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An ordinance to amend Chapter 2.212 of the Metropolitan Code of Laws relative to small business incentive grants programs.
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NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That Section 2.212.010 of the Metropolitan Code of Laws (the “Metropolitan Code”) is hereby amended by inserting the following immediately following the section title:
As used in this chapter, unless the context requires otherwise:
"Accredited institution” means an educational entity, which may include but is not limited to an apprenticeship program, college, university, or other educational program, that has voluntarily undergone a peer review process to confirm it meets specific quality, integrity, and operational standards set by an accrediting agency recognized by the Council for Higher Education Accreditation, the United States Department of Education, or United States Department of Labor.
Section 2. That Section 2.212.010 of the Metropolitan Code is hereby amended by deleting the definition of "ECD" in its entirety and replacing it with the following definition for the purpose of ensuring that if a future mayor does not have an office called “economic and community development,” the programs in Chapter 2.212 may still be administered:
"ECD" means the mayor's office of economic and community development or, if such office does not exist, the entity designated by the mayor to direct and administer the metropolitan government’s economic and community development incentives and programs.
Section 3. That Section 2.212.010 of the Metropolitan Code is hereby amended by deleting the definition of "Prohibited business" in its entirety and replacing it with the following for the purposes of removing construction companies and restaurants from the definition, adding smoke shops to the definition, and reordering the list:
"Prohibited business" means any of the following: adult entertainment businesses; automobile sales, automobile service, automobile repair businesses, and/or automobile parking businesses; body piercing shops; cash advance, check cashing, and/or title loan businesses; hotels/motels; landfills; nightclubs; pawnshops; shops primarily selling products containing or used for consuming nicotine, CBD, THC, or other similar substances; tattoo parlors; wrecker services; or businesses operating from residential property.
Section 4. That Section 2.212.010 of the Metropolitan Code is hereby amended by inserting the phrase “Solely for purposes of job growth grants authorized by Section 2.212.020,” at the beginning of the second numbered item within the definition of “Qualified small business” and by lowercasing the word “Creates”.
Section 5. That Section 2.212.010 of the Metropolitan Code is hereby amended by deleting the word “equivalent” from “full-time equivalent job” in the third numbered item within the definition of “Qualified small business”.
Section 6. That Section 2.212.020 of the Metropolitan Code is hereby amended by deleting each instance of the term “small business economic development incentive” within the title and text and replacing it with “job growth”, with proper capitalization where applicable, to clarify that the section applies to a specific incentive program within the chapter.
Section 7. That Section 2.212.030 of the Metropolitan Code is hereby amended by deleting the text in its entirety and replacing it with the following for the purposes of allowing interior improvements, improvements to industrial property, increasing the number of eligible properties, and removing funding language in deference to funding language that exists elsewhere within this chapter:
2.212.030 Blighted property grants.
A. In accordance with T.C.A. § 7-51-1901, et seq., the metropolitan government, through ECD, may make grants to developers who invest in blighted property for the purpose of stabilizing the value of the neighborhood and increasing the value of the facilities being constructed or rehabilitated on blighted property.
B. Such grant funds shall be used for the sole purpose of constructing or rehabilitating blighted commercial or industrial property located within eligible census tracts having a property value not to exceed two million dollars at the time the grant application is made to ECD based upon the appraised value of the property as determined by the metropolitan assessor of property and where the construction or rehabilitation investment exceeds ten thousand dollars. If a single tenant undertakes construction or rehabilitation on a portion of a multitenant blighted commercial or industrial property, the property value shall be pro-rated for purposes of determining eligibility. “Eligible census tracts” are those where at least sixty-five percent of households are at or below eighty percent area median income. ECD shall maintain, on file and open for inspection, a list and map of eligible census tracts to be updated annually.
C. The amount of the grant shall not exceed fifty percent of the documented investment of the developer up to a maximum grant amount of fifty thousand dollars.
D. ECD shall make blighted property grants to qualified developers on a first-come, first-served basis subject to the availability of funding approved for the program by the metropolitan council.
Section 8. That Sections 2.212.040 and 2.212.050 of the Metropolitan Code are hereby amended by deleting them in their entirety and replacing them with the following new sections for the purposes of codifying workforce advancement grants and legacy business grants, renumbering funding provisions and making them applicable to these new grant programs and renumbering and rules provisions and making them applicable to these new grant programs.
2.212.040 Workforce advancement grants.
A. The metropolitan government may make economic development incentive grants to the board for a qualified small business grant program that supports workforce advancement and provide trainees with opportunities to enhance their skills within their industry.
B. Grant funds shall be used by each qualified small business for the sole purpose of providing training to employees through a formal internal training program or a program provided by an accredited institution. Eligible training must result in a diploma, certificate, license, or other recognized credential that advances the employee’s skills within their industry. Eligible costs reimbursable by the grant include tuition or training at an accredited institution, as well as the costs associated with contracted trainers or instructors, training programs, equipment rental, classroom rental, textbooks, manuals, and other necessary training supplies.
C. The amount of the grant to each qualified small business shall not exceed one thousand dollars per employee with full-time job who is being trained, up to ten employees, with a maximum grant award of ten thousand dollars per business. To be eligible, a qualified small business must employ at least five employees.
D. The board, with assistance from the ECD, shall adopt rules consistent with this chapter for the administration of the grant program. Upon adoption, such rules shall be filed with the metropolitan clerk. Workforce advancement grants shall be made to qualified small businesses on a first-come, first-served basis subject to the availability of funding.
E. ECD shall provide written notice to the metropolitan council within thirty days of each workforce advancement grant made to an eligible qualified small business.
2.212.050 Legacy business grants.
A. The metropolitan government may make legacy business grants to the board for a legacy business grant program intended to support qualified small businesses that have a minimum of fifteen years of continuous existence within the boundaries of the metropolitan government.
B. Qualified small businesses must complete a legacy business grant application to be considered. The completed applications will be reviewed and scored by criteria established by ECD.
C. The amount of the legacy business grant during any fiscal year will be determined by the qualified small business’s completion of and participation in approved business support programs, as established by ECD. Any grant made in accordance with the provisions of this section shall be memorialized by an agreement between the board and the qualified small business. In the rules and regulations developed pursuant to Section 2.212.070, ECD shall establish eligible reimbursable expenditures for the legacy business grant program, and grant funds may be used only to reimburse expenditures authorized thereby.
D. In conjunction with the board, ECD shall be responsible for administering the legacy business grant program established by this section. The board, with assistance from the ECD, shall adopt rules consistent with this chapter for the administration of the grant program. Upon adoption, such rules shall be filed with the metropolitan clerk. Legacy business grants shall be made to eligible qualified small businesses subject to the availability of funding.
E. ECD shall provide written notice to the metropolitan council within thirty days of each legacy business grant made to an eligible qualified small business.
2.212.060 Grants subject to funding availability.
All agreements for grants established by this chapter to be funded by the metropolitan government shall expressly provide that the metropolitan government's financial obligations thereunder are conditioned upon the appropriation of funds by the metropolitan council. There shall be no obligation to make a grant established by this chapter if adequate funds are not available.
2.212.070 Development of rules and regulations.
ECD shall have the authority and responsibility to develop policies, procedures, rules, and/or regulations to implement this chapter. Such policies, procedures, rules, and/or regulations shall include a mechanism for obtaining proof of eligibility for grants established by this chapter.
Section 9. That this ordinance shall take effect from and after its passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.