TLC sets target of 40 entertainment-transportation permits after annual hearing; operators and downtown advocates spar over impacts

The Metropolitan Nashville Transportation Licensing Commission on its annual entertainment-transportation hearing set a prerequisite finding that 40 entertainment-transportation vehicle permits is the appropriate number to meet the public convenience and necessity in downtown Nashville.

The commission made the finding after staff and outside-study presentations and more than two hours of testimony from business owners, tour operators and downtown advocates. Director Grant Rooker told commissioners they must first make a numeric finding of how many entertainment-transportation providers and vehicles are required before considering individual permit requests.

Why it matters: The finding guides whether the commission will approve new permits or changes to existing permits and frames later enforcement and rulemaking. The commission said the 40-permit finding aligns with the traffic and operations analysis in the Connect Downtown study, which the commission and staff used as a primary data point.

The Connect Downtown study found that “ETVs contribute to about 80 seconds of delay for each vehicle in the entertainment district” and recommended the city consider reducing the number of entertainment-transportation permits downtown. As the study's presenter noted to the commission, “approximately 40 permits would have a less significant impact on traffic congestion” in the downtown core (Connect Downtown presentation, transcript packet, appendix F). The presenter also described implementation steps under way — pilot loading/ride-share zones, scooter zones, and signal timing projects — and said the city will evaluate traffic after those changes are implemented.

Public comment and operator testimony: Jeanette Barker of the Nashville Downtown Partnership urged the commission not to issue any additional entertainment-transportation permits, saying the group “do not believe any public convenience or necessity exists for the request for the requests for additional permits before you today.” Barker asked the commission to prioritize enforcement, regular review of complaints and a penalty rubric for repeat offenders.

Operators and applicants gave a range of testimony. Several small operators said they are economically dependent on an additional permit or a reclassification of existing permits. Heather Cormier (Nashville Ultimate Party Bus) and Roxanne Morgan (Big Green Tractor Tours) described administrative errors on prior applications and said those mistakes have left them with fewer usable permits than vehicles in service. Operators asked the commission for allowances such as weekend-only authorizations or route-restricted sightseeing permits that would not add downtown congestion.

Commission debate and legal limits: Commissioners and staff repeatedly noted state law limits the commission’s ability to reduce the number of already-issued permits; a permit can be revoked only after disciplinary proceedings or for six months of dormancy for permits existing when the statute was enacted. Staff advised that refusing to renew a historically issued permit is legally constrained. Commissioners discussed whether permit swaps (converting sightseeing permits to entertainment-transportation permits) should be allowed; staff pointed to TLC rule 801 and code sections referenced in the packet as the basis for separate factual findings for sightseeing duties (section 804) and the broader ETV category.

Action taken: A motion to set the commission’s requisite number of entertainment-transportation certificates at 40 carried (motion carries; there was one abstention). The commission then proceeded to consider renewals and change requests in light of that prerequisite finding. The commission renewed existing permits for numerous companies and denied or deferred requests that would increase the number of active entertainment-transportation permits downtown. The commission also approved renewal of one company’s application pending a disciplinary hearing so that the operator could continue to operate while the disciplinary matter proceeds.

What the commission signaled next: Staff said the city will run pilots (loading/unloading zones and test signalization changes) and collect data; staff and the study presenter said the commission will see follow-up evaluations after major operational changes. Commissioners asked staff to return with monthly summaries of enforcement and complaint activity from HUB Nashville, environmental court and the traffic-and-parking bureau.

Ending note: The commission emphasized that its 40-permit finding is an annual determination and can be revisited when new data from the planned downtown pilots and signal upgrades are available. Several operators pressed the commission for targeted flexibility — route-limited sightseeing permits or seasonally limited authorizations — and staff said rule or code amendments would be needed for certain changes.