ENACTED 07/20/1999

ORDINANCE NO. O99-1680

An ordinance amending Title 2 of the Metropolitan Code of Laws to establish an Economic and Community Development Incentive Program.

Whereas, The Metropolitan Government of Nashville and Davidson County (hereafter referred to as "Metropolitan Government"), is vitally interested in the economic welfare of the citizens of the Metropolitan Government and wishes to provide the necessary leadership to enhance this area’s capabilities for growth and development; and

Whereas, the provision of 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 the Industrial Development Corporations Act, currently codified at Tenn. Code Ann. 7-53-101—311 (such act, as heretofore or hereafter amended, the "Act"), the General Assembly of the State of Tennessee (the "General Assembly") has authorized the incorporation of public corporations known as "industrial development boards" in municipalities in the State of Tennessee (the "State"); and

Whereas, The Industrial Development Board of The Metropolitan Government of Nashville and Davidson County (the "Board") has been duly organized and incorporated in compliance with the Act; and

Whereas, the General Assembly has found and declared that the Board is performing a public function on behalf of the Metropolitan Government and that the Board is a public instrumentality of the Metropolitan Government; and

Whereas, the Supreme Court of Tennessee (the "Supreme Court") has found that the Board is an agent or instrumentality of the Metropolitan Government; and

Whereas, the Act expressly incorporates by reference the statement of public policy set forth in Section 3 of Chapter 209 of the Public Acts of 1955; and

Whereas, Chapter 209 of the Public Acts of 1955 states that the declared purpose of the Act is to do that which the State welfare demands and the State public policy requires to alleviate the problems of unemployment, to raise family income, to provide a means by which the citizens of the community may promote and develop industry in their area so as to obtain a balanced economic development highly essential to the welfare of the State, and to promote the development of commercial, industrial, agricultural and manufacturing enterprises by the several municipalities so as to be given local benefits peculiar to each and general benefits to the entire State; and

Whereas, the General Assembly has also declared that the purposes of the Act include maintaining and increasing employment opportunities by promoting industry, trade and commerce by inducing manufacturing, industrial, financial, service and commercial enterprise to locate or remain in the State; and

Whereas, the Supreme Court has held that the purposes of the Act include the promotion of industry and the development of trade to provide against low wages and unemployment and that such purposes are public in nature; and

Whereas, the Board is empowered pursuant to the Act to acquire, whether by purchase, exchange, gift, lease or otherwise, and to improve, maintain, equip and furnish, "projects" (as defined in the Act) and to lease such projects to others; and

Whereas, "projects" under the Act may include, without limitation, manufacturing, processing and assembly facilities and office buildings for use in connection with an industrial, commercial, financial or service enterprise; and

Whereas, pursuant to Tenn. Code Ann. 5-9-101(26) and 7-53-310, the Metropolitan Government is authorized to use available funds to make grants to the Board for economic and community development purposes and to acquire property for contribution, by sale, lease or gift, to the Board; and

Whereas, the Metropolitan County Council has determined that in order to promote industry, develop trade and provide against low wages and unemployment, and in order to further other public purposes of the Metropolitan Government, it is in the best interest of the Metropolitan Government to make economic and community development incentive grants to the Board to encourage the location within the boundaries of the Metropolitan Government of: (i) international, national or regional headquarters of well known and branded, large and successful companies, comparable, but not limited to, companies on the Fortune 500 listing, that are expected to result in the creation of at least 1,000 new jobs within the boundaries of the Metropolitan Government during the first five years of operations; and (ii) manufacturing facilities, offices, distribution facilities and customer support and call center facilities of well known and branded, large and successful companies, comparable, but not limited to, companies on the Fortune 500 listing, involved in manufacturing or assembly of computers or telecommunications equipment or component parts thereof that are expected to result in the creation of at least 2,000 new jobs within the boundaries of the Metropolitan Government during the first five years of operations; and

Whereas, the Metropolitan County Council has further determined that, in order to promote industry, develop trade and provide against low wages and unemployment, and in order to further other public purposes of the Metropolitan Government, it is in the best interest of the Metropolitan Government to make economic and community development incentive grants to the Board in an amount calculated by multiplying the average number of full time equivalent employees of the qualified company within the boundaries of the Metropolitan Government during the preceding year by an amount up to $500, with the actual amount of the economic and community development incentive grant and the period of such grant to be determined taking into account, among other things, 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 within the boundaries of the Metropolitan Government and other economic and community development opportunities that the qualified company is expected to create.

Now, therefore, be it enacted by the Council of The Metropolitan Government of Nashville and Davidson County:

Section 1. Title 2 of the Metropolitan Code of Laws is hereby amended by adding the following new chapter:

Chapter 2.2__

Economic and Community Development Incentive Program

2.2__.010 Definitions

"Corporate Headquarters" shall mean the international, national or regional headquarters of a well known and branded, large and successful company, comparable, but not limited to, companies on the Fortune 500 listing, the location thereof within the boundaries of the Metropolitan Government is expected to result in the creation of at least 1,000 jobs within the boundaries of the Metropolitan Government during the first five years of operations.

"Board" shall mean The Industrial Development Board of the Metropolitan Government of Nashville and Davidson County.

"Metropolitan Government" shall mean The Metropolitan Government of Nashville and Davidson County.

"Qualified Company" shall mean the corporation, partnership, limited liability company or other entity that operates a Corporate Headquarters or a Technology Firm, and all successors and affiliates thereof.

"Qualified Project" shall mean a Corporate Headquarters or a Technology Firm located on property controlled by the Board within the boundaries of the Metropolitan Government.

"Technology Firm" shall mean the manufacturing facilities, offices, distribution facilities, customer support or call center facilities of a well known and branded, large and successful company, comparable, but not limited to, companies on the Fortune 500 listing, involved in the manufacturing or assembly of computers or telecommunications equipment or component parts thereof, the location thereof within the boundaries of the Metropolitan Government is expected to result in the creation of at least 2,000 new jobs within the boundaries of the Metropolitan Government during the first five years of operations.

2.2__.020 Economic and Community Development Incentive Grants

The Metropolitan Government may make economic and community development incentive grants to the Board for Qualified Projects in order to encourage economic and community development within the boundaries of the Metropolitan Government. The amount of the economic and community development incentive grant during any year will be determined by multiplying the average number of full time equivalent employees of the Qualified Company within the boundaries of the Metropolitan Government during the preceding year by an amount up to $500. The actual amount of the economic and community development incentive grant with respect to each Qualified Project and the period of such grant shall be determined taking into account, among other things, 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 Qualified Project and other economic and community development opportunities that the Qualified Project is expected to create. Any grant made in accordance with the provisions of this section 2.2_.020 will be memorialized by an agreement among the Metropolitan Government, the Board and the Qualified Company that operates the Qualified Project, pursuant to which the Metropolitan Government will authorize the Board to utilize such economic and community development incentive grants to acquire, whether by purchase, lease or otherwise, real or personal property for use for the Qualified Project, and to improve, maintain, extend, equip and furnish real and personal property owned by the Board and used for the Qualified Project.

2.2__.030 Approval of Economic and Community Development Incentive Grant Agreements

Any community development incentive grant authorized by section 2.2__.020 and any agreement memorializing such grant as required by section 2.2_.020 must be approved by the Metropolitan County Mayor. The proposed economic and community development incentive grant and the related agreement shall then be submitted to the Metropolitan County Council for approval by resolution. Any such resolution must receive the affirmative votes of at least 21 members of the Metropolitan County Council in order for it to be approved. All proposed economic and community development incentive grant agreements that are to be funded by the Metropolitan Government shall provide that the Metropolitan Government’s financial obligations thereunder are subject to the annual appropriation of funds by the Metropolitan Council.

Section 2. This Ordinance shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored By: Charles Fentress & Charles French

LEGISLATIVE HISTORY

Introduced: June 1, 1999
Passed First Reading: June 1, 1999
Referred to: Budget & Finance Committee
Passed Second Reading: June 15, 1999
Passed Third Reading: July 20, 1999
Approved: July 21, 1999
By: mayor.gif (527 bytes)