Mayor Freddie O’Connell’s office continues to develop its recently announced legacy business fund, an effort to offset increased property tax payments for eligible small businesses.
The initiative was announced for the first time. at the mayor’s annual state of the metro addresswhich typically provides information about the proposed fiscal budget for the upcoming year. The fund is not included in any versions of the budget that will be considered by the Metro Council on Tuesday, and officials continue to work to finalize the details.
The fund would serve, in part, to address the frustrations of Nashville business owners hurt by rising property values and last year’s tax increases.
“When you have historically high property valuations, many of which are incorrect in the current economic climate, combined with an increase in the tax rate, you get outrageous tax bills that will force hundreds of small businesses to close over the next 12 to 18 months,” said Christian Paro, business owner and leader of the Nashville Property Tax Coalition. saying at a Metro Council meeting on June 2.
The mayor’s office also hopes the fund will help celebrate the small businesses that are central to Nashville’s identity.
“It’s a monetary issue, but also a way to help the community recognize our traditional anchor businesses,” Alex Apple, a spokesman for the mayor, told the Flag.
Eligibility guidelines for businesses and funding sources have not yet been decided.
“Our expectation is probably that the first round of applicants would qualify for funding levels fairly consistent with our Property Investment Incentive,” the mayor said at a recent press conference.
Properties eligible for the Property Investment Incentive must be in a Tier 1 census tract, meaning at least 65 percent of households in the area meet or are below the 80 percent area median income or are part of a Tier 2 priority area. The value of the commercial property must also be less than $1 million at the time of the grant application. The grant allocates 50 percent of investments toward exterior property improvements and is capped at $50,000. The homeowner must also invest a minimum of $10,000 in renovations to their property.
Apple said both the amount of funding and eligibility criteria are still being determined.
While funding for the legacy business program is not included in the budget, “there are many other options [for funding]“Apple said at Flag. “It doesn’t have to be in the operating budget so you can find funding as soon as you’re ready to go.”
One option is philanthropic contributions.
“I think there’s always a desire and a hope in the community that people are willing to invest their money to support a long-standing business in a neighborhood,” Apple said. “I think it’s a win for everyone.”
This article appeared for the first time in Nashville Banner and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.