A Downtown Memphis Commission board has given preliminary approval for the issuance of up to $95 million in economic development bonds to support construction of the Grand Hyatt hotel.
The Center City Revenue Finance Corporation voted in favor on Tuesday but will need to give final approval before the bonds can be issued. It could happen as early as next week at a special meeting, DMC chairman Paul Young said.
The bonds would be repaid over time through $2.25 of the $2.75 local option sales tax generated on sales in the One Beale Surcharge district that the development is permitted to capture. According to the development team, revenue would also be generated by assessing the 5% sales surcharge in the One Beale Surcharge district.
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A representative of the developer said that sales tax and surtax revenues for the parts of the project that are open exceed projected revenues. The Memphis City Council also voted to guarantee the bonds for up to $3.5 million per year for the life of the bonds if there is insufficient revenue from sales and supplements.
The bonds would partially fund the $235 million luxury hotel, the third Hyatt-branded hotel planned for the One Beale development.
The 364-key hotel will also include approximately 36,000 square feet of meeting and event space, a full-service spa, infinity pool, fitness center, Hyatt Grand Club lounge, and guest options. of restoration.
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Developer Chance Carlisle plans to open the hotel in the coming weeks, with construction expected to take around two years. The Grand Hyatt is expected to open in the third quarter of 2024.
Corinne S Kennedy covers economic development for The Commercial Appeal. She can be contacted by email at [email protected]