ORDINANCE NO. BL2016-388
An ordinance approving the conveyance of two adjacent parcels of property to The Health and Educational Facilities Board of The Metropolitan Government of Nashville and Davidson County, Tennessee to be used for a multifamily residential development project, 40% of which will be subject to low income housing tax credit requirements, and authorizing and directing the Board’s entry into an agreement providing for payments in lieu of ad valorem taxes on the project site (Proposal No. 2016M-025PR-001).
WHEREAS, the Metropolitan Government owns two adjacent parcels of real property located at 1440 12th Avenue South and 1500 12th Avenue South (collectively, the “Property”) in Nashville; and
WHEREAS, pursuant to the quitclaim deed attached as Exhibit A, the Metropolitan Government proposes to convey the Property to the Board for use as contemplated in this ordinance; and
WHEREAS, the provision of workforce housing is important to the continued economic vitality of Nashville and Davidson County; and
WHEREAS, Tenn. Code Ann. §§ 48-101-301 et seq. authorize The Health and Educational Facilities Board of the Metropolitan Government of Nashville and Davidson County, Tennessee (the “Board”) to acquire properties for use in providing housing to be occupied by people of low and moderate income; and
WHEREAS, Tenn. Code Ann § 48-101-308 authorizes the Board to lease its property to others and to convey such property to the lessee with or without consideration upon the payment of all indebtedness of the Board in respect of such property; and
WHEREAS, pursuant to Tenn. Code Ann. § 48-101-312, all properties owned by the Board are exempt from taxation in the State of Tennessee, including ad valorem taxation; and
WHEREAS, the Certificate of Incorporation of the Board, as amended, permits the Board to negotiate and execute agreements for payments in lieu of tax (“PILOT”) from lessees of Board properties in amounts less than the property taxes such lessees would owe with respect to such properties if such lessees owned such properties, but only if the Metropolitan Council approves such reduced or eliminated amounts of payments in lieu of tax; and
WHEREAS, pursuant to the document attached as Exhibit B (the “Project Lease”), the Board proposes to lease the Property, as well as a third parcel locate at 0 Wedgewood Ave, to ECG Wedgewood, L.P. (“ECG”) for construction of a multifamily residential development project (the “Project”), 40% of which will be subject to low income tax credit requirements; and
WHEREAS, the Council finds that the Board’s acceptance of payments in lieu of ad valorem taxes with respect to the Project is in furtherance of the Board’s public purposes; and
WHEREAS, it is in the interest of the Metropolitan Government that the Board accept payments in lieu of tax with respect to the Project.
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1: The Metropolitan Government hereby delegates to the Board the authority to enter into a Payment in Lieu of Tax Agreement (“PILOT Agreement”) with respect to the Project (which PILOT Agreement shall be in substantially the form as attached hereto as Exhibit C) and to negotiate and accept payments in lieu of all ad valorem real property taxes with respect to the Project during the Term of such PILOT Agreement. The Term of the PILOT Agreement will begin as of the effective date (“Effective Date”) of the Project Lease and will end on the earlier of the thirtieth anniversary of the Effective Date, acquisition of the Project by ECG, or the earlier termination of the PILOT Agreement pursuant to its terms. The amount of the payment in lieu of tax shall be paid by ECG, or its successors in interest under the PILOT Agreement, to the Metropolitan Government as follows:
(A) with respect to the period beginning on the date that the Board executes the Project Lease with ECG regarding the Project until the first day of the Discounted Payment Period (as defined in the PILOT Agreement), the annual amount will be equal to one hundred percent (100%) of the Standard Tax (as defined in the PILOT Agreement) for such year (as prorated in accordance with the PILOT Agreement terms);
(B) with respect to the Discounted Payment Period, the annual amount will be equal to zero percent (0%) of the Standard Tax for such year (as prorated in accordance with the PILOT Agreement terms); and
(C) with respect to any period between the end of the Discounted Payment Period and the date that Project Lease with the ECG or its designee, is terminated the annual amount will be equal to one hundred percent (100%) of the Standard Tax for such year (as prorated in accordance with the PILOT Agreement terms).
Section 2: The PILOT Agreement authorized by this Ordinance shall apply to all real or personal property taxes, whether presently in effect or hereafter imposed on the Project, or any part or component thereof (including, without limitation, any such tax on current or future easements or other property rights, buildings, improvements, fixtures, trade fixtures, construction in progress, and personal property from time to time subject to the Lease.
Section 3: No amendment to the PILOT Agreement shall be effective unless approved by resolution of the Metropolitan Council.
Section 4: This ordinance shall take effect from and after its final passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Sponsored by: John Cooper, Bill Pridemore, Colby Sledge, Burkley Allen
ORDINANCE NO. BL2016-388
Sponsored by: Bob Mendes
|Introduced:||September 6, 2016|
|Passed First Reading:||September 6, 2016|
Commission - Approved
Budget & Finance Committee
Planning, Zoning & Historical Committee
|Passed Second Reading:||September 20, 2016|
|Re-Referred to:||Budget & Finance Committee|
|Amended:||October 4, 2016|
|Passed Third Reading:||October 4, 2016|
|Approved:||October 5, 2016|
Requests for ADA accommodation should be directed to the Metropolitan Clerk at 615/862-6770.