TLC sets cap at 40 entertainment-transportation permits; renewals approved, expansion requests denied

The Transportation Licensing Commission voted at its annual entertainment-transportation hearing to set the number of certificates of public convenience and necessity for entertainment-transportation vehicles (ETVs) at 40, citing the Connect Downtown study’s recommendation that about 40 permits would have a less significant impact on downtown traffic congestion.

The cap is a prerequisite finding the commission must make before acting on individual applications under the Metro code. Commissioners said the 40-permit figure will guide the TLC’s decisions going forward but can be revisited as the city implements traffic improvements from the Connect Downtown recommendations.

Why it matters: the commission’s decision narrows the scope for new or expanded ETV operations in downtown Nashville and shapes which existing permits can be converted or expanded. The rule affects sightseeing operators, party buses, and other open-air nightlife vehicles that operate in the downtown entertainment district and on routes the TLC governs.

At the hearing the commission referenced Metro code requirements and the TLC rules that require a factual finding about the number of providers and vehicles required by public convenience and necessity (Metro code section cited by staff as 6.7703 and TLC rule 801). Commission members also reviewed the Connect Downtown study (April 2024), which noted ETVs contribute to delay in the entertainment district and recommended approximately 40 permits to reduce traffic impacts.

Motion and vote: a motion to set the requisite number at 40 carried; the meeting record shows one abstention. Commissioners said the finding is annual and that new information — including results from planned signal upgrades, loading-zone pilots and other Connect Downtown implementations — could prompt a later adjustment.

Renewals and approvals: commissioners approved renewals for a long list of existing ETV and sightseeing operators that requested no change to their permits. The commission explicitly excluded B and T Transportation from the initial consent motion because that company is the subject of a pending disciplinary hearing; the commission later approved its renewal pending that hearing. The commission also amended a motion to include Honky Tonk Party Express in the “no-change” renewals after staff clarified the company had applied with incorrect numbers and only sought to retain its prior permit counts.

Denied expansion requests and new applications: after deliberation the commission denied multiple requests for additional permits or type changes (requests to add ETVs or convert sightseeing permits to ETVs) and denied a set of new applications from companies seeking to enter the market. Commissioners said those denials were consistent with the prerequisite finding of 40 permits and with legal limits on reducing the number of already-issued statutory permits. The meeting record shows the commission voted to deny expansion requests and to deny four new applications (Get to Know Nashville LLC, Music City Mafia, Nashville Bronco Tours, and Nashville Mural Tours).

Swaps, compliance and enforcement: several operators asked the commission to allow swaps (converting sightseeing permits to ETV permits). The commission reiterated its prior posture of generally not approving swaps, citing concerns about setting precedent and evidence of sightseeing operators already operating as ETVs in some cases. Staff noted at least one citation (Hub Nashville complaint) alleging operation inconsistent with a sightseeing classification (standing and dancing rather than passengers remaining seated). Commissioners discussed exploring rule or council-level changes to create limited or route-specific permits (for example, sightseeing permits limited to routes outside the downtown core), but they said any substantial rule change or new permit category would need public notice and possibly Metro Council action.

Public comment highlights: several small operators and owners spoke during the public-comment portion for individual applications. Representative quotes include: • Heather Cormier of Nashville Ultimate Party Bus: "We were given basically 2 minutes to decide" when the original permits were allocated, and her company asked to convert sightseeing permits to ETVs to match their fleet and business model. • Roxanne Morgan of Big Green Tractor Tours said her company is operating on one ETV permit and asked for a sightseeing permit to serve family-oriented tours. • Paris McKinney of Extreme Experience requested options to permit weekend-only operation or other targeted flexibility for small operators who have only one permit. • Several operators argued that properly managed party buses and tours contribute economic value and can operate safely; others and some commissioners raised quality-of-life and traffic concerns for downtown residents and workers.

Connect Downtown context and next steps: staff described Connect Downtown as a multi-year study with a 10-year implementation plan (staff noted many recommended projects are in design or being piloted, including scooter zones, leading pedestrian intervals, adaptive signalization funded through a GNRC grant and a loading/rideshare-zone pilot planned for June). Staff said the city will collect data after major implementations and return with evaluations; commissioners said they expect to revisit the permit number after signal and loading-zone pilots produce measurable traffic changes.

Discipline and complaints: staff reported there are open complaints and investigations against some operators but no pending disciplinary orders that would permit immediate revocation of permits under state law. The commission confirmed it may only revoke or refuse to renew certain grandfathered permits for specified cause (disciplinary action or prolonged dormancy), consistent with state law as read to the commission.

What the commission directed: staff was asked to continue collecting enforcement data (including Hub Nashville complaints, Environmental Court and Traffic & Parking Bureau referrals) and to bring implementation evaluation data to the commission as pilot projects roll out. Commissioners also asked legal staff to continue researching permit transfer, consolidation, and the authority to create route- or time-limited permits.

Votes at a glance (as recorded in the meeting): • Motion to set the requisite number of ETV certificates at 40 — motion carried (one abstention recorded). • Renewals approved: multiple existing companies that requested no change (list read into the record); Honky Tonk Party Express was added by amendment to the motion and approved to retain prior permits. B and T Transportation renewal approved pending disciplinary hearing. • Motion to deny expansion requests by existing operators — carried. • Motion to deny specified new applications (Get to Know Nashville LLC; Music City Mafia; Nashville Bronco Tours; Nashville Mural Tours) — motion carried.

The commission closed the public-broadcast portion of the meeting to review confidential background materials for driver applications; remaining application-review items proceeded without broadcast.

Ending: commissioners stressed that the 40-permit finding is not necessarily permanent and that the TLC will re-evaluate the number as Connect Downtown measures are implemented and new data become available. Staff and commissioners urged operators and residents to use Hub Nashville to report violations and to provide evidence the office can investigate.