PROPRIETARY AND CONFIDENTIAL
Downtown and Riverfront
Redevelopment Strategy
Clarksville, Tennessee
WESTBROOK PARTNERS
May, 2013
FOR INTERNAL PURPOSES ONLY
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MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Table of Contents
Section
Title
Page Numbers
Table of Contents
2
Introduction
3-4
A
Economic Overview
5-10
B
Demographic Trends
11-16
C
Retail Market Analysis
17-27
D
Housing Market Analysis
28-35
E
Benchmark Cities
36-45
F
Catalyst Projects
46-57
G
Clarksville Downtown /Riverfront Retail Inventory
58-60
H
Retail Recruitment Strategy Tenant Prospects
61-64
I
Implementation Approach and Recommendations
65-72
J
Branding and Graphic Identity
Submitted Separately
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MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Executive Summary
The Two Rivers Company (TRC) has sponsored a Market Analysis and Redevelopment Strategy for the Downtown and Riverfront areas of Clarksville, with
the objectives to understand the following:
• What is the market potential for retail, residential and office uses downtown and along the Riverfront area of the City?
• How can redevelopment of the Riverview Inn, Public Square and the traditional downtown incorporate a possible hotel expansion and addition of some
type of meetings facility?
• How much retail is there in downtown Clarksville and along Riverside Drive/Second Street in the study area, and how is the existing square footage
allocated among major retail categories?
• What downtown redevelopment strategies make sense for Clarksville, given the proximity of the APSU campus, Fort Campbell, Liberty Park, Gateway
Medical Center and the large concentration of commercial and residential development along I-24 and Wilma Rudolph Boulevard?
• What comparable characteristics and ‘lessons learned’ can be taken from relevant/example “Benchmark Cities” selected by TRC (Knoxville;
Chattanooga, Greenville SC, Columbus GA and Little Rock AR)? What parts of their successes are applicable to Clarksville?
• How can catalyst sites such as the existing downtown Transit Center, the Roxy Theater site and adjacent parcels and the Riverview Inn and environs
stimulate further downtown development, and what concepts could make sense on those and other sites? Where should future redevelopment be
considered?
• What types of retail make sense for retention, recruitment and expansion in downtown Clarksville, and what local and regional retail examples
represent the market-appropriate quality, pricing and service levels for downtown Clarksville?
• Based on the previous findings, what recommendations should be considered by Two Rivers Company, the City and County and other partners to
further sustain redevelopment downtown?
The study was conducted to reflect the proximity, connections and existing fabric of the Riverfront area along Riverside Drive and Second Street as well as
the traditional downtown Clarksville area centered along Franklin Street, Public Square and adjacent blocks. This Executive Summary incorporates the
research, analysis and findings of that study, completed by TEG Economics of Washington DC, working with the Walker Collective LLC project coordinator
on behalf of the Two Rivers Company. This Executive Summary presents brief summary descriptions extracted from the more detailed report, which
follows, and focuses on six major topics: (1.) The Market Analysis and key findings; (2.) Analysis of Benchmark Cities; (3.) Catalyst Site Redevelopment
Concepts in Downtown Clarksville; (4.) Downtown/Clarksville Riverfront Retail Inventory; (5.) Retail Recruitment Strategy and Examples; (6.)
Recommendations. Each is summarized in the text which follows:
The Market and Downtown/Clarksville Riverfront Redevelopment
Downtown Clarksville has experienced patterns similar to hundreds of other small cities across the United States – competition from suburban retail and
commercial development, economic pressures on small, locally owned businesses brought about by changing demographics and shifting consumer
demand and changing patterns in housing, and financial pressures on government to provide services to expanded geographies. In addition to these
conditions, Clarksville has also had to rebuild from natural disasters, primarily represented by flooding and the devastating F-4 Tornado in 1999. Yet
through these sometimes adverse conditions, downtown Clarksville has endured, and is (in TEG Economics’ view) well positioned to capitalize on several
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MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Executive Summary
advantages that have sustained downtown and can continue to foster future growth in retail, residential, lodging and office development as TRC moves
forward with its programs.
The primary economic drivers for near-term growth are Austin Peay State University, the proximity of Fort Campbell to Clarksville, general economic
growth fostered by Clarksville’s diverse economic base (including manufacturing, health care and financial services), and the city’s location along I-24.
While some may consider the 1-24 corridor and its links to downtown to be a negative, TEG considers this area to be both an economic boost to
Montgomery County and to the City of Clarksville, as the commercial and residential activity there constitute another indicator of sustained growth in the
Clarksville Metropolitan Statistical Area (MSA). While the physical layout is more auto –oriented than the downtown area, suburban Clarksville has
fostered job creation, a major retail presence in shopping malls and smaller centers and development of lodging for visitors. Of course there is some
competition with downtown, but the regional economic growth in Clarksville’s suburban areas can be said to benefit all Clarksville residents. The
economic forces represented by Fort Campbell also provide stability, a constantly changing resident population (most of which live off base) and
constitute a military-related population of almost 39,000 jobs (including both active military and civilians) and approximately $2.8 Billion in annual payroll
and expenditures that repeatedly ripple through Clarksville and the regional economy. Fort Campbell’s constantly changing staffing results in general inmigration to Clarksville, with military transfers coming from other US and foreign stations to Fort Campbell. Hopkinton and Christian County Kentucky
also account for a large percentage of relocations into Clarksville.
Immediately adjacent to the downtown area is Austin Peay State University, (APSU) the fastest-growing university in the Tennessee state system. APSU is
both an economic driver for the region as well as a source of continued consumer demand and growth over the past ten years and is expected to remain a
principal downtown driver into the future. The greater majority of APSU’s 10,900 students live off campus, and have provided the basis for development
of new market-rate student-oriented multi-family housing, both downtown and throughout the community. The APSU faculty and staff are also
consumers of downtown goods and services, dining and entertainment/cultural venues, such as the Roxy Theater and the Customs House Museum.
These markets, supplemented by selected new residential development and upper floor conversions oriented toward professionals who desire
downtown living opportunities, can be considered an indication of market segments that will support continued growth in downtown housing options.
According to the US Census, downtown Clarksville had a residential unit count of approximately 1,366 dwelling units in 2011, with the projected number of
units increasing to over 1,530 units by 2016. This difference of almost 170 additional housing units downtown will result in increased consumer demand
for retail, food & beverage and consumer services, add to the property tax base, and (if properly planned and located) provide infill and continuity to
better link APSU to downtown and the Riverfront commercial and recreational corridor. In TEG’s view, continued growth of the APSU student body can
be a steady source of new housing demand, an increased number of downtown consumers (proximity of APSU was cited by Bink’s as their primary reason
for locating in downtown Clarksville) and an opportunity to broaden offerings in food & beverage, retail, special events and downtown
entertainment/cultural venues. The proximity of APSU to downtown will only strengthen as more infill development takes place, and its sustained
growth within the Tennessee University System is a great benefit for the downtown market. TEG conservatively estimates that annual absorption of
residential units downtown will support 26-33 new/renovated dwelling units per year, for a total of between 130 and 165 new units by 2016.
Because residents contribute the greatest share of spending potential to downtown retail in communities such as Clarksville, the projected addition of
about 170 new downtown dwelling units is a critically positive factor. In larger cities, downtown also includes major concentrations of office space;
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MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Executive Summary
Downtown Clarksville is both the Montgomery County seat as well as the location of City Hall and many local governmental offices. These public offices
also generate demand for other private sector professionals, especially attorneys and financial institutions, both of which constitute much of the office
base in the downtown area. This concentration of office-based professionals provides demand for lunch time expenditures and for a portion of evening
shopping, entertainment and dining, but is a smaller share of overall demand than residents and students. These consumer submarkets account for
downtown Clarksville’s greater share of total captured food and beverage expenditures, which are disproportionate to downtowns share of total
residents; downtown can be considered a dining destination within the region, in part because it is the only pedestrian-oriented ‘urban’ experience for
consumers and it concentrates both major national food service chains (primarily located along Riverside Drive and Second Street) and a number of
leading local and regional operators for those who want a more unique dining experience than provided by chain-affiliated operations.
The retail offerings in Downtown Clarksville can compete with the larger concentrations of retail along Wilma Rudolph Boulevard/Highway 79, as well as
retail corridors on Fort Campbell/Route 41A and newer, emerging retail clusters along MLK and Tiny Town/I-24. Downtown’s historic buildings and
authentic character, affordable retail rents and steady base of properties represent an opportunity to continue and build on momentum toward more
businesses and new investment fostered by focused downtown management and retail recruitment/retention strategies lead by TRC and the City of
Clarksville. While the rate of growth is relatively modest, downtown IS growing, and is positioned to take its share of continuing regional growth. The
strategy will be to build on current strengths, infill underutilized properties and extend pedestrian streetscape continuity and offer a multi-year effort
through TRC at business recruitment and retention. Unlike many cities, downtown Clarksville does have opportunities for growth, and is positioned to
take advantage of specific submarkets such as APSU Students, a portion of military, professionals and retiree resident markets who favor downtown
lifestyles and pedestrian-friendly environments.
The prospects for continued redevelopment and renewal in downtown Clarksville are strong, particularly as the inter-related market drivers (new
downtown housing, selected infill development on catalyst locations and other sites, building on cultural and hotel/ meetings facilities opportunities and
ongoing retail recruitment efforts lead by TRC and its public and private partners.
Benchmark Cities
The five ‘Benchmark Cities’ selected for review by TRC early in the study process offer relevant lessons learned for the Clarksville Downtown and
Riverfront Analysis. There are both similarities (colleges and universities adjacent to/near the downtown areas, proximity to military installations,
presence of downtown management staffs and comprehensive revitalization/downtown management programs), there were also differences from
which Clarksville can determine the most appropriate approaches to renewal and reinvestment. Among the key ‘lessons learned from analysis of the
Benchmark Cities: (a) Little Rock’s downtown housing development over the past ten years has enlivened downtown at night and on weekends, and has
provided an alternative housing option for urban dwellers while supporting dining, entertainment and new types of retail; (b) Downtown Chattanooga’s
philanthropic community has helped create a sustainable revenue stream for the downtown organization through property ownership and operations; ©
Knoxville has blended its University population with new downtown residents as a basis to recruit new retail, lodging and publicly supported cultural
venues to attract new restaurants and businesses; (d) Greenville has utilized University programming and new lodging/meeting facilities and public space
improvements to strengthen downtown’s economic base; and (e) Columbus has focused public recreational funding, new student housing downtown
and cultural venues to diversify consumer markets and build downtown nightlife activity. No two cities are exactly alike, but TEG believes that Clarksville
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MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Executive Summary
can successfully adapt these lessons as examples for downtown development within its unique market, geographic and urban characteristics.
Catalyst Sites
There are numerous opportunities for adaptive use of historic structures, new construction and more integrated parking throughout downtown
Clarksville and along the Riverfront. TEG worked with TRC representatives to select key potential Catalyst Sites in downtown Clarksville, recommending
both redevelopment concepts that would create greater market scale and synergy between uses, as well as to better integrate vacant/underutilized or
complementary expansion uses to strengthen existing properties. In TEG’s view, each of the selected Catalyst Sites can, when market supportable,
contribute substantially to long-term, market-sustainable redevelopment in downtown Clarksville. Each of the proposed Catalyst Site concepts will most
likely require participation by both the public and private sectors to be realized. Public participation may require funding of needed but not easily
financeable components such as structured parking, selective use of incentive policies and/or funding, or re-zoning and expedited review to encourage
private investment. Current rent levels for residential and retail spaces will make conventional financing more challenging, but the long-term benefits of
redevelopment on these sites will pay back public investment in multiple ways – enhanced tax base, incremental sales taxes generated, higher
expenditures by local residents as the retail mix is further enhanced, and stronger connections between APSU, downtown and the Riverfront. In some
cases (the Transit Center site and redevelopment/expansion of the Roxy Regional Theater), specific land enhancements may be necessary to foster infill
and new construction; alternative plans to those proposed by TEG should also be reviewed as both sites are likely to be in the future. For the Riverview
Inn, there is both physical and market potential to expand the existing structure to add more rooms, particularly if an executive conference center can be
added and would include facilities that can serve APSU needs over time. Consideration of re-use of City-owned parcels around Public Square can also
generate new property tax revenues, introduction of more activating uses at ground levels and a better linkage from Franklin Street to Public Square, and
on toward the Riverview Inn and the river corridor below the bluff. Over time (and as market support and financing) are available, each of the individual
catalyst projects will better weave the urban fabric downtown into a more cohesive ‘whole’.
Retail Inventory
The TRC study area incorporated both the traditional downtown area as well as Clarksville’s Riverfront corridor, and totals almost 1 million square feet of
occupied retail/commercial space, according to TEG’s retail inventory. Approximately 148,000 square feet of occupied retail space is in the traditional
downtown area, with about another 154,000 square feet of retail along College and University. The greater concentration (over 600,000 square feet) of
retail is located along the River and Second Street, almost all of it configured in more automobile-oriented configurations. This is a substantial amount of
downtown retail space for Clarksville, and in TEG’s view, the greatest benefit will result from recruitment/retention efforts focused on the pedestrian
areas and future linkages between downtown, APSU, Public Square and connections down to the Riverfront. At the time of the inventory, the study area
also had vacant ground level retail space of approximately 85,000 square feet. Vacant space should be further investigated by TRC Board and staff to
determine owner capacity and interest in re-investment, priority for future incentives and adaptation for redevelopment, contemporary store sizing and
other re-use potentials.
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MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Executive Summary
Recruitment Strategy and Implementation Recommendations
Downtown Clarksville has many opportunities for future retail retention and recruitment. TEG considers the arrival of Bink’s Outfitters in downtown
Clarksville as a strong example of a regional specialty retailer serving both student and resident populations. The report identified a number of Nashvillearea specialty retailers as other examples of the quality and pricing levels appropriate for downtown Clarksville. In the inventory, TEG noted that most of
Clarksville’s better local businesses are already located downtown, with the greater concentration of national/chain-affiliated retail operators located near
1-24 and along Wilma Rudolph. In our view, it is good for Clarksville (and other regional) consumers to have these options, but downtown needs more
critical mass of dining/entertainment and specialized retailers to regain a larger share of area expenditures. Recruiting additional food and beverage uses
to supplement the existing downtown F & B operators will also be part of the strategy, complementing the strong draw they have established and
bringing more choices and more frequent dining opportunities for evening meals, entertainment and building traffic for events and shopping. The
decision to hire professional staff for TRC is a major step forward, as it represents the City’s commitment to downtown Clarksville, as well as providing a
comprehensive, coordinated means of addressing opportunities, focusing investment and representing downtown as a mixed-use shopping area for
APSU, for Fort Campbell, for Clarksville and the region.
To achieve both near term results and longer-term sustainable progress, the following is recommended:
• Focus initial efforts primarily on Franklin Street and Public Square as priority areas, while also incorporating opportunities along the Riverfront Corridor
and Second Street. In seeking retail tenants, keep in mind the most readily available underserved markets – APSU students, downtown workers, and
area residents, especially those who seek a pedestrian-oriented ‘urban’ environment. Use the database of vacant and underutilized sites as targets for
new tenants, new investors and selective application of financial and policy incentives.
• In planning for redevelopment, use the rolling grade changes on selected sites to incorporate structured parking at lower costs per parking stall. Over
time, strengthen connectivity between APSU, downtown and the Riverfront by selective infill of vacant and underutilized parking lots and selected
publicly-owned sites; this will require both a long-term vision, public-private partnerships to leverage private investment, and reconsideration of
allowed land uses and densities, both downtown and along the Cumberland Riverfront.
• As warranted by owner priorities, land use planning and market opportunities, consider redevelopment of the auto-related businesses along College
Avenue to better link APSU to downtown Clarksville and the riverfront. When appropriate, initiate discussions on redevelopment of one of more of the
First Baptist Church surface parking lots, potentially as Church-affiliated senior housing or other compatible residential/commercial uses,
accommodating Church parking in structures.
• Revise and increase funding for the Community Revitalization Investment Fund (CRIF), and ‘revolve’ loans both to close selected ‘financing gaps’ and to
leverage private investment benefits over and over; use Tax Increment Financing (TIF) funds for specific public improvements and civic projects.
• Continue to build on the success of current downtown venues and events – the Farmer’s Market, the Arts Walks, and establish partner programming
with APSU , business assistance and financing for small and locally-owned businesses.
• Seek long-term sustainable funding for the TRC staff management costs; funds could be generated by creation of a downtown Business Improvement
District (BID), transfer/donation/purchase of downtown real estate, or creation of management contracts for downtown-oriented services.
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MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Introduction
 The client for this study is the Two Rivers Company (TRC), a new non-profit organization that focuses on revitalization of the Downtown and
Riverfront of Clarksville TN. The organization includes public and private sector representatives who share a commitment to downtown renewal
and redevelopment as well as continuing the successful improvements made along the Cumberland and Red Rivers, particularly the recent
development of new green spaces and (beyond the boundaries of our study area) Clarksville’s new Liberty Park, which includes a range of new
recreational and open-space facilities serving the greater Clarksville area, Montgomery County and beyond.
 The Two Rivers Company selected The Eisen Group of Washington DC to complete a market analysis and redevelopment strategy for the Downtown
and Waterfront areas of Clarksville, with the analysis to include the following:

Overview of economic indicators in the city and surrounding area

Summary of demographic trends affecting retail, housing, office and other commercial uses

Documentation of a series of ‘Benchmark Cities’ chosen by TRC, not to assume that the benchmark cities can necessarily be duplicated in
Clarksville, but rather as examples and/or ‘aspirational’ models for programs and approaches to downtown and waterfront development that
could be adapted for Clarksville, as possible. The benchmark cities chosen for analysis include Knoxville and Chattanooga TN, Greenville SC,
Columbus GA and Little Rock AR

Retail Market Trends, both downtown and in the greater Clarksville area

Housing Market Trends, both downtown and in the greater Clarksville area

Proposed site development concept plans for three Catalyst Sites (1) Expansion of the Riverview Inn and addition of an Executive Conference
Center; (2) the Existing Transit Center site and its potential for redevelopment as a retail/residential mixed use project, and (3) the vacant lots
adjacent to the Roxy Regional Theater building; in addition to these three sites, TEG also considered redevelopment opportunities at the Top
Spot block on the west side of Public Square and Clarksville’s current City Hall (4)

An inventory of all the existing retail uses within the study area (downtown and along North and South Riverside Drive)

A list of representative store categories and operators reflecting the types of businesses for recruitment that would reinforce the downtown
Clarksville retail mix

Suggestions for branding and identity for Downtown Clarksville (which have been submitted separately)
 Two Rivers Company has already taken several steps toward stronger coordination and implementation of a downtown and waterfront
management program. A prospective downtown manager has been selected, pending confirmation of operating funding and the existing (but
recently inactive) downtown revolving fund is positioned to be re-charged. The Economic Development Council, major property owners, the City of
Clarksville and Montgomery County all have demonstrated interests in their potential roles in continued downtown revitalization for Clarksville and
in working in cooperation with Two Rivers Company to meet the opportunities that the downtown and waterfront areas represent.
 It is also useful to consider the larger economic context that is affecting Clarksville, Tennessee and the entire United States. The past five years
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MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Introduction
have seen the worst national economic downturn since the Great Depression in the 1930’s, with instability in financial markets, higher
unemployment levels, a cautious consumer market affecting retail expenditures, increasing Federal debt levels and reduced spending by local and
state governments. Within this economic context, Clarksville has attracted retail and dining customers and selected new businesses downtown and
along the waterfront, has added new residential units on upper floors of historic buildings and new infill construction projects, and continues to
draw consumers to the Downtown Market, to festivals and events and for outdoor recreation. The economic drivers represented by government,
the military and by growth at Austin Peay State University all have helped sustain the economic viability of downtown Clarksville and the region,
despite the challenges of the national and regional economies. As economic conditions continue to improve over the next five years, downtown
Clarksville is well positioned to capture a significant share of future investment and redevelopment activity
 At the local level Clarksville has seen a mix of economic outcomes, with new businesses opening, downsizing by local industries, established retail
businesses close downtown and elsewhere, and continues growth by APSU resulting in new downtown student residents and new markets for
downtown services and amenities. As the national and regional economies slowly rebound, TEG recommends that Clarksville can attract and focus
new investment downtown by capitalizing on its current strengths – growing student and selective resident markets that want to be downtown,
creation of additional destination uses such as a small conference center and expansion of the Riverview Hotel (to take advantage of the beautiful
views of the Cumberland River and to support downtown businesses) and (as market supportable) the continued addition of new and rehabilitated
housing units to bring more consumers downtown.
 The City, County and local organizations have created a series of successful downtown-oriented events that bring both local and regional visitors to
Clarksville and to the downtown area. The Arts Walks, Farmers Market, riverfront activities and other events have created a base from which
sustained retail expenditures can be generated. It will be important for TRC to continue to document attendance levels and to track business
benefits of downtown traffic-builders to demonstrate the volume of people coming to downtown.
 There is currently a gap between what current property values and rehabilitation costs will require in rental income and sales prices downtown as
compared to other parts of the city in which development costs are lower. TEG believes that this gap will narrow as the economy improves and by
making strategic decisions about catalyst projects that can stimulate investments directed toward downtown-oriented markets.
 Hiring of a downtown management staff for Clarksville is a major step toward focused advocacy, managed cooperation and the benefit of someone
whose sole purpose is to build on downtown Clarksville’s many strengths and realize the TRC’s broader vision for a successful downtown and
riverfront. One of the most important lessons learned about downtown revitalization over the past twenty years is that it occurs best on an
incremental basis, as well as on a strategy that addresses perceptions, documentation and real benefits of coordinated investment. TEG believes
that a sustained, selected approach to downtown and riverfront redevelopment will succeed if expectations are realistic and an incremental
approach toward managing change is implemented.
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MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
A.
Economic Overview
The City of Clarksville, TN is the seat of Montgomery County and serves as the economic center of a four-county Metropolitan Statistical Area (MSA) that
straddles the Tennessee and Kentucky state line. Key economic trends anticipated to affect future growth, as well as the relevance to the Central
Business District and Riverfront areas, are summarized below :
 Interstate 24 is the “commercial spine” of the regional economy

Most industrial and commercial activity in Clarksville is clustered around exits along I-24, as manufacturers, large retailers, and healthcare
providers value access to the highway

Nashville is less than a 1-hr drive to Clarksville on I-24, providing an easy connection to the second largest city in Tennessee

The CBD and Riverfront areas are a 15-20 minute drive from I-24 – absent highly visible signage pointing to the downtown area, attracting high
volumes of vehicle traffic is more challenging relative to commercial areas such as those along Wilma Rudolph Boulevard that benefit from an
interstate exit
 Fort Campbell, home to the US Army’s 101st Airborne Division, is an unmistakable cornerstone of Clarksville’s economic sustainability

Installation post statistics from January 2010 indicate that there are 202,890 people tied to Fort Campbell, including: 30,656 active military;
8,040 civilian employees; 51,740 family members; and 112,454 retirees, retiree family members, and active reserves

Approximately 177,300 people, comprising 87 percent of the Fort Campbell population, live off post – creating significant demand for housing
in Clarksville and other nearby communities

Almost $2.8 billion in payroll and retirement benefits were disbursed to the Fort Campbell population in FY 2009, representing a significant
source of consumer power that could be captured by businesses throughout the Clarksville area

Military personnel, family members, and retirees represent a largely untapped market for downtown merchants – this group is best served
with a combination of events and commercial offerings that cannot be found on post
 However, Clarksville is also evolving and diversifying beyond a military-based economy

According to the Tennessee Department of Labor and Workforce Development, there are approximately 85,700 non-military jobs in the
Clarksville MSA (as of March 2012), of which 64,600 jobs (75 percent) are in the private sector

Dominant industries include: Educational and Health Services (11,300 jobs); Retail Trade (11,000); Local Government (10,500); Manufacturing
(10,000); Leisure & Hospitality (10,000); and Professional and Business Services (8,100)

The healthcare sector has also grown around the Gateway Medical Center and along Ted Crozier Senior Boulevard, reflecting a nationwide
expansion in a sector that will be critical in serving the aging baby boomer and retiree population
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MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Economic Overview
 The average wage across all non-military sectors in the Clarksville MSA is $36,486 (as of Q4 2011)

Wholesale and Manufacturing represent the two highest paid sectors with average wages of $59,748 and $54,860, respectively, which
suggests that higher paid jobs are located closer to I-24 and outside downtown (whereas in most cities, downtowns have a large
concentration of high earners in finance and professional positions)

One benefit of relatively low wages and its impact on business costs can attract firms seeking relocation opportunities
 Like much of the country that is still recovering from the Great Recession, unemployment remains high in Clarksville

The annualized 2012 unemployment rate in the Clarksville MSA was 8.6 percent , or approximately 50 basis points (or 0.5%) higher than the
annualized national unemployment rate of 8.1 percent

Clarksville’s high rate of unemployment is attributable in part to the rate of job creation following the economic downturn, but also a portion
of the labor force related to the military that has relocated in search of employment opportunities but may only be available for shortterm/non-permanent employment.

Recent job growth data suggests that the regional economy is slowly gaining momentum coming out of the Great Recession, adding
approximately 2,100 jobs between March 2011 and March 2012; more recent data may reflect a changed employment trend
 Downtown Clarksville benefits from a unique set of economic drivers not found elsewhere in more suburban commercial centers

The main campus of Austin Peay State University (APSU) is a primary anchor located just north of the CBID, with a student population of over
10,870 and 1,284 total employees – both groups representing primary markets for downtown housing and commerce

APSU is primarily funded by the State of Tennessee, but its anticipated future expansion (primarily in the way of satellite campuses) will also
be supported in part by a $6.4 million grant from Hemlock Semiconductor Corporation

Many municipal services are also clustered in and around downtown, including Clarksville City Hall and the Montgomery County Courthouse,
that attract residents and support businesses that serve local government function, especially Law firms and Attorneys offices

While Clarksville (downtown and elsewhere) has a more limited office sector, the headquarters of Farmer & Merchants Bank (F&M) is located
in a 50,000 square foot building at the western end of historic Franklin Street, creating a major presence for one of Tennessee’s largest
regional banks in the downtown core

Located at the confluence of the Cumberland and Red Rivers, downtown is a destination for outdoor recreational activities and hosts major
events such as the Rivers & Spires festival – this attribute will be further enhanced by the completion of the McGregor Park Riverwalk that
includes a boat launch, an amphitheater, an interpretive history museum, events pavilion, and a mile-long hiking trail, as well as Liberty Park’s
new marina, performance pavilion, meeting space, extensive parking and other amenities.

Downtown Clarksville is one of several commercial districts in the city, but is the cultural center of Clarksville, with the historic Customs House
Museum, the Roxy Regional Theater and multiple performance/event venues affiliated with and located on ASPU’s campus
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MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Map of Clarksville Metropolitan Statistical Area (MSA)
5
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Non-Military Employment Trends – Clarksville MSA
2011 to 2012 (1-Yr)
2011
2012
3,100
3,200
2011 to 2012 (1-Yr)
# Jobs % Change
100
3.2%
2007 to 2012 (5-Yr)
# Jobs % Change
(100)
-3.0%
Industry
Nat. Resources, Mining, & Construction
2007
3,300
Industrial Sectors
Manufacturing
Wholesale Trade
Transportation Warehousing & Utilities
18,400
13,900
2,000
2,500
14,000
9,600
2,300
2,100
14,500
10,000
2,300
2,200
500
400
100
3.6%
4.2%
0.0%
4.8%
(3,900)
(3,900)
300
(300)
-21.2%
-28.1%
15.0%
-12.0%
Office-Using Sectors
Information
Finance
Professional and Business Services
12,000
1,100
2,600
8,300
11,700
900
2,700
8,100
11,800
900
2,800
8,100
100
100
-
0.9%
0.0%
3.7%
0.0%
(200)
(200)
200
(200)
-1.7%
-18.2%
7.7%
-2.4%
Educational and Health Services
9,400
10,900
11,300
400
3.7%
1,900
20.2%
Consumer-Oriented Sectors
Retail Trade
Leisure and Hospitality
Other Services
23,700
11,600
9,100
3,000
23,200
11,000
9,400
2,800
23,800
11,000
10,000
2,800
600
600
-
2.6%
0.0%
6.4%
0.0%
100
(600)
900
(200)
0.4%
-5.2%
9.9%
-6.7%
Public Sector (Non-Military)
Federal Government
State Government
Local Government
18,400
5,600
3,500
9,300
20,700
6,800
3,900
10,000
21,100
7,000
3,600
10,500
400
200
(300)
500
1.9%
2.9%
-7.7%
5.0%
2,700
1,400
100
1,200
14.7%
25.0%
2.9%
12.9%
Total
85,200
83,600
85,700
2,100
2.5%
500
0.6%
Distribution of Non-Military Jobs (2012)
4%
24%
17%
14%
28%
13%
Nat. Resources, Mining, &
Construction
Industrial Sectors
Office -Using Sectors
Educational and Health
Services
Consumer-Oriented Sectors
Public Sector (Non-Military)
Note: All data are unseasonally unadjusted for the month of March
Source: Tennessee Department of Labor & Workforce Development; TEG Economics
6
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Average Annual Wage by Sector – Clarksville MSA (Q4 2011)
Source: Tennessee Department of Labor & Workforce Development; TEG Economics
7
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Unemployment Trends – Clarksville MSA (Q2 2006 – Q1 2012)
Source: US Bureau of Labor Statistics; TEG Economics
8
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
B.
Demographic Trends
In order to better understand near-term and long-term development opportunities in Downtown Clarksville, TEG analyzed the demographic patterns
found in the neighborhoods comprising the general downtown area (defined as Census Tracts 10.01 and 10.08) and benchmarked those data to the city as
a whole, the broader metropolitan area, and the State of Tennessee. The following insights are used to inform the real estate market analyses presented
later in this report:
 As of 2011, there are 4,238 people living in the downtown area, but only 2,840 people live in traditional household settings (including APSU students
living off campus) – the balance of the population are mostly students living in on- campus housing and other specialized groups

APSU students represent a significant segment of Clarksville’s current downtown population base, as an estimated 40 percent of the
downtown population are students enrolled at ASPU

The significant student body presence represents a very captive consumer audience for retail goods and services, as well as multifamily
housing
 The City of Clarksville population is projected to grow at a faster rate than both the surrounding region and the State of Tennessee, however, much
of this residential growth is expected to occur outside the downtown area

Clarksville experienced significant population growth between 2000 and 2011, having grown its resident base by over 30 percent

According to population projections from ESRI Business Analyst, the city is expected to add another 13,492 people by 2016, of which about 355
(2.6 percent) are expected to live in the downtown area

Absent proactive development of new market rate housing, much of the projected population growth in Downtown Clarksville will likely be
attributable to increased enrollment at APSU
 The downtown population is both younger and more diverse than elsewhere in Clarksville and the surrounding region

The dominant student presence in the downtown area results in a median age of 23.5, which in combination with a large number of active
military personnel makes Clarksville a relatively young place, as the city as a whole has a median age of 28.7

Downtown has no racial or ethnic majority, whereas the white population comprises nearly two-thirds of the city and over 73 percent of the
broader metropolitan area
 There are an estimated 1,366 households in the downtown area, of which approximately 60 percent are single-person or roommate households

Similar to most cities across the country, there are few families with children living in and around downtown , with this segment representing
only 18 percent of total households

Downtown’s average household size of 2.08 is mostly attributable to APSU students sharing apartments and homes off-campus
9
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Demographic Trends
 Citywide household income distribution suggests that Clarksville is a solidly middle class community

In 2001, the city reported a median annual household income of $43,730; an average household income of $54,430; and a per capita income of
$20,760 – all of these measures are on par with statewide income measures

Downtown is significantly less affluent due to its large concentration of students, with both median and average household income levels
roughly half the citywide measures

However, downtown’s per capita income of $18,555 is close to the citywide per capita income due to its smaller households and fewer nonworking children

High-income households (defined as those earning more than $100,000 per year) represent less than 10 percent of the city’s total households,
of which only a handful live in the downtown area; while they may reside elsewhere, many high income professionals work/spend downtown
 Due to the transient nature of much of its population, especially military personnel and students, the Clarksville housing stock has a relatively large
concentration of rental units (44 percent of all units)

The estimated median home value in the City of Clarksville is approximately $133,400, which is very affordable to a household earning the city’s
median household income

Home values in the downtown area are significantly lower than elsewhere in the city, with an estimate median value of only $81,160; this is
attributable to a combination of older housing stock and smaller home sizes, as well as distance from day-to-day amenities such as grocery
stores and schools

According to the 2010 US Census, approximately 33 percent of all housing units in downtown Clarksville were classified as vacant, which on its
surface is very high by industry standards, but is likely skewed by units that are rented to students who may not live in a home year-round as
well as deployed military. When the US Census is taken, homes in which residents are not available at the time of the survey are listed as
vacant, which likely accounts for the high percentage in downtown Clarksville
 Migration patterns to Clarksville and surrounding Montgomery County are another clear indicator of the role Fort Campbell plays in attracting new
residents and introducing them to the community

County-to-county migration data from the IRS Statistics of Income show that over the last five years an average of 7,640 households relocated
to Montgomery County on an annual basis

The primary source location for households relocating to Clarksville is from Christian County, KY, which also has direct ties to military
operations at Fort Campbell. In this case, a major source of migration is from within the region

Most in-migrating households (77 percent) move to Montgomery County from somewhere outside the State of Tennessee, with military
communities representing the top five out-of-state source markets, including: Foreign/Overseas locations; Cumberland County, NC (Fort
Bragg); Honolulu County, HI (Pearl Harbor); Bell County, TX (Fort Hood); and Bexar County, TX (Fort Sam Houston)
10
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Map of “Downtown” Clarksville Census Tracts
For the purpose of analyzing downtown
Census Tract 1008
Clarksville demographic trends, TEG
selected two Census Tracts that capture
the core downtown residential market,
including ASPU and its surrounding
neighborhoods. TEG excluded Census
Tracts to the south and east of the study
area because these geographies extend
well beyond the downtown market, and
as a result would have skewed the
demographic analysis.
Census Tract 1001
11
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Population Characteristics
Downtown
City of Clarksville
Clarksville MSA
State of Tennessee
Population
2000
3,438
102,731
232,000
5,689,283
2011 (estimate)
4,283
135,093
277,645
6,401,643
2016 (projected)
4,638
148,585
298,481
6,682,764
CAGR * - '00 to '11
2.0%
2.5%
1.6%
1.1%
CAGR *- '11 to '16
1.6%
1.9%
1.5%
0.9%
In Households
66.3%
97.8%
96.7%
97.6%
In Group Quarters
26.8%
1.5%
2.4%
1.1%
Institutionalized
6.9%
0.7%
0.9%
1.3%
White
48.1%
65.6%
73.2%
77.6%
Black
45.7%
23.0%
18.2%
16.6%
Asian
1.0%
2.3%
1.6%
1.4%
Other
5.2%
9.0%
6.9%
4.4%
Non-Hispanic
95.6%
90.5%
93.0%
95.2%
Hispanic
4.4%
9.5%
7.0%
4.8%
Under 20
30.7%
31.6%
30.4%
26.2%
20 to 24
27.3%
10.5%
9.3%
6.7%
25 to 34
14.1%
18.8%
16.3%
13.0%
35 to 54
17.6%
24.2%
24.9%
27.9%
55 to 64
5.6%
7.6%
9.3%
12.5%
Over 65
4.7%
7.3%
9.7%
13.6%
Median Age
23.5
28.7
30.9
38.0
Where the Population Lives
Race & Ethnicity
Age of Population
Source: ESRI Business Analyst; TEG Economics
* Compound Annual Growth Rate (CAGR)
12
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Household, Income, and Housing Characteristics
Downtown
City of Clarksville
Clarksville MSA
State of Tennessee
Households
2000
2011 (estimate)
2016 (projected)
1,163
1,366
1,534
36,750
50,255
55,652
83,332
102,487
110,793
2,232,905
2,515,721
2,628,427
CAGR * - '00 to '11
CAGR * - '11 to '16
1.5%
2.3%
2.9%
2.1%
1.9%
1.6%
1.1%
0.9%
Household Composition
Single Person Households
Roommate Households
Families without Children
Families with Children
41.6%
18.0%
21.6%
18.8%
23.7%
6.5%
37.8%
31.9%
23.6%
5.3%
36.0%
35.1%
26.9%
5.7%
28.4%
38.9%
Average Household Size
2.08
2.63
2.62
2.48
Household Income
< $35k
$35k < $50k
$50k < $75k
$75k < $100k
$100k < $150k
$150k+
73.4%
13.2%
7.5%
3.9%
1.1%
0.9%
37.2%
19.2%
22.2%
11.6%
7.1%
2.7%
40.9%
18.4%
20.8%
10.5%
6.6%
2.8%
42.4%
15.5%
18.3%
10.6%
8.1%
5.0%
$21,108
$28,657
$18,555
$43,731
$54,434
$20,764
$41,047
$52,165
$20,053
$41,080
$56,804
$22,931
18.0%
82.0%
56.2%
43.8%
60.8%
39.2%
67.8%
32.2%
$81,167
$133,338
$124,002
$118,849
33.6%
14.7%
15.0%
11.2%
Median Household Income
Average Household Income
Per Capita Income
Housing Characteristics
Owner Occupied
Renter Occupied
Median Home Value
% Vacant (Total Housing Units)
Source: ESRI Business Analyst; TEG Economics
* Compound Annual Growth Rate
13
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Household Migration to Montgomery County, TN
HISTORIC MIGRATION PATTERNS
Out-Migration
Overseas
6%
Net Migration
10,000
4,000
7,500
3,000
5,000
2,000
2,500
1,000
-
-
(2,500)
(1,000)
(5,000)
(2,000)
(7,500)
(3,000)
(10,000)
Elsewhere in TN
9%
National
71%
(4,000)
'05-06
'06-07
'07-08
'08-09
TOP 5 SOURCE MARKETS (FROM CLARKSVILLE MSA & TN)
'09-10
IN-MIGRATING HOUSEHOLD CHARACTERISTICS (2009-2010)
Avg Adjusted Gross Income
Avg Household Size
$40,000
2.50
$35,000
2.40
$30,000
2.30
$25,000
2.20
$20,000
2.10
$15,000
2.00
Within MSA
Elsewhere in TN
National
Abroad
Within MSA
14%
Net Migration
Total In/Out Migration
In-Migration
ORIGIN OF IN-MIGRATING HHs (2004-2010)
County (Overall Rank)
Avg Annual HHs
Christian County, KY (1)
993
Davidson County, TN (3)
237
Stewart County, TN (5)
103
Cheatham County, TN (6)
86
Knox County, TN (7)
76
TOP 5 SOURCE MARKETS (OTHER)
County (Overall Rank)
Avg Annual HHs
Foreign/Oversease ZIP Codes (2)
406
Cumberland County, NC (4)
179
Honolulu County, HI (8)
72
Bell County, TX (9)
69
Bexar County, TX (11)
61
Source: IRS Statistics of Income (SOI); TEG Economics
14
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
C.
Retail Market Analysis
The Clarksville retail market is best characterized by its auto-dependent shopping centers along the major corridors extending from Interstate 24. One
notable exception is Franklin Street in the historic downtown area, where the ground floors of mixed-use buildings are home to a mix of independent
retail, small professional services companies, cafes and restaurants. Significant population growth over the past decade suggests that the increasing
resident population will create greater future demand for additional goods and services. New operators (especially national chains) are most likely to
locate in commercial areas that provide the best access to its customer base, which suggests locations with high traffic counts or walkable locations
proximate to high density residential neighborhoods and/or a significant daytime population. Additional trends affecting the Clarksville retail market
include the following:
 Sales tax data for Montgomery County suggest that during the five years between 2006 and 2011, countywide retail sales increased at a compound
annual rate of 2.1 percent, or roughly the same pace as population growth over the same time period
 Citywide resident-based retail demand is estimated at approximately $612.2 million on an annual basis, of which only 1.5 percent is attributable to
residents living in the two Census Tracts comprising the downtown area (by way of comparison the downtown area represents 3.1 percent of the
city’s population)
 Downtown captures more than its fair share of citywide retail sales, with businesses located in the two are Census Tracts generating an estimated
annual sales volume of $45.9 million (or 6.9 percent of citywide sales)

Downtown capture rates of citywide sales are highest for the following store types: Home Furnishing Stores (20 percent of citywide sales);
Restaurants and Bars (14.5 percent); Miscellaneous Retail – e.g., florists, office supplies, used goods – (11.9 percent); Building Materials, Garden
Equipment and Supply Stores (10.3 percent); and Jewelry Stores (9.8 percent)

Meanwhile, downtown has a relatively low capture rate of citywide sales that occur in Food and Beverage Stores (1.4 percent); General
Merchandise Stores (1.9 percent); and Furniture Stores (2.8 percent)
 A citywide retail gap analysis reveals that non-automotive businesses in Clarksville generate more sales than resident-based spending potential,
suggesting that shoppers are coming into the city from more suburban and rural communities to meet their retail needs

Food and Beverage Stores and Electronics /Appliance Stores and the only types of businesses that report a sales gap – i.e., Clarksville residents
may be spending for goods and services at Fort Campbell and/or buying comparable merchandise lines not located in the Clarksville area
 Clarksville has five distinct present and evolving retail subdistricts, all of which compete for the same pool of citywide and regional customers

The Downtown/Riverfront District is unique in that it is the only retail subdistrict that offers a walkable, mixed-use environment
15
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Monthly Retail Sales Tax Collection – Montgomery County
$5.50
$5.25
$5.00
Monthly Sales ($ millions)
$4.75
$4.50
$4.25
$4.00
$3.75
$3.50
$3.25
Monthly Sales
Aug-11
Jun-11
Apr-11
Feb-11
Dec-10
Oct-10
Aug-10
Jun-10
Apr-10
Feb-10
Dec-09
Oct-09
Aug-09
Jun-09
Apr-09
Feb-09
Dec-08
Oct-08
Aug-08
Jun-08
Apr-08
Feb-08
Dec-07
Oct-07
Aug-07
Jun-07
Apr-07
Feb-07
Dec-06
Oct-06
Aug-06
$3.00
Trailing 12-Month Average
Source: Montgomery County Trustee’s Office; TEG Economics
16
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Estimated 2011 Retail Demand – City of Clarksville & Downtown
City of Clarksville
Downtown/Riverfront Area
Ttl Spending
Potential
Per Capita
Spending
% of Total
Spending
Ttl Spending
Potential
Per Capita
Spending
% of Total
Spending
$67,642,769
$501
11.0%
$1,053,334
$246
11.4%
Men's
$12,141,835
$90
2.0%
$191,095
$45
2.1%
Women's
$20,460,120
$151
3.3%
$323,404
$76
3.5%
Children's
$12,563,366
$93
2.1%
$182,775
$43
2.0%
Footwear
$8,410,736
$62
1.4%
$133,088
$31
1.4%
Watches & Jewelry
$7,549,011
$56
1.2%
$113,204
$26
1.2%
Apparel Products and Services
$6,517,701
$48
1.1%
$109,767
$26
1.2%
$9,137,555
$68
1.5%
$146,787
$34
1.6%
Business Category
Apparel and Services
Computer
Entertainment & Recreation
$95,448,707
$707
15.6%
$1,400,314
$327
15.2%
Fees and Admissions
$24,207,307
$179
4.0%
$319,733
$75
3.5%
TV/Video/Audio
$49,655,970
$368
8.1%
$766,222
$179
8.3%
Toys and Games
$5,962,595
$44
1.0%
$88,442
$21
1.0%
Sports/Recreation/Exercise Equipment
$5,711,786
$42
0.9%
$81,365
$19
0.9%
Photo Equipment and Supplies
$4,165,157
$31
0.7%
$60,639
$14
0.7%
Reading
$5,745,892
$43
0.9%
$83,913
$20
0.9%
$348,286,004
$2,578
56.9%
$5,353,756
$1,250
58.1%
Food at Home
$176,603,230
$1,307
28.8%
$2,680,868
$626
29.1%
Food Away from Home
$130,661,219
$967
21.3%
$1,998,121
$467
21.7%
Alcoholic Beverages
$23,545,198
$174
3.8%
$403,697
$94
4.4%
Nonalcoholic Beverages at Home
$17,476,357
$129
2.9%
$271,070
$63
2.9%
Household Furnishings and Equipment
$49,200,219
$364
8.0%
$681,570
$159
7.4%
Furnishings (Furniture & Textiles)
$31,835,668
$236
5.2%
$442,011
$103
4.8%
Appliances & Other Equipment
$17,364,551
$129
2.8%
$239,559
$56
2.6%
Household Operations
$42,513,012
$315
6.9%
$579,836
$135
6.3%
Lawn and Garden
$14,991,177
$111
2.4%
$180,755
$42
2.0%
Housekeeping Supplies
$27,521,835
$204
4.5%
$399,081
$93
4.3%
$612,228,266
$4,532
100.0%
$9,215,597
$2,152
100.0%
Food
TOTAL CONSUMER DEMAND
Source: ESRI Business Analyst; TEG Economics
17
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Estimated 2011 Retail Sales – City of Clarksville & Downtown
Downtown/
Riverfront
City of Clarksville
Downtown/Riverfront
% of Citywide Sales
Business Category
Furniture & Home Furnishings Stores
Furniture Stores
Home Furnishings Stores
$
$
$
19,088,976
15,797,642
3,291,334
$
$
$
1,101,844
443,835
658,009
5.77%
2.81%
19.99%
Electronics & Appliance Stores
$
13,604,952
$
1,133,340
8.33%
Bldg Materials, Garden Equip. & Supply Stores
$
56,367,143
$
5,712,580
10.13%
Food & Beverage Stores
Grocery Stores
Specialty Food Stores
Beer, Wine & Liquor Stores
$
$
$
$
75,880,905
69,442,153
738,386
5,700,366
$
$
$
$
1,021,479
579,657
441,822
1.35%
0.83%
0.00%
7.75%
Health & Personal Care Stores
$
30,069,332
$
2,418,345
8.04%
Clothing & Clothing Accessories Stores
Clothing Stores
Shoe Stores
Jewelry, Luggage & Leather Goods Stores
$
$
$
$
27,396,259
22,071,063
3,053,068
2,272,128
$
$
$
$
1,549,671
1,326,119
223,552
5.66%
6.01%
0.00%
9.84%
Sporting Goods, Hobby, Book & Music Stores
Sporting Goods/Hobby/Musical Instr Stores
Book, Periodical & Music Stores
$
$
$
9,363,447
6,090,472
3,272,975
$
$
$
561,103
452,022
109,081
5.99%
7.42%
3.33%
General Merchandise Stores
Department Stores Excluding Leased Depts.
Other General Merchandise Stores
$
$
$
235,674,315
139,135,797
96,538,518
$
$
$
4,530,151
205,484
4,324,667
1.92%
0.15%
4.48%
Miscellaneous Store Retailers
Florists
Office Supplies, Stationery & Gift Stores
Used Merchandise Stores
Other Miscellaneous Store Retailers
$
$
$
$
$
13,879,259
1,417,598
4,011,551
1,878,075
6,572,035
$
$
$
$
$
1,656,840
258,928
880,754
199,990
317,168
11.94%
18.27%
21.96%
10.65%
4.83%
Food Services & Drinking Places
$
180,922,348
$
26,233,117
14.50%
TOTAL RETAIL SALES
$
662,246,936
$
45,918,470
6.93%
Source: ESRI Business Analyst; TEG Economics
18
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Retail Sales Gap/(Surplus) in City of Clarksville
Source: ESRI Business Analyst; TEG Economics
19
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Existing & Emerging Clarksville Retail Districts
5
3
2
1
4
20
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Existing & Emerging Clarksville Retail Districts
1
Central Business District/Riverfront
County seat of Montgomery County and historic downtown district, with some destination restaurants (e.g., Blackhorse Pub) and selected
specialty stores concentrated on Franklin Street. Retail businesses located in the historic CBD are almost exclusively independent operators.
Notable recent lease signings in the CBD include two independently owned sporting goods stores – The Runners Hub and Bink’s Outfitters, both
of which are located on Franklin Street. A limited amount of student-oriented retail, including casual dining and bars, is located near APSU at
the intersection of University Avenue and College Street.
Downtown also overlooks the Cumberland River and a commercial strip along Riverside Drive that leads to the recently completed Liberty Park,
a $28 Million capital improvement project including a new Clarksville marina, The Great Lawn outdoor performance venue and events space at
the Wilma Rudolph Pavilion. Much of the retail on Riverside Drive is focused on fast food, discount stores, building suppliers, and other
miscellaneous retail. The district’s largest shopping center is the 238,750-square foot Two Rivers Center, located at the intersection of North
Riverside Drive and Route 41a. Originally built in 1968, this auto-oriented shopping center is currently 45 percent vacant. In its current figuration,
Two Rivers Center is at a disadvantage relative to its competitive shopping centers in the other retail districts due to limited tenancy, relatively
poor visibility from Riverside Drive and a lack of critical mass of nearby comparison shopping.
Notable Shopping Centers/Streets:
Asking Retail Rents:
Commercial space on historic Franklin Street
Historic Franklin Street; Two Rivers Center (238,750 SF)
$8.00 - $14.00 psf in the CBD
$10.00 - $15.00 psf along Riverside Drive
Convenience retail on University Avenue
Strip Center on Riverside Drive
21
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Existing & Emerging Clarksville Retail Districts
2
Wilma Rudolph Boulevard
A five-mile long retail corridor that connects Interstate 24 with downtown Clarksville containing approximately 2.6 million square feet of retail in
a variety of store configurations, including strip malls, stand alone big box retailers, and an enclosed mall. There is a significant presence of
national chain retail on Wilma Rudolph, including Walmart, Sam’s Club, Target, Dick’s Sporting Goods, JC Penney, Kohl’s, Lowes Home
Improvement, and other anchors. The corridor is also home to Governor’s Square Mall, a 775,000-square foot mall offering Clarksville’s only
major concentration of fashion-oriented retail and comparison shopping. In addition to its retail offerings, Governor’s Square Mall has a range of
entertainment and dining options, including a 10-screen Carmike cinema (one of only two movie theaters in Clarksville.)
The large concentration of retail in this corridor is attributable to its easy access from I-24 via, where average daily traffic counts reached almost
48,000 vehicle per day in 2010. Interstate accessibility also makes the Wilma Rudolph corridor attractive to the hospitality sector, as indicated by
the 20 lodging properties clustered around exit 4.
Notable Shopping Centers:
Asking Retail Rents:
Governor’s Square Signage on Wilma Rudolph
Governor’s Square Mall (775,000 SF); Hampton Plaza (206,000 SF)
$10.00 - $18.00 psf for in-line space in anchored centers
$20.00 - $25.00 psf for pad restaurant sites fronting Wilma Rudolph
Hampton Plaza anchor tenant
Well-landscaped bank
22
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Existing & Emerging Clarksville Retail Districts
3
Fort Campbell Boulevard
Connecting Fort Campbell to Clarksville, Fort Campbell Boulevard is a traditional commercial corridor with 1.4 million square feet of big box
stores, food and beverage offerings (primarily fast food), grocery anchored shopping centers, and other commercial development. Many of the
corridor’s shopping centers and stand alone buildings are dated and in need of renovation and modernization, as more than half of the total
retail space was built before 1980. The most notable national chain tenant is Walmart, located near the intersection of 101st Airborne and Fort
Campbell boulevard. The overall business mix and retail offerings are primarily comprised of local and regional operators, with many
establishments closer to Fort Campbell’s Main Gates oriented toward military personnel.
Notable Shopping Centers:
Asking Retail Rents:
Modern strip/convenience center
Walmart-anchored shopping center at 101st Airborne intersection (193,500 SF)
$12.00 - $18.00 psf
New fast food restaurant
Bank
23
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Existing & Emerging Clarksville Retail Districts
4
Madison Street Corridor
The eastern gateway to Clarksville from I-24, Madison Street is an evolving retail corridor with an existing Lowe’s Home Improvement store,
chain and local fast food, and one of the Clarksville area’s three Walmart Superstores. Nearby average daily traffic counts average 20,000 to
24,000 vehicles per day by the exit off I-24. The corridor contains slightly more than 1 million square feet of retail and commercial space, with
more than half of the total space concentrated in shopping centers near the intersection of Madison and Route 76. The Madison Street Corridor
has benefitted from local public investment, including tax incentives for the redevelopment of the old Gateway Medical Center site with a
54,800 square foot Publix grocery store, and the relocation of several Montgomery County administrative offices to a 175,000 square foot
former shopping center on Pageant Lane. The Publix project is the first large scale development in the Madison Street Overlay Zone that aims
to create a more walkable commercial environment through land use and design guidelines, marking a stark contrast from Clarksville’s more
auto-dependent corridors such as Wilma Rudolph and Fort Campbell Boulevard. In TEG’s view (and despite the design guidelines), the site
development is more similar to traditional strip development planning than a walkable pedestrian-oriented environment. Publix has been well
received in the Clarksville market, but the site layout is still conventional suburban planning with stores arrayed around a large surface parking
lot facing the main road.
Notable Shopping Centers:
Asking Retail Rents:
Neighborhood shopping center
Walmart-anchored shopping center at Route 76 intersection (207,120 SF)
$10.00 - $19.50 psf (high end of range found at new Publix-anchored center)
Publix grocery store
Neighborhood strip center
24
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Existing & Emerging Clarksville Retail Districts
5
Trenton Road/Tiny Town Road
The smallest of the Clarksville retail districts, the Trenton Road/Tiny Town Road corridor has been growing rapidly over the past five years as
greenfield sites have been developed with new housing and most recently commercial uses. Most current commercial development is near the
intersection of Tiny Town Road and Trenton, but other commercial parcels are under construction or approved for future development further
west, such as the Publix-anchored Shoppes at Peachers Mill. The intersection of Tiny Town Road and Trenton Road is also the location of a 16screen Great Escape Movie Theater, the second of only two theaters in Clarksville. Future retail development will be supported by the
surrounding area’s strong demographics, including the highest average household income levels in the City of Clarksville.
Notable Shopping Centers:
Asking Retail Rents:
Shoppes at Peachers Mill
Shoppes at Peachers Mill (61,660 SF – under construction)
$14.00 - $24.00 psf (high end of range found at Shoppes at Peachers Mill)
Great Escape 16 Movie Theater
New multi-tenant strip center
25
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
D.
Housing Market Analysis
Clarksville has two distinct resident segments driving its housing market – the first is a large, young transient population associated with Fort Campbell
and APSU, and the second is comprised of young families and retirees settling down in an affordable city that offers a high quality of life. While the
former resident segment generates demand for rental housing in proximity to consumer amenities and school or work, the latter segment is more likely
to be a homeowner or high-end renter seeking stable neighborhoods with a more suburban character and long-term value potential. Downtown
Clarksville has historically catered to the younger, more transient population, especially students attending APSU. In recent years, two new studentoriented apartment complexes opened near the APSU campus, University Landing (2006) and The Grove at Clarksville (2011). A limited number of new
units have also been added to the downtown market that cater to the non-student population (the upper floor conversion to luxury apartments above
the new Binks Outfitters on Franklin Street are a prime example of how upper floor spaces can be adapted for the niche downtown residential market),
adding a handful of young professionals and empty nesters seeking a more urban living experience. As retail goods and services and other consumer
oriented amenities typically follow population and income density, a long term downtown housing strategy should focus on the continuing diversification
of the resident base to complement the existing student population. Market trends to consider in adopting this strategy are described below:
 Mirroring national housing market trends, residential permitting data for the City of Clarksville show that the construction of new homes peaked
sometime between 2006 and 2007, with the market now starting to show some signs of recovery

Of the 16,000 permitted housing units between 2002 and 2011, 76 percent were single family homes

Over the same 10-year period the City of Clarksville added roughly 13,500 households, which suggests that the city issued buildings permits for
1.18 units per new household – a rate that is sufficient to accommodate new growth and replace obsolete housing stock
 As Clarksville experienced a population boom over the past decade, developers responded with the construction of new multifamily projects to
accommodate recent arrivals to the area

Many of the new multifamily projects built between 2000 and 2012 catered to a more upscale renter

Almost all of the multifamily projects built in the last ten years have been very suburban in character, with clusters of three to four-story
surface-parked buildings clustered around common amenities, such as swimming pools and community rooms
 The two new multifamily projects located in the downtown area , The Grove at Clarksville and University Landing, primarily cater to APSU students

The two student apartment projects added a much needed modern supply of multifamily rental housing to downtown Clarksville (the only
other mid-sized apartment complex in the area is The Bluffs Over Cumberland located on Riverside Drive, which was built in 1975)

Student-oriented apartments operate with a different business model than traditional multifamily projects – instead of signing a lease for an
entire unit, residents will rent an individual room that has its own secure entrance within a shared common area

Apartments are often available as either furnished or unfurnished, which in combination with the renting of individual rooms, allows owners
to charge higher monthly rents than observed at comparable units in traditional market rate projects
26
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Housing Market Analysis
 Most new high-end multifamily projects have been built outside downtown in existing and rapidly developing commercial centers, including Wilma
Rudolph Boulevard, 101st Airborne Parkway, Peachers Mill Road, and around the new Gateway Medical Center

Floor plans in these projects tend to be larger than those found in older buildings, with larger living and dining areas, inclusion of master suite
bathrooms, and more internal storage space

By offering a more sophisticated level of interior finishes and expansive amenity packages, these new multifamily projects have changed the
market’s perception of multifamily housing and made renting a viable long term alternative to buying – a behavior that has been reinforced by
the national housing crisis and Great Recession
 Independence Place, a 228-unit apartment complex opened in 2009 near Fort Campbell at State Line Road, is a branded multifamily complex that
caters to the military and related contractors

Similar to student-oriented apartments, some units come furnished and can be individually leased by the bedroom

Offers 1-bedroom, 2-bedroom, and 4-bedroom floor plans
 Condominium units – which include attached single family units, stacked flats, and some townhouse style units – comprise a small fraction of the
overall ownership market in Clarksville, as most homebuyers still seek single family detached homes

As of June 2012, there were 67 units defined as condominiums units available for sale throughout Clarksville, representing less than 4 percent
of the available inventory

Most of the stacked flat condominium inventory (2+ stories, 4 or more units, shared entry) is found almost exclusively in the Fort Campbell
area

Elsewhere in the city, especially in neighborhoods east of downtown along the Madison Street corridor, housing product defined as
condominiums are actually attached single family homes with garages that share one party wall

Numerous multi-unit condo buildings in the Fort Campbell area have been purchased have been purchased by single investors with the
assumed intent of renting the units as apartments
 Prevalent product types and size of units sold suggests that the Clarksville condominium market is driven by price sensitive buyers who would
otherwise purchase a single family home

Condominiums sold in Clarksville almost exclusively have two or three bedrooms – there were only two 1-bedroom units that sold between
2010 and 2012 (out of 101 total condominium sales)

Only one project located in the CBD, 2nd Street Lofts, has tested the “urban” condominium concept; however, when the 25-unit project
delivered in 2009 the units did not sell as expected and are currently being marketed as rentals
27
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Housing Market Analysis
 The condo market citywide has been softening over the last several years, with recently sold units trading for below asking price

75 condominium units were sold throughout Clarksville between 2010 and 2011, or approximately 37 to 38 units per year

Assuming the average pace of absorption over the past two years, there is over 21 months of inventory available on the market (less than 6
months of inventory is the standard indicator of insufficient supply)

The average price of condominiums sold from January through June of 2012 was approximately $118,100, or $73 per square foot, although
condominiums that live more like single family homes command prices closer to the $90 to $110 per square foot range

The condo market citywide has been softening over the last several years, with recently sold units trading for below asking price
 Based on projected household growth in the Clarksville area, resident preferences for housing in a more urban location, and historic absorption
patters, TEG estimates that downtown Clarksville can support 75 to 100 new housing units over the next five years

Demand projections include rental and for-sale housing units that cater to the full resident spectrum, including students, young professionals,
empty nesters/retirees, seniors, and low income households

Current market conditions suggest that rental housing is more marketable than for-sale product in the downtown area

Almost all of the demand for downtown housing will come from households relocating to Clarksville from beyond the region, most likely from
cities that have more established urban residential neighborhoods
 Near term market-driven housing opportunities in the downtown area are likely to be focused on the renovation of vacant or underutilized second
floor spaces in existing buildings that lend themselves to residential conversion, such as the recently completed units located above the Bink’s
sporting goods store on Franklin Street

Achievable average market rate rents in the $1.15 to $1.25 range can only support surface-parked, three to four-story wood-frame construction
typologies

Public subsidy will likely be required in order to make a higher density multifamily project (i.e., four-story+ elevator building with structured
parking) financially feasible. The total amount of subsidy required will be determined by project construction costs and the owner/developer’s
land basis.

Senior housing, offering social function space and access to health care, is a niche housing opportunity with strong potential for the
downtown market, especially given the opportunity to partner with one of the religious institutions with a presence downtown. Some of
these projects offer tiered levels of care for residents ranging from independent living through assisted living. From a street activation
standpoint, the independent living seniors provide greater market support for nearby retail than residents who require assistance.
28
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Permitted Housing Units – City of Clarksville
Source: US Census Bureau Building Permits Survey; TEG Economics
29
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Map of Competitive Multifamily Projects (Built after 2000)
9
7
3
6
5
8
2
1
4
30
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Rent Ranges at Competitive Multifamily Projects
Type/Name
Student Apartments
University Landing
1
Year Open
2006
1 Bedroom
$839
158 units
2
Grove at Clarksville
2011
--
$839
364 units
4
Cumberland Ridge
2005
252 units
5
Autumn Winds
2007
264 units
6
Parc at Clarksville
2007
168 units
7
Renaissance at Peachers Mill
2011
216 units
8
The Fountains at Meadow Wood
2011
Military Apartment(located at Fort Campbell Gate)
9 Independence Place
2009
228 units
--
$1,138
$1,647
--
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2001
$1,138
3 Bedroom
N/A
N/A
Traditional Market Rate
3 Bristol Park at Governors Square
2 Bedroom
$1,647
$1,100
850 SF
$1.29 psf
----
$1,100
850 SF
$1.29 psf
$1,560
1,200 SF
$1.30 psf
----
$1,560
1,200 SF
$1.30 psf
$1,285
1,132 SF
$1.14 psf
$1,100
1,414 SF
$.78 psf
$1,375
1,202 SF
$1.14 psf
$1,090
1,110 SF
$.98 psf
$1,265
1,300 SF
$.97 psf
----------------
$1,315
1,132 SF
$1.16 psf
$1,100
1,414 SF
$.78 psf
$1,375
1,202 SF
$1.14 psf
$1,090
1,110 SF
$.98 psf
$1,344
1,400 SF
$.96 psf
$855
567 SF
$1.51 psf
$720
671 SF
$1.07 psf
$920
673 SF
$1.37 psf
$840
729 SF
$1.15 psf
$890
750 SF
$1.12 psf
$849
687 SF
$1.24 psf
-------------------
$940
815 SF
$1.15 psf
$895
978 SF
$.92 psf
$920
673 SF
$1.37 psf
$840
729 SF
$1.15 psf
$899
800 SF
$1.09 psf
$1,199
898 SF
$1.34 psf
$1,060
990 SF
$1.07 psf
$995
1,198 SF
$.83 psf
$1,110
1,047 SF
$1.06 psf
$960
985 SF
$.97 psf
$1,010
1,000 SF
$1.01 psf
$989
967 SF
$1.02 psf
-------------------
$1,090
990 SF
$1.10 psf
$995
1,198 SF
$.83 psf
$1,110
1,047 SF
$1.06 psf
$960
987 SF
$.97 psf
$1,080
1,100 SF
$.98 psf
$1,019
1,056 SF
$.96 psf
$995
697 SF
$1.43 psf
----
$995
697 SF
$1.43 psf
$1,360
931 SF
$1.46 psf
----
$1,360
931 SF
$1.46 psf
N/A
N/A
N/A
N/A
N/A
N/A
Source: Individual properties; TEG Economics
31
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Housing Demand Analysis - Methodology
The purpose of the demand analysis is to quantify potential annual absorption of multifamily housing
in downtown Clarksville. The analysis assumes that new units will be competitively priced relative to
market comparables, including any initial concessions, as necessary, to accelerate lease-up/sales.
Households Relocating
from Outside Clarksville
MSA
Total Annual
Target
Households
Total Pool of
Households
Total pool of households
derived from new
households relocating to
the Clarksville area, plus
annual turnover of
existing residents within
Montgomery County. All
household data are
quantified at the county
level.
=
Estimated Annual
Demand
(e.g. Unit
Absorption)
• Housing Tenure
• Location Preference
• Product Type Preference
• Income Qualification
Turnover of Local
Households
1
Submarket
Capture Rate
2
Household
Characteristic Filters
Total pool of households
filtered by select criteria
to determine total
annual target
households. Household
characteristics are based
on segmentation data
from ESRI Business
Analyst’s PRIZM
database.
3
Market Specific
Capture Rates
Estimated annual
demand within the
target submarket based
on a range of capture
rates derived from
historic US Census data
and household growth
forecasts from ESRI
Business Analyst. Target
submarket is defined as
Downtown/Riverfront
District.
32
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Housing Demand Analysis – Captured Demand Calculations
Total Households
Existing Montgomery
County/Clarksville Households
In-Migrating Households from
Elsewhere Nationwide & Abroad
50,255
7,664
% Moving & Remain in Area
9.8%
4,923
100%
7,664
% with Qualifying Demographic
& Lifestyle Characteristics
0.5%
26
5.9%
458
Downtown/Riverfront
Multifamily Capture Rate
(based on neighborhood &
housing product preference)
25.0 – 30.0%
4.5 – 5.5%
Captured Households in
Downtown/Riverfront Area
6–8
20 – 25
Estimated Annual Demand for
Downtown Housing
26 - 33
units/year
(130 - 165 units
over 5 years)
Source: ESRI Business Analyst; IRS Statistics of Income; US Census Bureau; TEG Economics
33
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
E.
Benchmark Cities Analysis
As part of the Two Rivers Corporation Downtown /Riverfront Redevelopment Strategy, TEG researched ‘benchmark’ cities in Tennessee and elsewhere in
Tennessee and the Southeast. Several criteria were considered in determining how the benchmark locations would be qualified: similar population sizes
for the cities and their respective Metropolitan Statistical Areas (MSA’s); median household and per-capita income levels; the presence of one or more
colleges and universities located in proximity or in the downtown areas; presence of a major military and/or institutional government facility that is a
significant contributor to the local/regional economy; number of businesses in the area (manufacturing, retail, office, etc.); completion of a major
riverfront improvement program; and location of one or more event/theater facilities located in/near the downtown area. In several examples, larger
cities may also be considered ‘aspirational’ , in that they have completed programs, projects or implemented redevelopment/ management programs that
could be applied in the downtown /riverfront areas of Clarksville, but which have larger market populations from which to draw sales, support and
participation. Several also have had experiences or methodologies that can be considered as potential models for Clarksville’s continuing planning and
redevelopment efforts, over time; these are described later in this section.
The benchmark cities selected for the analysis by the TRC clients were:

Knoxville, Tennessee

Chattanooga, Tennessee

Greenville, South Carolina

Columbus, Georgia

Little Rock, Arkansas
General comments: While the city population of Clarksville compares favorably with the five selected cities, four of the five benchmark locations have
much larger MSA’s surrounding them, therefore greatly increasing the market potentials, the scale of the business base, and other factors. To the extent
that greater area populations exist in every case (except for Columbus GA), the importance of the military/governmental facility is inversely proportional –
larger, more diversified economies will be less dependent on the government installations as major contributors to the local economic base. The tables
on the following pages illustrate the comparative similarities and differences between Clarksville and the five benchmark cities.
34
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Benchmark Cities – Knoxville, TN
City& State
Clarksville TN
Knoxville TN
135,093
277,645
179,492
704,510
Population is 1/3 larger
No. Comparison Element
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
City Population
MSA Population
Median HH Income (2010)
Per Capita Income (2010)
Number of businesses w/in city (2007)
County Seat of:
Nearby Military Base/Govt Facilities
Base/Federal Facility Population
Distance from Downtown to Base/Facil.
Downtown College/University
DT Student Population (total)
Name of Downtown Mgt. Entity
Mgt Entity Structure
DT Mgt Group Number of staff
Annual DT Org. Budget
Downtown Residents or DU's
Cultural Facility/Theaters
Other Attractions Downtown
Downtown Hotel(s) at Convention Ctr.
20
Conference Center Square Feet
21
DT Convention Center/Arena
Convention Center/Arena SF or # Seats
Corporate Headquarters in city
Downtown Daytime Employees
River through CBD
Riverfront Improvements
22
23
24
25
26
Riverfront Improvements Budget
28 Downtown Events per Year
29 Estimated Annual Area Tourism
27
$
$
43,741
20,764
$
$
MSA is 2.4 X larger
31,005
21,433
7,055
19,873
Montgomery
Knox
Fort Campbell KY
Oak Ridge Laboratories
14,338
29,330
Approx. 15 miles
Approximately 15 miles
Austin Peay State Univ
University of Tennessee
10,723
26,300
Two Rivers Company
Downtown Knoxville CBID
CBID/501(c)(3)
501 (c)(4) CBID
N/A
1 Ex Dir + CofC contracted svcs
$97,520
$
360,000
Est. 500 res.; 8,400 w/stu.
1,200 DU's; 2,000 residents
Roxy Theater: 215 seats
Bijou Theater: 700 seats; Tenn Theater: 1,545 seats
DT Mkt; Customs House Mus.:
35,000 SF; Riverwalk; ArtWalk
Riverview Inn: 154 rooms
Volunteer Landing Riverwalk; Women’s Basketball
Hall of Fame; Sunsphere/World’ s Fair Site
Hilton and Holiday Inn Select; total of 603 rooms
N/A
Marriott : 378 rooms, 30,000 SF Conference Center
No
9,000 Seat APSU Arena
F&M Bank
TBD
Cumberland
Riverwalk Park; Liberty Park
Liberty Park: $28 M (4 phases)
250+
TBD
Knoxville Conv Center: 500,000 SF Knoxville DT
Expo Ctr: 85,000 SF UT Conf Ctr: 250,000 SF
Univ of Tenn Arena: 24,678 seats
TVA, Pilot Corp., IdleAire Technologies, JFG Coffee
21,538
Tennessee
Riverwalk, UT Boathouse
Clarksville’s Med HH Income is 1.44
times that of Knoxville
Stronger local business base: 20,000
businesses v. 7,000; Corporate HQ’s
Oak Ridge Labs 2X size of Ft.
Campbell, higher avg. wages
UT Student Population 2.5X APSU;
major impact DT
 Almost 4X more hotel rooms
Convention Center , Expo Center
and Conference Center, all located in
Downtown Knoxville
Corporate and government users
drive active Knoxville downtown
office market
Long-term cohesive planning efforts
to connect DT, Riverfront, University
area
South Waterfront Vision Plan, 2006; budget TBD
Hundreds of event nights
N/A
Source: Comparable Communities Downtown Organizations;, US 2010 Census; City-Data; The Eisen Group TEG
35
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Benchmark Cities – Chattanooga, TN
City& State
Clarksville TN
Chattanooga TN
135,093
277,645
169,609
533,581
City Population is more than 25% larger
No. Comparison Element
1 City Population
2 MSA Population
3 Median HH Income (2010)
4 Per Capita Income (2010)
5 Number of businesses w/in city (2007)
6 County Seat of:
7 Nearby Military Base/Govt Facilities
8 Base/Federal Facility Population
9 Distance from Downtown to Base/Facil.
10 Downtown College/University
11 DT Student Population (total)
12 Name of Downtown Mgt. Entity
13 Mgt Entity Structure
14 DT Mgt Group Number of staff
15 Annual DT Org. Budget
16 Downtown Residents or DU's
Cultural Facility/Theaters
$
$
43,741
20,764
7,055
Montgomery
Fort Campbell KY
14,338
Approx. 15 miles
Austin Peay State Univ
10,723
Two Rivers Company
501 (c)(4) CBID
N/A
$97,520
Est. 500 res.; 8,400 w/stu.
Roxy Theater: 215 seats
17
Other Attractions Downtown
18
19
Downtown Hotel(s) at Convention Ctr.
20 Conference Center Square Feet
21 DT Convention Center/Arena
22 Convention Center/Arena SF or # Seats
Downtown Market;
Customs House Museum:
35,000 SF; Riverwalk ArtWalk
Riverview Inn: 154 rooms
N/A
No
9,000 seat APSU Arena
F&M Bank
23 Corporate Headquarters in city
24 Downtown Daytime Employees
25 River through CBD
26 Riverfront Improvements
27 Riverfront Improvements Budget
28 Downtown Events per Year
29 Estimated Annual Area Tourism
TBD
Cumberland
Riverwalk; Liberty Park
Liberty Park: $28 M (4 phases)
250+
TBD
$
$
MSA is almost 2 X larger than Clarksville
36,064
23,001
17,465
Hamilton
Arnold AFB/Arnold Engr & Dev Complex (AEDC)
3,000
Approx. 65 miles
University of Tennessee Chattanooga
10,000
RiverCity Company
501(c)(3)
6 + interns
$
3,200,000
26,000, incl adjac. neighborhoods
Majestic Theater Complex; Tennessee Aquarium;
Creative Discovery Children's Museum; IMAX
Theater; Hunter Museum; AT&T Baseball Field
12 Screen Majestic; 189,000 SF Aquarium; 42,000 SF
Creative Discovery Museum; 63,000 SF IMAX
Theater (400 seats); 6,362 seat minor league AT&T
Field; 185,000 SF Hunter Museum of Amer. Art
Marriott Conv Ctr: 362 rooms;
Total of 1,992
Downtown Hotel Rooms
Chattanoogan Hotel: 199 rooms, 25,000 SF
Conference Center
Chattanooga Conv. Ctr : 185,000 SF Memorial
Auditorium: total 4,878 seats in two theaters
UTC McKenzie Arena: 12,000 seats
Chattanooga Bakery (Moon Pies); Gordon Biersch
Brewery Co.; Krystal; Coker Tire; McKee Foods
(Little Debbie); Olan Mills
50,000
Tennessee
Riverfront 21 st Century Plan
$120 Million
Estimated at 200 per year
Estimated 1 Million per year
Clarksville’s Median HH Income is over 20% higher
than Chattanooga’s
17,500 businesses v. 7,000; multiple Corp HQ’s;
limited connection to AAFB/AEDC
UTC Student population equal to APSU
 Tourism, business, conventions support almost
2,000 DT hotel rooms; destination
 Downtown convention center; conf center in
Marriott Hotel
Aquarium, Expansion, Discovery Science Museum,
etc. create vacation destination, 1M visitors/tourists
per year
Multiple Corp HQ, downtown office market =
50,000 daily employees
Major private charitable foundations (Coca Cola
bottling) helped fund TN Aquarium, other DT
attractions; strong civic momentum
Strong downtown resident market activates DT
nights, weekends
Source: Comparable Communities Downtown Organizations;, US 2010 Census; City-Data; The Eisen Group TEG
36
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Benchmark Cities – Greenville, SC
City& State
Clarksville TN
Greenville SC
135,093
277,645
59,892
645,404
City Population less than half Clarksville’s (SC laws
make it difficult to annex)
No. Comparison Element
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
City Population
MSA Population
Median HH Income (2010)
Per Capita Income (2010)
Number of businesses w/in city (2007)
County Seat of:
Nearby Military Base/Govt Facilities
Base/Federal Facility Population
Distance from Downtown to Base/Facil.
Downtown College/University
DT Student Population (total)
Name of Downtown Mgt. Entity
Mgt Entity Structure
DT Mgt Group Number of staff
Annual DT Org. Budget
Downtown Residents or DU's
Cultural Facility/Theaters
17
18
Other Attractions Downtown
19
Downtown Hotel(s) at Convention Ctr.
20
Conference Center Square Feet
21
DT Convention Center/Arena
Convention Center/Arena SF or # Seats
22
23
24
25
26
27
28
29
Corporate Headquarters in city
Downtown Daytime Employees
River through CBD
Riverfront Improvements
Riverfront Improvements Budget
Downtown Events per Year
Estimated Annual Area Tourism
$
$
43,731
20,764
$
$
7,055
Montgomery
Fort Campbell KY
14,338
Approx. 15 miles
Austin Peay State Univ
10,723
Two Rivers Company
501(c)(4) CBID
N/A
38,026
26,735
9,371
Greenville
Donaldson AFB (closed)
Not Applicable (closed)
N/A
Clemson Downtown; Furman and Bob Jones in area
6,725
City of Greenville Economic Dvt.
City of Greenville
1 FTE staff, plus 35% time from 2 City ED staff
TIFF contrib's $100K for Offc Mktg, $10M for
$97,520
maintenance and bond payments
Est. 500 res.; 8,400 w/stu.
1,700 Downtown DU's;
Estimated 3,000 res.
Peace Center for the Performing Arts; Greenville
Roxy Theater: 215 seats
County Art Museum; Heritage Green Museum and
Gallery; Uptown History Museum
DT Mkt; Customs House Mus.:
Peace Center: 2,100 seats; Bi-Lo Arena: 15,000
35,000 SF; Riverwalk ; ArtWalk
seats; Centre Stage: 285 seats (10,000 SF) Theater
Riverview Inn: 154 rooms
Total of 850 Downtown Hotel Rooms
Hyatt Regency: 328 Rooms plus 34,000 SF
N/A
Conference Center
Convention Center: 280,000 SF (not located
downtown)
No
9,000 seat APSU Arena
Bi-Lo Arena (DT): 15,000 seats
Fluor Nuclear; Hubbell Lighting; TD Bank; Certus
F&M Bank
Bank; Windstream; Michelin NA, BMW NA (C'nty)
TBD
25,500
Cumberland
Reedy
Riverwalk Park; Liberty Park
Falls Park: 20 acre DT garden
Liberty Park: $28 M (4 phases) $13 Million in 2000, decades of Garden Club vol's
250+
Over 300 DT event days per year
Estimated 1.5 Million per year
TBD
MSA is about 2.3 X larger than Clarksville
Greenville has a 13% lower Median HH income than
Clarksville, but a per capita income that is almost
30% higher.
Greenville has about 1/3 more total businesses;
multiple Corp HQ’s ; total fewer students
 About 850 downtown hotel rooms plus a
hotel/conference center and 280,000 SF suburban
convention center
 Strong initiative to attract housing downtown has
produced 1,700 du’s, about 3,000 residents, activity
for events, dining, shopping nights and weekends
Multiple Corp HQ in diverse fields; auto-products
focus generated partnership with Clemson
University for research ctr.
 Downtown office market = 25,000 daily
employees
Minor League baseball field downtown
Major capital investment in Reedy River
enhancements over 25 years
Clemson University (45 miles away in Clemson) has
CU-ICAR and Real Estate/MBA facilities in Greenville
Source: Comparable Communities Downtown Organizations;, US 2010 Census; City-Data; The Eisen Group TEG
37
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Benchmark Cities – Columbus, GA
City& State
Clarksville TN
Columbus GA
135,093
277,645
190,945
297,634
City Population is about 40 % larger, but the MSA
only 7% larger than Clarksville’s
No. Comparison Element
15
City Population
MSA Population
Median HH Income (2010)
Per Capita Income (2010)
Number of businesses w/in city (2007)
County Seat of:
Nearby Military Base/Govt Facilities
Base/Federal Facility Population
Distance from Downtown to Base/Facil.
Downtown College/University
DT Student Population (total)
Name of Downtown Mgt. Entity
Mgt Entity Structure
DT Mgt Group Number of staff
Annual DT Org. Budget
16
Downtown Residents or DU's
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Cultural Facility/Theaters
$
$
43,741
20,764
7,055
Montgomery
Fort Campbell KY
14,338
Approx. 15 miles
Austin Peay State Univ
10,723
Two Rivers Company
501(c)(4) CBID
N/A
$97,520
Est. 500 res.; 8,400 w/stu.
Roxy Theater: 215 seats
17
18
19
20
Other Attractions Downtown
Downtown Hotel(s) at Convention Ctr.
Conference Center Square Feet
25
DT Convention Center/Arena
Convention Center/Arena SF or # Seats
Corporate Headquarters in city
Downtown Daytime Employees
River through CBD
26
Riverfront Improvements
27
Riverfront Improvements Budget
Downtown Events per Year
Estimated Annual Area Tourism
21
22
23
24
28
29
DT Mkt; Customs House Mus:
35,000 SF; Riverwalk; ArtWalk
Riverview Inn: 154 rooms
N/A
No
9,000 seat APSU Arena
F& M Bank
TBD
Cumberland
Riverwalk Park; Liberty Park
Liberty Park: $28 M (4 phases)
250+
TBD
$
$
38,590
21,838
15,425
Muscogee
Fort Benning
41,462
Approximately 15 miles
Columbus State University
8,200
Uptown Columbus BID
501(c)(3); manages BID
Totals 13: 2 at Uptown, 11 at BID
$
850,000
226 non-student DT DU's; + 196 CSU student units;
total of 2,000 res w/adjoining historic district
Springer Opera House, the Georgia State Theater:
700 seats, 75,000 SF; RiverCenter for the
Performing Arts: 2000 seat main theater, 430 seat
Legacy Hall, 150 seat Black Box Total of 3,280 seats
15 mi Chattahoochee River Walk/Bike Trail & Park,
Coca Cola Space Center (at Columbus State Univ)
117 room Marriott Downtown, no conference
Conf Facilities in Conv Ctr
Columbus Conv and Trade Ctr: 200,000 SF (incl
22,000 SF Conf Ctr); Columbus Civic Center
Civic Center: 10,000 seats
AFLAC Insurance, TSYS, Carmike Cinemas, Synovus
Columbus has a 12% lower Median HH income
than Clarksville, and a 5% higher average per capita
income level.
Over 2X as many total local businesses; multiple
Corp HQ’s ; about 24% fewer students downtown
 Downtown convention center includes a 22,000
SF conference center, plus Marriott Downtown
Hotel; 10,000 seat DT Civic Ctr
 Strong initiative to attract housing downtown has
produced 1,700 du’s, about 3,000 residents, activity
for events, dining, shopping nights and weekends
Multiple Corp HQ, significant local ownership and
resulting corporate/ foundation contributions,
subsidies
 Major DT Cultural/events centers draw traffic in
evenings/on weekends; office less focused; HQ
offices in outer locations
$43M Whitewater Rafting course is next step in
Chattahoochee River through Army Corps of
Engineers-funded improvements
Chattahoochee
15 mile Chattahoochee River Walk Park
$43 M, Corps of Engr's 2.3 mile urban whitewater
rafting course
Estimated at 1 Million per year
Source: Comparable Communities Downtown Organizations;, US 2010 Census; City-Data; The Eisen Group TEG
38
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Benchmark Cities – Little Rock, AR
City& State
Clarksville TN
Little Rock AR
135,093
277,645
193,980
708,545
City Population is about 1.4X larger, MSA is over 2.5
X larger than Clarksville; state capital, largest city in
the State
No. Comparison Element
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
City Population
MSA Population
Median HH Income (2010)
Per Capita Income (2010)
Number of businesses w/in city (2007)
County Seat of:
Nearby Military Base/Govt Facilities
Base/Federal Facility Population
Distance from Downtown to Base/Facil.
Downtown College/University
DT Student Population (total)
Name of Downtown Mgt. Entity
Mgt Entity Structure
DT Mgt Group Number of staff
Annual DT Org. Budget
Downtown Residents or DU's
Cultural Facility/Theaters
Other Attractions Downtown
18
19
Downtown Hotel(s) at Convention Ctr.
20
Conference Center Square Feet
21
DT Convention Center/Arena
Convention Center/Arena SF or # Seats
22
23
24
25
26
27
28
29
Corporate Headquarters in city
Downtown Daytime Employees
River through CBD
Riverfront Improvements
Riverfront Improvements Budget
Downtown Events per Year
Estimated Annual Area Tourism
$
$
43,741
20,764
7,055
Montgomery
Fort Campbell KY
14,338
Approx. 15 miles
Austin Peay State Univ
10,723
Two Rivers Company
501 (c)(4) CBID
N/A
$97,520
Est. 500 res.; 8,400 w/stud.
Roxy Theater: 215 seats
$
$
45,515
29,520
19,586
Pulaski
Little Rock Air Force Base
15,804
Approximately 17 miles
Univ of Arkansas at LR; UA Medical Services (UAMS)
14,285
Downtown Little Rock Partnership
501(c)(3); manages BID
7, including Partnership and BID
$
581,000
12,500 residents
Clinton Presidential Center; Arkansas Repertory
Theater (Main Stage 354 seats; 100 seat Black Box )
DT Market; Customs House Mus: Historic Arkansas Museum: 51,000 SF; Museum of
35,000 SF; Riverwalk; ArtWalk
Discovery (Children's Museum) : 25,000 SF;
Riverview Inn: 154 rooms
N/A
No
9,000 seat APSU Arena
F&M Bank
TBD
Cumberland
Liberty Park
Liberty Park: $28 M (4 phases)
250+
TBD
1,700 DT hotel rooms
287 Room Doubletree, at Robinson Center, 40,000
SF Flex Meeting Space
Statehouse Conv Ctr: 220,000 SF, at 418 room
Peabody Hotel;
Robinson Ctr: 2,609 sets; Verizon Arena: 18.000
Dillard's Department Stores; Acxiom; Windstream
Communications; Stephens Inc.; Heifer Foundation
42,000
Arkansas
Planned 24 mi Ark. River Trail (11 mi completed)
N/A
Little Rock’s Median HH income is 15% higher than
Clarksville; per capita income level is over 40%
higher in Little Rock
Almost 3X as many total local businesses; national
and regional corporate HQ’s
42,000 daytime workers downtown
 About 33% more students downtown
 Approx 1,000 downtown du’s; 12,500 residents
include DT neighborhoods keep DT active nights,
weekends
1,700 hotel rooms DT; 220,000 SF DT Convention
Center at 418 room Peabody
State government , corporate HQ, offices keep
downtown active at lunch weekdays
River Market District (with streetcar) is LR’s major
downtown loft/nightlife area
 Museum of Discovery, Arkansas Repertory
Theater, Robinson Center draw regional residents
to downtown area
Source: Comparable Communities Downtown Organizations;, US 2010 Census; City-Data; The Eisen Group TEG
39
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Findings from Benchmark Cities
Each of the selected cities in the preceding list of benchmark locations can offer useful lessons, organizational models or precedents for redevelopment
that could be undertaken in Clarksville. An overview analysis of the five examples also suggests comprehensive redevelopment actions and tactics that
Clarksville can duplicate, though local conditions may require modifications to the approaches used in other cities. The overview findings are listed in the
bullets below, and city-specific lessons-learned are described in the second block of bullets.
Overview Findings:
 All five cities have an entity whose sole responsibility is to focus on downtown development and redevelopment of downtown/riverfront assets. Some
are structured as Business Improvement Districts (BID’s), special taxing districts in which additional property taxes are assessed (after approval by
property owners) and returned to fund a downtown organization [often structured as a 501(c)(3) non-profit organization ], or are operated through City
government as an economic development activity. The Downtown Organizations have full-time staffs, and can provide a range of services including
contracts for parking management, operating “Clean and Safe” programs, events management, infrastructure maintenance, and focused economic
development efforts that will recruit retailers, and office tenants, will encourage development of downtown housing, retain local business and
coordinate with public and private downtown advocates, property owners, employers and government.
 In all of the other cities, the downtown revitalization effort has been in place for a number of years; experience has shown that, to reverse decline and
disinvestment, it will take multiple years of coordinated efforts –downtown and waterfront renewal often take decades, require a commitment by local
government to make downtowns priorities for both policy and public financing. The same will be true in Clarksville.
 Diversified, sustained market support is present in all five of the example cities. Four of the five are dominant office/commercial centers for their
regions, and have 25,000 to 42,000 daily office workers in the downtown areas every workday. This provides both activation and daytime market support
for retail, food and beverage and consumer services located in the business districts. Columbus, GA has fewer office workers downtown, but has
concentrations of workers in nearby commercial office centers for corporate headquarters for AFLAC and other locally based companies.
 In terms of market size, all of the other cities have larger populations in the surrounding Metropolitan Statistical Areas (MSA’s); only Greenville SC has a
smaller city population, in part because annexation is so difficult for SC municipalities – the area population served by downtown Greenville is much
larger, but is not located within the city’s boundaries. This difference in area population means that it may take longer for Clarksville to realize some of
the recommended strategies and proven approaches from the example cities because the local economies in the benchmark cities are all larger.
 The influence of local colleges and universities varies in each of the examples (the main campus of the University of Tennessee in Knoxville is a major
influence on the downtown entertainment and dining market), but in all of the cities, the student population helps to diversify the market base, and
provides a consistent source of economic viability for many businesses, particularly food and beverage.
40
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Findings from Benchmark Cities
 Each of the example cities has more hotel rooms than Clarksville, and each includes (at minimum) an executive conference center of 25,000 to 30,000
SF. Often publicly subsidized, these hotel/conference centers serve both local and regional markets, and provide an additional source of market support
for downtown businesses and hotels; all of the examples have more downtown hotel rooms than Clarksville, as well.
 Budgets for downtown management organizations in the example cities vary widely, in part because of the sources of income and relative densities in
the taxing districts. The highest (atypically higher than national averages) is in Chattanooga, at $3.2M per year, but largely driven by ownership and
leasing of properties near the Tennessee Aquarium. Other annual downtown budgets range from $360, 000 to $581,000 to $850,000, as benchmarks for
future funding of a downtown/riverfront management organization for Clarksville.
The economic importance of local military bases (or other public institutions) also varies by example city, decreasing in importance in proportion to the
scale and diversity of the local economic base and the number of local businesses in the marketplace. Among the five example cities, only Columbus GA
appears to have an economically proportional relationship with Fort Benning that parallels Clarksville’s economic relationship with Fort Campbell.
All of the example cities are County seats; Little Rock is the state capitol and AR’s largest city .
41
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Findings from Benchmark Cities
Site-specific Examples and Applicable Strategies
 Knoxville: Knoxville’s downtown management organization has one full-time employee and contracted services for additional activities such as retail
recruitment for downtown businesses. While retail occupancies have been slower, the restoration of the Tennessee and Bijou Theaters have brought
back evening entertainment as a draw, also supporting dining and bar operators and an active events programming schedule (Farmer’s Markets, craft
markets, music festivals) helps to sustain visitor and residents traffic downtown. This may be a model for establishing an initially modest downtown
management program in Clarksville. Knoxville has also funded restoration/expansion of two historic theaters downtown as an incentive to build nighttime
and weekend traffic, and to provide a range of cultural attractions in familiar (if renovated) settings. Governor (then Knoxville Mayor) Bill Haslam initiated
the $2.1M restoration of the 700 seat Bijou Theater, which received a $571K federal grant as part of its funding. The 1,600 seat Tennessee Theater
restoration/expansion added 30% more stage and back of house space, and cost $23.5M. Downtown Knoxville’s Gay Street was largely vacant fifteen years
ago, but stores like Bliss, Bliss Home and Mast General Store have helped to attract other retailers to the street and the Market Square. Knoxville also has
a convention center and the University of Tennessee’s Conference Center located downtown. Regal Cinemas also constructed a 2,000 seat, 8 screen
cinema downtown.
 Chattanooga: Chattanooga has had an ongoing downtown renewal effort since the initial development of the Tennessee Aquarium project in 1984
when a long-term riverfront/ downtown revitalization plan was adopted focused on the world’s largest freshwater aquarium. Expanded twice since its
opening, the TN Aquarium continues to draw visitors from a three hour driving radius, and has reconnected visitors to Chattanooga’s riverfront. The
lesson for Clarksville is that vision plans are long term, require review and updating, and will succeed best if structured as public/private/charitable
partnerships. While Clarksville should not build an aquarium, carrying out a consistent, broader vision over time (and anchored by the improvements at
Liberty Park) should keep attention focused on downtown and the Cumberland riverfront. The non-profit downtown BID (The River City Company) owns
downtown property, and revenues from those public and private buildings support the 6-person downtown management staff. Chattanooga also differs
from the other examples in that its annual revenues are earned through ownership, management and operations of rental properties near the Discovery
Museum and the expanded Tennessee Aquarium, including the recently constructed 12 screen Carmike Majestic complex; River City Company was the
developer and receives income from the Majestic as its tenant. Other downtown programs are supported by City budget allocations, Business
Improvement District taxing revenues, corporate gifts and local private philanthropic foundations. Family foundations created by local families who made
fortunes in Coca Cola bottling (Coca Cola Enterprises) have provided major support for planning and urban design and for local development projects.
 Greenville: Unlike the other example cities, Greenville’s downtown revitalization program is housed in the City’s economic development and planning
department and incorporates a full time downtown management employee as well as one-third of the time of two other City Economic Development
Department senior staff; downtown development is considered a legitimate and equivalent economic development priority in many South Carolina cities,
and downtown programs are funded by City funds combined with TIF’s rather than through Business Improvement Districts (BIDs). Greenville has also
had a sustained partnership with Clemson and other area Universities; Clemson’s MBA and Real Estate Graduate programs are moving to Downtown
Greenville as a result of local economic development strategies and an ongoing office and educational recruitment effort focused on the downtown area.
While Greenville’s convention center is located elsewhere in the city, the 328 room downtown Hyatt and 34,000 SF Hyatt Conference Center could be an
example for expansion of the Riverview Inn.
49
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Findings from Benchmark Cities
 Columbus: Columbus’ downtown is similar in scale to Clarksville’s but has more direct access to the Chattahoochee Riverfront. The corporate
community and local family-based foundations resulting from locally based companies like AFLAC have provided major financial support to cultural,
conference and meeting facilities in the downtown area. Columbus State University has located its fine arts and music departments (Including student
dormitories) in downtown Columbus. Columbus is also the corporate headquarters of Carmike Cinemas, which operates the Majestic 12 screen in other
Benchmark location downtown Chattanooga TN. Columbus is developing several recreational activities linked to its urban waterfront. Fort Benning is
connected to downtown Columbus via a fifteen mile hike and bike trail and the city is constructing a 2.3 mile urban whitewater kayaking course on the
Chattahoochee, funded by a $43 M river restoration grant, and is marketing the city as a destination for competitions.
 Little Rock: Little Rock’s example for Clarksville is primarily one of downtown housing and redevelopment/infill in the River Market District, which
includes restaurants, a children’s museum, new/rehabilitated residential buildings and the Arkansas Repertory Theater. Over the past twelve years,
downtown Little Rock has had over 1,000 residential units created and claims over 12,500 residents downtown and in adjacent historic neighborhoods,
resulting in a built-in market for dining, services and entertainment/culture. Like Clarksville, much of the area’s residential growth has been in outer
suburbs, but downtown has attracted residential development for a growing niche market of empty nesters and young professionals. Retail in other parts
of the downtown area is spotty and there are still many surface parking lots on the periphery of downtown Little Rock, but the River Market District
continues to grow and sustain new businesses; the district is also separated in elevation from the Arkansas Riverfront. As the largest city in Arkansas and
the state capitol, Little Rock’s economic drivers are based on government and higher education; Little Rock Air Force Base is less a market influence on the
downtown area than is Fort Campbell.
43
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
F.
Catalyst Projects in Downtown Clarksville
Part of the Clarksville Downtown and Riverfront Analysis included an assessment of selected sites in the
Downtown and Riverfront area to test market and site development opportunities that would catalyze
redevelopment by adding new/complementary uses, would make better use of a site’s potentials over
time, or would bring new investors and uses into downtown Clarksville and/or along the riverfront. Of
the group of potential catalyst sites proposed by TEG, Two Rivers Company selected three sites for
planning and development analysis:
 The Riverview Inn site (for expansion of the Hotel by 100 rooms and potential addition of an
executive conference center of about 30,000 SF, plus the additional hotel rooms and other facilities.
TEG suggests that consideration of a different type of facility would require a full feasibility study.
 The existing Transit Center (at Franklin and based on the assumption that the existing Transit Center
will be funded and relocated and the site will be made available for redevelopment by the City)
 The Roxy Theater and the vacant lots on Franklin Street and behind the existing theater building. As
past plans for expansion of the theater have not been funded, TEG’s redevelopment plan considers a
somewhat different approach to the theater, its facilities and potential incorporation into a mixed-use
project on the vacant sites on Franklin.
The concept of identifying and considering how to best implement catalyst projects in the Clarksville
study area involved several issues that helped to frame how TEG approached the selected sites. The
first issue was whether the flood plain characteristics should preclude realistic consideration of sites
along North and South Riverside Drive. Characteristics that complicate catalyst redevelopment there
include (a) eligibility/availability of building insurance for projects located in or adjacent to a flood plain,
(b) the overarching “automobile strip” character of Riverside Drive, (c) the degree of intervention and
the costs required to modify that character over time, (d) what roles local governments might play in
that transition and the political viability of that among other local priorities, and (e) concerns about
how to best serve the existing businesses that are located along the river today on both sides of
Riverside Drive.
While the original list of possible catalyst sites included three locations along Riverside Drive (most of
which already have redevelopment plans in process under the River District Plan), the catalyst site
locations chosen by the clients only included sites in Downtown Clarksville, above the bluff along North
and South Riverside Drive. The selection focused TEG’s analysis on the three selected sites. Each of
the three sites has its own characteristics that will affect the timing and complexity of future
implementation as catalytic projects, as well. These are described below as context for the
implementation aspects of the suggested development programs and the suggested conceptual
redevelopment programs for each site.
Site Conditions Considered

The Downtown Clarksville area and the
Cumberland Riverfront present distinct
redevelopment opportunities and challenges.
Downtown does not have a substantial office
population compared to other cities analyzed,
nor is there a concentration of hotel rooms in
the CBD (over 20 budget hotels are located
along I-24).

The Cumberland Riverfront has received
significant investment in creating Liberty Park,
the McGregor Park Riverwalk, and other
enhancements, but the low elevation has seen
frequent flooding that will affect both
redevelopment potentials as well as potential
eligibility to receive financing for projects
located in designated flood plains.
Development Conditions Considered

The current market-based sales and rental
pricing in downtown Clarksville will not likely
support conventional financing of major new
mixed-use construction, structured parking or
other requirements without major funding
subsidy by the City of Clarksville. It was
assumed that the catalyst projects would
either (a) not be implemented until they are
market supportable or have policy and/or
financial incentives provided by the City of
Clarksville, by Montgomery County , and/or
the State of Tennessee (or a combination of
the three) to “cover the economic gap.

Clarksville’s rolling terrain affects conditions
for pedestrian walkability, but can be used to
reduce lower level parking costs per stall if
properly sited to enter on multiple levels,
affecting overall development costs.
44
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Catalyst Projects in Downtown Clarksville: Riverview Inn
The plans shown on the following pages reflect the conceptual land uses and site plan concepts for
each of the three selected sites. While TEG’s scope of services required that three sites be chosen,
analyzed and planned at the ground level, TEG has also included a fourth potential catalyst site, as
(depending upon the political will associated with the suggested redevelopment concept) it may be
able to be implemented more quickly than one or two of the selected sites.
Site: Riverview Inn : The Riverview Inn is downtown Clarksville’s key hotel property, and includes 154
rooms and suites, a restaurant and bar, meeting rooms, an indoor swimming pool and other guest
amenities. The hotel sits on a visually prominent bluff between Main and College Streets, and has a
surface parking lot and former bank drive-through location on the block where the hotel tower is
located. The ownership of the hotel agreed to allow the hotel as a potential catalyst site, in part, to
encourage a broader vision for the hotel and the surrounding properties controlled by the owners.
The hotel attracts many sports teams and visitors attending events associated with APSU throughout
the year. The distance from I-24 to the Riverview is considered a challenge for the highway-oriented
market, but the proximity to APSU, City and C0unty Government, and its location all offer potential
marketing advantages that the outer lodging cluster cannot offer.
The conceptual redevelopment plan (shown on the following page) illustrates two additional
elements for the Riverview Inn: addition of approximately 100 new rooms (positioned to capture river
views) and crossing Spring Street toward the south (into the Cumberland River bluff). The new rooms
wing is intended to match the existing height (six floors of rooms) and to add just over 100 net new
hotel rooms (including a net loss of 1 existing guest room per floor. A conceptual room layout for
floors 2-6 is shown on the plan and would provide 18 new rooms per floor, and adding exterior
balconies onto the River wing, and possibly (as structurally possible) onto the river façade of the
existing building. While the standards for size and operations of conference centers were used in
planning a conceptual illustration (showing a ground level plan in the larger format or a two-story plan
using the smaller footprint defined by the dotted line), it should be noted that developing a full
understanding of the specific market demand, programming and financial issues involved in
implementing this concept will require further analysis by a specialist with experience in Conference
Center feasibility and operations.
TEG’s interviews suggested that there is some mis-understanding about the differences between
Conference Centers (typically 25,000 to 40,000 SF, and serving small, executive training and meetings)
from Convention Centers (large, flat floor exhibition and large groups with column free exhibit halls,
exhibition support spaces and facilities and loading docks for dozens of semi-tractor trailers). This
recommendation for downtown is for the former, NOT the latter, which would serve other markets.
Site Conditions Considered – Riverview Inn

The Riverview Inn site is part of a long slope
down from Public Square toward the
Cumberland River, dropping over 50 feet
between Main and College Streets.

The Hotel sits at the southwestern portion of a
city block bounded by College, Main, North First
Street and Spring Street.

The rear of the site has overlook views across the
Cumberland to farmland and open space which
are not maximized by the hotel’s current
architecture (for example, there are no balconies
to capitalize on the views).
Development Conditions Considered

The hotel market in Clarksville is largely clustered
near I-24 and Wilma Rudolph, with over 20
budget priced properties there.

The Riverview’s 154 rooms may be too few to
capitalize on a specialized downtown/ APSU
market and the potential to add a conference
center to the site. The Riverview Inn is
Clarksville’s signature hotel , but has not fully
realized its potential as a downtown anchor

The hotel is undergoing a methodical upgrade,
but can also consider other options for additional
room capacity, redevelopment and coordination
with APSU and others for meetings and
conferences, and exploring the potential to
incorporate a 25-30, 000 SF conference center at
the site. Using the grade, both two level and onelevel conference centers were tested on the plan.

To justify the economics of a conference center,
at least 100 rooms should be added.
45
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Catalyst Projects in Downtown Clarksville: Riverview Inn
Site Conditions Considered: Riverview Inn
•
The Riverview Inn site has an elevation drop
of approximately 40 feet from the Main and
First intersection down to Spring and
College.
•
Siting of the proposed conference center
can be planned to incorporate a two story
building built down into the slope (the
smaller, 100 foot deep floorplate shown at
the left) or could be built on one level, with
services and parking below (including the
larger , 200 foot deep floorplate shown
within the full dotted plan)
Development Conditions Considered

In order to accommodate the market for
the 25,000-30,000 SF Conference Center,
the Riverview Inn would need to add about
100 more rooms. While the land east of the
existing building could be used for a new
rooms wing, the suggested plan would add
more rooms spanning across Spring Street
and connecting to the existing hotel near
the elevator core. This would take
advantage of the River views and provide
the opportunity to add balconies to new
and/or all rooms.

The expansion plan for the rooms wing
would add a net increase of 102 new rooms
to the Riverview Inn; if connected as shown,
there would be a loss of two existing rooms
per floor but adding 18 additional rooms per
floor in the new wing.

Specific architecture and engineering
concerns will require specific feasibility
studies; this plan offers a conceptual vision
of how the Riverview Inn might be
expanded.
46
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Riverview Inn Alternative from University of Tennessee Plan
Site Conditions Considered: Riverview Inn
Alternative
•
The University of Tennessee conducted an
urban design plan for Clarksville in 2012, and
one component of the plan was an
alternative diagram for expansion of the
Riverview Inn. This plan creates a large
parking structure and center extending over
Main Street adjacent to City Hall.
Development Conditions Considered

The UT Urban Design Plan arrays the hotel
expansion within the current site
configuration, and would extend above the
Conference Center location.

The expansion is assumed to include
approximately the same number of
additional rooms as the TEG alternative.

Specific architecture and engineering
concerns will require specific feasibility
studies and exploration of required column
spacing and other structural considerations;
this plan offers an alternative conceptual
vision of how the Riverview Inn might be
expanded.
47
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Catalyst Projects: Transit Center
The second component to be considered for addition to the hotel and site is a 30,000 Executive Conference Center toward the northwestern part of the
site. The block diagrams attached to the existing hotel represent the footprint of an executive conference center that can be configured on either one
level (at 30,000 square feet, shown as the larger rectangle) or a two level facility that would ‘stack’ one level above the other (at 15,000 square feet per
level, shown as the smaller rectangle). Surface parking would be maintained, and may require expansion across College Street to the block below the
hotel site, especially for event days at the Conference Center.
Site: Transit Center -- The Clarksville Transit Center site includes the greater part of a city block bounded by Legion, Franklin and North Second. The
remainder of the block is occupied by a historic structure containing professional office space. The Transit Center site was selected as a catalyst
redevelopment site for several reasons. First, the existing facility is considered inadequate for the required operations and has had building repair issues.
Second, its Franklin Street frontage is all occupied by a small, below-grade parking structure containing approximately 50 spaces, but interrupting the
continuity of activating ground floor spaces along this side of Franklin Street. Third, the site is publically owned, and could be replaced by a commercial
property that would generate real estate, sales and other taxes, if redeveloped. The Transit Authority is currently reviewing alternative sites that meet its
needs for relocation, and is committed to moving the existing Transit Center from the current site. While a new site for relocation of the Transit Center
has not been identified, the intent of the conceptual redevelopment plan is to test what types of mixed-uses could fit on the site, and how they might be
configured.
The conceptual redevelopment plan (please see on the second following page) suggests that the ground floor could be programmed as retail spaces on
Franklin and North Second, at leasable store depths (60 feet) and sizes (connected by a rear service corridor to a shared loading dock on the Legion Street
side of the site). The elevation drop of approximately 6 feet across the site would be accommodated with slab breaks across the Franklin and Legion
Street facades, that make it possible to convert the plan to allow for a flat platform above ground level in order to construct stick-built residential (as
shown) or office space on upper floors above a slab/ceiling above street level store spaces. To provide light, air and windows, small courtyards open to
the sky (shown as white spaces adjacent to ‘internal’ units) are included as terraces for the second level units, and open above for potential third level
units. The concept includes controlled access below grade parking (entered at the upper part of the site) for office tenants/residents (depending on the
final upper floor uses), a lobby on the Legion Street side (for either residential or upper level business uses), and a consistently activated street edge with
about 12,400 SF of new retail.
The upper floors could be stick-built on slab for ease of connection and internal accessibility, and could either be developed as specialized apartments for
retired empty nesters (potentially associated with a local church) or as professional office space (with up to 22,950 gross SF per floor), potentially for law
firms desiring space near the Montgomery County Courthouse. Elevator and egress stair connections can be made between upper floors and the ground
level, but specific locations and numbers of ground floor slab breaks would require further research and engineering studies. If an alternative approach is
taken for the City-owned historic properties on the south side of Public Square, this space could also accommodate consolidated city offices rather than
residential use on the second and third floors, or could be mixed-tenant offices, depending on overall space needs and/or market conditions.
48
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Catalyst Projects: Transit Center
The concept plans for the Transit Center site offer a way to both activate the street level, use the below-grade parking (with modifications) and add density
above a ground floor series of retail spaces. Uses on upper levels will likely require some subsidy, depending on the achieved rental or sale prices and the
number and types of spaces/dwelling units that could be developed.
The Transit Center site plans on the following pages illustrate the street level retail and upper floor lobby/loading/entry to parking locations, and the
additional plans illustrate potential residential unit layouts for one or more floors above the slab over the street level. Specific locations of required slab
breaks, structural and egress considerations and other factors would require analysis beyond the conceptual nature of the suggested plans.
While the Transit Center represents an important downtown site and a critical link to the area transportation system, the site has a number of characteristics
that may complicate redevelopment in the near term. The decision to relocate is based on a number of issues – the need for greater capacity, structural
issues at the current site, and other factors. But as of the timing of submission of this report, no relocation site has been identified, nor is funding in place to
pay for the relocation. Site acquisition, site planning , development of another facility, determination of a process to determine the redevelopment concept
for the Franklin/Legion Street site, potential project scale according to market support for retail/office/residential/institutional uses at the time of
implementation, available public support, and other unknown elements all suggest that the relocation could be years away. The vision of a more urban,
street-activating mix of uses is both valid and appropriate, but the complexities and undetermined elements involved in implementation all are indications
that the Transit Center will be a longer-term project.
Transit Center as viewed from Franklin Street
Transit Center as viewed from Strawberry Alley
49
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Catalyst Projects in Downtown Clarksville: Transit Center L-1
Site Conditions Considered

Relocation of the existing Transit Center
sometime in the future would allow for
demolition and redevelopment of the site as
a mixed use building with retail on the
ground floor and potential use of two upper
floors as either residential or office
development (as market supportable).

The site ‘s elevation appears to drop by well
over eight feet from east to west, and
should take this into account for provision of
below grade parking and slab breaks along
the downward slope of the street level
sidewalks for ground floor retail uses.
Development Conditions Considered

The conceptual plan illustrates a potential
retail ground floor plan that could
accommodate 7-8 retail store spaces; spaces
are connected by a service corridor to a
loading/service dock on the Legion Street
side. Retail on Franklin Street would
activate this side of the block, opposite the
County office Building to the south.

Parking could be provided on the lower
level, accessible from a ramp shown at the
eastern edge of the Franklin Street frontage.
Specific parking diagrams have not been
shown, but the existing parking under the
Transit Center includes about 50 spaces.

The economics of a new mixed-use project
at the existing Transit Center site will require
some form of subsidy to make the project
viable. Project timing is unknown.
50
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Catalyst Projects in Downtown Clarksville: Transit Center L-2
Site Conditions Considered
•
Variations in grade elevations should be
accommodated on the ground floor.
Construction of the upper levels may
suggest a slab above the ground floor and
stick-built construction on upper levels to
reduce costs.
•
Because the Transit Center is a highly visible
site downtown, TEG suggests that careful
design controls be incorporated to maintain
the scale, character and design of older
structures surrounding the site into
composition of the new mixed-use project.
Development Conditions Considered

While this plan illustrates 15 dwelling units
per floor (for a p0ssible 30 to 45 total units
depending on market and density
conditions), the upper floor(s) could also be
used as office space, with a lower total
construction cost. If developed as offices,
the gross floor area per floor would total
approximately 23,000 square feet per level.

Part of the downtown redevelopment
strategy is to increase the number and
variety of housing types offered in the
Downtown Core. These units , configured at
about 900 to 1250 SF per unit were assumed
to be for an empty nester market, but could
be redesigned to include smaller, studentoriented housing units. Outdoor courtyards
are provided for ‘internal’ dwelling units.

Location of the elevator cores, egress stairs
and other vertical connections will require
specific engineering and design analysis
beyond the conceptual level of the
suggested redevelopment plans.
51
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Catalyst Projects in Downtown Clarksville: Roxy Theater
Site: Roxy Theater and adjacent Franklin Street vacant lots – The Roxy Regional Theater is a landmark cultural component in Clarksville and occupies a
historic theater building at the intersection of Franklin and South First Streets, arguably one of the critical ‘connector corners’ between the more active
blocks of Franklin Street and the area around Public Square, City Hall and the headquarters of F&M Bank. The Roxy Regional Theater is currently housed
in the former Roxy Cinema, a 215 seat theater with limited supporting spaces and adjacent surface parking lots. Next to the Roxy Theater building is a
sub grade parking lot (about 15-20 feet below the Franklin Street sidewalk) that connects to another parking area behind the theater building. In 2006, an
ambitious plan to demolish the existing Roxy and construct a 36,000 SF education and arts center (including a new 500 seat theater) was announced, but
funding has not become available to complete this vision.
For purposes of the downtown redevelopment strategy, TEG suggests that it is timely to both stress the importance of retaining the Roxy Regional
Theater as a critical cultural destination in the downtown area, as well as to reconsider how its proposed program (developed as the result of discussions
with area artists, dancers, and other performers in 2006) might be adjusted in scale and cost to better fit into the downtown fabric. The concept
resulting from the 2006 discussions called for a 36,000 SF Center for the Arts and Education including a 500 seat theater, scene shop, loading area,
dressing rooms and other theater-related uses. The concept also included a café, art galleries, a dance studio and artists studios, and was estimated to
cost $15M; funding for the facility has not been secured during the past six years, which suggests that an0ther approach may be useful to consider as
part of the current downtown redevelopment strategy.
This 2012 proposed catalyst site plan includes a new 500 seat proscenium stage theater and fly house to be constructed behind the restored façade of
the existing Roxy; this plan differs from the 2006 proposal in that part of the Roxy site is reserved for commercial development (as both an ‘enclosure of
the street level void and as a potential source of operating revenue for the Roxy Regional Theater), as well as the retention/preservation/restoration of
the main façade and marquee as part of the redevelopment (the earlier proposal did not preserve the façade and marquee). The configuration and size
of the existing theater is not appropriate for a larger seating capacity, and has been reconfigured into a conceptual floorplate of approximately 13,500
square feet of space (including a raked floor, stage house and supporting spaces). The scene shop, dressing rooms and other supporting uses can be
placed below the stage house, using the 20 foot drop in elevation from Franklin Street to the alley behind the Roxy.
A noted difference between this concept and the earlier design concepts presented for the Roxy Theater is that the façade and marquee are retained as
part of an iconic corner. While the preceding concept design was clearly a more functional facility for the Roxy Regional Theater, the architecture did not
have the same iconic qualities as does the old 1940’s exterior/marquee. TEG believes that the Roxy façade and marquee are an important part of the
downtown identity and fabric in Clarksville, and should be retained in the new Roxy project, but with an entirely new theater facility behind it. The
proposed redevelopment program eliminates the in-theater café, the proposed dance studio and artists studio spaces in order to allow for development
of commercial space at the Franklin Street level, (ideally for another 5,500 SF restaurant) to strengthen and reinforce the food service draw that already
exists on the block, as well as adding potential upper floor office space totaling about 11,000 SF on two upper levels. (about 5,500 gross SF per floor);
alternatively the upper level spaces could be developed as residential units. Depending on how ownership of the land, cost sharing for capital
improvements and management of the property is structured, part of rents from the restaurant space and potential upper floor office spaces could
provide revenues to be applied toward the Roxy’s ongoing operating costs, with initial capital investment for the project to be covered by a combination
of fund raising and bond debt. It will also be necessary to strengthen/improve the pedestrian connections between the Roxy redevelopment and the
existing Cumberland Plaza Parking Garage, and potentially to new downtown parking structures built on surface lots south of the Roxy across the alley.
59
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Catalyst Projects in Downtown Clarksville: Roxy Theater
Site Conditions Considered

The Roxy Theater site slopes down from the
Franklin Street elevation to the alley behind
by at least 20 feet. The vacant lot east of the
existing theater is excavated at the Franklin
Street sidewalk edge for surface parking, but
the grade difference could be incorporated
into redevelopment plans for service/support
uses or parking below a structure above
facing Franklin Street.

Because the façade and marquee are an
important brand and identity for a downtown
Clarksville landmark, it is proposed that both
the front/corner and marquee of the existing
façade be retained in the newly constructed
theater/center.
Development Conditions Considered

The Roxy Theater site is a challenging
redevelopment opportunity, as the
economics of funding both capital investment
as well as ongoing operating costs for a
cultural destination could be significant, and
non-profit institutions function differently
than commercial enterprises.

The proposed development program for the
site includes a 500 seat theater with a full
proscenium stage and flyhouse above it.
Provisions for a scene shop, black box
theater, and separate gallery spaces could be
accommodated on the site in spaces below
and/or above a commercial user at the street
level. A restaurant/bar associated with the
Roxy (and potentially connected internally)
would reinforce streetscape retail continuity
along Franklin Street, and provide rent to help
cover Roxy operating costs. Upper floors
could include office space (or housing); see
plan for street access.
53
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Catalyst Projects in Downtown Clarksville: Roxy Theater
Why Save the Roxy Façade and Marquee?
Note: The Roxy Theater and
its adjoining lots were selected
by Two Rivers Company f0r
analysis as a downtown
Catalyst Site, but TEG notes
that the ‘Top Spot’ on the west
side of Public Square has also
been suggested as the
potential site for a performing
arts facility.
Gem Theater, Kansas City MO

The 2006 proposed redevelopment of the
Roxy Theater site did not retain or preserve
the historic Franklin Street Façade and
Marquee . While this will add an incremental
cost for redevelopment of the theater to be
more functional and appropriate for today’s
needs, TEG strongly encourages retention
and restoration of the Façade and Marquee.
Restoration of historic theaters across the
country has demonstrated that the
memories and urban character of
commercial centers are enhanced by
preserving the facades of deteriorated
theaters. Often, donors are motivated by
the desire to retain the original appearance
of the exterior, because the buildings recall
the atmosphere of active downtown areas

The Roxy’s theater spaces are not adequate
for the production needs of modern
presentations – the building needs more
seats, more back-of-house /support spaces
and the ability to provide for deliveries and
truck access to the stage. Examples such as
the Gem Theater in Kansas City (shown at
left) illustrate that it is possible to create
state-of-the art theater spaces behind
historic facades, providing for contemporary
production requirements but housed within
the remarkable architecture of the past.

The modernist lines of the building façade
and marquee are an eloquent reminder of
Clarksville’s downtown area in better times;
we believe retaining the façade and
marquee can anchor the renewal of the
Roxy in the future, as well.
New ‘Black Box’ interior, Gem Theater
54
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Catalyst Projects in Downtown Clarksville: Public Square
 Bonus Catalyst Redevelopment Site: There is also a fourth catalyst redevelopment site which was not selected by Two Rivers Company as a
prototype, but is included in this report in case one of the three designated sites proves to be too complex to pursue:
Redevelopment of Public Square: A group of City-owned historic buildings, interim buildings and vacant lots on the west side of Public Square
(sometimes called the ‘Top Spot’), currently occupied by the old City Hall, the Parks Department/City arborist, and commercial structures (the block
running from Franklin to Main on the South side of Public Square) could be considered an alternative Catalyst Site if redeveloped. The majority of these
buildings/locations appears to be City-owned (and occupied), but in need of major renovation and maintenance. TEG notes that these buildings could be
eligible for Federal historic rehabilitation tax credits, but not under City/public ownership – to qualify for eligible rehabilitation credits, the buildings must
be privately held and in commercial (revenue-generating ) use. In order to qualify, the uses currently located in these older, historic buildings would need
to be relocated (ideally into other City-owned or controlled office space), so that the buildings could be sold to private owners, renovated for new uses
(such as restaurants and retail spaces on the ground floor and office or residential uses on upper floors) and placed back into ‘commercial service’.
Adapting these historic structures for commercial uses that would take advantage of the river views from the back, and put back onto Clarksville’s
property tax rolls. In the interest of sensible preservation and protection of the distinctive architecture, the City of Clarksville may want to (a) require
preservation covenants on the exteriors and significant interior spaces, as appropriate, and (b) participate in the design development stages of the
renovation design to protect the architectural character of Public Square. Design controls should also be applied to infill structures on the block’s vacant
parcels or parcels with seriously deteriorated structures to reinforce the appropriate scale, materials and streetscape character.
Of course, transfer of these properties to private investors will have both financial and political implications for the City, and may not be possible in the
near term, but TEG’s strategy suggests that re-purposing these historic properties as commercial venues would (a) protect the historic edge of Public
Square at no cost to the City, (b) activate this side of the Square with dining and retail uses, anchoring an extension of Franklin Street’s retail into this
part of downtown, (c) both preserve the historic buildings (potentially through use of federal historic tax credits and the design standards they require) ,
(d) provide infill opportunities for appropriate new structures to be located along the bluff, and (e) provide a potentially stronger pedestrian link from
the Riverview Inn to Franklin Street’s restaurants and retail attractions. One of Clarksville’s downtown development issues is a lack of connectivity
between destination uses (APSU and downtown, downtown and the Riverwalk, dining/retail and lodging). Redevelopment of the western block along
Public Square can strengthen linkages between multiple activity centers in and around downtown Clarksville. If leveraging of publicly owned property
becomes an opportunity to be considered by City government, it is recommended that the redevelopment of Public Square should be high on the project
priority list.
TEG also notes that the Top Spot location was included in the University of Tennessee’s urban design plan, and has been considered a possible site for a
performing arts facility. Ideally, the group of historic structures should be preserved and adapted for these or other new uses with suitable infill designs
created to complete the ensemble (and possibly incorporate new systems, connections/elevators, etc.) and retain the existing structures. If the current
building layouts and/or structural conditions are not compatible with potential alternative uses, TEG urges that the facades of the buildings should be
retained and integrated with new structures behind them in order to preserve these valuable architectural remnants of Clarksville’s downtown legacy
and the historical continuity of Public Square.
62
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
G.
Clarksville Retail Inventory Summary
TEG completed a comprehensive inventory of the downtown Clarksville study area based on maps provided by the City of Clarksville. The inventory study
area is quite large, encompassing Austin Peay State University and environs, the University Avenue and College Street corridors, all of the riverfront from the
junction of the Cumberland River with the Red River toward the south, almost to Liberty Park; in addition to these two commercial “strips”, the Downtown
Core includes the Courthouse, City Hall and Public Square and the more pedestrian oriented traditional retail streets, focusing primarily on Franklin Street ,
Strawberry Alley and selected adjacent blocks. TEG conducted a block by block inventory of street level spaces, identifying whether space was occupied or
vacant and which categories of retail (in its broadest definition) the occupant represented. The inventory was conducted in the spring of 2012, and
occupancy levels and/or locations may have changed since the field work due to businesses opening or closing, or former vacancies having been filled.
Based on information developed in the retail inventory, the greater downtown Clarksville study area includes over 900,000 square feet of retail space (not
including law offices or other professional services that would depend on walk-in customer traffic; for example, an insurance office or bank would benefit
from a visible, walkable location, and would be counted as a “retail’ use under financial services, but a law office would not be counted). While not likely
producing the same sales as the Wilma Rudolph Corridor’s cluster of over 2M SF of retail, this is still a significant amount of space. Retail is not concentrated
in one area, however, and the character of retail zones downtown is disjointed and scattered.
The pedestrian-oriented character and continuity of Clarksville’s downtown core retail is not universally consistent, other than along Franklin Street,
Strawberry Alley and certain blocks of University Avenue, and the greater concentration of retail (over 2/3 of all downtown retail) is located along Riverside
Drive, which is less dense and is more characteristic of a commercial auto strip corridor than a traditional downtown area. The Riverfront corridor includes
most of the study area retail space, including Cumberland Square mall and the large format stores at the southern end of the subdistrict.
From a behavioral standpoint, there are three primary subareas: the Downtown Core, which includes destination stores and restaurants and a concentration
of banks and financial institutions, the College Street/University Avenue corridors (concentrating student-oriented food and beverage and auto dealerships),
and the Riverside Drive blocks below the bluff from the Downtown Core (with large format stores, pad-site restaurants and fast food operators, and home
products). The documented square footages of retail space (by subdistrict) are:
-- Downtown Core --
+ 148,000 square feet of occupied ground floor retail space
-- University/College Street--
+ 154,00 square feet of occupied ground floor retail space
-- Riverside Drive/Second Street Corridors --
+ 611,000 square feet of occupied ground floor retail space
Typical of many older downtown areas with strong suburban retail concentrations, downtown Clarksville has a limited number of specialty retail businesses
(although several are destination specialty stores, and the opening of the Bink’s Outfitters on Franklin was a strong new addition, adding to the offerings at
Clarksville Sporting Goods on Riverside). Bink’s recognition of APSU students as an underserved submarket offers a strategic clue how Clarksville’s
downtown core can add more businesses and expand the mix of goods in a walkable environment.
At the time of the inventory, the vacancy rate for ground floor spaces in the three subdistricts totaled approximately 115,000 square feet, or about 12.6% of
all ground floor retail space in the study area. The Downtown Core has by far the greatest concentration of vacant space, with almost ¾ of all vacancies
(approximately 85,000 in all subzones), although some large vacancies could be considered as better used as professional office space, rather than as retail.
The most compelling total is that two-thirds of downtown retail is located in car-oriented strip environments, and the traditional downtown only includes
about 1/6 of all existing space.
56
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Clarksville Retail Inventory Summary
If the downtown area is to grow as a regional destination and become marketable to manufacturers and other businesses which might consider Clarksville
as a possible location, the Downtown Core will need more ‘built-in’ customers (primarily new downtown residents and some additional office workers) as
well as enough critical mass of retail uses, located in contiguous blocks, to create a more cohesive, walkable retail environment. Despite the concentration
of legal firms in the downtown area, and the presence of the Montgomery County Courthouse and City Hall, Clarksville is not a major office center; its
greater economic strength is manufacturing. This suggests that adding more downtown housing (as it becomes market supportable) and capitalizing on
the growth of APSU’s student population will be more appropriate strategies than focusing on recruiting office users downtown. The second part of the
niche strategy is to better concentrate destination/one-of-a-kind retail uses downtown to draw a portion of regional sales, initially focusing on adding more
food and beverage to the current mix. There is a significant amount of space available in the downtown core, and increasing the number of operators,
especially if located in a manner that will improve connectivity between existing nodes (APSU/Downtown/ Riverview Inn/Riverfront) will increase the share
that downtown can capture from regional sales.
TEG used eight categories of retail to identify and differentiate retail business types:
1.
Specialty Retail –
apparel, accessories, shoes, jewelry, children’s, gifts, sporting goods and equipment
2.
Food & Beverage –
table service and carry out food service, coffee shops, bars and taverns, fine dining, diners, bakeries, etc.
3.
Financial Services --
banks, Stock Brokers, Savings Institutions, Loan and Finance companies, Insurance
4.
Consumer Services --
hair salons, nail salons, dry cleaners, convenience stores, grocery stores, gyms and spas, liquor stores, flowers,
laundromats, beauty supply, tattoo parlors, diaper services, tobacco stores, realtors
5.
Auto/Automotive Services --
car dealerships, auto parts, auto repair garages, brake shops, gas stations, car washing
6.
Home Products --
furniture, mattresses, lumber and hardware, gardening supplies, decorative gifts, antiques, window coverings,
floors and floor coverings, paint stores
7.
Other Retail --
entertainment, pool parlors, clubs, office supplies, comic books and games, second hand/thrift shops
8.
Large Format --
stores of about 20,000 to 25,000 square feet or more: discount stores, furniture and home products,
department stores, building supply stores, warehouse stores, etc.
TEG then collected field data to estimate square footage of ground floor retail spaces in the three subdistricts to estimate the total space occupied by each
retail category, as well as to develop total square footages (by category, by subdistrict, and in total) for the study area. Square foot estimates were also
verified against City of Clarksville property tax assessment totals; where there were discrepancies, the property tax assessment square footages were used
throughout the inventory totals. In the case of the large sites used as Auto Dealerships along College Street near University Avenue (as well as auto and
boat sales locations located on Riverside Drive), only the building spaces were calculated; parking lots and vehicle storage areas were not included. For the
Two Rivers Mall, square footages for specific tenants were developed from property tax records, as well, and aggregated as ‘retail’.
57
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Clarksville Retail Inventory Summary
The table below summarizes the amount of square footage in the Clarksville study area in several ways: by retail category, by subdistrict, by percentage of
total square feet across all occupied space, (which totals 912,637 square feet). Estimated vacant space totals 115,270 square feet, or about 12.6% of total
retail space. The Downtown Core has about half of the total square feet of Food & Beverage along the Riverside Drive corridor, and the large format stores
(Sticks ‘N Stuff, Big Lots, etc.) plus Two Rivers Mall push the retail totals there to quadruple the downtown Core and College Street/University totals. The
Downtown Core has over one-third of all specialty retail and almost half of financial services businesses. Clarksville’s greater downtown area have
disproportionate amounts of automobile-related businesses, primarily because of the major auto dealerships (which could be redeveloped based on owner
priorities and timetables and long-range expansion needs for APSU). The other concentration of auto-related repair services, auto parts stores etc. are
clustered along Riverside Drive and University Avenue. These uses generally reflect high vehicle counts and affordable property values. Entertainment
venues include bars with performers, the archery range and pool parlor. Banks and financial institutions occupy key intersections and blocks, and attorney’s
offices (likely paying higher rents than current downtown retail sales can support) create retail discontinuity along Franklin Street’s key blocks, and the City
of Clarksville owns and occupies several other blocks/building clusters that could be converted to commercial use over time (such as the Transit Center and
the historic structures on the west side of Public Square. TEG suggests that public ownership and potential relocation of public uses through office
consolidation should be used to leverage conversion of street level space to retail, both to increase high visibility locations and to improve the tax base.
Comparison by Category
Downtown
Core
Category
Specialty Retail
Food & Beverage
Financial Services
Consumer Services
Auto/Automotive Svcs
Home Products
Other (incl. entertainment)
Large Format
Subtotal
21,522
40,518
64,209
4,952
3,360
13,107
147,668
% of Total
Category in
Study Area
35.9%
28.4%
48.3%
15.3%
4.4%
100%
16%
% of Total
Occup. SF
2.4%
4.4%
7.0%
0.5%
0.4%
1.4%
0
Riverside
Corridor/
Second/
Other
34,827
79,280
64,149
27,480
66,267
73,803
265,475
611,281
% of Total
Category in % of Total
Study Area Occup. SF
58.1%
55.7%
48.3%
84.7%
35.0%
95.6%
3.8%
8.7%
7.0%
3.0%
7.3%
8.1%
100%
67%
100%
University % of Total
Ave/College Category
3,575
22,638
4,575
122,900
153,688
Subtotal all Occupied Retail Space
Vacant
Summary of Vacancies by Subarea
84,937
30,333
% of Total
Occup. SF
6.0%
15.9%
3.4%
0.4%
2.5%
0.5%
65.0%
13.5%
Total
Occup. SF
Total %'s
by Category by Category
912,637
59,924
142,436
132,933
32,432
189,167
77,163
13,107
265,475
100%
912,637
115,270
12.6%
17%
6.6%
15.6%
14.6%
3.6%
20.7%
8.5%
1.4%
29.1%
100.0%
0
Total Vacant Space
58
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
H.
Clarksville Retail Recruitment Strategy for Downtown
The concentration of vacant ground floor spaces downt0wn is both a problem for street activation as well as a strategic opportunity. A significant portion
of the occupied storefronts are on secondary blocks and/or are located in older/historic buildings which could qualify for federal historic tax credits if
properly renovated. If properly designed and certified, many of these building projects could qualify for the Federal Historic Rehabilitation Tax Credits.
TEG suggests that the cluster of national retail tenants on Wilma Rudolph Boulevard (either in the Governor’s Square Mall or other strip centers along the
corridor) have reinforced a pattern there for comparison shopping in branded retail chains. The location criteria for national chain stores (typically focusing
on demographics, average daily traffic counts on adjacent roads and presence of established competitors) are not as pertinent to downtown areas, which
typically don’t have the traffic counts, have specialized shopper bases and are not designed for high volume, highway-oriented traffic levels. Successful
downtown retail programs create retail mixes that are (a) most appropriate for their available markets, (b) not duplicating suburban chain store retail, and
(c) create a distinctive store mix based on local and regional retailers in a walkable environment -- a differentiated shopping experience. Based on the
market analysis for Clarksville, the primary submarkets for downtown stores and other retail businesses will be a blend of APSU students, faculty and staff,
downtown employees (noting the number of attorneys and other professionals who work downtown), and a share of the regional residential market
(particularly those who want specialized service, unique products and prefer non-mall shopping). The current demographics of downtown Clarksville
indicate that the student population is the most important proximate submarket for the near term, so the list of prospective retail recruitment targets
shown on the following page are primarily directed at student and young adult consumers – moderate price levels, casual fashion and accessories and
locally/regionally owned. While there may also be attractive stores in Memphis, Louisville or St. Louis, the Nashville stores will understand the Clarksville
market best because they already know the customer base in Middle Tennessee and have established businesses to draw their expenditures.
For restaurants, casual dining and bars, the list focuses on established food and beverage operations located in the greater Nashville market, with an
emphasis on younger audiences in trendy, student and young professionals neighborhoods – 12 South, West End Avenue, Hillsboro, Belmont Boulevard
and Midtown near Vanderbilt and Belmont University. The price levels are more moderate, the cuisine is generally casual and ethnic, and most of the
restaurants include bars whose profits cross subsidize the less profitable food service component. Restaurants and dining establishments benefit from
being part of a cluster of uses, and food service often serves as the ‘lead use’ in revitalized commercial centers and downtown areas, with retail uses
following as pedestrian traffic increases. The Black Horse Tavern and other downtown Clarksville operations would benefit from addition of more casual
dining opportunities because a greater assortment would add more choices and reinforce downtown as a ‘dining district’; the most successful dining
districts typically have at least 7-8 restaurants within view of pedestrians, clustered along downtown blocks so that customers can make choices between
operations based on waiting time, customer profiles and street activity levels. Reinforcing the existing mix of food and beverage operations will activate
downtown Clarksville in the evenings and on weekends, and would add amenities that would help to market the proposed Conference Center next to the
Riverview Inn. Retail stores on the prospects list area also located in the same Nashville neighborhoods, and include apparel, shoes, jewelry and
accessories oriented (and priced) for APSU students, their families and local residents. TEG expects that most chain-affiliated stores and restaurants
considering Clarksville will be more inclined to locate near the new Cinema complex on Tiny Town Road, but local and regional restaurants and stores
(especially those with at least two locations) will appreciate the character of downtown Clarksville and will have had experience in and understand how to
operate in a college-district commercial environment. A list of prospective recruitment target food and beverage and specialty retailers is shown on the
table on the second following page.
In addition to the Nashville-area prospects, there are also local stores that, in our view, should be recruited to a downtown location. Local prospects
include Briggs Clothiers on Madison Street, a branch of Rafferty’s from Wilma Rudolph and products from Frugal Hands (currently online only).
59
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Clarksville Retail Recruitment Strategy for Downtown
The resulting strategy for downtown is based on several critical market analysis findings, voids in the existing mix of stores and businesses and the realities
of differences in achieved rents and supportable square footage. Demand for additional sales (and therefore additional retail, food service and
entertainment offerings downtown) will need to be induced, and are not currently market supportable in the conventional sense (unmet market demand).
That does not mean, however that downtown Clarksville cannot compete and recruit selective product and retail business categories, and compete for
expenditures in the region. The most prudent strategy to support, retain and recruit new retail is to provide a better mix of stores that will keep a larger
share of available sales, increase the critical mass of offerings (additional food and beverage restaurants, bars, and entertainment venues) and strengthen
the quality of the consumer experience while offering a differentiated product. The power of a national chain store cluster such as Wilma Rudolph corridor
and Governor’s Square is beyond what downtown Clarksville can expect to offer, but at the same time, downtown’s walkable environment is appealing to
a share of customers some of the time and to most customers once in a while, especially if the stores offer something different from national chains. The
competitive advantage of downtown Clarksville should initially build on the proximate student market, on providing unique merchandise and affordable
price points that can complete for a larger share of what is being spent elsewhere in the area. For existing buildings that do not pursue Federal Historic
Preservation Tax Credits, many could qualify for the Federal 10% Rehabilitation Tax Credits, which are have fewer restrictions and simpler criteria
While the primary focus of the potential recruitment prospects list is on retailers and restaurants from the Nashville area that cater to younger consumers,
students and specialty shoppers who seek out non-chain store goods, there are also local Clarksville retailers that, in our view, should be targeted for
recruitment to a downtown location. Local prospects include Briggs Clothiers on Madison Street, a branch of Rafferty’s from Wilma Rudolph and products
from Frugal Hands (currently online only). These stores (and their products) have survived, retained their customer bases and established a track record
that would strengthen downtown Clarksville and improve the overall mix.
In a competitive market like Clarksville, the relationship between consumer spending patterns and geographic proximity can best be summed up by the
following rules of thumb regarding the most desirable mix of land uses and their interdependency on each other to increase market share:
 Assuming typical spending patterns and sustainable retail sales productivity (which Downtown Clarksville is still building up to), new
downtown residents will be the most lucrative spending category. On a fare share basis, and assuming an improving mix of stores, each new
downtown resident will support between 4 and 7 square feet of retail in all non-automotive categories. The higher range would suggest more, and
more affluent residents, while Clarksville’s current downtown demographics suggest that the lower range is more likely. That means that it will
take about 200 new downtown residents to support one 800 foot retail business (as a single market segment; logically, others will also participate).
 For conference attendees, visitors and tourists, the ratio is about .5 to 1.5 square feet per person, so the same 800 square foot retail business
would need between 550 and 1,600 downtown visitors to be ‘supportable’ (again, as a single market segment; sales sources will be diverse).
 Downtown office workers spend more than visitors per capita, but less than residents; each new office worker will support between 2 and 5
square feet. Because the Clarksville downtown office market is small and not a major economic growth driver, it would take another 300 to 400
workers to support the same 800 foot store.
Of course, downtowns serve all of these markets, and businesses should not be solely dependent on only one submarket. The important result is that a
resident-based redevelopment strategy will provide more and more sustainable market support, supplemented by the other two ‘spender’ categories
60
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Clarksville Retail Recruitment Prospects
Retail Recruitment Prospects for Downtown Clarksville
Category
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Business Name
Bread & Company
Sweet CeCe's
Sportsman's Grill
McDougal's Chicken
Bongo Java
The Dog of Nashville
Chuy's
Vinea Wines & Spirits
Zumi Suchi
Calypso Café
Mafiaozo's Italian
Belcourt Taps & Tapas
Sam's Sports Grill
Noshville Delicatessen
Nucci's Italian Ice & Gelato
12 South Taproom & Grill
Portland Brew
Edley's Bar-B-Que
Las Paletas
San Antonio Taco Company
Bacon & Caviar
Kalamatas
Subway
Specialty/Products/Concept
Baked goods, salads
Frozen Yogurt
Varied American menu
Beer, wings - college atmosphere
Neighborhood Coffee Shop
Hot Dogs
Tex Mex
Wine & Spirits
Japanese
Jamaican Dining
Italian Restaurant
Tapas
Sports bar
NY Deli, breakfast, sandwiches
Italian Gelato, Panini's, salads
Varied American menu
Coffee House
Barbeque
Gourmet Popsicles
Tex Mex
Gourmet Catering & BBQ
Mediterranean dining
Sandwiches
Location
City
West End , Cool Springs, Belle
Meade, Green Hills
Nashville
21st Ave. - Hillsboro V.
Nashville, TN, SE
21st Ave. - Hillsboro V.
Nashville, 5 locations
Belcourt Ave. - Hillsboro V. Nashville
Belmont Avenue
Nashville
Belcourt Ave. - Hillsboro V. Nashville
Broadway
Nashville (SE and TX)
12 South
Nashville
Belcourt Ave. - Hillsboro V. Nashville
Midtown/Vandy
Nashville
12 South
Nashville
Belcourt Ave. - Hillsboro V. Nashville
21st Ave. - Hillsboro V.
Nashville, M'boro, etc.
Vandy, various
Nashville, Cool Springs
Meriden/Cool Springs
Franklin
12 South
Nashville
12 South
Nashville - misc. locations
12 South
Nashville
12 South
Nashville
21st Ave. - Vandy area
Nashville - 2 locations
8th Ave. & Farmer's Market Nashville - 2 locations
Portland Ave. - Belmont
Nashville - 2 locations
National Franchise
Numerous locations
Source: The Eisen Group/TEG Economics
61
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Clarksville Retail Recruitment Prospects
Retail Recruitment Prospects for Downtown Clarksville
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Category
Business Name
Specialty/Products/Concept
Location
City
Apparel & Accessories
Apparel & Accessories
Apparel & Accessories
Apparel & Accessories
Apparel & Accessories
Apparel & Accessories
Apparel & Accessories
Apparel & Accessories
Apparel & Accessories
Apparel & Accessories
Apparel & Accessories
Apparel & Accessories
Apparel & Accessories
Shoes and Boots
Art Supplies
Yoga Apparel
Home Products
Woodhouse Day Spa
Ivey
Local Honey
Feedback Clothing
Serendipity Emporium
Nashville Clothing Company
Moda Boutique
Bella Boutique
Muse Boutique
Image Optical
Arzelle's Bridal
Pangaea
Fire Finch Boutique
Bullets & Mullets
French's Shoes & Boots
Plaza Art Supplies & Framing
Athleta
Southeastern Salvage and
Day Spa
Women's Apparel and accessories
M/W casual Apparel, Jewelry
Student/Casual Apparel
Women's Casual, jewelry
Men's, Women's casual clothing, shoes
Women's Casual, jewelry
Women's Casual, jewelry
Women's Casual, jewelry
Sunglasses, Optical
Bridal Boutique
Women's Casual, jewelry, gifts
Women's clothing, shoes, accessories
Fashion Boutique, jewelry
Shoes and Boots
Art Supplies
Gap's New Yoga brand
Close-out furniture, Home Décor,
Spa, beauty treatments
Midtown/Vanderbilt
Belmont Avenue
Belmont Avenue
12 South
12 South
12 South
West End Avenue
West End Avenue
Midtown/Vanderbilt
West End Avenue
Hillsboro/West End
Downtown, The Gulch
The Gulch
2nd Avenue Downtown
SoBro area near downtown
National chain
Southeastern Regional
Meridien/Cool Springs
Nashville, Franklin
Nashville
Nashville
Nashville
Nashville
Nashville
Nashville
Nashville
Nashville
Nashville
Nashville
Nashville
Nashville
Nashville, + 6 TN towns
Nashville + OH, VA, MD
National
Nashville, Columbia, Chattanooga
Franklin
Source: The Eisen Group/TEG Economics
TEG notes that most of the regional and national chain-affiliated retailers are located outside the traditional core of downtown Clarksville (though there are a
number of national chains along the waterfront area), most of the best locally owned retail businesses are already located downtown. TEG suggests that the
optimal retail mix for downtown Clarksville should focus on strong local and regional specialty retailers, food and beverage operators and selected consumer
service businesses that will activate pedestrian activity and attract repeat customer visitation downtown. More affordable space, a pedestrian-friendly
environment and a coordinated approach to business recruitment should all be part of TRC’s ongoing downtown management and recruitment strategy. As local
business start-ups are created in Clarksville and other businesses look to relocate and/or expand, the TRC Director should track prospects and seek to attract
them downtown.
62
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
I.
Implementation Recommendations
Implementation Recommendations -Implementing a Downtown/Riverfront revitalization for Clarksville will require a number of decisions, policy steps, commitments, financial incentives and
partnerships between local government and key property owners and institutions if the process is to succeed. The keys to successful implementation will
depend on changes in current market forces which with the exception of the growth potential associated with APSU students will both need to be
induced, and incentivized, as current economics do not support new construction. As a matter of both policy and practice, redevelopment in downtown
Clarksville should prioritize utilization of vacant space/rehabilitation of existing space first, with new construction as an alternative.
Downtown as the Priority District -- Franklin Street and Public Square comprise the symbolic heart of downtown, and should be the priority for recruitment
of new retailers; although Riverside Drive presents a far greater concentration of retail today, the traditional downtown offers a more sustainable and
differentiated shopper experience than does the auto-oriented riverfront area. The connections between the traditional downtown and the Cumberland
Riverfront should incorporate the links between outdoor recreation (boating, walking, biking, etc.) along the river and into Liberty Park’s facilities with the
advantages provided by living in a walkable environment. While current connectivity along the river is very good, the connections up the hill to downtown
Clarksville should be strengthened, both visually and physically. This may be considered in the Master Planning processes in which the University of
Tennessee students analyze Clarksville now and in the future, through a limited design competition for a ‘civic’ connection that will make a more literal
connection across the 90-100 foot difference in elevation between McGregor Park River Walk and Public Square. This grade separation and the
differences in both physical layout/consumer behaviors (which are by nature more auto oriented along Riverside than along Franklin Street) will be a
challenge for Two Rives Company to overcome. The logic of joining interests along the Cumberland with those of the traditional downtown is clear, but in
TEG’s view, it will be difficult to treat both areas equally in level of effort for TRC staff – they are simply different types of commercial districts that are
adjacent, but separated by a significant grade. This difference has been highlighted by the recent discussions about the optimal location for the
Downtown Market. Determining how to best combine/differentiate and market the two areas is a unique concern for a downtown organization, in our
experience, and should be incorporated into the downtown management program over time.
Planning and Redevelopment Opportunities -- Over the longer term, potential future relocation of one or both of the auto dealerships on College Street
would open large tracts of urban land for higher density redevelopment, and should be incorporated into long-term downtown redevelopment planning
by the City and Two Rivers Company. It is also possible that one or both dealerships may choose to remain downtown – both provide significant sales tax
revenues and property taxes, but as land uses, they do not encourage better connectivity between the APSU campus and the traditional downtown area.
That is the reason that either/both should be included in long-range downtown planning, but should not be considered as imminent. Similarly, the
extensive properties owned by the First Baptist Church are long-range future redevelopment opportunities. TEG suggests that the Church’s use of many
of these blocks as surface parking on Sundays and Wednesday evenings is not the best-and-highest use, and that parking could be considered in other
formats (such as a garage) to make land available for redevelopment. In particular, it is suggested that one or more lots be considered for church
affiliated retirement housing (both for independent living and continuing care options) to serve the large FBC congregation. Richland Place in the
Hillsboro West neighborhood of Nashville is a possible model, but designed for a more urban environment. While the greater immediate opportunity for
63
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Downtown Strategy and Implementation Recommendations
downtown housing will be student oriented, attracting a group of Baptist empty-nesters and retirees who are already strongly participating in First
Baptists Church activities could be an additional benefit to both downtown Clarksville and to the Church’s congregation. Similar to the auto dealership
blocks, this is a longer term potential and will require ongoing discussions with FBC about its priorities for the current parking lot blocks.
In TEG’s view, Two Rivers Company is both the most logical and the most appropriate entity to assume responsibilities for coordinating redevelopment
of Downtown Clarksville and the Cumberland Riverfront. The Clarksville community has already created successful civic projects along the river with
the McGregor River Walk and the new recreation and entertainment facilities at Liberty Park. The water-oriented recreational project in Columbus GA
is one level of intensity of water-based recreation, but the new marina facilities at Liberty Park can provide both visual interest and outdoor
opportunities for further enhancement of the Cumberland Riverfront over time. Longer term redevelopment of Riverside Drive as an urban boulevard,
with improved pedestrian enhancements, new landscaping and lighting and modifications of the extensive curb-cut strip development will require
both new design standards as well as new development guidelines (and possible re-zoning ) as part of a series of actions involving numerous property
owners, TNDOT and the City of Clarksville. The resulting enhanced visual character and development opportunities would reinforce the significant
improvements already made to the riverfront. Another longer-term consideration would be determining new land uses for the City-owned ‘Elevated
Slab‘ site at the junction of the Red and Cumberland Rivers (depending on whether future use should be commercial or public/recreational). The Two
Rivers Mall is reportedly almost half vacant, and (while in-part located in the designated Flood Plain) may also present an opportunity for longer term
redevelopment. As a retailing model, its current condition suggests that the amount of ‘downtown’ land it contains may benefit from a more ‘urban’
vision of its potential such as the mixed-use redevelopment forms included in the River District Plan. The current format is now considered outmoded
in the retailing industry, and the existing vacancy rate indicates the response of the marketplace to its need for redevelopment. Other sites along
Riverside Drive are already in the process of redevelopment planning, as envisioned by the River District Plan’s objectives and priorities.
Downtown as Priority District -- Accepting the regional value of the Cumberland Riverfront as a given, TEG recommends that initial predevelopment
priorities should be focused on the traditional downtown area on and around Franklin Street, Public Square and across the uptown street network. Both
from the standpoint of improving the existing business mix and protecting public investment in infrastructure, downtown should be viewed as the
highest priority as a matter of public policy and use of public incentives. Today there are numerous surface parking lots, vacant properties and
underutilized sites that are either in public or institutional ownership. City-owned assets that could be leveraged include the City parking lot north of City
Hall, the Transit Center site and the property on which the Roxy and the adjacent parking lots occupy, as well as the old City Hall and other City-occupied
structures on the west side of Public Square. Downtown development most often occurs incrementally, but the City’s future decisions about how to
leverage public benefit from publicly owned land and to restore downtown properties to the tax rolls should be weighed and debated, in a discussion
coordinated between many stakeholders and property owners downtown. This will function best if the Two Rivers Company is an independent voice and
advocate for downtown Clarksville, but supported by both the City and Montgomery County, financially and through coordinated development policies.
The downtown management models in most of the Benchmark Cities described earlier demonstrate the benefits of this type of public/private partnership
if projects are jointly funded, planned, developed and implemented, and incorporating public policy and funding incentives to encourage private
investment and cover ‘financial gaps’ in project costs. Current market conditions, real estate economics and the growing competitive context in
Clarksville should be considered in allocating public resources. The value of the existing infrastructure downtown and along the River is not being fully
optimized by continued outward growth toward Interstate 24 and suburban planning patterns; a more balanced approach will make downtown a higher
priority for redevelopment. Experience in other cities has shown that successful outcomes are best achieved through cooperative efforts guided by a
consistent vision and with implementation shared between the public and private sectors, but downtown needs to be a stated priority to succeed.
64
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Downtown Implementation Funding Recommendations
In Clarksville, implementation of the Downtown and Riverfront Redevelopment Strategy will best be achieved if managed according to local priorities and
market conditions, by cooperative efforts led by a consistent vision, and by prioritizing investment of public resources to attract and support private
investment. A list of recommended implementation steps, financing approaches and actions are included in this section; they are not arranged in a
particular order of priority, although the implementation recommendations arrayed on the table on the following page are considered over three periods
of time: short-term (1-18 months), mid-term (19-35 months) and long-term (three years and beyond). Some actions are more appropriate later in the
process, after some initial successes have been achieved, or when currently unknown factors have become resolved (such as relocation issues for the
Transit Center). As sh0wn on the implementation chart, the most important priority for the near term will be to confirm adequate funding and complete
the hiring process of the Clarksville Downtown Manager sustained through a commitment of City funds. The commitment of funding for a minimum of
three years is a critical decision, but examples in which Downtown Management program staff are responsible for both funding their jobs and doing their
jobs are rarely successful, and TRC should consider several funding options for an annual budget of approximately $120,000 in the near term (including
salaries and benefits) , growing over time to a budget goal of about $150,000 per year.
Suggested future funding/management/operating options for Downtown Clarksville include the following:
Expanded Direct Public Funding – Two Rivers Company is currently allocated an annual allotment of approximately $75,000 per year by the City of
Clarksville. This commitment is an important one, as it is the core source of stable funding for encouragement of private investment downtown and along
the riverfront; as the basis for Clarksville’s ongoing management initiatives to coordinate activities between the City, property owners and downtown
merchants; and can focus a broad range of initiatives to remove blight, increase density and connect the riverfront and downtown to APSU by
redeveloping underutilized blocks between them. TEG strongly encourages the City to continue this annual allocation, and to encourage supplementary
additional funding from other public and private sources.
Establishment of a Business Improvement District (BID) – BID’s are funded by a designated area agreeing to ‘self tax’ an amount for a pre-determined
period of time (often for renewal periods every five years), with the increment of additional property tax returned to that district as the budget for
management services. In some cities, this budget is used to pay for management staff who organize downtown promotions and events, who market
downtown as an investment area, and who can recruit retailers, encourage office retention and development, and showcase the options and benefits of
downtown housing . While often used to fund downtown management programs and organizations, TEG is concerned that the existing density of office
space in downtown Clarksville will not generate enough property tax increment to adequately fund staffing and programs. The retail sector alone may
contribute, but the 900,000 + square feet of retail space in the downtown Clarksville study area would have to carry most of the tax increase burden,
since a large portion of downtown offices are governmental/institutional and not subject to property taxes. Tennessee’s CBID enabling legislation (which
was used to form Two Rivers Company) would allow for use of the BID structure for the staffing costs, but would require a referendum by property
owners to approve the ‘ self-tax’, and would be authorized for a specified amount of time before being subject to a vote of renewal to continue the
assessment.
Consider Tax Increment Finance (TIF)for Catalyst Projects, Other Initiatives – Tennessee cities and towns have successfully used Tax Increment Financing
(TIF) to leverage private investment. Changes in Public Chapter 605 in 2012 corrected inconsistencies in Tennessee’s TIF laws to broaden the use of TIF’s
for economic development. The Act provides that use of TIF increments for privately owned land (other than for a parking lot, facility or garage) requires
65
MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Downtown Implementation Funding Recommendations
state pre-approvals and a uniform type of central annual reporting to the State’s Comptroller. Use of TIF requires coordination between local
governmental jurisdictions and local school systems, as the allocation of property tax revenues collected are changed if future increments are dedicated
to public infrastructure or other incentives to encourage significant investment. Tennessee views TIF as a major tool to encourage private investment and
Economic development, and the 2012 Act established more uniform standards for reporting, calculation of future incremental revenues and how the
increments can be used. Both the City of Clarksville and Montgomery County are positioned to expand use of TIF programs to encourage new projects
and new investment. TEG strongly encourages TRC and its partners and stakeholders to review the potential sources of funds resulting from TIF projects
and to lead the efforts to secure TIF funding to leverage project investments in the downtown area. A possible TIF district boundary that coincides with
with the existing CBID district boundaries is a logical and appropriate area to consider.
Property Tax Abatement – Property tax abatement is another tool that can be used by local government to encourage private investment, and should be
considered as a complementary tool to be combined with other financial and policy incentives in Clarksville. Because the decision to abate (reduce or
delay) property taxes in exchange for private investment means a reduction in public revenues, its use as a funding tool should be carefully coordinated
with stakeholders and others affected by the abatement. In TEG’s experience, property tax abatement is best used in combination with other financing
mechanisms to encourage property owners to invest in their projects, as the property tax component is not always sufficient to incentivize larger
projects. Abatement should be considered one of several funding incentives in a more comprehensive approach, should leverage more than the net loss
of property tax revenues and should have a clear time limitation for use, so that property tax levels can grow back to pre-abatement levels over time. TEG
notes that abatement programs work counter to TIF incentives, as frozen or abated property tax rates would prevent collection of a future increment.
Contract with the City of Clarksville for Downtown Development Services -- Some City governments have funded their Downtown Management programs
by contracting with the management staff to operate city facilities such as parking garages, allocating a portion of parking revenues through the contract.
Since parking garages are already operated by the City of Clarksville, it may be possible to explore this approach as a sustainable revenue stream that
could be dedicated to funding a management position. The issue with this approach in some cities has been political, as the City-controlled parking
revenues (and the management contracts supported by them) can be subject to election politics. In one case in Portland OR, the downtown BID was
almost fully funded (at over $5M per year) by Parking Garage Management fees from the City’s downtown garages, but when the former BID director and
Portland’s mayor had a political conflict, the City-authorized contract was not renewed, and the BID went out of business. This suggests that a possible
contract for services could become a source of revenues for a future BID, it would be best to establish and maintain a mix of revenue sources so that the
BID does not become totally dependent upon a public contract to continue operations.
Create a Small Business Program to Assist Retailers – The presence of APSU’s educational faculty and facilities downtown and the desire to bring in new
businesses could be combined into a series of approaches at small business development. APSU students have helped to expand the programs of the
Arts Walk in downtown Clarksville, and they comprise an important part of the potential consumer market. TEG suggests that, as the Downtown
Manager/TRC Executive Director becomes established, opportunities for small business development such as a pop-up seasonal business program for
start-ups that want a temporary location (perhaps in a vacant storefront), as a festival retailer (for the farmer’s market or other events), or possibly a
small business incubator that could provide technical assistance, coordinated services from local economic development departments and APSU, help
with business planning and financing (coordinated with local banks) or other assistance.
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MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Clarksville Recommended Implementation Schedule
Downtown/Waterfront Redevelopment Strategy: Implementation Recommendations
Month 1
Short Term (1-18 months)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Adopt, update study recommendations & UT Urban Design Study as TRC Programs
Refine process for management decisions by TRC with City, County
Confirm annual budget at $120,000 total to stabilize TRC Director/program funding
Coordinate with Catalyst Project site owners to determine timing, next steps
Re-activate CRIF and locate administration/management within TRC
Meet periodically with local banks to increase CRIF Loan Fund level to $1M goal
Continue to monitor, update inventory data to market potential redev. locations
Supplement/expand downtown merchants' marketing and events programs
TRC to formalize terms, conditions, requirements for retail relocation incentives
Prepare retail recruitment marketing materials for available spaces/incentives
Schedule and initiate quarterly retail recruitment visits to out-of-town markets
Meet with APSU to discuss/coordinate future downtown 'partnership projects'
Meet with auto dealership owners about long-term redevelopment potentials
Meet with downtown church representatives to explore redevelopment options
Establish coordination with Transit Authority on Transit Center relocation
Organize downtown housing tour to showcase projects like above Bink's
Use minium building upgrades (feature lighting, painting) to show art in vacancies
Involve TRC in redevelopment feasibility plan for Roxy Regional Theater
Coordinate annual EDC visits with one or more Benchmark/Example Cities
Incorporate signs and storefronts into TRC Design Guidelines Re-Write
Periodically review zoning in study area to encourage multi-family infill projects
2
3
4
5
6
7
8
(Subject to change, modification or expansion as determined necessary by TRC)
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 & beyond
Year 1
Year 2
Year 3/beyond
→
→
→
→
→
→
→
→
→
→
→
→
→
→
→
→
→
→
→
→
Mid-Term (18-36 months)
22
23
24
25
26
27
28
29
30
31
32
33
34
Implement one or more loans from fully funded CRIF
Update catalyst site list, adding others as appropriate for analysis/incentives
Continue coordination with Transit Authority on relocation of Transit Center
Work with Riverview Inn and APSU to implement conf center, hotel expansion
Continue DT retail recruitment efforts
Schedule and complete another Benchmark City visit
Determine potentials for Senior Baptist housing on First Baptist parking site(s)
Revisit Riverside Drive conversion to an 'urban boulevard'
Re-energize Roxy Theater redevelopment campaign as a catalyst site
Initiate long-term planning for auto dealership redevelopment w/owners, APSU
Re-visit Clarksville 2030 Master Plan for longer range goals and projects
Develop and implement new marketing campaign for downtown Clarksville
Work to develop and implement enhanced visitor strategy for DT Clarksville
→
→
→
→
→
→
→
→
→
→
→
→
→
Long-Term ( 36 + months)
35
36
37
38
39
40
Continue DT retail recruitment efforts
Implement redevelopment of Transit Center (when funded)
Implement redevelopment of Roxy Regional Theater (when funded)
Continue study visits to Benchmark Cities
Encourage long-term infill development of DT housing, selected retail sites
Continue Downtown-focused events: ArtWalk, Music Series, Rivers & Spires, etc.
→
→
→
→
→
→
Source: The Eisen Group/TEG Economics
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MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Downtown Strategy and Implementation Recommendations
The Two Rivers Company is currently working with the City of Clarksville to determine the best way to provide stable funding for the Downtown
Manager’s position. The initial approach may be for the Downtown Manager to work through City Government as a full-time employee, receiving a salary
and benefits through City funding. This approach has been taken by many cities in Tennessee and other locations as the basis for establishing a
downtown management program, and can provide ease of coordination between City Departments that share responsibilities for downtown
infrastructure, maintenance, planning/development/redevelopment, code enforcement and economic development. This is a major step for downtown
Clarksville, and the City can make this possible in committing funding for the start up years.
Over the longer term, however, direct City employment is not the only proven mechanism to fund a downtown management program. As the TRC
Downtown Clarksville program becomes established and evolves over time, it may also be useful to consider future opportunities to broaden the
potential sources of funding to cover operating costs for downtown management, to create incentive funding to encourage (or accelerate the pace of )
new downtown projects, and to leverage private investments. The City’s willingness to consider committing funds for downtown management programs
is to be applauded; the potential future approaches to build on this base are provided as context for future structures for downtown programs that would
not be totally dependent on City of Clarksville funds. Other alternatives include:
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MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Downtown Strategy and Implementation Recommendations
Revise the Existing Downtown Development Revolving Fund – Clarksville has already established a downtown development revolving fund knows as the
CRIF (Community Reinvestment Investment Fund) and has a current balance of approximately $65,000 available for local loans to stimulate investment.
Although the fund was created in 1998-1999, TEG understands that the administrative board created for CRIF has not met in some time, and the fund is
generally inactive currently. The opportunity created by establishment of such as fund can be significantly effective, if adequately funded, marketed to
potential investors and administered to maximize leverage for approved projects. This approach has been taken by Providence RI as a means to sustain
funding for both downtown management and leveraging private investment in historic downtown properties. The state-wide Rhode Island Foundation
(legally structured as a state-wide “community foundation”) agreed to pool funds from its multiple component foundations to create the $6.5M
commercial revolving fund (the DownCity Fund) to encourage private investment in the urban core. The fund is intended to be used for loans (and on a
selective basis for grants) that will attract and leverage private funding for building renovation, retail and office development, lodging or other
commercial and mixed uses. It should be noted that the scale of the Providence fund is in the $millions of dollars. While Providence is considerably larger
than Clarksville, the current level of CRIF funding is inadequate to leverage the amount of downtown/riverfront investment needed to accelerate
renovation and redevelopment/infill projects downtown in a meaningful way. TEG recommends that a more appropriate CRIF amount would be a million
dollars; this level of potential incentive-based loans (and selective grants) is large enough to potentially stimulate major capital investments in privatesector downtown projects. The Providence Fund is also used as a vehicle to pay for administrative time for revolving fund staff, and if adequately funded,
could provide a similar source of revenue for operations and the continuous funding of a TRC Executive Director. The enabling legislation that created
CRIF should be restructured, more funding added and marketed as a stronger incentive for redevelopment.
The two relevant components of this model are that a part of the fund is allocated to management costs for the Revolving Fund (a structure that could
be used for Clarksville if foundation support is available) and that charitable funds are put ‘at risk’ (though the project risk is tightly managed and minimal)
with the expectation that the spread between conventional financing costs and the normal expected return on charitable investments can be passed
along through lower costs of capital and initial investment. The management entity receives administrative fees for review of projects, provides
assistance in structuring the use of Revolving Fund loans and grants as part of larger financing packages, and monitors project designs to assure
compliance with (and to allow inclusion of combinations with federal historic tax credits, low income housing credits or other public incentives.
Effectively the DownCity fund represents a commitment of investment funds owned by foundations to be leveraged as gap financing and incentive
funding to lower overall project development costs; the review criteria are carefully managed and, but doing so, make the projects eligible for different
types of subsidy, tax credits or other benefits. The fund can also tap into Community Reinvestment Loans from local banks as a hedge against perceived
‘redlining’ of redevelopment areas.
Downtown Development Director and staff as City Employees -- Under this approach the Downtown Development Director would be hired as an
employee of the City of Clarksville, and located within the Economic Development program. This could be positioned within the office of the Mayor, as an
expansion of the Industrial Development Board’s economic development programs, or through creation of a cross-department effort. As noted in the
case study of Greenville SC, the downtown manager is a full-time City employee, but her work also involves a dedicated portion of time from the Director
of Economic Development (who functions as an assistant City Manager) as well as from other economic development staff. TRC’s role in downtown and
riverfront redevelopment is both a proper and a needed investment by the City, but maintaining a degree of both objectivity and separation from outward
political forces will also be a critical component. The ability to take a longer view beyond election cycles and public budgeting is equally
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MARKET ANALYSIS FOR CLARKSVILLE DOWNTOWN & RIVERFRONT DISTRICT
Downtown Strategy and Implementation Recommendations
important. While the economic downturn of 2008 through 2012 has hit the retail segment of real estate particularly hard, and downtown properties in
Clarksville may not see the momentum that suburban retail growth has witnessed in the community, TEG suggests that it would be a mistake not to fully
stabilize funding for and hiring an Executive Director for Two Rivers Company. The most successful downtown areas have consistently benefitted from a
focused downtown management entity to serve as advocate, promoter, design and development coordinator and central contact for potential investors
and property owner interests. While some may consider it late in the process to initiate this process for Downtown Clarksville, it should be remembered
that doing nothing is more likely to return little or nothing, and making the commitment to a management program (with selected incentives) is far more
likely to yield positive results. Retail development is complicated in downtown settings, and takes time to turn around. While the pace of redevelopment
of retail, housing and office may not be as rapid as some would hope, TEG’s market and redevelopment planning analysis has identified niche
opportunities that can enhance the tax base, draw carefully targeted investment and create new vitality downtown that can help to overcome longer
trends. Without an Executive Director, there will be no main focus for downtown’s redevelopment efforts; it is critical that this role be filled and carried
out over a number of years.
Public and private funding for Two Rivers Company Executive Director– Two Rivers Company currently receives financial support from the City of
Clarksville (approximately $75,000 per year). This is a substantial commitment by the public sector to foster downtown development, but in TEG’s
experience, may need a larger budget for a full-time staff to flourish. TRC’s initiative to hire a full time Downtown Manager/Executive Director is both
highly appropriate and necessary – downtown development is a more-than-full-time job that involves managing expectations and responsibilities,
coordination between multiple public and private partners. While the Two Rivers Company is a relatively new organization merging several different
interest advocates (Riverfront Development, Downtown Development, Downtown Merchants and Businesses), it may also be possible as the program
evolves that TRC could seek private, corporate or other charitable funding to supplement the City’s commitment as experience in other cities indicates
that it typically takes at least three years for a new Executive Director and organization to be able to generate significant, measurable results. The
changing circumstances that have made downtown Clarksville only one of the commercial/retail centers in the area did not occur over a one or two year
period; they have happened (paralleling national patterns) over the past twenty-five years, and reflect suburbanization in general and the specific aspects
of commercial development on arterials connecting to Interstate Highway corridors. In TEG’s view, it is both appropriate and necessary to focus on
redevelopment of downtown areas to protect the existing downtown tax base (which has helped subsidize that same suburbanization/outward growth) ,
as well as to sustain the value of the major investments in downtown infrastructure.
The choices about which of these approaches might evolve as alternatives to full-City funding will require careful consideration by TRC and its partners.
The most important element is the establishment of a Downtown Manager’s/Executive Director’s position; over time, possibly through a mixture of public
and private funding, TRC and its partners and stakeholders may be able to determine an alternative direction for the development, coordination and
implementation of public and private partnerships in downtown Clarksville. To provide adequate time to become established, to gain credibility in
participating in structuring these partnerships, and to manage expectations and relationships between merchants, property owners, consumers and local
government, a minimum of three years operating budget should be committed, while building other means of sustained funding to support the staff
costs over the longer run.
70