In a significant move aimed at shaping the future of growth in Hendersonville, the city’s Board of Mayor & Aldermen took a key first step toward implementing impact fees on new residential development. In a meeting Tuesday night, the board approved the measure on first reading, signaling a shift toward having developers shoulder more of the financial burden tied to expanding infrastructure-specifically roads and parks.
Two proposals were on the table: one that would have applied impact fees to both residential and commercial developments, and another that focused solely on residential. After considerable discussion, the board opted for the latter, passing it by a 10-3 vote.
Breaking Down the Two Proposals
The more expansive proposal-co-sponsored by aldermen Mark Skidmore, Michael Martin, Mark Burdorf, and Jeff Sasse-sought to apply fixed and predictable fees across the board, including both residential and commercial projects. According to Martin, this approach was designed to mirror the more traditional models seen in other cities.
Had it passed, the ordinance would have levied a $9,016 fee per unit on new single-family homes and $6,308 per unit on new multi-family developments. Commercial and industrial projects would have been assessed at $4,786 per 1,000 square feet, with funds earmarked primarily for road improvements.
Martin argued that the fees were modest-roughly 50% of what could be charged under state guidelines-and emphasized that none of the commercial fees would go toward parks. “Retail, especially food service, brings a lot of traffic,” he said. “So it makes sense to direct those funds to infrastructure improvements.”
Despite the rationale, the board ultimately voted down this broader plan, 9-4. Alderman Eddie Roberson was among those who opposed commercial impact fees, citing the extensive on-site and off-site improvements already required of commercial developers.
The Residential-Only Approach Gets the Green Light
The second proposal, co-sponsored by Ward 5 Alderman Rachel Collins and Mayor Jamie Clary, took a more incremental approach-targeting only new residential development for impact fees. That version passed its first reading with a 10-3 vote.
“I’d like to ease into impact fees,” Collins said. “Start small, build up from there.”
Under this ordinance, two-thirds of the revenue generated would go toward roadway improvements, with the remaining third allocated to parks. Clary introduced an amendment to adjust the proposed fee structure, which the board also approved by a 10-3 margin.
The updated fee schedule would charge $3,500 per unit for single-family homes (down from an initial $5,000) and $2,500 per unit for multi-family developments (down from $3,498). Both categories would see a $500 increase per unit each year moving forward.
Clary explained the rationale behind the lower fee for apartments: “The average apartment unit has fewer people, therefore the impact is smaller. But when you multiply that across an entire complex, the fees still add up.”
Credits for Developers Who Contribute to Infrastructure
Alongside the residential impact fee ordinance, the board also approved a companion measure that would establish credits for developers who take on infrastructure improvements themselves. Whether they build roads, fund park projects, or dedicate land for public use, developers could receive credits to offset their assessed fees. That ordinance passed overwhelmingly, 12-1, with only Skidmore voting against it.
What’s Next
The ordinances still need to pass a second reading before becoming law. The next Board of Mayor & Aldermen meeting is scheduled for January 26, where these measures will return to the table for final approval.
For now, Hendersonville is taking a measured but meaningful step toward managing the costs of growth-placing more of the responsibility on developers while keeping an eye on long-term infrastructure needs.