MURFREESBORO, Tenn. (WKRN) — Starting July 1, any newly-built home in Murfreesboro will face an additional impact fee following a unanimous April vote by the city council.

According to Murfreesboro City Council’s April 20 agenda, “development impact fees” will serve as a source of revenue that offset the cost of expanding or enhancing services and infrastructure because of new development. This money will help with additional roadways, parks and recreational facilities, public safety facilities, and schools.

“I think it could have an effect on the first-time homebuyer and the younger couples and families… Will it ultimately affect our overall population? Maybe a little bit, but I don’t know that it will have a massive end result,” Middle Tennessee Association of Realtors Immediate Past President Christopher Wilson said.

The Rutherford County Chamber of Commerce anticipates the city’s population to reach more than 153,000 in 2024 due to 23 people moving there every day.

Wilson also mentioned the rise in construction costs, which all goes back down to the buyer. As a result, he believes first-time buyers will be impacted the most because the fee will be passed on to them.

“As a builder pays that fee, they have to carry that over the cost of the loan until the house sells, so what may start out as a $5,000 or $7,000 fee could end up being $10,000, $12,000, or more.”

The Murfreesboro City Council unanimously voted to approve development impact fees on April 20.

(Source: Murfreesboro City Council agenda)

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The City of Murfreesboro sent News 2 the following statement about the development impact fees:

“The City of Murfreesboro has experienced significant growth over the past several years which has increased needed infrastructure costs for the City and its residents. City Council requested a study be conducted on how impact fees could help manage the cost of capital improvements as the City continues to grow.  Consultant Tischler Bise conducted an impact fee study, suggesting several areas to help manage development costs with opportunities to provide adequate capacity to accommodate growth. After considering the matter at Workshops over the past several months, Council adopted an ordinance that established the ability to collect Development Impact Fee then adopted a Fee Schedule on First Reading May 25, 2023, that establishes impact fees for new residential, commercial, industrial, office, and public/institutional developments.  The fees will generate revenue to fund projects that are in response to demands from growth and development. The Impact Fee Schedule must still be adopted on Second Reading.”

City of Murfreesboro

News 2 has also requested more information about the fee schedule from city officials.