Staff outlines new Tennessee residential assessment districts; Franklin to weigh policy before any use

City staff briefed the Board of Mayor and Aldermen on Tennessee’s new Residential Assessment District Act (RITA) and two early local implementations, and the board directed staff to draft policy guidance and bring the topic back for a focused discussion.

Assistant staff explained that the RITA statute, which became effective May 1, 2024, allows municipalities and counties to create special assessment districts to fund public infrastructure tied to a development, subject to statutory minimums and local policy choices. Key elements staff identified from the statute and early examples include a statutory minimum district size of five acres and minimum capital costs of $5 million; assessments may be levied for up to 30 years under state law; bonds can be issued by a local government or an industrial development board; and the statute allows an administrative fee of up to 5% of assessments to cover program costs.

Staff described the first…