Landfills, churches, meat plants and schools? A Tennessee bill could strip boundaries between industry and communities

Tennessee lawmakers are considering a bill to lessen the ability of local governments to enforce laws about what and where people can build. 

Generally, governments place restrictions on land use through zoning laws. Common land designations are agricultural, residential, commercial and industrial. The idea is to prevent land conflicts, such as a chicken processing plant next to a school or a landfill next to a church. 

The proposed bill could effectively prevent local authorities from enforcing these zoning laws. Over time, local governments may become less able to plan for population growth, respond to trends in industrial expansions or protect natural resources. 

“This bill will allow developers to bully local government into submission anytime a local government has the temerity to say no to a developer by enforcing a zoning law,” George Nolan, the Tennessee director of the Southern Environmental Law Center, said during a committee hearing Monday.

The bill, SB1908/HB1837, is sponsored by a lawyer and a housing developer: Sen. John Stevens, R-Huntington, is an attorney in West Tennessee. Rep. Tim Hicks, R-Gray, owns Hicks Construction Company near Johnson City. 

Stevens argued that local governments may rezone without public notice to property owners, potentially causing missed financial opportunities to change or sell their properties. 

“This legislation will help provide clarity and predictability rather than forcing property owners to either accept diminished value or enter into costly litigation,” Stevens said Monday.

Developers could challenge zoning laws with an economic advantage

The legislation opens a new pathway for developers or industrial companies to build where they want with potentially limited pushback from local government. 

Under the proposed bill, landowners can sue local governments for compensation, plus attorney fees and costs, if they think a land use restriction is harming their property value. To challenge a restriction, people must own the land before a zoning law or other land use law is adopted or applied. 

Nolan provided an example of “adopted” during a state Senate hearing this week: A person has owned land for 15 years. A county government adopted a zoning code 10 years ago. The person plans to sell their land to an industrial company and requests an exception but is denied. That person can then sue the government, arguing that they owned their land before a zoning code was adopted. 

But the bill also states “applied,” an ambiguous word that may allow residents or developers to freely challenge existing local law with a significant legal and economic advantage. Nolan warned that it could create a firestorm of lawsuits from landowners against local governments, which may have limited budgets for litigation. 

The sponsors decided to hold the bill from votes this week. Sen. Stevens said he plans to add amendments to the bill before the Senate Judiciary Committee hearing on March 24. The bill is scheduled to be heard before the House Judiciary Committee on March 18 at noon.