CLARKSVILLE, TN (CLARKSVILLE NOW) – The City Council and County Commission each approved resolutions from the Industrial Development Board this month on the economic impact plan for the Ascension St. Thomas Hospital development site; with the goal of providing tax increment financing (TIF) for their 96-acre health campus.

During the City Council’s most recent meeting, they approved the economic impact plan for the Ascension St. Thomas Hospital development but after Councilwoman Ambar Marquis introduced an amendment.

Her amendment requires that a portion of the TIF money that the city receives, proposed as 20% annually across 20 years, will be placed into a fund for public infrastructure.

The City Council approved the amendment unanimously, and the resolution itself was also approved unanimously.

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As for the Montgomery County Commission, the resolution was a part of their consent agenda, which esd approved unanimously Monday night. Jason Knight was absent.

Background of economic impact plan, TIF

It was confirmed in May that the Ascension St. Thomas has planned for much more than a hospital on their future health campus.

The $148.5 million hospital will anchor the Ascension Clarksville Medical Campus, bringing together physician partners, Tennessee Oncology, Tennessee Orthopaedic Alliance, Ascension Saint Thomas Heart, the inpatient Lifepoint Rehabilitation hospital, and a Montgomery County Emergency Medical Services station.

There will also be restaurants and retail to support the patients, employees and visitors. To make the project happen, AST will build a public connector road from Mulberry Place at the north to Little Hope Church Road at the east, according to previous reports, along with an expanded water main.

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The TIF is being proposed to support those public roads and utility projects. TIF is a finance tool used by local governments to fund redevelopment in areas that are unlikely to see private investment without a public subsidy. TIF captures future property tax revenue growth within a defined zone to pay for the upfront costs of public infrastructure and land improvements.

Could lead to millions back into Clarksville-Montgomery County

According to previous reports, AST asked for $12.28 million in TIF on a 20-year term, and it was said that for every $1 in incentives under the plan, $3.44 will come back to the city and county in tax dollars.

Currently, the 96-acre property generates only $3,600 per year in property taxes, going to the county since it was previously outside the city limits. During the 20-year TIF, the city will receive $377,000 per year and the county $1.047 million. Once the TIF expires, the city will receive $909,000 per year and the county $2.073 million.

It was also pointed out that while AST is a faith-based nonprofit, exempt from property tax, most of the campus and its tenants will not be, and therefore will be subject to millions of dollars a year in property tax.

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