A resolution proposing recommendations by the COVID-19 Financial Oversight Committee for distribution of $2,000,000.00 in CARES Act funds from the COVID-19 Pandemic Fund No. 30099 to provide financial support to live music venues, to be administered by Pathway Lending.
WHEREAS, on June 16, 2020, the Metropolitan Council passed Substitute Ordinance BL2020-286, the budget ordinance for the Metropolitan Government for Fiscal Year 2021, which was subsequently signed into law by Mayor John Cooper on June 17, 2020; and
WHEREAS, Substitute Ordinance BL2020-286 established a COVID-19 Financial Oversight Committee (“the Committee”) to collect, consider, and recommend appropriate uses of all federal and state funds provided to the Metropolitan Government specifically for COVID-19 relief and recovery, including but not limited to, federal CARES Act funds, and to submit its initial recommendations to the Mayor, the Director of Finance, and the Metropolitan Council not later than August 3, 2020; and
WHEREAS, there are federal requirements for use of CARES Act funds that require that these funds be used or distributed on or before December 30, 2020; and
WHEREAS, Resolution RS2020-478 addressed initial recommendations by the Committee, including the immediate and critical need to provide financial assistance in the form of rent and mortgage payments and utilities payments to benefit individuals in Davidson County who have suffered the most from the devastating effects of the COVID-19 pandemic; and
WHEREAS, Resolution RS2020-500 addressed recommendations by the Committee to provide food assistance to individuals in Davidson County who have suffered the most from the devastating effects of the COVID-19 pandemic; and
WHEREAS, the Committee recognizes that the operations of live music venues have been substantially impaired during the pandemic and that these venues require an immediate short-term source of funding to continue operations; and
WHEREAS, the Committee recognizes that the continued operation of these live music venues is immediate and critical, as these organizations are closely connected with the identity of Nashville, itself, and because they support employment for many Nashvillians; and
WHEREAS, the Committee expects that in the future, the State may be able to offer other funding options to these live music venues to support them in the long term; and
WHEREAS, based on the urgency with which these funds must be distributed and the expertise and familiarity that Pathway Lending possesses with respect to COVID-related financial lending, Pathway Lending would be an appropriate administrator of these funds; and
WHEREAS, the Committee urges these organizations that the use of these funds should be dedicated toward preparation for a safe reopening of these live music venues, as applicable, as soon as possible, consistent with applicable laws; and
WHEREAS, the Committee recognizes that there are pressing needs throughout Davidson County, including the need to provide community support and replace city resources spent fighting the pandemic, which the Committee intends to address in its subsequent recommendations; and
WHEREAS, it is to the benefit of the citizens of The Metropolitan Government of Nashville and
Davidson County that this resolution be approved.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. The Metropolitan Council accepts this resolution as a recommendation of the COVID-19 Financial Oversight Committee.
Section 2. The Metropolitan Council requests the Mayor’s Office and the Director of Finance to release $2,000,000.00 in CARES Act funds to Pathway Lending as soon as possible to be administered in accordance with this Resolution.
Section 3. The Metropolitan Council directs Pathway Lending to distribute emergency support grants to Nashville live music venues to provide a maximum of two months of current operating expenses, excluding payroll, not to exceed a grant of $100,000.00 per recipient, and that these distributions be made in accordance with the financial requirements of the federal CARES Act and the financial reporting requirements of the Director of Finance.
Section 4. The Metropolitan Council directs the COVID-19 Financial Oversight Committee to oversee Pathway Lending’s administration of these funds, to determine how the grants should be disbursed and allocated, and to establish reporting requirements to ensure that these funds are distributed as required by this Resolution. These requirements include, but are not limited to:
1. Pathway Lending will collect demographic data on the ownership of each organization that receives grants from this Resolution.
2. Funds shall be used toward payment of current operating expenses within Davidson County but shall not be used for payroll expenses.
3. Eligible grant recipients shall be limited to live music venues that meet the following criteria:
a. Eligible venues must be independent, Nashville-owned and primarily used for live music entertainment.
b. Eligible venues must require concert tickets, admissions, and/or cover charges for entry at least 50% of the time the facility is open to the public.
c. Eligible venues with other ancillary services, such as alcohol, food, or merchandise, must be subsidiary or dependent upon live music performances.
d. Eligible venues annual receipts for the twelve-month period ended February 29, 2020 cannot exceed five million dollars.
e. Eligible venues that have been convicted of a citation, warrant, or administrative penalty for violation of a Metro emergency COVID-19 public health order may be deemed by the Committee to be ineligible to receive funds.
4. Bi-weekly reporting from Pathway Lending to the Committee is required. The required information includes but is not limited to the following:
a. Accounting of all grant funds, including identification of grant fund recipients
b. Balance of funds remaining from the $2,000,000 allocation
c. Demographics of organizational ownership for any funds, including but not limited to Age, Race, Sex and Zip Code
Section 5. The Metropolitan Council directs that any funds that have not been disbursed by Pathway Lending by November 15, 2020, shall be immediately returned to the Metropolitan Government to be reallocated by the COVID-19 Financial Oversight Committee prior to December 30, 2020.
Section 6. This resolution shall take effect from and after its final passage, the welfare of the public requiring it.
Courtney Johnston, Jennifer Gamble
IntroducedSeptember 1, 2020
ReferredBudget and Finance Committee
Parks, Library, and Arts Committee
AdoptedSeptember 1, 2020
ApprovedSeptember 2, 2020
Requests for ADA accommodation should be directed to the Metropolitan Clerk at 615-862-6770.
Last Modified: 09/04/2020 1:54 PM