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Bill BL2020-276

An ordinance amending Title 5 of the Metropolitan Code to establish a development impact fee.

WHEREAS, the recent population growth in Nashville and Davidson County has negatively impacted the Metropolitan Government’s ability to provide adequate schools facilities and affordable housing; and

WHEREAS, Tenn. Code Ann. § 6-2-201(15), provides that cities organized under the Mayor-Aldermanic form of government have the power to:
Establish, open, relocate, vacate, alter, widen, extend, grade, improve, repair, construct, reconstruct, maintain, light, sprinkle and clean public highways, streets, boulevards, parkways, sidewalks, alleys, parks, public grounds, public facilities, libraries and squares, wharves, bridges, viaducts, subways, tunnels, sewers and drains within or without the corporate limits, regulate their use within the corporate limits, assess fees for the use of or impact upon such property and facilities, and take and appropriate property therefor under §§ 7-31-107 -- 7-31-111 and 29-16-203, or any other manner provided by general laws …; and

WHEREAS, Tenn. Code Ann. § 6-33-101 provides the same powers noted above to cities organized under the Modified City Manager – Charter form of government; and

WHEREAS, Tenn. Code Ann. § 7-2-108 provides that metropolitan governments are vested with “any and all powers that cities are, or may hereafter be, authorized or required to exercise under the Constitution and general laws of the state … “; and

WHEREAS, Tenn. Code Ann. §§ 6-2-201(15) and 6-33-101 are general laws in that they are not specifically local in application; and

WHEREAS, as a city power authorized to be exercised under the general laws of the state, Metro has the power to assess impact fees.


Section 1. Title 5 of the Metropolitan Code is hereby amended by adding the following new Chapter 5.34 – Development Impact Fee:

Chapter 5.34 Development Impact Fee

5.34.010 Definitions.

As used in this chapter, the following terms have the meanings ascribed herein:

"Building" means any structure built for the support, shelter, or enclosure of persons, goods, or moveable property of any kind.

"Building permit" means a permit for development issued in the municipality.

“Commercial building” means any building not used for residential purposes.

"Development" means the construction, building, reconstruction, erection, extension, betterment, or improvement of land providing a building or structure, or the addition to any building or structure, or any part thereof, which provides, adds to, or increases the floor area of a dwelling unit or commercial use.

"Dwelling unit" collectively means (a) a room, or rooms connected together, constituting a separate, independent housekeeping establishment for owner occupancy, rental, or lease; (b) physically separated from any other dwelling units in the same structure; and (c) containing independent cooking and sleeping facilities.

"Floor area" means the total of the gross horizontal areas of all floors, including usable basements and cellars, below the roof and within the outer surfaces of the main walls of principal or accessory buildings (or the center lines of party walls separating such buildings or portions thereof) or within lines drawn parallel to and two feet within the roof line of any building or portion thereof without walls.

"Person" means any individual, firm, co-partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, or other group or combination acting as a unit, and the plural as well as the singular number.

"Residential" means the development of any property for a dwelling unit or units.

"Municipality" means the Metropolitan Government of Nashville and Davidson County, Tennessee.

5.34.020 Impact fee established.
Any person who constructs a new residential development or commercial building within the municipality shall pay an impact fee in accordance with the following schedule:

A flat fee of one thousand five hundred dollars ($1,500) for each residential unit.
A flat fee of five thousand dollars ($5,000) for each commercial building.

5.34.030 Collection of impact fee. The impact fee established by this chapter shall be collected at the time of application for a building permit for development as herein defined. No building permit for development shall be issued unless the impact fee has been paid in full to the department of codes administration.

5.34.040 Use of impact fee proceeds. All impact fee revenue collected shall be used as follows:

A. Sixty percent (60%) shall be allocated for Metropolitan Nashville Public Schools capital projects. Of this sixty percent (60%) collected, forty percent (40%) shall be used for capital improvements to schools identified as a Priority School by the State of Tennessee.

B. Forty percent (40%) shall be allocated to fund public infrastructure projects, including, but not limited to, streets, roads, sidewalks, bikeways, water/sewer facilities, solid waste facilities, and transportation/transit facilities.

5.34.050 Severability. If any provisions of this chapter or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the chapter which can be given effect without the invalid provision or application, and to that end the provisions of this chapter are declared to be severable.

Section 2. This ordinance shall take effect from and after its passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.


Jonathan Hall, Tanaka Vercher, Courtney Johnston, Emily Benedict, Kyonzté Toombs, Russ Bradford, Brandon Taylor

Legislative History

IntroducedApril 21, 2020

Passed First ReadingApril 21, 2020

Referred toBudget and Finance Committee
Codes, Fair, and Farmers Market Committee

Substituted adoptedJune 16, 2020

Requests for ADA accommodation should be directed to the Metropolitan Clerk at 615-862-6770.

Last Modified: 06/29/2020 4:59 PM