New rules are on the way in Nashville for a type of financial incentive that Metro government commonly gives developers.
The Metro Council voted unanimously Tuesday to approve legislation on third and final reading that addresses the Metro Development and Housing Agency’s use of tax-increment financing, or TIF.
The rules, backed by Mayor Megan Barry's administration and sponsored by Council members Bob Mendes and Erica Gilmore, were proposed after a WTVF-TV report last year raised questions about MDHA’s use of TIF. The report noted that nearly all property tax revenue from some iconic downtown buildings had gone almost entirely to MDHA for development purposes instead of public uses.
The TV station reported that tax revenue from many projects continued to go to MDHA even after developers had paid off the loans they had received from the city.
The legislation seeks to change that from happening moving forward.
"First, it will help Metro get its tax-increment money back more quickly from projects for economic development," Mendes said. "It will also give the council more say in what happens in tax-increment financing projects going forward. And finally, we're going to get greater transparency in the form of annual reporting ...