Mayor O'Connell's transportation plan clears another legal hurdle — mostly
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A Tennessee appeals court upheld the vast majority of Mayor Freddie O'Connell's $3.1 billion transportation plan, but peeled off a small portion of the program dedicated to buying land for affordable housing and parks.
Why it matters: The ruling means O'Connell's plan to improve bus service, build new sidewalks and modernize traffic signals in Nashville can continue.
"This opinion is an overwhelming victory for Metro," Nashville legal director Wally Dietz tells Axios. "The court's ruling allows the transportation plan to go forward as approved by the voters and Metro will be able to build out the transportation system completely as presented in the referendum."
Flashback: A group led by former Councilmember Emily Evans opposed the transportation plan and half-cent sales tax increase.
- After the ballot measure passed, they filed a lawsuit claiming elements of the program went beyond a state law that allows local governments to create funding sources for transportation.
- They argued components like new sidewalks and traffic signal upgrades were not covered by the law.
Between the lines: The appeals court sided with Metro's argument that the city followed the law, except for one element of the plan that would allocate money to buying land for housing development and parks.
Zoom in: The plan earmarked $33.6 million to acquire property so that it could be "developed with a variety of transit-connected community needs, such as thoughtfully designed affordable housing."
What they're saying: "We fail to see how the purchase of property for housing development and parks is consistent with [the state law, called the Improve Act]," the appeals court said in its ruling.
- "Metro will have to find other funds to accomplish this goal."
Dietz downplayed the impact of removing that portion of the plan.
- "The Court's concern over the connection between the transportation plan and affordable housing only impacts one percent of the plan which can be financed as needed from non-transit funds," he added.
The latest: Metro has already started collecting money for the plan from the sales tax increase and has lined up the first batch of projects.
The other side: "We are very pleased that the court agreed that state law does not permit Metro to get into the housing business courtesy of sales tax payers," Evans said in a statement.
- "We are reviewing the opinion and evaluating proceeding to the Supreme Court for clarification on a few points," she said.
Go deeper: Read the court's full ruling.