Committee amends AFT collection plan, gives 60 days to installmenting developer

The Sumner County legislative committee on April 13 debated who should bear responsibility for unpaid adequate facilities tax (AFT) on commercial development and amended a motion to give developers actively paying their balances 60 days to complete repayment.

At the meeting, Jeff Sassy, who identified himself as an alderman and finance chair for the City of Hendersonville, told the committee Hendersonville “respectively opposes the county's demand for a budget adequate facilities tax on commercial development to be paid by the city,” arguing county correspondence from February 2024 did not clearly instruct cities to verify or collect AFT on commercial projects and contending the county’s private act assigns primary liability to developers. Sassy handed committee members correspondence and a memorandum and said Lincoln Property Company has committed to make payments “when they're able to do so.”

The committee heard from county staff that a payment of $57,661 had been received and that the current reported outstanding balance, after applying that payment, was $267,746. JD Riverbeck, identified in the packet as the county community development officer, told the committee he had approached Lincoln and informed the developer that final plat approval would not be signed until outstanding amounts were addressed.

Discussion focused on options for resolving older unpaid amounts: asking the City of Hendersonville to pursue recovery where certificates of occupancy were issued without evidence of payment; asking the county to pursue developers directly; or filing formal complaints or lawsuits in extreme cases. Several members said they wanted to avoid costly litigation if possible and preferred cooperative collection efforts.

The committee considered several amendments. One proposal to reduce the requested city recoupment by amounts Lincoln is actively paying and to earmark $100,000 for a volunteer fire department failed. Another amendment shortened the repayment timeline for active collections from 90 days to 60 days; that amendment passed. The chair stated the main motion was amended to allow 60 days for collectibility and members voted to carry the amended motion.

No roll-call tally was recorded in the public remarks; the minutes reflect the voice vote outcome as carried. Committee members directed staff to draft follow-up communications to the City of Hendersonville outlining expectations, to continue outreach to developers to collect outstanding AFT balances, and to return the item for review at a future meeting.

The committee did not adopt a citywide written mutual agreement at this meeting; members said creating clearer written processes or interlocal agreements would help avoid similar disputes going forward.