Council splits over Frosty Morn project, affordable housing and reallocating capital debt

Councilman McLaughlin proposed and won an amendment to unfund and close the Frosty Morn capital project and to transfer the property to a land‑bank or trust to support privately built, affordable senior housing; the amendment passed 7‑5.

The proposal surfaced during debate on the fiscal 2025‑26 governmental funds budget (Ordinance 97). McLaughlin told the council the site is on a bus line and has access to local amenities, and he said transferring the property to Neighborhood and Community Services’ land‑banking process could spur affordable housing development. Michelle Austin, director of Neighborhood and Community Services, said the department supports acquiring land for affordable housing but that formal land‑bank or community land trust structures are still under study.

A competing amendment from Councilman Marquis sought instead to defund Frosty Morn and reallocate roughly $4 million to immediate public safety capital needs — a new fire engine and Station 3 — and to lower the tax rate by shifting debt. Marquis argued the shift would reduce the tax rate by approximately 1.5 cents and address urgent infrastructure and public safety needs; his substitute failed 5‑7.

Mayor and staff cautioned the council not to commit to building new police or fire facilities without a plan to staff them. The mayor noted that a proposed new Clarksville Police Department district building would require 24–27 additional officers in a later fiscal year — a roughly $3 million annual personnel cost — and warned the city’s limited debt capacity should be preserved for acute stormwater projects identified elsewhere in the budget discussions.

Why it matters: the vote reallocates city capital planning and retains the Frosty Morn site for possible affordable housing via a land bank rather than continuing the city capital project as previously budgeted. Council members debated tradeoffs between immediate public safety equipment/space and long‑term housing and neighborhood services, as well as the fiscal capacity to issue debt.

Actions and outcomes: The McLaughlin amendment to close Frosty Morn and transfer the property passed (7 yes, 5 no). A Marquis substitute that would have redistributed Frosty Morn funds to a fire engine, Station 3 and the Outlaw Field Public Safety Complex failed (5 yes, 7 no). Council members also discussed that approximately $4 million has already been spent on Frosty Morn for demolition, roofing and site work; the mayor estimated roughly $4 million already invested and a larger total project budget in future years.

Discussion vs decision: the council decided to stop future budgeted funding for Frosty Morn and move toward a land‑banking approach; the council did not approve construction, staffing, or debt issuance for a public safety complex at this meeting.

Forward look: Neighborhood and Community Services staff said they will evaluate land‑bank or community land trust options and coordinate with local partners on possible nonprofit development; council direction preserved debt capacity for other capital needs while leaving future staffing and construction decisions to later appropriations.