Nashville sued over stormwater capacity fees

(The Center Square) — Beacon Center is suing the city of Nashville over stormwater capacity fees.

The fee enacted by Nashville on Jan. 1, 2024, only charges residents who obtain building permits, according to the complaint. The money from the fees is allocated to fund capital improvements in the city's stormwater system.

Beacon Center filed the lawsuit on behalf of Peyton Pratt, who said he was charged more than $6,000 in fees when he expanded his residence.

"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.

"The stormwater capacity fee's calculation based on the total, rather than net, post-development impervious area violates the unconstitutional conditions doctrine as applied under the Fifth and Fourteenth Amendments and is therefore unconstitutional," the lawsuit said.

The lawsuit is the first class action brought by Beacon Center.

"Our class action lawsuit seeks to force Nashville to refund not just Peyton, but all Nashvillians who have had to pay the unconstitutional stormwater capacity fee," said Beacon Vice President of Legal Affairs Wen Fa. "Housing affordability is a big problem in Tennessee, and Nashville is only making it worse by making it harder for people to build. If Nashville believes residents would benefit from upgrades to its stormwater system, it must distribute the costs evenly."

Nashville officials did not respond to a request for comment.