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An ordinance amending Title 2 of the Metropolitan Code of Laws authorizing the creation of a Midtown Central Business Improvement District and appointing a corporation to act as an advisory board to the district with the necessary powers and authority to carry out the purposes and intent of the district.
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WHEREAS, pursuant to the Central Business Improvement District Act of 1990, the Metropolitan Council adopted Resolution No. RS2025-____ to initiate the process of establishing a Midtown Central Business Improvement District (the “MBID”); and
WHEREAS, the creation of a MBID will enhance the local business and residential climate and help manage the area to ensure that it is clean, safe, and vibrant and will attract more people to live, work, play, and invest in the greater downtown Nashville area; and
WHEREAS, services and improvements to be funded by the MBID will include: cleaning and safety enhancements; beautification efforts; business, residential, and retail recruitment and retention services; and overall promotions of the Midtown area of Nashville.
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 2.179 relative to the establishment of the Midtown Central Business Improvement District and appointing a management corporation to act as an advisory board to the MBID with the necessary powers and authority to carry out the purposes of the MBID.
2.179.010 - Definitions.
A. As used in this ordinance, unless a contrary meaning clearly appears:
1. "Assessed value" means value as assessed for municipal tax purposes.
2. "District" or "midtown central business improvement district" or "MBID" means the central business improvement district created by this ordinance.
3. "District management corporation" means the board or organization created or the organization appointed to act as an advisory board for the purpose of making and carrying out recommendations for the use of special assessment revenues, and for the purpose of administering activities within and for the district and the provision of services and projects within and for the district.
4. "Owner" means the record owner of real property in fee or a representative of such owner duly authorized to act for and on behalf of said owner.
2.179.020 - District created; boundary.
A. In accordance with the provisions of and established pursuant to Tennessee Code Annotated § 7-84-501, et seq., there is hereby created a midtown central business improvement district, which shall include all properties within that area of the city bounded and generally described as follows:
Commencing at the intersection of Division Street and I 40 going along the centerline of Division Street, N 81 deg 47’ 51’’W, 806.60 feet. Continuing down the centerline Division Street, N 83 deg 07’ 40’’ W 646.14 feet to the southernly portion of Music Square roundabout (AKA Division St). Thence going southwest at the Music Square roundabout along the center line of Music Square East, S 09 deg 46’ 11’W 192.59 feet. Thence westerly N 85 deg 29’ 17” W 24.39 feet. Continuing west at southernly boundary of APN (assessor’s parcel number) 09313012900 N 82 deg 38’ 53’’W 152.03 feet to the centerline of Alley 440. Thence Northerly along the center line of alley #440, N 06 deg 46’ 44’’East 193.88 feet. Continuing along the center line of Division Street in Westerly direction North 85 deg 06’ 30’’ West 170.94 feet to the intersection of Music Sq West. Thence turning southerly down the centerline of Music Square West, S 09 deg 30’ 18’’W 339.15 feet. Thence Westerly along the southern line of APN 092160M90000CO, N 83 deg 01’ 51’’ W 184.99 feet to centerline of alley 442. Continuing Northward along the center line of alley #442, N 07deg 44’ 40’’ E 65.94 feet. Thence going Southwest to the corner of APN 09216034300, S 77 deg 14’ 28’’ W 12.56 feet. Continuing along the southern border of APN 09216034300, S 58 deg 32’ 35’’ W 75.78 feet. Thence, along the eastern and southern portions of 09216034300, the following three calls, S 36 deg 52’01”E 3.93 feet, S 07 deg 07’31” E 12.9 feet N 07 deg 07’31”E 130 feet to the centerline of 18th Avenue South. Thence Southeasterly along the centerline of 18th Avenue South, S 08 deg 01’ 58’’W 140.69 feet. Leaving the centerline of 18th Avenue South and bisecting APN 09216033700 North 81 deg 48’18’’West 190.86 feet to the centerline of alley #444. Thence, thence southwesterly along the centerline of alley #444, S 08 deg 37’ 46’’W 755.16 feet. Thence westerly along the southern border of APN 09216043800, N 82 deg 38’ 44’’W 142 feet. Thence westerly to easterly boundary of APN 09216026700, N 83 deg 45’ 49’’ W 60.20 feet. Then, southerly along the eastern edge of 19th Ave. S, S 07 deg 33’ 06’’W 237.2 feet to the northern edge of Adelicia St. Thence westerly along the north margin of Adelicia Street N, 84 deg 13’ 28’’W 536.07 feet to the centerline of 20th Avenue South. Thence south along the centerline of 20th Avenue South, S 07 deg 43’ 03’’ W 385.26 feet to the centerline of Grand Ave. Then westerly along the Centerline of Grand Avenue, N 82 deg 32’ 54’’ W 157.50 feet. Thence south along the centerline of alley 447, S 06 deg 19’ 21’’W 529.84 feet to the southern edge of Scarritt Pl. Thence easterly along the northern boundary of APN 10404003400, S 82 deg 51’ 50’’ E 245.77 feet. Thence moving south along that parcel’s easterly boundary S 08 deg 50’ 35’’W 158.04 feet. Continuing along its southern, N 82 deg 28’ 21’’W 450.72 Feet to the centerline of 21st Avenue South. Thence, along its centerline, N 06 deg 36’ 17’’E 880.43 feet. Continuing along the centerline of 21st Avenue S, N 29 deg 50’ 45’’W 107.91 feet. Thence, northeasterly along Broadway, N 41 deg 05’ 58’’E 669.89 feet to its intersection with 20th Ave S. Thence North along the centerline of the 20th Avenue South, N 30 deg 47’ 55’ W 701.78 feet. Thence northeasterly along the southern boundary of West End Avenue, N 59 deg 28’ 19’’E 2171.06 feet to the intersection of 16th Ave N. Thence south along the centerline of the 16th Avenue South, S 26 deg 20’ 47’’E 421.37 feet. Then, easterly along the centerline of McGavock Street, N 62 deg 51’ 54’’ E 1,077.58 feet. Thence south along the northern boundary of 14th Avenue South, S 28 deg 58’ 18’’E 1,366.08 feet to the point of beginning.
2.179.030 - Purposes and mission.
A. The metropolitan council hereby finds and declares that the establishment of the MBID will promote the successful and continued revitalization of the midtown area of Nashville, thereby furthering the health, safety, morals, and general economic welfare of Metropolitan Nashville and Davidson County.
B. The purpose and mission of the MBID is hereby declared to be:
To undertake and provide an enhanced level of programs and services not provided by the metropolitan government which will help maintain the MBID area of Nashville as a clean, safe, and vibrant place to work, live, shop, play, and invest.
2.179.040 - Liberal construction.
This ordinance, being necessary to secure and preserve the public health, safety, convenience and welfare, shall be liberally construed to effectuate its purposes.
2.179.050 - District management corporation.
A. There is hereby authorized a district management corporation to be chartered pursuant to the provisions of the Nonprofit Corporation Act of Tennessee for the purpose of administering the special assessment revenues and the activities within and for the MBID, the making of improvements within and for the MBID, and the provision of services and projects within and for the MBID.
B. The district management corporation shall be governed by a board of directors consisting of not fewer than 11 and not more than 21 members. The exact number of members and the required quorum for meetings will be determined by the district management corporation bylaws. The members of the board shall serve staggered terms of not to exceed four years as determined by the board through the district management corporation bylaws.
C. The Speaker of the Senate of the State of Tennessee shall appoint the senator whose senate district includes the majority of the area contained within the MBID to serve as an ex officio member and the Speaker of the House of Representatives of the State of Tennessee shall appoint the representative whose house district includes the majority of the area contained within the MBID as an ex officio member. Any member(s) of the Metropolitan Council whose council district(s) includes any of the area contained within the MBID shall also serve as an ex officio member. The ex officio members shall serve for the term for which they are elected and shall not be counted in determining the presence of a quorum.
D. At least one member must be representative of each of the following categories: one member shall be large property owner (defined as an owner of a major hotel property or commercial office building in the district), one member shall be small property owner (defined as an owner of commercial property other than major hotel or office buildings in the district), one member shall be a commercial tenant (defined as any lessee of commercial property within the district), one member shall be a resident property owner of the district, and one member shall be a residential tenant within the district.
E. A slate of initial members of the board shall be submitted by the midtown business improvement district steering committee for ratification by the owners of property present and voting at the initial annual meeting of the district management corporation.
F. Vacancies on the board due to resignation, other than for ex officio members, shall be filled by the remaining board members present and voting at the meeting at which the vacancies are to be filled. In the event of vacancies as a result of the expiration of terms, the board shall submit a slate of members to fill the vacancies for ratification at the annual meeting of the district management corporation. At the expiration of a term, a board member shall holdover as a member of the board until the vacancy is filled in accordance with this section.
2.179.060 - District management corporation powers.
A. In furtherance and not in limitation of the general powers conferred upon a central business improvement district by Chapter 84 of Title 7 of the Tennessee Code Annotated, and in keeping with the purposes of the MBID set forth herein, it is expressly provided that the district management corporation shall have the following powers which shall be exercised at the discretion of the district management corporation acting through its board of directors, as follows:
1. Maintenance and cleaning services;
2. Safety and hospitality services;
3. Streetscape and landscape programs;
4. Communications and marketing, district advocacy, and district management;
5. To provide services for the improvement and operation of the district, to supplement those provided by the metropolitan government, as follows:
a. Promotion and marketing;
b. Advertising;
c. Health and sanitation;
d. Public safety;
e. Elimination of problems related to traffic and parking;
f. Security services;
g. Recreation;
h. Cultural enhancements;
i. Activities in support of business or residential recruitment, retention, and management development;
j. Aesthetic improvements, including the decoration, restoration, or renovation of any public space or of building facades and exteriors in public view which confer a public benefit;
k. Professional management, planning, and promotion of the district;
l. Consulting with respect to planning, management, and development activities;
m. Furnishing of music in any public place;
n. Design assistance; and
o. Such other services as are authorized by Tennessee Code Annotated § 7-84-520.
6. To enter into contracts and agreements with other persons or entities.
7. To hire employees or retain agents, engineers, architects, planners, consultants, attorneys, and accountants.
8. To acquire, construct, install, and operate public improvements contemplated by this Chapter and all property rights or interests incidental or appurtenant thereto, and to dispose of real and personal property and any interest therein including leases and easements in connection therewith.
9. To manage, control, and supervise:
a. All the business and affairs of the district.
b. The acquisition, construction, and installation and operation of public improvements within the district;
c. The operation of district services therein.
10. To construct and install improvements across and along any public street, alley, highway, stream of water, or water course in accordance with state and local laws, rules, or regulations.
11. To construct and operate childcare facilities.
12. To accept, administer, and comply with the conditions and requirements respecting any appropriation of funds or any gift, grant or donation of property or money to the MBID; and
13. To exercise all rights and powers necessary or incidental to or implied from the specific powers granted in this section.
B. All services to the district listed above shall be provided by the district management corporation as a service to and in support of the metropolitan government and such services are to be paid for out of revenues from the special assessment. Revenues from special assessments shall be used to supplement and not to pay for the same level of services provided by the metropolitan government within the district as are provided throughout the urban services district. In no event will the level of urban services provided to the district be decreased as a result of the enhanced level of services provided through the special assessment revenues; provided, however, the level of urban services may be decreased for other reasons. In carrying out these responsibilities, the district management corporation must comply with all applicable provisions of laws, including Chapter 84 of Title 7 of Tennessee Code Annotated, all city resolutions and ordinances and all regulations lawfully imposed by the state auditor or other state agencies.
2.179.070 - Annual budget.
A. The district management corporation shall annually, on or before April 15, submit to the metropolitan council a financial report and a written report of its activities for the preceding year together with a proposed budget for the next year. The annual budget shall include a projection of revenues from the special assessment and a projection of expenditures for projects, services and activities of the district management corporation and shall be reviewed and approved by the metropolitan council, or if not approved shall be returned to the board of directors for revision and resubmission until the metropolitan council shall approve the annual budget.
B. The district management corporation shall report no less than quarterly to the tourism and convention commission and Metropolitan Government finance department on financial sources and uses of all fees and assessments, including funds resulting from management, operation, or other use of Metropolitan Government public assets, including but not limited to Metropolitan Governement parking garages
2.179.080 - Estimated costs and rate of levy; special assessment procedure.
A. The estimated cost of the initially proposed improvements, services projects and other permitted uses of special assessment revenues is $1,531,089.
B. The initial rate of levy of the special assessment for the MBID, based on December 31, 2025, records of the metropolitan assessor of property, shall be $0.001561 per dollar of assessed property value. Such rate of levy shall continue in force until changed by the metropolitan council in accordance herewith. A change in the rate of levy of such special assessment may be initiated only by a resolution from the district management corporation. Upon receipt of this resolution from the district management corporation, the metropolitan council must hold a public hearing on whether there should be a change in the rate of levy for the special assessment, and no such change shall become effective unless and until it is approved by an ordinance enacted by the metropolitan council.
C. Beginning in 2026, special assessments shall be levied against all taxable real property within the MBID pursuant to a special assessment roll of all owners of real property within the district as shown in the records of the assessor of property for the Metropolitan Government of Nashville and Davidson County, including owners of leaseholds on property owned by the industrial development board of the Metropolitan Government of Nashville and Davidson County.
D. Notice of the special assessment shall be issued simultaneously with tax notices for regular Metropolitan Nashville real property taxes, and revenues from the special assessment shall be collected by the metropolitan trustee and placed into a segregated account subject to the direction of the metropolitan council and the district management corporation to the extent it is empowered by this ordinance.
E. Special assessments shall be imposed and collected annually as set forth hereinabove and changes in the rate or additions to the rate of the special assessment may be made only on an annual basis and only in accordance with the procedure set forth in section 2.179.080.B.
F. Penalty and interest in the amount permitted by state law shall be added to any such assessment or installment thereof not paid on or before the date prescribed by the Metropolitan Government of Nashville and Davidson County.
2.179.090 - Dissolution of the district management corporation.
A. The metropolitan council may dissolve the MBID upon receipt of a written petition filed either: (a) by the owners of seventy-five percent of the assessed value of the taxable real property in the MBID based on the most recent certified city property tax rolls; or (b) by fifty percent of the owners of record within the MBID.
B. The MBID may not be dissolved if the metropolitan government has outstanding any bonds, notes, or other obligations payable solely from the special assessment revenues levied on the real property within the MBID in which case such dissolution may occur only at such time as such bonded indebtedness has been repaid in full or the metropolitan government pledges to the payment of such indebtedness its full faith and credit and unlimited taxing power. Upon dissolution of the MBID, any unencumbered assessment proceeds remaining under the control of the MBID shall be disbursed to the owners of the MBID real property pro rata based upon the amounts of the respective assessments.
2.179.100 - District annual reporting.
A. The district management corporation shall be required to prepare and submit an annual interaction report to the metropolitan council. The report should be submitted no later than March 31 of each calendar year, documenting interactions between employees or contractors of the district management corporation performing public safety functions with individuals within the geographic boundaries of the District. The district management corporation must also present the annual report to the council public health and safety committee or similar committee no later than April 30.
B. The annual interaction report shall include, but is not limited to, the following components:
1. Quantitative data:
a. Total number of documented interactions.
b. Number of incidents resulting in use of force, detainment, or law enforcement referral.
c. Number of complaints or grievances filed against MBID-affiliated public safety personnel.
d. Number of reported injuries or medical responses following public safety interactions.
e. Number of referrals made to social services or outreach teams.
f. Number and types of trespass warnings or exclusions issued.
2. Qualitative data:
a. Summary of the district management corporation’s, or any public safety contractor of the district management corporation, use-of-force policy, de-escalation training, and homeless engagement protocols.
b. Summary of disciplinary actions taken in response to misconduct complaints, if any.
c. Case studies or narratives describing representative interactions, both positive and negative.
d. Description of training regarding the humane treatment of homeless individuals, trauma-informed care, or mental health crises.
e. Summary of any community engagement efforts or public forums held to address safety and rights concerns.
C. The annual interaction report shall be made publicly available and posted on the district management corporation website.
2.179.110 - District feedback procedures.
To ensure accountability, transparency, and protection of individual rights in all interactions between public safety personnel affiliated with the MBID and members of the public, the district management corporation shall establish internal procedures to process feedback from the public. The procedures should include a feedback form publicly available on the district management corporation website that can be submitted in writing or online. The procedures should require maintaining detailed records of any feedback and the resolution of the feedback, if warranted. All feedback shall be publicly available. The district management corporation shall be required to report to the Metropolitan Council the feedback procedures that are established pursuant to the section no later than four months after the enactment of this chapter.
Section 2. This Ordinance shall take effect from and after its final passage, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.