Spring Hill pauses processing of some development applications while city evaluates sewer capacity

The Spring Hill Board of Mayor and Aldermen approved a temporary suspension on Oct. 7 that pauses acceptance and processing of certain development applications proposing on-site sewer systems and places a short hold on approvals that would lead to grading permits or building permits while staff evaluates the city's sewer capacity and develops specifications for on-site systems.

City administrator Ben Napier told the board the wastewater treatment plant's permitted treatment capacity is 5,000,000 gallons per day and staff is currently treating about 4.1 to 4.3 million gallons per day. Napier said the current list of vested projects submitted to the Tennessee Department of Environment and Conservation (TDEC) would, if all built, require roughly an additional 4.1 million gallons per day of capacity, a level the city is not yet able to support locally.

"We are pushing that limit right now to the extent of 4.1 or 4,300,000 gallons per day," Napier said. He and planning staff urged a temporary pause so Development Services and utilities staff can inventory active permits, quantify the capacity associated with approved construction plans and outstanding building permits, and propose a staged approach to releasing projects for construction that reduces financial and operational risk.

Planning director Dana Sanders presented a revised resolution, different from the version in the packet, that temporarily pauses the acceptance of vested applications proposing on-site systems and asks for up to a 45-day pause on issuing construction plan approvals, grading permits and building permits that would put millions of dollars into the ground while staff determines whether those projects will have sanitary sewer capacity. Sanders said the pause would not apply to projects near certificate-of-occupancy stage that only need final punch-list work nor to projects that already meet on-site system requirements once standards are adopted.

"This pause would allow Spring Hill Water sufficient time to bring forward to you a proposal for those on-site sewer specifications so that once those specifications are adopted, we're clearing the pathway for a very, fast and predictable process for those projects," Sanders said.

Developers who spoke during public comment said the lack of clarity about building permits and timing could threaten ongoing construction and sales. Patrick Pitts, land acquisition manager for D.R. Horton, asked whether the proposed resolution would freeze building permits for vested projects and requested timelines and design standards for on-site sewer systems so developers can finalize designs and funding plans. "We can't do that until the standards are set, so we ask you to move as quickly as you can to get that ironed out," Pitts said.

Several aldermen pressed staff for clearer prioritization rules describing which projects would be allowed to proceed when capacity becomes available. Staff and consultants discussed BioClear as a likely on-site alternative and said they would include submittal processes and possible memoranda of understanding to speed eligible projects through administrative review when appropriate.

Vice Mayor Linville moved to amend the resolution to add a sunset date. "This suspension shall expire on 11/18/2025 unless otherwise extended by action of the board," Linville said; the amendment passed 7'0to'0. The amended resolution then passed 7'0to'0. Sanders told the board she expects staff can likely return with options before Nov. 17 and will provide reports showing the sewer capacity associated with active building permits, approved construction plans, and projects seeking construction plan approval.

The board's vote instructs staff to: inventory capacity associated with all active permits and approved plans; draft technical specifications and submittal requirements for on-site alternative systems; present at least one option to allow projects to move forward with reduced risk; and propose release criteria and a schedule for permitting decisions. The resolution as amended was approved unanimously.