The Metro Council ratified the Convention Center Authority’s earlier decision to loan $300,000 loan to the Nashville Convention & Visitors Bureau.
The council’s Tuesday night vote was unanimous.
In October, the nine-member authority unanimously voted to give a $300,000, no-interest loan to the CVB to help the agency offset funds it used in an attempt to keep conventioneers in Nashville following May’s flood, which forced the closure of Gaylord Opryland hotel. The loan, which still hasn’t been transferred, is to be paid back over three years.
Several council members had questioned the loan, arguing that Metro’s commissions and authorities shouldn’t be in the “lending business.” Moreover, council attorney Jon Cooper wrote in a legal analysis that, “It is questionable whether the [Convention Center Authority] has the legal authority to loan these funds without council approval.”
The council’s vote on Tuesday amended Metro’s agreement with the authority, clarifying the permissible uses of the convention center fund balance. In effect, the council has authorized the convention center authority to use dollars from the convention center fund balance to give the CVB the $300,000 loan.
The agreement stipulates that no revenue collected through the city’s hotel/motel occupancy tax is to be used to pay back the loan.