Gallatin Establishes First Infrastructure Development District in Tennessee

New state law allows private financing of public infrastructure without burdening taxpayers

Apr. 2, 2026 at 10:07am

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A minimalist studio still life featuring a collection of sleek, geometric objects in shades of grey and silver, representing the abstract concepts of infrastructure, development, and sustainable growth.A conceptual illustration capturing the innovative private financing model behind Gallatin's new infrastructure development district.Gallatin Today

The city of Gallatin, Tennessee has become the first in the state to establish an Infrastructure Development District (IDD) under a new 2025 state law. The IDD will allow the developer of the Station Camp project to finance key infrastructure improvements, including upgrades to Big Station Camp Boulevard, through private bond financing secured by assessments on the land rather than relying on public funds.

Why it matters

The IDD model has been successfully used in Texas to fund public infrastructure without placing the financial burden on taxpayers. This approach aims to spur economic development and provide essential services to the Gallatin region while maintaining fiscal responsibility.

The details

On March 17, the Gallatin City Council voted 5-2 to approve a petition establishing the Big Station Camp IDD. This will allow the developer, Merus, to issue bonds through the city's Industrial Development Board to finance infrastructure like roads, utilities, and other public improvements for the 133,000 sq ft retail and medical office project, as well as 178 senior housing units, 76 single-family homes, 45 townhomes, and 300 multi-family units. The IDD ensures these key upgrades, including work on the intersection of Big Station Camp Boulevard and State Route 386, will be paid for through private assessments rather than public funds.

  • On March 17, 2026, the Gallatin City Council approved the petition to establish the Big Station Camp IDD.
  • The Tennessee Real Estate Infrastructure Development Act was passed in 2025, enabling the creation of IDDs.

The players

Gallatin City Council

The city government body that voted 5-2 to approve the petition establishing the Big Station Camp IDD.

Merus

The employee-owned design-build company that will develop the Station Camp project, which includes retail, medical office, senior housing, single-family homes, townhomes, and multi-family units.

Rosemary Bates

The Executive Director of Gallatin's Economic Development Agency, who stated the IDD approach ensures existing taxpayers are not responsible for the infrastructure costs.

Rick Rosenberg

The managing principal of the Development Planning and Financial Group (DPFG) who has overseen the establishment of similar Public Improvement Districts in Texas.

Keith Randall

An attorney and shareholder at the Nashville-based Winstead PC law firm, who helped guide the IDD process.

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What they’re saying

“This allows the developer to have a lower interest rate to install public infrastructure while ensuring existing taxpayers are not responsible for the cost.”

— Rosemary Bates, Executive Director, Gallatin Economic Development Agency

“This is a landmark moment for the City of Gallatin and a testament to the forward-thinking nature of the Tennessee Real Estate Infrastructure Development Act. By utilizing this new tool, Merus can develop the infrastructure needed for high-quality, sustainable growth without placing the financial burden or recourse on the general taxpayers.”

— Keith Randall, Attorney, Winstead PC

“We appreciate the City Council's collaboration and the Winstead team's expertise in guiding us through the IDD process. The Big Station Camp IDD is a pivotal step in our vision to create a vibrant, walkable and economically resilient community.”

— Patrick Poole, Senior Vice President and Nashville Market Leader, Merus

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

The establishment of Gallatin's first Infrastructure Development District demonstrates how new state laws can enable private financing of public infrastructure, fueling economic growth while protecting taxpayers. This model has proven successful in other states and could be replicated in communities across Tennessee.