Land Use & Zoning

In Tennessee, an 'impact fee' charged to developers is used to:

APay for the developer's legal costs
BOffset the cost of public infrastructure needed to serve new development✓ Correct
CCompensate adjacent property owners for construction noise
DFund TREC's operations

Explanation

Impact fees are charges levied on developers to fund capital improvements (roads, parks, schools, utilities) needed to serve new development, ensuring growth pays for its own infrastructure costs.

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