title
An ordinance approving Amendment No. 6 to the Arts Center Redevelopment Plan, Amendment No. 1 to the Bordeaux Redevelopment Plan, Amendment No. 1 to the Central State Redevelopment Plan, Amendment No. 6 to the Phillips-Jackson Redevelopment Plan, Amendment No. 9 to the Rutledge Hill Redevelopment Plan, and Amendment No. 1 to the Skyline Redevelopment Plan. (Proposal No. 2026M-002OT-001)
body
WHEREAS, BL2019-1645 proposed amendments to the Metropolitan Development and Housing Agency Redevelopment Plans of Arts Center, Bordeaux, Central State, Phillips Jackson, Rutledge Hill, and Skyline;
WHEREAS, language in the redevelopment plans require that only the Metropolitan Development and Housing Agency may initiate a modification, change, or amendment to the Plans;
WHEREAS, BL2019-1645 was passed by Metropolitan Council approving Amendment No. 6 to the Arts Center Redevelopment Plan, Amendment No. 1 to the Bordeaux Redevelopment Plan, Amendment No. 1 to the Cayce Place Redevelopment Plan, Amendment No. 1 to the Central State Redevelopment Plan, Amendment No. 2 to the Jefferson Street Redevelopment Plan, Amendment No. 6 to the Philips-Jackson Redevelopment Plan, Amendment No. 9 to the Rutledge Hill Redevelopment Plan, and Amendment No. 1 to the Skyline Redevelopment Plan on August 6, 2019;
WHEREAS, the Metropolitan Development and Housing Agency approved Amendment No. 6 to the Arts Center Redevelopment Plan, Amendment No. 1 to the Bordeaux Redevelopment Plan, Amendment No. 1 to the Cayce Place Redevelopment Plan, Amendment No. 1 to the Central State Redevelopment Plan, Amendment No. 2 to the Jefferson Street Redevelopment Plan, Amendment No. 6 to the Philips-Jackson Redevelopment Plan, Amendment No. 9 to the Rutledge Hill Redevelopment Plan, and Amendment No. 1 to the Skyline Redevelopment Plan on August 13, 2019;
WHEREAS, this ordinance will correct the sequence of the approval of the amendments;
WHEREAS, the Arts Center Redevelopment Plan (the "Arts Center Plan") consisting of text, exhibits, and maps, currently exists as previously approved by Ordinance Number O98-1188, and subsequently amended by the adoption of Ordinance Nos. O99-1761, BL2002-1063, BL2009-436, BL2013-377, and BL2014-699;
WHEREAS, the Bordeaux Redevelopment Plan (the "Bordeaux Plan") consists of text, exhibits, and maps, currently exists as previously approved by Ordinance No. BL2015-1273;
WHEREAS, the Central State Redevelopment Plan (the "Central State Plan") consists of text, exhibits, and maps, currently exists as previously approved by Ordinance No. O99-1763;
WHEREAS, the Phillips-Jackson Redevelopment Plan (the "Phillips-Jackson Plan") consists of text, exhibits, and maps, currently exists as previously approved by Ordinance No. O93-773, and subsequently amended by the adoption of Ordinance Nos. O99-1762, BL2001-861, BL2005-798, BL2013-377, BL2013-595, and BL2024-598;
WHEREAS, the Rutledge Hill Redevelopment Plan (the "Rutledge Hill Plan") consisting of text, exhibits, and maps, currently exists as previously approved by Ordinance Number 80-133, and subsequently amended by the adoption of Ordinance Nos. 86-1131, 87-1695, 91-1520, 97-755, 97-754, BL2005-875, BL2013-377, BL2014-699, and BL2024-348;
WHEREAS, the Skyline Redevelopment Plan (the "Skyline Plan") consists of text, exhibits, and maps, currently exists as previously approved by Ordinance No. BL2008-154;
WHEREAS, each of these Plans is also subject to the requirements of Chapter 5.06 of the Metropolitan Code of Laws;
WHEREAS, these amendments to the Arts Center Plan, Bordeaux Plan, Central State Plan, Phillips-Jackson Plan, Rutledge Hill Plan, and Skyline Plan (each, a “Plan”) consist of certain changes to the text of the Plans adopted by the Board of Commissioners of the Metropolitan Development and Housing Agency and are subject to review and approval by the Metropolitan Council; and
WHEREAS, the Metropolitan Council has held a public hearing and has carefully considered and reviewed the proposed amendments to the Plans.
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. Arts Center Plan
A. The Arts Center Plan is amended by deleting the following text from the end of the section entitled “Tax Increment”:
", or other adopted and approved redevelopment plans"
B. The Arts Center Plan is amended by adding a new section J that states as follows:
J. 2026 Plan Amendments
1. Portion of tax increment used: Notwithstanding anything to the contrary in the Plan, for all bonded or other indebtedness approved by MDHA under the Plan after the effective date of BL2026-_____ that is to be paid using tax increment funds, the portion of tax increment funds that may be used to pay the indebtedness shall not be greater than seventy-five percent (75%); provided however: (a) that MDHA shall be entitled to increase or decrease this percentage pursuant to criteria set forth in a written policy adopted by the Board of Commissioners of MDHA; and (b) nothing herein shall be interpreted as overriding or nullifying the requirements of Chapter 5.06 of the Metropolitan Code of Laws entitled "Tax Increment Financing."
2. Periodic assessment of activities and improvements eligible for tax increment financing:
(i) Notwithstanding anything to the contrary in the Plan, there shall be a mandatory periodic assessment of the activities and improvements eligible for tax increment financing under the Plan. An assessment may be requested by MDHA or the Metropolitan Council. The first such assessment was completed in August 2022. Future assessments shall occur no earlier than seven (7) years after the previous assessment, provided however that each subsequent assessment must be completed within ten (10) years after the previous assessment.
(ii) Each assessment shall include a review of the impact and goals of the Plan. For an assessment to be considered complete, MDHA and the Metropolitan Council must agree on the priorities of activities that are eligible for tax increment financing under the Plan. The Council's agreement shall be indicated by the passage of a resolution approved by the Metropolitan Council.
(iii) It shall be a New Loan Termination Event if any subsequent assessment is not complete within ten (10) years after the previous assessment. If a New Loan Termination Event occurs, MDHA shall not approve any additional bonded or other indebtedness to be paid by tax increment funds under the Plan until such time as MDHA and Metro Council have agreed upon the priorities of activities and improvements eligible for tax increment financing under the Plan. The occurrence of a New Loan Termination Event does not terminate the Plan or have any impact on any tax increment financing approved prior to the New Loan Termination Event.
3. Metropolitan Council or MDHA may initiate a Plan amendment: Subject to all other conditions and requirements set forth in Section H of the Plan, either the Metropolitan Council or MDHA may initiate a modification, change, or amendment to the Plan subject to the subsequent approval of the other. If the Metropolitan Council initiates a modification, change, or amendment, the approval of MDHA must be obtained before the third reading of the ordinance adopting such modification, change, or amendment.
Section 2. Bordeaux Plan
A. The Bordeaux Plan is amended by adding a new section J that states as follows:
J. 2026 Plan Amendments
1. Portion of tax increment used: Notwithstanding anything to the contrary in the Plan, for all bonded or other indebtedness approved by MDHA under the Plan after the effective date of BL2026-_____ that is to be paid using tax increment funds, the portion of tax increment funds that may be used to pay the indebtedness shall not be greater than seventy-five percent (75%); provided however: (a) that MDHA shall be entitled to increase or decrease this percentage pursuant to criteria set forth in a written policy adopted by the Board of Commissioners of MDHA; and (b) nothing herein shall be interpreted as overriding or nullifying the requirements of Chapter 5.06 of the Metropolitan Code of Laws entitled "Tax Increment Financing."
2. Periodic assessment of activities and improvements eligible for tax increment financing:
(i) Notwithstanding anything to the contrary in the Plan, there shall be a mandatory periodic assessment of the activities and improvements eligible for tax increment financing under the Plan. An assessment may be requested by MDHA or the Metropolitan Council. The first such was completed in August 2022. Future assessments shall occur no earlier than seven (7) years after the previous assessment, provided however that each subsequent assessment must be completed within ten (10) years after the previous assessment.
(ii) Each assessment shall include a review of the impact and goals of the Plan. For an assessment to be considered complete, MDHA and the Metropolitan Council must agree on the priorities of activities and improvements that are eligible for tax increment financing under the Plan. The Council's agreement shall be indicated by the passage of a resolution approved by the Metropolitan Council.
(iii) It shall be a New Loan Termination Event if any subsequent assessment is not completed within ten (10) years after the assessment. If a New Loan Termination Event occurs, MDHA shall not approve any additional bonded or other indebtedness to be paid by tax increment funds under the Plan until such time as MDHA and Metro Council have agreed upon priorities of activities and improvements eligible for tax increment financing under the Plan. The occurrence of a New Loan Termination Event does not terminate the Plan or have any impact on any tax increment financing approved prior to the New Loan Termination Event.
3. Metropolitan Council or MDHA may initiate a Plan amendment: Subject to all other conditions and requirements set forth in Section H of the Plan, either the Metropolitan Council or MDHA may initiate a modification, change, or amendment to the Plan subject to the subsequent approval of the other. If the Metropolitan Council initiates a modification, change, or amendment, the approval of MDHA must be obtained before the third reading of the ordinance adopting such modification, change, or amendment.
Section 4. Central State Plan
A. The Central State Plan is amended by adding a new section J that states as follows:
J. 2026 Plan Amendments
1. Portion of tax increment used: Notwithstanding anything to the contrary in the Plan, for all bonded or other indebtedness approved by MDHA under the Plan after the effective date of BL2026-_____ that is to be paid using tax increment funds, the portion of tax increment funds that may be used to pay the indebtedness shall not be greater than seventy-five percent (75%); provided however: (a) that MDHA shall be entitled to increase or decrease this percentage pursuant to criteria set forth in a written policy adopted by the Board of Commissioners of MDHA; and (b) nothing herein shall be interpreted as overriding or nullifying the requirements of Chapter 5.06 of the Metropolitan Code of Laws entitled "Tax Increment Financing."
2. Periodic assessment of activities and improvements eligible for tax increment financing:
(i) Notwithstanding anything to the contrary in the Plan, there shall be a mandatory periodic assessment of the activities and improvements eligible for tax increment financing under the Plan. An assessment may be requested by MDHA or the Metropolitan Council. The first such assessment was completed in August 2022. Future assessments shall occur no earlier than seven (7) years after the previous assessment, provided however that each subsequent assessment must be completed within ten (10) years after the previous assessment.
(ii) Each assessment shall include a review of the impact and goals of the Plan. For an assessment to be considered complete, MDHA and the Metropolitan Council must agree on the priorities of activities and improvements that are eligible for tax increment financing under the Plan. The Council's agreement shall be indicated by the passage of a resolution approved by the Metropolitan Council.
(iii) It shall be a New Loan Termination Event if any subsequent assessment is not complete within ten (10) years after the previous assessment. If a New Loan Termination Event occurs, MDHA shall not approve any additional bonded or other indebtedness to be paid by tax increment funds under the Plan until such time as MDHA and Metro Council have agreed upon the priorities of activities and improvements eligible for tax increment financing under the Plan. The occurrence of a New Loan Termination Event does not terminate the Plan or have any impact on any tax increment financing approved prior to the New Loan Termination Event.
3. Metropolitan Council or MDHA may initiate a Plan amendment: Subject to all other conditions and requirements set forth in Section H of the Plan, either the Metropolitan Council or MDHA may initiate a modification, change, or amendment to the Plan subject to the subsequent approval of the other. If the Metropolitan Council initiates a modification, change, or amendment, the approval of MDHA must be obtained before the third reading of the ordinance adopting such modification, change, or amendment.
Section 6. Phillips-Jackson Plan
A. The Phillips-Jackson Plan is amended by deleting the following text from the end of the section entitled “Tax Increment”:
", or other adopted and approved redevelopment plans"
B. The Phillips-Jackson Plan is amended by adding a new section J that states as follows:
J. 2026 Plan Amendments
1. Portion of tax increment used: Notwithstanding anything to the contrary in the Plan, for all bonded or other indebtedness approved by MDHA under the Plan after the effective date of BL2026-_____ that is to be paid using tax increment funds, the portion of tax increment funds that may be used to pay the indebtedness shall not be greater than seventy-five percent (75%); provided however: (a) that MDHA shall be entitled to increase or decrease this percentage pursuant to criteria set forth in a written policy adopted by the Board of Commissioners of MDHA; and (b) nothing herein shall be interpreted as overriding or nullifying the requirements of Chapter 5.06 of the Metropolitan Code of Laws entitled "Tax Increment Financing."
2. Periodic assessment of activities and improvements eligible for tax increment financing:
(i) Notwithstanding anything to the contrary in the Plan, there shall be a mandatory periodic assessment of the activities and improvements eligible for tax increment financing under the Plan. An assessment may be requested by MDHA or the Metropolitan Council. The first such assessment was completed in August 2022. Future assessments shall occur no earlier than seven (7) years after the previous assessment, provided however that each subsequent assessment must be completed within ten (10) years after the previous assessment.
(ii) Each assessment shall include a review of the impact and goals of the Plan. For an assessment to be considered complete, MDHA and the Metropolitan Council must agree on the priorities of activities and improvements that are eligible for tax increment financing under the Plan. The Council's agreement shall be indicated by the passage of a resolution approved by the Metropolitan Council.
(iii) It shall be a New Loan Termination Event any subsequent assessment is not complete within ten (10) years after the previous assessment. If a New Loan Termination Event occurs, MDHA shall not approve any additional bonded or other indebtedness to be paid by tax increment funds under the Plan until such time as MDHA and Metro Council have agreed upon the priorities of activities and improvements eligible for tax increment financing under the Plan. The occurrence of a New Loan Termination Event does not terminate the Plan or have any impact on any tax increment financing approved prior to the New Loan Termination Event.
3. Metropolitan Council or MDHA may initiate a Plan amendment: Subject to all other conditions and requirements set forth in Section H of the Plan, either the Metropolitan Council or MDHA may initiate a modification, change, or amendment to the Plan subject to the subsequent approval of the other. If the Metropolitan Council initiates a modification, change, or amendment, the approval of MDHA must be obtained before the third reading of the ordinance adopting such modification, change, or amendment.
Section 7. Rutledge Hill Plan
A. The following language in Section 6 of Ordinance No. BL2014-699, previously amending the Rutledge Hill Plan, is hereby deleted:
"That the Rutledge Hill Plan is amended by replacing Section G “Tax Increment” of the Plan in its entirety and replacing it with the following:"
and instead is hereby replaced with the following:
"That the Rutledge Hill Plan is amended by replacing Section H “Tax Increment” of the Plan in its entirety and replacing it with the following:"
B. The Rutledge Hill Plan is amended by deleting the following text from the end of the section entitled “Tax Increment”:
", or other adopted and approved redevelopment plans"
C. The Rutledge Hill Plan is amended by adding a new section J that states as follows:
J. 2026 Plan Amendments
1. Portion of tax increment used: Notwithstanding anything to the contrary in the Plan, for all bonded or other indebtedness approved by MDHA under the Plan after the effective date of BL2026-_____ that is to be paid using tax increment funds, the portion of tax increment funds that may be used to pay the indebtedness shall not be greater than seventy-five percent (75%); provided however: (a) that MDHA shall be entitled to increase or decrease this percentage pursuant to criteria set forth in a written policy adopted by the Board of Commissioners of MDHA; and (b) nothing herein shall be interpreted as overriding or nullifying the requirements of Chapter 5.06 of the Metropolitan Code of Laws entitled "Tax Increment Financing."
2. Periodic assessment of activities and improvements eligible for tax increment financing:
(i) Notwithstanding anything to the contrary in the Plan, there shall be a mandatory periodic assessment of the activities and improvements eligible for tax increment financing under the Plan. An assessment may be requested by MDHA or the Metropolitan Council. The first such assessment was completed in August 2022. Future assessments shall occur no earlier than seven (7) years after the previous assessment, provided however that each subsequent assessment must be completed within ten (10) years after the previous assessment.
(ii) Each assessment shall include a review of the impact and goals of the Plan. For an assessment to be considered complete, MDHA and the Metropolitan Council must agree on the priorities of activities and improvements that are eligible for tax increment financing under the Plan. The Council's agreement shall be indicated by the passage of a resolution approved by the Metropolitan Council.
(iii) It shall be a New Loan Termination Event if any subsequent assessment is not complete within ten (10) years after the previous assessment. If a New Loan Termination Event occurs, MDHA shall not approve any additional bonded or other indebtedness to be paid by tax increment funds under the Plan until such time as MDHA and Metro Council have agreed upon the priorities of activities and improvements eligible for tax increment financing under the Plan. The occurrence of a New Loan Termination Event does not terminate the Plan or have any impact on any tax increment financing approved prior to the New Loan Termination Event.
3. Metropolitan Council or MDHA may initiate a Plan amendment: Subject to all other conditions and requirements set forth in Section I of the Plan, either the Metropolitan Council or MDHA may initiate a modification, change, or amendment to the Plan subject to the subsequent approval of the other. If the Metropolitan Council initiates a modification, change, or amendment, the approval of MDHA must be obtained before the third reading of the ordinance adopting such modification, change, or amendment.
Section 8. Skyline Plan
A. The Skyline Plan is amended by adding a new section J that states as follows:
J. 2026 Plan Amendments
1. Portion of tax increment used: Notwithstanding anything to the contrary in the Plan, for all bonded or other indebtedness approved by MDHA under the Plan after the effective date of BL2026-_____ that is to be paid using tax increment funds, the portion of tax increment funds that may be used to pay the indebtedness shall not be greater than seventy-five percent (75%); provided however: (a) that MDHA shall be entitled to increase or decrease this percentage pursuant to criteria set forth in a written policy adopted by the Board of Commissioners of MDHA; and (b) nothing herein shall be interpreted as overriding or nullifying the requirements of Chapter 5.06 of the Metropolitan Code of Laws entitled "Tax Increment Financing."
2. Periodic assessment of activities and improvements eligible for tax increment financing:
(i) Notwithstanding anything to the contrary in the Plan, there shall be a mandatory periodic assessment of the activities and improvements eligible for tax increment financing under the Plan. An assessment may be requested by MDHA or the Metropolitan Council. The first such assessment was completed in August 2022. Future assessments shall occur no earlier than seven (7) years after the previous assessment, provided however that each subsequent assessment must be completed within ten (10) years after the previous assessment.
(ii) Each assessment shall include a review of the impact and goals of the Plan. For an assessment to be considered complete, MDHA and the Metropolitan Council must agree on the priorities of activities and improvements that are eligible for tax increment financing under the Plan. The Council's agreement shall be indicated by the passage of a resolution approved by the Metropolitan Council.
(iii) It shall be a New Loan Termination Event if any subsequent assessment is not complete within ten (10) years after the previous assessment. If a New Loan Termination Event occurs, MDHA shall not approve any additional bonded or other indebtedness to be paid by tax increment funds under the Plan until such time as MDHA and Metro Council have agreed upon the priorities of activities and improvements eligible for tax increment financing under the Plan. The occurrence of a New Loan Termination Event does not terminate the Plan or have any impact on any tax increment financing approved prior to the New Loan Termination Event.
3. Metropolitan Council or MDHA may initiate a Plan amendment: Subject to all other conditions and requirements set forth in Section H of the Plan, either the Metropolitan Council or MDHA may initiate a modification, change, or amendment to the Plan subject to the subsequent approval of the other. If the Metropolitan Council initiates a modification, change, or amendment, the approval of MDHA must be obtained before the third reading of the ordinance adopting such modification, change, or amendment.
Section 9. This ordinance shall take effect from and after its enactment, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This ordinance, as amended, approves the sixth amendment to the Arts Center Redevelopment Plan, the first amendment to the Bordeaux Redevelopment Plan, the first amendment to the Central State Redevelopment Plan, the sixth amendment to the Phillips-Jackson Redevelopment Plan, the ninth amendment to the Rutledge Hill Redevelopment Plan, and the first amendment to the Skyline Redevelopment Plan.
This ordinance would add a new section to each development, as managed by the Metropolitan Housing and Development Agency (“MDHA”). This new section would be entitled “2026 Plan Amendments” and would enact three principal changes. First, this new section would require that the portion of tax increment funds that may be used to pay the indebtedness could not be greater than seventy-five percent, except that MDHA could change this figure based on criteria set in a written policy adopted by the Board of Commissioners of MDHA. Further, these provisions would remain subject to the requirements of Chapter 5.06 of the Metropolitan Code of Laws. As amended, MDHA would also be required to notify the Metropolitan Council of an increase or decrease in that percentage.
Second, the new section would require a periodic assessment of the activities and improvements eligible for tax increment financing (“TIF”) under the plan. An assessment could be requested by either the Metropolitan Council (“the Council”) or the tax increment agency. Assessments could be requested no earlier than seven years after the plan is adopted, or the previous assessment, and would be required to be completed within ten years after the adoption of the plan or the previous assessment. Any assessment would include a review of the impact and goals of the Plan and require MDHA and Council approval of eligible activities or improvements. The Council’s agreement would be indicated by the adoption of a resolution approved by twenty-one members.
If any subsequent assessment is not completed within ten years after the previous assessment, it would constitute a New Loan Termination Event and prohibit MDHA from approving any additional bonds or indebtedness to be paid by TIF under the Plan. A New Loan Termination Event would not terminate the Plan, nor would it impact any TIF approved prior to the Event.
Third, the section would clarify that the Council or MDHA may initiate a Plan amendment, subject to the approval of the other entity. Currently, only MDHA initiates these amendments in the existing redevelopment plans. If the Council initiates the amendment, the approval of MDHA must be obtained before the third reading of the ordinance adopting the amendment.
This ordinance largely repeats an effort to enact these proposed amendments. The Council passed Ordinance No. BL2019-1645 on August 6, 2019, which included similar versions to these amendments. MDHA passed the same amendments on August 13, 2019. However, because these purported amendments were enacted first by the Council instead of MDHA, they were invalid under both development plans.
The MDHA Board of Commissioners approved both plan amendments subject to this ordinance.