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An ordinance approving Amendment No. 1 to the Cayce Place Redevelopment Plan and, Amendment No. 2 to the Jefferson Street Redevelopment Plan. (Proposal No. 2025M-012PR-001).
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WHEREAS, BL2019-1645 proposed amendments to the Metropolitan Development and Housing Agency Redevelopment Plans of, Cayce Place and Jefferson Street;
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. 1 to the Cayce Place Redevelopment Plan, and Amendment No. 2 to the Jefferson Street Redevelopment Plan on August 6, 2019;
WHEREAS, the Metropolitan Development and Housing Agency approved Amendment No. 1 to the Cayce Place Redevelopment Plan and Amendment No. 2 to the Jefferson Street Redevelopment Plan on August 13, 2019;
WHEREAS, this ordinance will correct the sequence of the approval of the amendments;
WHEREAS, the Cayce Place Redevelopment Plan (the "Cayce Place Plan") consists of text, exhibits, and maps, currently exists as previously approved by Ordinance No. BL2015-1274;
WHEREAS, the Jefferson Street Redevelopment Plan (the "Jefferson Street Plan") consists of text, exhibits, and maps, currently exists as previously approved by Ordinance No. BL2005-797, and subsequently amended by the adoption of Ordinance No. BL2014-699;
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 Cayce Place Plan Jefferson Street 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. Cayce Place Plan
A. The Cayce Place Plan is amended by adding a new section J that states as follows:
J. 2025 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 BL2025-_____ 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 2. Jefferson Street Plan
A. The Jefferson Street 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 Jefferson Street Plan is amended by adding a new section J that states as follows:
J. 2025 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 BL2025-_____ 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 3. 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 approves the first amendment to the Cayce Place Redevelopment Plan and the second amendment to the Jefferson Street Redevelopment Plan.
This ordinance would add a new section to both development plans, as managed by the Metropolitan Housing and Development Agency (“MDHA”). This new section would be entitled “2025 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 increase or decrease this percentage pursuant to criteria set forth in a written policy adopted by the Board of Commissioners of MDHA. Further, the amendment notes that this provision would still be subject to the requirements of Chapter 5.06 of the Metropolitan Code of Laws entitled “Tax Increment Financing”.
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 adoption of the plan, or the previous assessment, and would be required to be completed within ten years after the adoption of the plan or the previous assessment. The assessment would include a review of the impact and goals of the Plan, and MDHA and the Council would have to agree on the eligible activities or improvements. 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. If a New Loan Termination Event occurs, MDHA would be prohibited 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. 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 the proposed amendments to the Cayce Place Redevelopment Plan and the Jefferson Street Redevelopment Plan. 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.