CLARKSVILLE, Tenn. (WTVF) — After months of speculation about what major retailer might be coming to one of the last large undeveloped tracts along Ted Crozier Boulevard, local economic development officials have confirmed that Costco plans to open a store in Clarksville.
The wholesale retailer would become the anchor tenant of Freedom Farms, a proposed 220-acre mixed-use development expected to include additional retail and restaurant space.
Local leaders have spent years pursuing the retailer. "We've been after them for about three years," said Josh Ward, Vice President of the Clarksville Industrial Development Board.
Economic development officials say Costco's arrival would represent more than just a new shopping destination. "When we're trying to retain people here in our community, recent graduates, those are the things they look for. They ask — does your community have a Costco?" said Janet Wilson, Vice President of Urban Development for the Clarksville-Montgomery County Economic Development Council.
Incentive package still requires approval
Before Costco can move forward, Montgomery County officials must approve a proposed performance-based incentive agreement.
According to project documents, the incentive would be capped at $21.5 million over 10 years. However, the incentives would not be paid upfront.
Instead, payments would only be made after the store opens and generates the required local sales tax revenue. The incentive agreement would also require the collection of local sales taxes before any payments are made.
The proposal is tied to a project expected to include roughly $55.2 million in capital investment from Costco.
The Montgomery County Commission is expected to initially consider the incentive agreement later this week. A final vote is tentatively planned for August 10th.
Projected economic impact
Economic development officials estimate the project could create approximately 600 full-time jobs and an additional 201 indirect jobs.
Project documents estimate the store could generate about $250 million in annual sales, producing roughly $6.25 million in local sales tax revenue each year.
Officials say that revenue could provide significant funding for local governments and schools. Projections indicate approximately $4.57 million annually could flow to Clarksville-Montgomery County Schools, while about $1.65 million annually could go to the City of Clarksville.
Growth and traffic concerns
The announcement comes as many Clarksville and Montgomery County residents continue to express concerns about rapid population growth, increasing traffic congestion and the long-term cost of infrastructure improvements.
Ward acknowledged those concerns but argued that commercial development can help offset future tax burdens through increased sales tax collections.
When pressed by NewsChannel 5 about growth and traffic woes, Ward pointed to other fast-growing communities like Murfreesboro, saying increased commercial development can generate revenue that helps support local government budgets.
Officials also argue the project could alleviate some traffic concerns by creating a shopping destination closer to home.
According to project estimates, tens of thousands of shopping trips are currently made each year by Clarksville-area Costco customers traveling to the Nashville market. Supporters of the project say a local Costco could keep more of that spending in Montgomery County.
To address transportation concerns, development officials say the developer has agreed to extend Spring Creek Parkway directly to the Freedom Farms development. That was a project, originally, the City of Clarksville would have to pay for. They believe the connection could help distribute traffic and reduce pressure on the already busy Wilma Rudolph Boulevard corridor.
Looking ahead
If approved, construction is expected to begin in spring 2027, with the store anticipated to open in spring 2028.
For supporters, the project represents another milestone in Clarksville's continued growth. While officials acknowledge that growth brings challenges, they believe the long-term economic benefits could outweigh the costs.
"I think it's overall a good thing," Ward said. "It comes with a price, but I think the price is worth paying."
Chris Davis is your dedicated Montgomery County reporter. You can email him directly at Chris.Davis@NewsChannel5.com.
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