Gatlinburg staff propose higher building, recreation and parking fees; commissioners ask for examples

Janice, the building and planning director, outlined a package of proposed fee increases across several city departments at a workshop meeting, saying staff wants to bring many fees more in line with neighboring jurisdictions and to recover administrative and inspection costs.

The proposals include raising several valuation-tier fees (for example, moving a current $20 base evaluation fee for a lower valuation tier toward $100 and increasing per-thousand valuation increments), adding a $75 initial building inspection fee for all permits, and introducing rereview fees (proposed examples: $150 for re-reviews over one hour and $250 for commercial projects). Janice said, "I am looking to increase across the board going from a base fee of $20 for evaluations from 2,001 to 15,000 to 100," and noted the city performed 1,760 building inspections last fiscal year.

Why it matters: Staff and commissioners said the changes aim to recoup costs tied to multiple inspections, failed inspections and the administrative time spent on plan reviews. Janice said an initial inspection fee and rereview charges would capture costs the city currently absorbs and align Gatlinburg more closely with Sevier County and nearby cities.

Key building and trade proposals

- Initial building inspection fee: $75 per building permit (new). - Rereview fees: a proposed $150 for re-reviews over one hour and $250 for commercial re-reviews. - Mechanical permits: propose a flat $100 per appliance (air conditioner, furnace, boiler, etc.) instead of the current $10 plus a per-thousand calculation. - Plumbing permits: staff proposed simplifying or removing small base application fees and moving to simpler fixture-based or flat-fee approaches. - Demolition permits: proposed increase from $50 to $100. - Road maintenance fee: staff suggested a new, targeted road maintenance fee on new construction to help offset wear from heavy tourist traffic; Janice noted Gatlinburg's role as a gateway to the Smoky Mountains and cited roughly 13,000,000 annual visitors.

Janice provided permit-level examples showing how proposed changes would affect representative projects and said one 3,600 square-foot single-family permit would see an estimated increase of about $1,964.50 under the proposals.

Planning and development fees

Dalton, planning staff, proposed increases for planning submittals: rezoning from $50 to $100; preliminary planned unit development (PUD) review from no fee to $50; final PUD and final site plan reviews from $50 to $100; and a Board of Zoning Appeals (BZA) application increase from $25 to $100. Dalton said many planning fees dated to the early 2000s and that the proposed changes reflect staff time and comparable regional rates.

Recreation, facilities and parks adjustments

Lawrence and other parks and recreation staff outlined a second phase of a membership model shift for the community center, moving from a la carte fees toward daily and monthly access that would cover pool, tone zone and other activities. Proposed sample rates included $10 per day or $30 per month for ages 14'061 and $8 per day or $24 per month for youth/senior categories; staff said annual memberships adopted three years ago would remain unchanged. Staff also proposed changing facility-use fees (for example, consolidating or eliminating rarely used court rentals), increasing after-hours staffing rental fees (an example increase to $500 for a three-hour after-hours rental was cited), and increasing memorial tree/plaques fees (example: from $250 to $400) because plaque costs rose.

Parking fee options and revenue estimates

Parking staff presented two per-visit rate options for city garages: raise the flat visit fee from $10 to $12 (estimated additional revenue approximately $600,000 annually) or to $15 (estimated additional revenue approximately $1,500,000 annually). Staff noted main garage capacities of about 366 and 364 spaces and said Gatlinburg remains cheaper in some lots than neighboring areas.

Commissioner and public reaction

Commissioner Reagan said some proposed jumps "seem drastic" and asked staff to compare typical building examples and tier structuring with neighboring cities before adopting large increases. Kirby asked staff to calculate sample totals for a typical 2- or 3-bedroom cabin (including appliances and add-ons) so commissioners could see the overall effect. Several commissioners and commenters asked for phased or partial approaches rather than adopting the entire package at once.

Process and next steps

Staff characterized the proposals as recommendations and asked commissioners for direction. No ordinance or fee increases were adopted at the workshop; staff said they would refine numbers, provide sample permit calculations and, if directed, prepare resolutions for future meetings.

Quotes (from meeting participants)

"I am looking to increase across the board going from a base fee of $20 for evaluations from 2,001 to 15,000 to 100," Janice said.

"I think that we're going up extremely high compared to our neighbors," Commissioner Reagan said, urging more gradual adjustments.

"Pigeon Forge has never raised their rates in 20 years," Lawrence said while explaining the community center membership model and regional comparisons.

Ending

Commissioners asked staff to return with clearer examples, adjusted tiering options and revenue impact spreadsheets. Staff said they could bring the proposals forward piecemeal or as a full package for a future commission resolution.