CLARKSVILLE, TN (CLARKSVILLE NOW) – Facing an office rent increase, rapid community growth, and a change in the way visitors learn about the community, the Economic Development Council and its affiliated agencies are planning a move to a new, permanent home in downtown Clarksville.
The Clarksville-Montgomery County EDC supports local economic growth and serves as the umbrella for the Chamber of Commerce, Industrial Development Board and Visit Clarksville (the Convention and Visitor’s Bureau).
For the last 17 years, these agencies’ offices have been in rented space in the top floor of the bank building at 25 Jefferson St. That building is now owned by Millan Enterprises, which is developing several downtown properties, including the 10-story Millan Center under construction next door. Under the current lease, which expires in November 2026, the EDC has been paying only $10 per square foot. That’s about half the market rate, with newer tenants in the building paying about $20 per square foot. The EDC expects the rent to go up to at least $14 per square foot with the next lease, according to an EDC executive summary of the proposal.
As the area develops, parking and meeting space at the bank building have been increasingly difficult to come by, with the Chamber board, for example, having to meet off-site.
Visitor’s Center unvisited
Meanwhile, the Clarksville Visitor’s Center on Holiday Drive near Exit 4, operated by Visit Clarksville, has been ignored by visitors for many years as travelers increasingly rely on online resources rather than printed brochures. It doesn’t help that the center is in an isolated location with limited parking. The building has been unstaffed and empty for at least six months, and Visit Clarksville is asking Montgomery County to sell the building.
At the Nov. 20 county Budget Committee meeting, commissioners OK’d deeming the building excess property so that it can be sold. That will have to be approved at the next Montgomery County Commission meeting. The building appraises at $225,000, with offers already proposed as high as $300,000.
Visit Clarksville Executive Director Angie Brady said the tourism board is currently paying $8,000 a month to maintain the property, and that’s expected to increase to $14,000 a month in the near future.
“Visitors don’t travel there anymore,” Brady said at the Budget Committee meeting. “It was used as a travel center, with the emergence of technology, people don’t travel that way. And the state of Tennessee has a center 3 miles north of here. It’s a duplication issue. By moving the center downtown, there’ll be more walkability.”
Solution on Franklin Street
In seeking a solution to serve both emerging needs, the EDC came upon 335 Franklin St., currently Gateway Funeral Home. The funeral home is looking to sell, and the site is now under contract for the EDC, with a $1.55 million offer for the property. Converting the building to office space will take additional money, for a total cost of just under $2.6 million.
The current plan under consideration is for the IDB to own the property, taking advantage of its property tax-exempt status, and the EDC would then lease it from the IDB. To pay for the up-front costs of property and renovation, the EDC will provide $400,000, Visit Clarksville $250,000, and the Chamber $100,000, for a total $750,000. The remaining cost would be financed by the IDB, with the EDC lease covering those costs until it is paid for, according to EDC documents. Those specifics are still being finalized and are subject to further approval.
“Over a 5- to 10-year period and beyond, we estimate the annual cost of (this arrangement) will be considerably less than the future lease renewals at 25 Jefferson Street,” EDC CEO Buck Dellinger said in the report.
On Monday, Dellinger presented a resolution to the County Commission asking that the county sell the Holiday Drive Visitor’s Center location and direct the proceeds to helping purchase the Franklin Street site. The front one third of the building will be dedicated to Visit Clarksville. The other EDC agencies will occupy rest of the building.
“If we can buy this place, build it out for Visit Clarksville, and house the EDC, we can save $4,000 a month in rent. And once we own it, we’ll be saving more than $10,000 a month in rent,” Dellinger said at the meeting.
A complete renovation of the old funeral home has been designed by Brad Martin of Lyle Cook Martin Architects, and the builder estimates that could be complete as early as May. The EDC, IDB, Chamber and Visit Clarksville, along with Leadership Clarksville, would move in from May to June. Millan Enterprises has informally agreed to release the EDC from its lease at the end of July.
Approvals still needed
The funding plan has been approved by the EDC partner agencies, including the EDC Board, which gave final approval Nov. 21. If all goes to plan, “Eleven years later this entity has a free and clear home in downtown Clarksville,” EDC Board Chairman Will Sanders said at the EDC Board meeting.
The use of the EDC, IDB and Visit Clarksville funds will need approval by the County Commission. The County Commission is expected to vote on the matter at its next meeting, Monday, Dec. 9, at 6 p.m. at the County Courthouse.
Curtis Leblanc and Christian Brown contributed to this report.
Correction: City Council approval is not required for the use of funds, only County Commission.