Commission approves partial right-of-way acquisition for Sunset Road Phase 3; board flags impact-fee limits

NOLENSVILLE, Tenn. — The Nolensville Board of Commissioners unanimously approved Resolution 20520 on Feb. 6 to authorize partial right-of-way acquisition for the Sunset Road Phase 3 project, while several commissioners and staff highlighted constraints on remaining impact-fee funds that will pay part of the acquisition.

The resolution authorizes the town to use a combination of impact-fee funds and the Adequate Facilities Tax (AFT) to purchase necessary right of way. As noted by the presiding official during discussion, the funding in the resolution calls for approximately $650,000 from impact fees and $850,000 from the Adequate Facilities Tax for this phase of right-of-way acquisition.

Commissioners and finance staff discussed the long-term status of the Adequate Facilities Tax. Staff said the AFT balance and future inflows from new construction determine how long the fund can support capital projects. One staff member summarized that, under current assumptions, the AFT would be exhausted in about seven years unless the board annually votes to move certain debt-service costs into the general fund (a practice the board began the prior year and must reaffirm each year).

A staff presentation referenced a cash-on-hand report for impact fees showing roughly $9 million before accounting for litigation that limits the town’s ability to spend some older impact fees; the mayor noted that the amounts available for discretionary allocation are now small and that this resolution would substantially draw down the remaining spendable impact fees.

A motion to approve the resolution passed unanimously by voice vote.

The board recorded no additional conditions on the acquisition authorization. Staff indicated they will continue capital-planning work and present a fuller picture of impact-fee and AFT priorities in upcoming sessions.