CLARKSVILLE, TN (CLARKSVILLE NOW) – Most of us have heard the news that Costco is planning to open one of its Wholesale stores in Clarksville near Interstate 24.

Everyone seems clear on that. But some people are still asking questions. Here are a few of those questions, and the answers that we have so far.

1. Why is it being built on that farm?

The 220-acre plot of agricultural property behind Governor’s Square Mall was going to be sold by the Feltner family, likely in 10- to 30-acre tracts. Officials with the Economic Development Council stepped in arranged to instead have the site master-planned with developer Oldacre McDonald to create Freedom Farms, with Costco as the anchor tenant, drawing higher-quality retail and restaurants.

Map showing 200 acres that from R-1/M-3 to C-3/C-4/C-5. (Contributed by the Regional Planning Commission)

2. What will Costco do for Clarksville?

Beyond the benefits in local shopping, Costco Wholesale by itself will have a major economic impact: 

  • $55.2 million capital investment  
  • $250 million in estimated annual sales  
  • $6.2 million in annual sales tax revenue  
  • Clarksville-Montgomery County Schools will receive approximately $4.57 million annually  
  • Clarksville City Government will receive approximately $1.65 million annually  
  • 600 direct jobs and 201 indirect jobs

Those figures are for Costco alone and don’t include the dozens of other retailers that will be recruited to the remaining 200 acres of Freedom Farms.

Plans for Freedom Farms with Costco as the anchor tenant, in July 2026. (CMC EDC, contributed)
Plans for Freedom Farms with Costco as the anchor tenant, in July 2026. To the south is the planned office park/convention center site. (CMC EDC, contributed)

3. What are we paying Costco in incentives?

To get Costco here, the EDC has arranged a performance-based incentive worth $21.5 million over 10 years. But none of it is up-front: Costco gets a share of the county’s sales tax only after they generate more than that amount. They’re expected to have $250 million/year in sales. That will bring $6.25 million in local tax revenue. They will receive back $2.15 million/year for 10 years. If they don’t meet the minimum revenue and sales tax numbers, they don’t get the incentive. The incentive applies only to Costco; local governments will get 100% of the sales tax from the businesses on the other 200 acres of Freedom Farms. All of this is subject to Montgomery County Commission approval, with a vote coming in the next few weeks.

4. Why do we need to pay Costco a tax incentive?

Clarksville is not a Class A market – our household income isn’t that of Mount Juliet or Franklin, for example. And we’re competing to get one of the limited number of Costco Wholesale stores that are opened each year. The EDC had to negotiate with Costco for this, and the company would not come without an incentive. This is the deal that it took. It’s also far less than Costco has received in other similar markets, to the tune of $30-$40 million in Texas, Alabama and South Carolina.

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The preliminary plan for roads through Freedom Farms, created by TTL. Vanderbilt Clarksville Hospital is to the south, and Governor's Square mall is to the west. (CMC EDC, contributed)1
The preliminary plan for roads through Freedom Farms, created by TTL. Vanderbilt Clarksville Hospital is to the south, and Governor’s Square mall is to the west. (CMC EDC, contributed)1

5. What about Costco adding to traffic?

Several steps are under way to address traffic issues before Costco opens, expected in spring 2028. The City of Clarksville’s Spring Creek Parkway from Trenton Road to Wilma Rudolph Boulevard will soon be complete, and the Freedom Farms developer plans to complete an extension of Spring Creek through their site and connect it to Ted Crozier Sr. Boulevard. The developer will also create multiple roads through Freedom Farms. The existing Athletic Avenue connects with Ted Crozier at the center of the site, and Dunlop Lane will connect at the bottom. All three roads are currently underutilized, according to the EDC, and the additional roads should lessen traffic on Wilma.

Plans for Freedom Farms, developed by Oldacre McDonald. (CMC EDC, contributed)

6. What’s this about new Interstate 24 exits?

Montgomery County and the EDC are working with TDOT officials to request adding alternative exits at Exits 4 and 8, essentially creating an “exit 6” that would feed into Freedom Farms and other nearby sites. As I-24 is widened, which is already approved, improvements will be needed at Exits 4 and 8. The proposal is to create new “collective distributed corridors” along the sides of the widened I-24 that flow off of both exits, as new Exits 4B and 8B. These would allow access to Freedom Farms, Vanderbilt Clarksville Hospital, the Industrial Park and other locations nearby. Examples of this can be seen with I-40 Exit 226B and 226C in Mount Juliet, and I-65 Exit 68B in Brentwood. All of this is subject to approval by TDOT, which is still in the process of reviewing designs for I-24 widening.

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7. Who might join Costco at Freedom Farms?

Part of the point of drawing Costco as an anchor tenant is to attract other quality retailers to the other 200 acres of Freedom Farms. While no deals have been signed yet, an array of retailers are on the targeted wish list. Among them are Trader Joe’s, Barnes & Noble and REI, along with restaurants First Watch, In-N-Out Burger and J. Alexander’s, according to the EDC presentation.

| FULL STORY: Costco plan: $21.5M performance incentive, alternative I-24 exits, Trader Joe’s in sights