Williamson County Developers Claim New Impact Fee Is Illegal

FRANKLIN, TN — Eight developers filed suit against Williamson County late last week, claiming the new impact fee — which goes into full effect in September — is illegal.

The private act authorizing the fee allows the county commission to create a "formula that requires the developer to pay an impact fee formula that does not exceed a pro rata share of the reasonably anticipated cost for the public improvements created by the new land development activity," but the developers and the Home Builders Association of Middle Tennessee say the current fee doesn't meet that standard because it applies a blanket cost to all new development. (For more updates on this story and free news alerts for your neighborhood, sign up for your local Middle Tennessee Patch morning newsletter.)

The commission approved the fees, which range from $1,687 to $13,566 depending on the size of the new home and if it is within the boundaries of the Franklin Special School District, in November and they went into effect at half-rate in March and are scheduled to expand to the full price next month. The home builders insinuated then they would sue.

"We are disappointed that the (Home Builders Association of Middle Tennessee) and a number of developers have chosen to challenge the educational impact fee during a time of great need for educational funding. The need for additional schools must be addressed to provide the level of education expected in Williamson County. If we can not use the impact fee then a property tax is inevitable. We plan to vigorously defend the educational impact fee so that we can continue to provide the best education for the students in Williamson County," Williamson County Mayor Rogers Anderson said in a statement.

Williamson County estimates it will need nearly $500 million to fund expected growth by 2021. The impact fee has generated $2.73 million to date, an amount the developers are asking the Chancery Court to refund in addition to enjoining the fee altogether.

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