City Plans Workshop to Revamp Development Impact Fees and Credit System

Hendersonville's Capital Projects Committee is making significant strides in improving local infrastructure through a new approach to development impact fees. During their recent meeting on August 11, 2025, committee members discussed plans to announce a workshop focused on these fees in the coming weeks, following extensive legal research and community feedback.

The committee is shifting its strategy from merely collecting impact fees to implementing a credit system for developers. This innovative approach allows developers to earn credits when they build infrastructure, encouraging immediate improvements rather than accumulating funds that may not be utilized effectively. The goal is to ensure that the funds collected are directly tied to tangible projects that benefit the community.

Committee members expressed optimism about this new direction, noting that traditional methods of collecting impact fees often resulted in fragmented funds that failed to support substantial projects. By consolidating these fees into a more streamlined process, the committee aims to avoid the pitfalls of rising project costs due to delays in funding.

Additionally, there was a discussion about potentially waiving impact fees for businesses, recognizing their contributions through higher property taxes and off-site improvements. This proposal is still under consideration, with legal implications being evaluated.

As the committee prepares for the upcoming workshop, the focus remains on fostering a collaborative environment that prioritizes infrastructure development and community growth. The anticipated changes in the impact fee structure could lead to more efficient project execution and enhanced public services in Hendersonville.