Spring Hill pauses new development applications while staff crafts sewer-capacity policy

The Spring Hill Board of Mayor and Aldermen on Monday approved Resolution 25‑259, temporarily suspending acceptance and processing of new development applications while staff works with developers and state agencies to craft an allocation policy for limited sewer capacity. The measure passed by voice vote, 8–0, after staff outlined a timeline and asked for authority to convene the development community and state officials and to return policy recommendations by Dec. 15.

The resolution aims to clarify exceptions and provide short‑term direction while staff compiles detailed data about vested projects. City Administrator Mr. Napier told the board staff intends to extend the earlier pause deadline and to ‘‘further refine our efforts’’ to make any remaining capacity available where feasible. He said the resolution requests additional time to prepare a policy approach and to propose solutions developed with the community.

Developers and the home‑building industry urged urgency and transparency. Kelly Beasley, president of the Home Builders Association of Middle Tennessee, told the board the pause has left roughly 3,446 vested lots unable to pull building permits and put an estimated $1.714 billion in potential residential sales on hold; she said the development community is incurring about $17.5 million a year in interest carry on those projects. John Mayer of John Mayer Builders said two projects were allowed exceptions and asked that any remaining capacity be allocated fairly and openly so incumbents do not ‘‘jump in line.’’

Staff emphasized that the pause will not prevent issuance of certificates of occupancy (COs) for projects that have completed required inspections. ‘‘If you were issued a building permit, you’re gonna get a certificate of occupancy,’’ Mr. Allen told the board, describing issuance of COs as the administration’s top priority to avoid disrupting home closings.

On prioritization, staff said it will evaluate multiple dates and data points for each project — approval date, vesting date and date of any development agreement — and present comparisons for the board to consider. Mr. Napier said some development agreements reference water or sewer reservations, while others do not, and the timing of those documents complicates a single ranking approach.

The city also discussed decentralized, stand‑alone wastewater systems as one potential partial solution. Mr. Allen said he has discussed alternate systems with the Tennessee Department of Environment and Conservation (TDEC) and that state officials prefer municipal ownership and operation of decentralized systems rather than third‑party operators. He warned that some sites lack suitable soils or space for on‑site systems and encouraged developers to evaluate contingency plans. ‘‘We want our people keeping up with that. We want our people maintaining it,’’ he said of city operations.

A number of aldermen and developers asked staff to publish a transparent, public list showing where projects fall in any queue and the criteria used to prioritize them. Alderman Werner and others repeatedly urged that the report, when completed, show approval and vesting dates, percent complete, and any development‑agreement constraints so the board can make an informed, equitable decision.

The motion to adopt Resolution 25‑259 was made by Vice Mayor Linville and seconded by Alderman Murray. The board voted to approve the resolution 8–0. The resolution directs staff to continue meetings with the development community and agencies, to prepare a recommended policy for allocation of remaining sewer capacity and related specifications, and to return to the board with recommendations by the Dec. 15 voting meeting.

Next steps specified in the discussion include staff convening meetings with developers and industry organizations, preparing a public report that compares multiple prioritization scenarios, drafting technical specifications for any approved decentralized systems, and examining whether city‑owned parcels could be used to host additional treatment capacity. The board and staff said they will use scheduled work sessions and the Dec. 15 meeting to review proposals and to seek solutions that balance public‑health protections with preserving as much building activity as feasible.