Image Credit: Canva
The Center Square [By Kim Jarrett] –
The Beacon Center and the city of Nashville have settled a class action lawsuit over stormwater capacity fees.
Peyton Pratt sued the city after he was charged more than $6,000 in fees when he expanded his residence, according to a release from the Beacon Center, which represented Pratt.
Nashville enacted the new fee structure for residents obtaining building permits in February 2024. The money from the fees was allocated to fund capital improvements in the city’s stormwater system.
“Perhaps worse, Metro’s stormwater capacity fee charges individuals on a per square-foot fee not just for impervious area that they’re adding, but also for impervious area that has existed all along,” the lawsuit said. “Thus, even though Mr. Pratt sought to add less than 2,500 square feet in impervious area, Metro charged him a stormwater capacity fee for over 8,000 square feet.”
Impervious areas include roofs, streets, sidewalks and parking areas that are covered.
Nashville agreed to settle and pay back $1.4 million to residents who were charged the fees in order to obtain a permit. Pratt will also recoup his money and the Beacon Center will receive $5,000 in attorneys fees, according to the settlement.
A federal judge has to sign off on the agreement before it is final.
“This is a landmark agreement, not just for our client, but for all Tennesseans,” said Wen Fa, Beacon’s vice president of legal affairs. “Tennesseans have long identified the lack of housing as a significant issue, so we’re pleased that this proposed settlement clears the path for builders to make housing affordable by building more homes for Tennesseans.”
The stormwater capacity fee ordinance did not generate the revenues expected prior to adoption, said Julie Oaks Smith, senior director of communications for Nashville Mayor Freddie O’Connell.
“Metro Water Services stopped collecting the charge and is in favor of repealing the ordinance,’ Smith said. “As a result, it made sense to settle the case by refunding the fees that had been collected plus attorney fees.”
