Tennessee Code Title 13. Public Planning and Housing § 13-4-303

(b)(1) As a condition precedent to the final approval of the plat, the regulations may include infrastructure improvement requirements as to the extent to which and the manner in which:

(2) The regulations of the planning commission may provide for the preliminary approval of the plat before the infrastructure improvements, but any preliminary approval shall not be entered on the plat.

(3) In lieu of the completion of the infrastructure improvements before the final approval of a subdivision plat, the planning commission may grant final plat approval subject to the submittal and acceptance of a bond, letter of credit, or other method of assurance, in form, in amount, and with conditions and surety satisfactory to the planning commission. The bond, letter of credit, or other method of assurance shall provide for and secure to the public and the local government the actual construction and installation of the infrastructure improvements within a period specified by the municipal planning commission and expressed in the bond, letter of credit, or other method of assurance.

(4) The attorney for the municipality shall enforce any bond, letter of credit, or other method of assurance by all appropriate legal and equitable remedies, and moneys collected on the bond, letter of credit, or other method of assurance shall be paid into the municipality's treasury. Upon the order of the planning commission, the moneys shall be applied to the construction and installation of the infrastructure improvements.

(d)(1) In exercising the powers granted to it by § 13-4-302, the planning commission shall not require an owner of private property to dedicate real property to the public, or pay money to a public entity in an amount that is determined on an individual and discretionary basis, unless there is an essential nexus between the dedication or payment and a legitimate local governmental interest and the dedication or payment is roughly proportional both in nature and extent to the impact of the proposed use or development of the property. An owner of private property required to make a dedication or pay money in violation of this subdivision (d)(1) may seek relief through a common law writ of certiorari in chancery court.

(2) Regulations adopted by planning commissions pursuant to this section must include the provisions in subdivision (d)(1).

(3) This subsection (d) does not apply to an assessment, fee, or charge that is imposed on a broad class of property owners by a local governmental entity.