NASHVILLE, Tenn. (WTVF) — Gov. Bill Lee has rejected a request from Metro Nashville Mayor John Cooper for an additional $82.6 million in coronavirus relief funding for the county.
On September 8, the mayor sent a letter to the governor requesting the funds, citing intense revenue crashes in the hospitality and entertainment industries. Cooper said Nashville’s hotel and short-term rental occupancy tax revenues have dropped by 80%. The air travel and bar and restaurant industries have seen a similar drop in tax revenue.
“Tennessee’s economy relies heavily on Nashville, and Nashville’s economy relies heavily on the hospitality and entertainment industry, which has been crushed by COVID-19,” Cooper’s letter read.
Cooper said the county would use $35 million to support tourism-related businesses, including music venues, restaurants and hotels. Another $33 million would be put toward small businesses and the arts while $14 million would go to funding a “social safety net” for behavioral health, workforce development and child care opportunities.
Thursday morning, the governor replied to Cooper’s request, stating he is concerned about many of the spending decisions in Metro Nashville.
Lee’s letter stated that of the $93 million the county has received in relief funding, $5.7 million has been budgeted for relief to businesses.
“This concern is heightened by the ongoing challenges ahead for Nashville business owners who have already endured some of the most restrictive limitations on commercial activity, as well as a recently enacted property tax increase,” Lee’s letter read.
During a press conference on Thursday, Lee later clarified that he will not fund the current request, but expects to have discussions on Nashville’s economy with Cooper in the future.
“I respectfully request that you reprioritize your Coronavirus Relief Fund budget to relief our shared commitment to economic recovery and allocated the full remainder of your unbudgeted $27.3 million toward economic relief for businesses,” Lee said.
Lee said Metro’s approach to reopening businesses has not been consistent with the state’s approach.
"That's something that for me to consider, I have to believe that the strategy that I am investing in is one that is consistent and aligned with the state's strategy," Lee said. "Metro Nashville's is not."
