08/24/2026
WORTH EXPLAINING
If Growth Is Supposed to Pay for Itself... Does It?
One of the phrases I hear most often when we talk about growth in Franklin is, “Growth should pay for itself.”
I agree.
In fact, I suspect just about everyone does. Existing residents shouldn't be expected to shoulder all of the costs created by new growth. New homes and businesses create additional demands on roads, utilities, parks and other public infrastructure, and it's reasonable to expect that new development should help pay for those needs.
But there's a harder question buried inside that statement: What does “pay for itself” actually mean?
Like many people, before serving on the Board of Mayor and Aldermen, I assumed the answer was fairly simple. A development creates a need for infrastructure, the developer pays for it, and the infrastructure gets built. The reality is considerably more complicated.
Before the first family moves into a new neighborhood, substantial private investment has typically already occurred. Developers build streets, sidewalks and stormwater systems. They extend water and sewer infrastructure. Depending on the project, they may also be required to construct turn lanes, improve intersections, dedicate right-of-way or make other improvements needed because of the traffic and demand their development creates.
On top of those direct improvements, Franklin charges fees specifically intended to make new growth contribute toward the larger infrastructure systems it will use.
Road impact fees are one example. Over the past several years, BOMA has substantially increased Franklin's road impact fees, with additional scheduled increases still to come. Residential development also contributes through parkland fees, while new connections to our water and wastewater systems carry significant capacity and connection costs intended to help fund those systems.
There's something about impact fees I didn't understand before serving in local government: not every community in Tennessee has access to this tool in the same way Franklin does. State law limits the circumstances under which local governments can impose impact fees, and Franklin is fortunate to have longstanding authority to use them. We've chosen to use that authority aggressively because we believe new growth should contribute meaningfully toward the infrastructure it requires.
And these aren't abstract dollars sitting somewhere on a spreadsheet.
As I’ve discussed in a previous essay, Franklin is currently in the midst of one of the largest infrastructure investment periods in our history, with approximately 62% of our current road capital program being funded with cash rather than debt.
Some of the dollars making those investments possible were collected from development years before the construction you see today ever began. That's one of the realities of infrastructure: it is extraordinarily expensive, takes years to plan and engineer, and the timing of when the money is collected rarely lines up perfectly with when a project can actually be built.
The same principle extends beyond roads. In just the past few years, Franklin has opened Bicentennial Park and Thompson Alley Neighborhood Park, begun construction on the 180-acre Pearlene M. Bransford Complex, restored the historic Main Barn at Harlinsdale, completed the Harlinsdale pedestrian bridge, and added significant new sidewalks, greenways and multi-use trails—including 2.7 miles along Highway 96 West. Today, Franklin has 21 parks encompassing more than 1,000 acres, along with 37 miles of multi-use trails. Growth creates demand for those amenities too, which is why new residential development contributes through parkland dedication and impact fees alongside the significant investments the City makes itself.
We've also been changing our policies as we've learned.
One of the frustrations I've heard repeatedly from residents is pretty straightforward: “Don't let the development come first and then make us wait for the infrastructure.”
I understand that concern.
It's one reason I championed the use of Infrastructure Development Districts, or IDDs, in Franklin. An IDD provides another financing tool that can allow infrastructure to be constructed earlier while creating a more direct connection between the cost of that infrastructure and the new properties that benefit from it, rather than spreading those costs broadly across existing taxpayers.
IDDs probably deserve a Worth Explaining of their own, so I'll spare you the mechanics today. But the principle matters: if the public wants infrastructure earlier, we need financing tools capable of moving infrastructure earlier.
We're also becoming more intentional about something even simpler—when required infrastructure has to be finished.
Residents have told us clearly that they don't want families moving into new developments while promised traffic improvements remain unfinished. We're listening. From major developments like Harlin to smaller developments like Poplar Reserve, we've increasingly placed conditions on approvals requiring identified roadway improvements to be completed before the first certificate of occupancy is issued.
In plain English: build the required road improvements before the first family moves in.
All of this matters because it demonstrates that “growth should pay for growth” isn't simply something we say. We've been adjusting policy to make the connection between growth and its infrastructure needs stronger and more direct.
But there's another side of the equation that is equally important to understand. Not every road in Franklin is actually a Franklin road.
Many of the major corridors we drive every day—Hillsboro Road, Columbia Pike, Murfreesboro Road, Highway 96 and Mack Hatcher Parkway—are state routes. We think of them as ours because they're in our community and we're the ones sitting in traffic on them, but major improvements to those corridors depend heavily on the Tennessee Department of Transportation and state and federal transportation funding.
A developer can build a neighborhood street. A project can be required to add a turn lane or improve an adjacent intersection. Franklin can collect impact fees and invest hundreds of millions of dollars in our transportation system.
But no subdivision can complete Mack Hatcher Parkway. No commercial development can widen Highway 96 across Franklin.
Those roads aren't carrying only the residents of the newest neighborhood, either. They're carrying longtime Franklin residents, Williamson County residents, commuters traveling into and through Franklin, commercial traffic and visitors. They are regional infrastructure serving a regional economy.
And that's where the scale of Tennessee's infrastructure challenge becomes important.
Tennessee has historically taken great pride in funding transportation primarily through a pay-as-you-go model. Unlike many states, we've generally avoided borrowing money to build our highway system. There is a lot to admire about that fiscal discipline.
But growth has outpaced the model.
TDOT leadership recently suggested Tennessee's transportation needs could be as high as $82 billion. State leaders are now discussing funding approaches—including the possibility of using debt for transportation infrastructure—that would represent a significant departure from Tennessee's traditional model.
That doesn't mean Tennessee has been irresponsible. It means the infrastructure demands created by decades of growth, particularly in Middle Tennessee, are now significantly larger than the traditional funding system has been able to address.
And Franklin sits right in the middle of that challenge. Which brings us to the chicken-and-egg problem. People understandably ask, “Why don't we just build the infrastructure before we allow the development?”
Whenever possible, I think we should do a better job of exactly that. That's why we've added tools like IDDs and why we're increasingly requiring certain infrastructure improvements before occupancy.
But some of the resources used to build tomorrow's infrastructure are generated by the growth occurring today. Road impact fees aren't collected until development occurs. Parkland fees aren't generated without new homes. Developers don't construct turn lanes, extend utilities or dedicate right-of-way for projects that don't exist.
If we stopped all development tomorrow, we wouldn't suddenly solve the infrastructure challenges we already have.
We would also stop generating some of the revenue and private investment we're using to solve them. That's the part of the equation I think sometimes gets lost.
So, does growth pay for itself? Increasingly, we're making sure it carries its fair share.
We're requiring significant direct infrastructure investment. We've substantially increased impact fees. We're using those dollars alongside other City resources to make hundreds of millions of dollars in transportation investments. We've adopted new financing tools intended to move infrastructure earlier. And we're increasingly requiring critical improvements to be completed before people move in.
But “growth should pay for growth” can't reasonably mean that the family buying a new home in Franklin today should somehow be responsible for solving decades of regional transportation needs on roads serving hundreds of thousands of people.
And as I wrote recently about housing, there is another tradeoff we have to acknowledge. Every additional fee or assessment added to a new home ultimately increases the cost of bringing that home to market. If we're not thoughtful, a policy intended to make growth “pay for itself” can also make housing less attainable for the very teachers, first responders, young families and working professionals we say we want to remain part of our community.
That doesn't mean we shouldn't charge impact fees. We should. It means we have to understand that these decisions are connected.
The goal shouldn't be growth at any cost. Nor should it be stopping growth at all costs.
The goal should be making sure new growth carries a fair and increasingly direct share of the costs it creates, while responsibly planning, saving, investing and advocating for the larger infrastructure that no individual development—or even one city—can fund alone.
That's a much harder answer than simply saying, “Growth should pay for itself.”
But that's why it's Worth Explaining.