Planning commission urges BOMA to consider development impact fees, with caveats on rates and credits

The Hendersonville Planning Commission voted to forward a general endorsement to the Board of Mayor and Aldermen (BOMA) supporting the city’s consideration of development impact fees after staff presented a completed impact‑fee study and two ordinance approaches that BOMA will review.

Scope and debate: Director Frey summarized the study and explained that the study provides a maximum justifiable fee schedule from which the city may select lower, phased or targeted rates. Commissioners debated whether fees should apply to residential development only or include commercial and retail uses. Several commissioners urged that any fee structure include a credit system allowing developers to construct or fund off‑site improvements (for example, a nearby turn lane) in lieu of paying fees, and that the city should carefully message how collected fees will be used to mitigate localized impacts.

Market and equity concerns: Commissioners noted the risk that very high fees could make the city less competitive for major employers or retailers (examples discussed included a large‑format retailer); others argued the city needs fees to catch up on long‑deferred infrastructure work. The commission urged BOMA to consider phased rates, developer credits for required on‑site or off‑site improvements, and periodic updates to the study.

Vote and next steps: Commissioner Kerr moved, Commissioner Hasty seconded, and the planning commission approved a motion expressing support for moving forward with impact fees for BOMA consideration. Commissioner Hardwick said he would vote no on the motion, citing concern about endorsing the study’s maximum figures without more calibration. The commission’s recommendation is advisory and will be taken under consideration by BOMA when it considers two ordinance options the following week.