The Fee Schedule sets the Development Impact Fees to be imposed on new development to offset the cost of public capital improvements in four major areas: roads, parks, public safety and schools. Several other Middle Tennessee cities and counties have long had impact fees to help pay for new development.
Tishcler Bise followed a prescribed methodology to determine the impact fee per residential unit and for non-residential projects a per 1,000 square feet impact was calculated. Impact Fee revenue can only be used for capital expenses that are incurred in response to growth and development—new or expanded schools, parks and recreation facilities, street or roadway, or new public safety facility or equipment or similar projects.
The Development Impact Fee becomes effective upon the start of the new Fiscal Year, July 1, 2023. Developers, homebuilders, and stakeholders will notice the Fee Schedule on building permits by land use. Permit applications for single family residential construction received by June 30, 2023, will be exempt from the fee as will projects with Site Plans approved before July 1, 2023.
Based on recent building activity, the Development Impact Fee is anticipated to generate approximately $9 million in revenue annually: For Roads & Streets $3.5 million; Parks & Recreation $1.75 million; Public Safety $1.75 million; Schools $1.75 million.
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