Reconsider special infrastructure area
The state’s Residential Infrastructure Development Act (RIDA), passed in 2024, allows a developer to solicit funding from a local municipality to help pay for infrastructure of a specific project. Concerned yet?
Instead of the developer financing all infrastructure, it lays the burden on the municipality, which creates a bond reimbursed over 20-30 years. That could weigh on its credit rating and ability to borrow money. Now are you concerned?
Wisely and expeditiously, our Hamilton County commissioners dug into the details. What if the developer defaults? What if homes don’t sell? What if the homes sell over 40 years? Who manages this financial instrument requiring significant resources?
The fuzzy details evolve because this has never been used in Tennessee. Only one county has written guidelines. It seems clear the county can depend on reimbursement only when homes and lots sell.