Allie Feinberg | Knoxville News Sentinel
Knox County has a new policy to guide housing developments for years to come.
A Knox County Commission vote Jan. 27 was the final step in a monthslong effort to navigate a new Tennessee law that upends how counties pay for roads and utilities that must be built for new subdivisions.
The law allows counties to essentially add a special tax or assessment on those who buy homes in the new development, and the money is used for improvements that make the subdivision possible.
Knox County hasn’t raised property taxes since 1999, and residents have sounded the alarm that an influx of new development is costing taxpayers across the county. Residential infrastructure development districts offer a solution without raising taxes for homeowners who live nowhere near new homes.
“It’s one of those things that we’ve asked about for a decade,” Commissioner at-large Kim Frazier said.
The Knox County Commission approved the first designation, somewhat akin to a tax increment financing district or payment in lieu of taxes, this month for a development off Tipton Station Road. Now, they’ve OK’d an overarching policy that will guide future residential infrastructure development districts.
Commissioner Angela Russell, who represents the far western part of the county, was the only vote against it.
The policy lays out requirements for residential development districts and clarifies the process for developers.
How big can residential infrastructure development districts be?
Residential infrastructure development districts must cover at least 10 acres, which is about the size of seven football fields.
The cost of development must be more than $10 million.
How long will homeowners have to pay?
Developers and the county can require residents to pay fees for the time to takes to pay off infrastructure costs, with a cap of 30 years.
How much will homeowners have to pay?
The maximum amount of money homeowners would have to pay is $1,000 per year.
How will the county hold developers accountable?
The policy requires developers to sign an memorandum of understanding saying they’re committed to carrying out the infrastructure improvements they’re proposing.
County officials must provide the county commission with quarterly progress reports for each district.
When will homeowners have to start paying fees?
The county will not start imposing fees on homeowners until the infrastructure is completed, unless “the developer can provide adequate security satisfactory to the county … to ensure completion of the applicable infrastructure,” according to the policy.
Do developers have to meet with community members?
Developers must hold a meeting with residents of the community where the development will be located.
How will residential infrastructure districts be created?
- Developers notify the county: First, developers must submit a notice of intent to county officials. Developers are instructed to meet with county staff members to reach an agreement for their petition, which essentially outlines the vision for a district. If they can’t, developers can still file a petition but the county can recommend denial.
- Developers file a petition: After developers have a concept plan, they can submit a petition to the county clerk’s office.
- Public hearing: State law requires the Knox County Commission to hold a public hearing where neighbors can voice questions, comments and concerns about the petition.
- Approval or denial of petition: The commission will vote to approve or deny the petition immediately after the public hearing.
- Notice of district creation: The developer must file with the Knox County Register of Deeds, which is responsible for the county’s property records, within 60 days of the district’s creation. Developers must also agree to give notice of the annual fees in each sales contract for lots/homes that will be subject to fees.