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Commission defers decision on Nearwater Place rental restriction after heated exchange; applicant to work with city attorney
Summary
The commission deferred action for one meeting on a request to remove a blanket rental restriction from the Nearwater Place final development plan after developers and commissioners discussed legal concerns and tone of a lawyer's letter; applicant agreed to withdraw or resubmit the letter and work with city counsel.
The Hendersonville Planning Commission voted to defer for one meeting a developer's request to remove a blanket rental restriction from the Nearwater Place final development plan.
Zach Coleman, lead planning staff, summarized that Nearwater Place (220 Nearwater Place, tax parcel 160050.01) had been approved in 2022 as a 49-unit townhome final development plan and that the applicant, Real Estate Solutions Group, asked to remove a blanket prohibition on rentals. The applicant's counsel, Marty Cook, said none of the units have sold and argued economic and legal difficulties justify revisiting the restriction. Cook and the owner, Lynn Ealy, said buyers had not materialized and that mortgages and market conditions had changed since approval.
Several commissioners objected to the tone of an earlier legal letter sent by the applicant's counsel, which characterized the restriction as raising potential constitutional and takings issues. Commissioner Hasty and others said the letter's language felt confrontational; commissioners asked the applicant to rescind or revise the letter and to work with the city attorney to craft a narrower set of covenants or conditions. City Attorney Lance and Mr. Cook said they would work together; Cook offered to withdraw the letter and reconvene with staff and council to propose reasonable alternative restrictions (for example, owner-occupancy limits, limits on number of units per owner, or prohibitions on short-term rentals) rather than an absolute prohibition being removed without conditions.
Commissioners also asked about access and site issues raised during earlier construction stages; the applicant said required TDOT and city processes had been followed. After discussion, Commissioner Slattery moved to defer the request for one meeting so the applicant and city counsel can pursue alternative language and withdraw the existing letter; Commissioner Hasty seconded. The motion passed 7-0 and the public hearing remained open during the deferral.
Planning staff and commissioners said they expect any revised proposal to include enforceable covenants, clearer access language if needed, and commitments to the same high design standard the approved development already exhibits.
