In a significant move for Hendersonville, the Board of Mayor and Aldermen has given the green light to an impact fees ordinance, which will take effect on April 1, 2026. This decision marks a pivotal step in managing residential development costs in the city.
The approved fees are set at $6,000 per unit for single-family homes, with $2,000 earmarked for parks and $4,000 for road improvements. Multi-family units will see a fee of $5,500, divided into $1,833 for parks and $3,667 for roads. These fees will be applied on a per-unit basis, aiming to address the city's infrastructural needs as development continues.
Adding an interesting twist, the board has also introduced credits for these fees. Developers can now opt to construct or fund road and park improvements, or even dedicate land for parks, which can offset the impact fees they owe. This move is designed to foster a collaborative approach between the city and developers.
Mayor Jamie Clary emphasized the importance of the delayed implementation, explaining that it provides city staff with the necessary time to establish administrative procedures. Both the planning and finance departments have assured readiness by the April deadline.
Originally, the ordinance proposed lower fees of $5,000 for single-family and $3,498 for multi-family units, with incremental increases planned through 2030. However, Ward 2's Mike Martin raised concerns that such a tiered approach might encourage a rush of development in the initial year.
Ward 3 Alderman Jeff Sasse proposed an amendment to adjust the fees to $10,820 for single-family homes and $7,570 for multi-family units, allocating a larger portion to road improvements. His rationale was clear: developers should bear the majority of the costs they impose on the community.
The debate was lively, with Ward 4 Alderman Karen Dixon voicing concerns about the potential impact on home affordability, and Ward 5 Alderman Rachel Collins emphasizing the need to maintain community balance.
Ultimately, a compromise was struck with Ward 3 Alderman Bob Garza suggesting fees of $6,000 for single-family and $5,500 for multi-family units. This proposal aimed to balance developer responsibility with homeowner impacts.
City Attorney Lance Wray weighed in on the legal implications, noting that higher fees could increase legal risks. Despite these concerns, the board moved forward, passing Sasse's revised amendment with an 8-5 vote, and the overall impact fees with a 12-1 vote.
This decision sets the stage for a new era in Hendersonville's growth, where strategic planning and community collaboration will play key roles in shaping the city's future.