City pauses impact fee until special call meeting

JOHN COFFELTEditor

The Manchester Board of Mayor and Aldermen tabled an ordinance at the Jan. 2 meeting that would establish an impact fee on new construction in the city.

The fee as first presented proposed a $2 per square foot fee on residential construction and $1 on commercial and industrial construction.

The industrial development component of the fee was a sticking point on the passing of the ordinance as was the definition of new construction.

Citing input by the Coffee County Industrial Board Executive Director Steven Crook, Messick said the $1 fee could be excessive for large industries. A development similar in scope to that of the new DOT Foods facility, poised for final inspection at the end of January, would garner $250,000 fee.

Alderman Ryan French noted too that an even fee on an industry fails to take into account the individual impact a facility could have. A two-employee warehouse would likely have less impact than a fully staffed factory of the same size.

Alderman Donnie Parsley questioned if the ordinance should have language to exempt residents rebuilding after fire or tornado.

Johnson said that the term “new development” should have been included in his draft of the ordinance.

Mayor Marilyn Howard questioned the definition of “new development.”

“If someone comes in and renovates townhouses…tears them down to bare necessities, would they be affected by… the fee?” Howard asked. “I guarantee we’ll see people pushing that envelope.”

The matter will be revisited during a special call BOMA meeting on Jan. 11.

During the work session that proceeded the BOMA meeting Jan. 2, Vice Mayor Mark Messick introduced the matter to the board for discussion as a tool for much needed infrastructure improvements.

“We have to have new funding if we are ever going to ever build schools,” Messick said. “We’re tapped out. We can’t borrow any more money until we have a new revenue.”

Messick said, however, that a tax increase would still likely be needed to build the new school that is probably needed in the coming years.

“I’m not telling you that we won’t have to raise taxes … to build a $30 million school, but I’m telling you that this will help,” he said.

Messick said that the impact fee will take some of the burden of infrastructure improvements off the backs of current city residents.

City Attorney Craig Johnson said that the City Charter, approved by the state General Assembly, gives the city the authority to enact an impact fee.

The proposed ordinance to go before BOMA at the Jan. 11 special call meeting has been updated to include new rates for non-residential buildings. If approved, commercial or industrial buildings from 1-10,000 square feet will see a $1 fee pre square feet, with that price dropping $0.10 for units up to 25,000 square feet, $0.20 for 50,000 square feet. Buildings above 50,001 square feet will be charged 40.70 per square feet up to $100,000.

Further, in this resolution new development is defined as “the process of developing land that has not been previously developed by the construction. It also includes a provision to include substantial alteration of a facility or structure.

John has been with the Manchester Times since May 2011. John has won Tennessee Press Association awards for Best News Photo and placed in numerous other categories. John is a 1994 graduate of Tullahoma High School, a graduate of Motlow State Community College and earned a Bachelor of Arts in English from Middle Tennessee State University. He lives in Tullahoma, enjoys painting, dancing and exploring the outdoors.