Bill > SB0026

This bill establishes a comprehensive legal framework for creating Infrastructure Development Districts (IDDs) in Tennessee, providing municipalities with a new mechanism to finance and develop infrastructure projects. The bill reduces the contemplated capital cost required for creating an IDD from $5 million to $1 million and allows host municipalities to create districts through a detailed process involving petition, public hearing, and resolution. Key provisions include allowing municipalities to levy special assessments against properties within the district to fund infrastructure costs, with assessments based on the benefits received by each property and capped at 5% for administrative expenses. The bill permits municipalities to issue bonds, notes, or other obligations to fund infrastructure costs, with a maximum 30-year term. The legislation requires transparent processes, including public hearings, notice requirements, and annual audits by the state comptroller. Districts must be dissolved within 30 years or upon meeting specific conditions, such as paying off all outstanding obligations. The bill provides flexibility for municipalities to work with developers, enter into agreements, and contract with professional administrators while ensuring that infrastructure is developed in compliance with existing laws and provides clear benefits to the properties within the district.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0026&ga=114