A Resolution approving the refinancing by the Metropolitan Development and Housing Agency of ten Tax Increment Financing Loans.
WHEREAS, the Metropolitan Development and Housing Agency desires to refinance ten (10) existing Tax Increment Financing Loans (listed in Exhibit A hereto) with four new Tax Increment Financing Loans with Regions Capital Advantage, Inc. (the “Refinancing”) in order to reduce expenditures in the FY2020 Operating Budget of the Metropolitan Government of Nashville and Davidson County by approximately $17,900,000; and
WHEREAS, the Refinancing would provide considerable savings to the Metropolitan Government of Nashville and Davidson County over the life of the loans by refinancing the existing loans at a significantly lower rate of interest; and
WHEREAS, the Refinancing would provide greater predictability to the annual debt service requirement for those loans; and
WHEREAS, the Board of the Metropolitan Development and Housing Agency approved the Refinancing at its March 10, 2020 meeting; and
WHEREAS, the Comptroller of the State of Tennessee and the Commissioner of the Tennessee Department of Economic and Community Development have determined that the Refinancing is in the best interest of the State of Tennessee as required by T.C.A. Section 9-23-104; and
WHEREAS, Section 5.06.030B of the Metropolitan Code of Laws requires authorization of such a refinancing by the Metropolitan Council by a Resolution receiving twenty-one (21) affirmative votes.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the Metropolitan Development and Housing Agency is hereby authorized to refinance the ten (10) Tax Increment Financing loans listed in Exhibit A hereto, and the Metropolitan Development and Housing Agency shall be entitled to receive tax increment revenues that exceed the maximum amount otherwise provided in Section 5.06.030B of the Metropolitan Code of Laws to pay debt service on the Refinancing loans.
Section 2. That this Resolution shall take effect from and after its adoption, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.
1. First Bank Loan Agreement dated September 26, 2007 related to Direct Development RMH
2. First Advantage Bank Loan Agreement dated December 3, 2015 related to 505 CST
3. Pizzuti Nashville Hotel Holdings LLC Loan Agreement dated May 2, 2018 related to The Joseph Hotel
4. Fifth Third Bank, N.A. Loan Agreement dated April 28, 2005 related to Kress Lofts
5. Parmenter NCC II, LLC Tax Increment Revenue Note dated October 31, 2013 related to Parmenter NCC
6. Farmers National Bank Loan Agreement dated June 10, 2015 related to The Thompson Hotel
7. First Tennessee Bank National Association Loan Agreement dated October 31, 2007 related to Velocity in The Gulch
8. BON Investments, Inc. Loan Agreement dated November 26, 2014 related to The Westin
9. Regions Capital Advantage, Inc. Loan Agreement dated October 4, 2013, as amended June 10, 2015 related to the Omni Hotel
10. Regions Capital Advantage, Inc. Loan Agreement dated February 11, 2015 related to the Nashville Sounds Ballpark
Referred toBudget and Finance Committee
IntroducedMarch 17, 2020
AdoptedMarch 17, 2020
ApprovedMarch 18, 2020
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Last Modified: 03/24/2020 1:20 PM