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Senate adopts amendment letting urban growth-area developments follow county rules until annexation
Summary
On final consideration the Senate adopted an amendment to SB 17 71 allowing areas designated as urban growth zones to follow county codes — rather than city codes — when residents and developers opt out of annexation; sponsors said the change lowers upfront development costs while preserving referendum-based annexation later.
The Tennessee Senate on Wednesday adopted an amendment and passed Senate Bill 17 71 on third and final consideration, altering how development standards apply in designated urban growth zones.
Sponsor Senator Briggs explained that the amendment lets communities in an urban growth zone, after county commission approval, choose to follow county codes rather than city codes "It'll allow an area in the urban growth zone to follow the county codes rather than the the city codes," Briggs said, summarizing the amendment's effect. Briggs said the change would let houses and communities be built at lower cost when residents do not want to be annexed immediately and would allow annexation later by referendum, with any needed improvements assessed to the annexed area.
During floor questioning, Senator Campbell asked whether the change could make it easier for heavy industrial uses — for example large data centers — to locate outside city limits. Sponsor Senator Lowe replied the bill "simply outlines the ability of the county authority to object" and said it would likely make development more restrictive if the county chose to exercise its authority.
Why it matters: The amendment changes the baseline regulatory regime in growth areas, shifting some decisions about development standards and costs from municipalities to county processes until formal annexation. Supporters said the change promotes affordability for housing and predictable treatment in areas that do not want immediate municipal annexation; critics warned it could have unintended consequences for proximate city infrastructure and services.
The motion to adopt the amendment was made and seconded on the floor and the amendment was adopted without recorded opposition. The bill was later read for final passage and the chair declared it passed after the clerk reported a constitutional majority. The bill will proceed per legislative process to any required subsequent steps.
