA generated as the result of the $38.5 million parking garage being financed by the CCA on this same site; and

WHEREAS, the Metropolitan Government general fund will receive reduced property taxes at the Fifth and Broadway project for a number of years as the result of a $25 million Tax Increment Financing payment that has been awarded to the developer, using the pledge of future property taxes from this site; and

WHEREAS, in fiscal year 2017, the CCA received over $92,365,781 in revenues generated by the tourism-related taxes and fees described above, and $102,539,865 in fiscal year 2018; and the CCA will receive substantial additional future revenues following completion of this Fifth and Broadway project, as well as others currently under construction; and

WHEREAS, as of June 2018, the CCA held $124,392,777 in cash and cash equivalents of unrestricted funds in unencumbered surplus revenue (inclusive of sales taxes, other revenue streams dedicated to the convention center, and operating profits); and

WHEREAS, funds generated or received by the CCA may be applied to its operating expenses and/or to general CCA purposes; and

WHEREAS, the bylaws of the CCCA provide that among the “purposes” for which the Authority is organized are to operate within the meaning of and exercise all powers granted to it by state law, including the promotion of tourism and business opportunities through accommodating conventions or other means, and to do what is reasonable and necessary to promote and further develop tourism, convention and employment opportunities; and

WHEREAS, the CCA has previously defrayed expenses incurred by the Metropolitan Government by appropriating approximately $10,441,661 from CCA revenues to the general fund of the Metropolitan Government. Pursuant to a Memorandum of Understanding signed May 8th, 2018 between the CCA and the Metropolitan Government, the CCA appropriated portions of its receipts from hotel/motel tax revenues, hotel room occupancy tax revenues, and campus sales tax revenues; and

WHEREAS, this appropriation of funds as a reimbursement by the CCA of expenses incurred by the Metropolitan Government has been construed as consistent with the operating expenses and/or purposes of the CCA; and

WHEREAS, it is therefore appropriate that the CCA be requested to voluntarily pay for the economic and community development incentive grant, using the same means as the Memorandum of Understanding between the Metropolitan Government and the CCA dated May 8th, 2018; 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 AllianceBernstein, L.P.

NOW, THEREFORE BE IT RESOLVED BY THE 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 AllianceBernstein, L.P. in an amount calculated by multiplying the number of AllianceBernstein, L.P. jobs (as defined in the Agreement) created by AllianceBernstein, L.P. during the term of the Agreement by five hundred dollars ($500.00).

Section 2. 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 3. Notwithstanding anything to the contrary herein or within the Agreement, the Metropolitan Government's obligation to make any payments hereunder is contingent upon (a) the solicitation by the Metropolitan Government of a voluntary appropriation of funds from the Convention Center Authority (CCA) in an amount equivalent to the economic and community development incentive grant approved herein, using legal revenue sources consistent with the operating expenses and/or purposes of the CCA; and (b) the receipt of a response from the CCA to the solicitation by the Metropolitan Government for a voluntary appropriation, to be delivered by the CCA to the Metropolitan Council prior to the adoption of the Budget Ordinance of the Metropolitan Government of Nashville and Davidson County for Fiscal Year 2020.

Section 4. That the Agreement by and among the Metropolitan Government, the Board, and AllianceBernstein, L.P., 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.

Sponsor(s)

Tanaka Vercher, Freddie O'Connell

Related Documents

Legislative History

Referred toBudget and Finance Committee

IntroducedFebruary 19, 2019

DeferredFebruary 19, 2019

AmendedMarch 5, 2019

AdoptedMarch 5, 2019

ApprovedMarch 6, 2019

ByMayor Briley's signature

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

Last Modified: 03/08/2019 12:38 PM