CLARKSVILLE, TN (CLARKSVILLE NOW) – Another step helping to revitalize downtown was taken this week when the Clarksville-Montgomery County Industrial Development Board (IDB) approved tax increment financing (TIF) for two projects in the Turnbridge Redevelopment District.
The Turnbridge Redevelopment District was approved by city and county leaders a few weeks ago, giving developers a chance to take advantage of a new TIF zone. On Wednesday, two TIF applications from Riverview Square Hotel and Riverview Square Retail, which are in that district, were approved by the IDB.
Revitalizing downtown
“It’s in the approved city and county Turnbridge District, so because of the rules of how that operates, different parcels can support other parcels,” said Buck Dellinger, CEO and president of the Economic Development Council.
Dellinger explained why the project will have a big impact on downtown Clarksville.
“While not directly related, highly related to this project is the (parking) garage and the impact of that garage and how that supports what’s happening there,” he said. “It’s not a three-legged stool, it’s a four-legged stool here. You’ve got the hotel, retail, the garage and the F&M (Bank) Arena. All of those activities and uses are supported by each other to make this overall big impact to the community.”
Philip Welker, partner of Nashville-based BNA Associates, said the hotel was purchased a couple of years ago to help revitalize the 4-acre block on which the Riverview Hotel sits as part of a conjoined effort with the opening of the F&M Bank Arena.
“Our vision for that had renovating the Riverview Hotel as a 156-room upper-scale hotel and then really bringing a lot of entertainment, retail, bars and restaurants that would complement the activities in the arena to give both those patrons something to do before and after those events coming in. What allowed us to do that was the vision to have a parking garage that went along with the arena, and so we were able to find some land to help facilitate the design and construction of that garage,” he told the IDB on Wednesday.
Cost and timeline
The project is part of a public and private effort to bring more entertainment to downtown. Welker noted the TIF zone will help offset costs as the projects move forward.
“Three years ago, we did not have tax increment financing in place,” Welker said, noting that the COVID-19 pandemic and subsequent supply chain issues have increased original cost estimates. The hotel’s renovation cost was originally figured at about $10 million but will now likely cost over $15 million.
While these developments are a year away, the projected tax revenue is what has spurred interest and incentives from the state, especially when it comes to construction of the parking garage.
“There’s still a significant amount of tax revenue coming out of this project, from sales tax to room and hotel/motel tax,” Welker said.
The garage, hotel and retail elements are all expected to be completed in December 2023, with openings slated for some time in 2024.
Driving that timeline is the lead time of materials needed for construction of the parking garage. Those are not expected to be delivered until July 2023. Since the materials are precast, the garage should go up quickly, according to Welker.
The next step in the process is for the IDB to approve a development agreement with BNA Associates. That will feature what items can be rebated over that 20-year period as part of the TIF. That agreement is expected to take form within the next month.