ORDINANCE NO. BL2000-404
An ordinance to Amend Section 2.174.090 of the Metropolitan Code of Laws regarding distribution of assets upon dissolution of the Central Business Improvement District.
Whereas, Ordinance No. O98-1037 approved the creation of the Central Business Improvement District ("District") to "undertake and provide an enhanced level of programs and services" to help maintain Downtown Nashville as a clean, safe and vibrant place to work, live, shop and play"; and
Whereas, the District Management Corporation ("Corporation"), as the entity charged with administering the activities of the district, has applied for tax-exempt status under the internal revenue code so that donations made to the corporation may be considered charitable donations; and
Whereas, the Internal Revenue Service has notified the Corporation that it cannot qualify for tax-exempt status unless and until the enabling ordinance creating the District and Corporation is amended to provide that, upon dissolution, the remaining assets shall be distributed either to another not for profit Section 501(c)(3) organization or to a governmental entity; and
Whereas, the Metropolitan Council desires to amend the enabling ordinance to provide that, upon dissolution, the remaining assets shall be distributed in the manner required under the Internal Revenue Code for not for profit 501(c)(3) organizations.
Now, therefore, be it enacted by the Council of The Metropolitan Government of Nashville and Davidson County:
Section 1: That Section 2.174.090(C) of the Metropolitan Code of Laws is amended by deleting the last sentence of the subsection in its entirety and substituting a new sentence as follows:
Upon dissolution of the Corporation, after paying or making provision for the payment of all outstanding liabilities of the Corporation, then unpaid, the Board of Directors shall distribute the assets of the Corporation exclusively for the religious, charitable, scientific, literary and educational purposes of the Corporation within the meaning of Section 501(c)(3) of the Internal Revenue Code, in such manner as the Board of Directors shall determine. Any assets not so distributed shall be distributed to one or more governmental units then described under Section 170 (c)(1) of the Internal Revenue Code, or to one or more organizations then described under section 501(c)(3) and Section 170 (c)(2)of the Internal Revenue Code, as the Board of Directors shall determine. Any assets not so disposed of by the Board of Directors shall be disposed of by a Davidson County Chancery Court, with the distribution of such assets to be made for such charitable purposes, or to such governmental units then described under Section 170(c)(1) of the Internal Revenue Code, or to such organization(s) then described in Section 501(c)(3) and section 170(c)(2) of the Internal Revenue Code, as such court shall determine.
Section 2 : This ordinance shall take effect from and after its passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Sponsored by: Howard Gentry & Ludye Wallace
|Introduced:||September 5, 2000|
|Passed First Reading:||September 5, 2000|
|Referred to:||Budget & Finance Committee|
|Passed Second Reading:||September 19, 2000|
|Passed Third Reading:||October 3, 2000|
|Approved:||October 6, 2000|