File #: RS2024-649   
Type: Resolution Status: Passed
File created: 8/9/2024 In control: Metropolitan Council
On agenda: 8/20/2024 Final action: 8/20/2024
Title: A Resolution authorizing the Metropolitan Development and Housing Agency to negotiate and enter into a PILOT Agreement and accept payments in lieu of ad valorem taxes with respect to a multi-family housing project located at 400 South 5th Street, known as 4th and Shelby.
Sponsors: Clay Capp, Delishia Porterfield, Jennifer Gamble, Ginny Welsch, Burkley Allen, Quin Evans-Segall, Zulfat Suara, Jeff Preptit, Jacob Kupin, Terry Vo, Brenda Gadd
Attachments: 1. Pilot Agreement Exhibit
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A Resolution authorizing the Metropolitan Development and Housing Agency to negotiate and enter into a PILOT Agreement and accept payments in lieu of ad valorem taxes with respect to a multi-family housing project located at 400 South 5th Street, known as 4th and Shelby.

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WHEREAS, Tennessee Code Annotated 13-20-104 ("the Act") authorizes a Metropolitan Government for which a housing authority is created to delegate to such housing authority the authority to negotiate and accept payments in lieu of ad valorem taxes ("In Lieu of Tax Payments") from the housing authority's lessees operating low-income housing tax credit property ("LIHTC Property") upon a finding that such payments are deemed to be in furtherance of the housing authority's public purposes; and

WHEREAS, the Metropolitan Development and Housing Agency ("MDHA") was created pursuant to state law and is the housing authority for the Metropolitan Government; and

WHEREAS, by Ordinance No. BL2015-1281 as amended by Ordinance Nos. BL2016-334 and BL2016-435 (the "LIHTC Ordinance"), the Metropolitan Council (i) authorized MDHA to negotiate and accept In Lieu of Tax Payments from qualified lessees of LIHTC Property owned by MDHA and (ii) approved MDHA's program for determining qualifications and eligibility for such In Lieu of Tax Payments, a copy of which was attached to the LIHTC Ordinance (the "PILOT Program"); and

WHEREAS, the Metropolitan Council approved an annual tax abatement not to exceed $5,000,000; and

WHEREAS, a balance in the amount of annual funding available for LIHTC's is currently $4,754,241 after accounting for Hickory Forest ($245,759).
WHEREAS, Shelby House II, LP ("Owner") plans to acquire property located at 400 South 5th Street (the "Project Site"); and

WHEREAS, Owner has proposed that an apartment project consisting of approximately 289 units restricted to individuals and families earning 60% or less of the Area Median Income (AMI) utilizing income averaging, known as 4th...

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