CLARKSVILLE, TN (CLARKSVILLE NOW) – The Clarksville-Montgomery County Industrial Development Board (IDB) has agreed to pursue the second of four commercial redevelopment districts to facilitate improvement within downtown Clarksville.
The IDB took action Wednesday morning, green-lighting an Economic Impact Plan (EIP) for the Turnbridge/River District. The district extends for approximately eight blocks along the Cumberland River between McClure Street and Adams Street. It is the second district to move forward, with the first being the Civic Plaza District.
The plan
“This project will serve as the catalyst to provide tax increment financing (TIF) in the downtown area along Riverside Drive and will support much-needed growth and redevelopment within the Turnbridge/River District,” said Janet Wilson, EDC project manager.
These plans are normally created following a lack of development due to structural and population factors. In the case of the Turnbridge/River District, the area sits in a flood zone, making the land undesirable for many potential commercial newcomers.
In order to attract new businesses, the IDB has formed a plan for this redevelopment district that features the establishment of a TIF zone. TIF zones provide tax incentives that can be used to fund a portion of a commercial or residential project over time.
The area outlined in the plan sits on about 48 acres, with several parcels available for development. Buck Dellinger, CEO and president of the Economic Development Council, explained at a city Finance Committee meeting on Tuesday that projects developed on these parcels will be eligible for a tax rebate.
“Fifteen percent of a project is eligible for rebate over a 20-year period. Each year, the rebate is based on dollars after base taxes are already paid, ” Dellinger said.
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The 724-space structural garage will be the first development in this district. The garage will be centrally located within the River District, directly across from the F&M Bank Arena between First Street and Spring Street. IDB officials explain that the garage will promote economic activity by providing convenient access to off-street parking.
The IDB is also looking ahead to the redevelopment of the Riverview Inn, which will soon become a Double Tree by Hilton, and the redevelopment of the old Warehouse location, which will be transformed into a mixed-use residential and commercial development. Plans for both projects are underway, according to officials.
Affordable housing clause
One of the other things officials have added into the plan is that every housing developer who receives TIF will also have to abide by a 10% affordable housing component.
“So what that means is that if anybody is receiving TIF and they’re building multi-family homes for rent, they have to set aside 10% of those units to rent out at the 80% HUD income levels based on Clarksville and Montgomery County,” Wilson said at an IDB meeting on Wednesday. “We need affordable housing in our community.”
In addition to promoting affordable housing, the plan seeks to drive foot traffic to the area, which will ultimately support local businesses downtown. According to the IDB, it has the potential to draw more visitors downtown from not just the city but also from outside the region.
Jobs are another part of the equation. The IDB said that new jobs can be expected with significant commercial and retail developments in the area. Aside from the temporary construction jobs that projects in these areas will create, new retail and commercial spots will also bring in a significant number of permanent jobs.
Furthermore, sales tax revenue is another plus the IDB is highlighting. In an example, officials noted that if a 55,000-square-foot retail space is constructed, and such space results in annual retail sales of $8.25 million (using an estimate of $150 annual sales per square foot), the county and the city would realize about $206,250 in local sales tax revenue.
Approvals are required by the City Council and County Commission to approve the EIP, initiate the redevelopment district, and establish TIF capacity.