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A resolution approving an economic impact plan for the Rivergate Mall Economic Development Project.
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WHEREAS, The Metropolitan Government of Nashville and Davidson County seeks to preserve and promote local economic welfare, educational growth, and vitality; and,
WHEREAS, construction of public infrastructure in the Rivergate Mall area will provide a necessary and substantial public benefit to the citizens of the Metropolitan Government; and,
WHEREAS, The Industrial Development Board of the Metropolitan Government of Nashville and Davidson County (the “Industrial Development Board”) has reviewed an Economic Impact Plan regarding the development of the Rivergate Mall area in the form attached hereto as Exhibit 1; and,
WHEREAS, the development proposed in the Economic Impact Plan by Merus LLC or an affiliate thereof (“Merus”) will consist of approximately 57 acres that includes multifamily housing, townhomes for sale, senior housing, retail, restaurants, sports and entertainment facilities, medical offices, general offices, hotels, and other improvements (collectively, the “Project”), at a cost expected to exceed $337,511,000; and,
WHEREAS, the Project will revitalize the Rivergate Mall area and create a vibrant pedestrian-friendly mixed-use community; and,
WHEREAS, on May 14, 2025, the Industrial Development Board conducted a public hearing with respect to the Economic Impact Plan, as required by Tenn. Code. Ann. § 7-53-314(g), and approved the submission of the Economic Impact Plan to the Metropolitan Council; and,
WHEREAS, the Industrial Development Board has submitted a copy of the Economic Impact Plan to the Mayor pursuant to Tenn. Code. Ann. § 7-53-314(f); and,
WHEREAS, the Economic Impact Plan contemplates that Merus will construct public infrastructure necessary for the Project, including roads, streets, publicly-owned or privately-owned parking lots, facilities or garages, traffic signals, sidewalks or other public improvements that are available for public use, publicly-owned or privately-owned utility improvements and storm water and drainage improvements, to be reimbursed from incremental additional real property taxes from the Project; and,
WHEREAS, the Metropolitan Government has determined that an Economic Impact Plan will promote economic growth and stability within the community.
NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. The Metropolitan Council hereby finds that the Economic Impact Plan is in furtherance of promoting economic development in the community, will develop trade and commerce in and adjacent to Nashville and Davidson County, contribute to the general welfare, and alleviate conditions of unemployment, and will be necessary and advantageous to the Industrial Development Board in furthering the purposes of the Industrial Development Corporation Act.
Section 2. The Metropolitan Council hereby approves the Economic Impact Plan in the form attached hereto as Exhibit 1 and incorporated herein by reference, it being in the interest of the citizens of The Metropolitan Government of Nashville and Davidson County to do so, and the Industrial Development Board is authorized to take such other action as may be necessary, appropriate or required to implement the Economic Impact Plan.
Section 3. Any substantive or material amendment to the Economic Impact Plan must be approved by resolution of the Metropolitan Council.
Section 4. This Resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This resolution approves an economic impact plan for the Rivergate Mall Economic Development Project (the “Plan”). T.C.A. § 7-53-314 authorizes the Industrial Development Board (the “IDB”) to prepare economic impact plans for approval by the Metropolitan Council. On May 14, 2025, the IDB considered and approved the Plan for submission to the Metropolitan Council. The purpose of an economic impact plan is primarily to provide tax increment financing for a designated project to cover costs related to public infrastructure and site development.
The Rivergate Mall project is located at 1000 Rivergate Parkway and is currently used as a shopping center. At completion, the project area will consist of 57 acres that include multifamily housing, townhomes for sale, senior housing, retail, restaurants, sports and entertainment facilities, medical offices, general offices, hotels, and other improvements. The real property tax increment above the base tax and dedicated tax will be used to pay for the public improvements to the property, such as roads, sidewalks, parks, greenways, utilities and other improvements that benefit all properties within the Plan, including any building demolition and site preparation work, and utility improvements and stormwater and drainage improvements that will be located on private property.
An economic impact analysis was prepared by Camoin Associates and Merus LLC (the “Developer”). The analysis estimates that the $337.5 million investment will generate 955 construction jobs and $99.9 million in annual labor income over the buildout period. Once completed, the analysis estimates that the project will create 660 direct permanent jobs on site and more than $100 million in annual direct spending. The analysis further estimates that when combined with expected area growth because of the development, more than 1,000 total jobs would be created with more than $175 million in direct spending. The Developer projects that the Project will generate $83.9 million in real property taxes to the Metropolitan Government for the 20-year period following completion.
Over the life of the Plan, Metro will continue to receive all of the personal property tax generated in the plan area, as well as the base tax amount and any “dedicated tax”, which is the amount designated to pay Metro’s annual debt service. The base tax amount will be separately established by parcel. The annual excess over the base tax and the dedicated tax are the TIF Revenues. In the first five years of the Plan, 100 percent of the TIF Revenues shall be available for the IDB (the “Net Tax Revenues”) to use according to the Plan and a related development agreement. For years six through 25 of the plan, 75 percent of the TIF revenues shall be made available for the Net Tax Revenues.
The maximum amount of TIF Revenues that will be made available over the term of the Plan will be $42,000,000. Under current market conditions, an allocation of $42,000,000 is expected to facilitate TIF Financing that generates a grant to the Developer of approximately $22,500,000.
The IDB will issue bonds or notes for each phase of the project, the proceeds of which shall be used to pay the above referenced public improvements costs. The Net Tax Revenues shall be used to pay the debt service on the bonds or notes. The Plan permits the IDB to pledge all or a portion of the available Net Tax Revenues for the debt service as long as the amount does not exceed $42,000,000, the amount of TIF Revenues available for the project.
Any debt issued by the IDB will not be a debt obligation of the Metropolitan Government. The source of funds to pay the debt service for the IDB debt obligation is limited to the available Net Tax Revenues.
The term of the Plan is 25 years, though the term shall not exceed 20 years unless an extension of five years is determined to be in the best interest of the state as provided in Tennessee Code Annotated section 9-23-104. Pursuant to state law, the Commissioner of the Department of Economic and Community Development and the Tennessee Comptroller must approve any term beyond 20 years. Submission of the Plan for such approval will occur after Council consideration and approval.