The state appellate court ruled to uphold a trial court's decision in favor of Williamson County government, affirming that the county has authority to impose an educational impact fee on to the Home Builders Association of Middle Tennessee.
During the almost two-and-a-half-year lawsuit, the Home Builders Association of Middle Tennessee has argued that Williamson County government usurped its authority by imposing an educational impact fee for new development. HBAMT claim that directing impact fees, specifically to fund school capital, exceeds the county's authority.
However, in a March 13 Order by the Tennessee Court of Appeals, Judge Andy D. Bennett ruled in favor of the county, which claims that the Private Acts of 1987 Chapter 120 gives it the authority to impose impact fees on builders.
The HBAMT has 30 days to appeal the decision to the Tennessee Supreme Court.
Last March, Williamson County Judge James Martin dismissed the lawsuit brought against the county by HBAMT, upholding the county's authority to enforce the impact fee under the Private Acts of 1987 Chapter 120.
However, after the case's dismissal, the HBAMT appealed the decision in the Tennessee Court of Appeals in Nashville in November.
Ultimately, Bennett said he agreed with the first ruling in the county's favor.
"In light of the forgoing, we conclude that the trial court did not err in granting summary judgment to the county," Bennett said.
About the educational impact fee
The county's educational impact fee was designed to help pay for capital school expenses, such as the cost of building new schools as Williamson County's population continues to rapidly grow. The fees are calculated based on a home's square footage and whether it sits within the boundaries of the Franklin Special School District.
With no Tennessee case law regulating the use of impact fees, this one could set a new precedent.
Since the impact fee was implemented in March 2017, nearly $40 million has been generated in revenue for the county as of November, according to Williamson County Chief Financial Officer Nena Graham.
Of that $40 million, about $11.8 million was paid under protest because of the lawsuit and cannot yet be allocated.
In October, the Williamson County Commission voted to increase the impact fee rates even higher, despite strong opposition from the Williamson County Association of Realtors.
Public officials and the state legislature anticipated Williamson County's population boom more than three decades ago when they drafted and passed the Private Acts of 1987 Chapter 120. The act was meant to give the county authority to implement fees on new developments to help absorb the cost of residential and commercial growth.
According to recent estimates by the Greater Nashville Regional Council, Williamson County is expected to more than doubled its population by 2040. Each year, Williamson County Schools grows by almost 1,200 students, which results in the construction of at least one new school a year.
The WCS Five Year Capital Plan, which projects a need for $$68.1 million, calls for the construction of eight new schools in six years.
The Williamson County Commission voted to implement the act in 2016 and the educational impact fee went into effect March 2017.
Check back for more on this story.
Kerri Bartlett covers education and issues affecting families and children in Williamson County. She can be reached at kbartlett@gannett.com, 615-308-8324 or @keb1414 on Twitter.
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State Court of Appeals rules Williamson County has authority to enforce educational impact fee - Tennessean
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