MEMPHIS, Tenn. — It is full steam ahead to get the Sheraton Hotel back to its former glory in Downtown Memphis.
In the Oct. 16th meeting for the Center City Development Corporation at the Downtown Memphis Commission board members approved the formation of "250 North Main LLC."
The new organization would effectively hold onto the hotel for the City of Memphis for the next two years while engineering studies are conducted to see how much it would take to renovate the structure.
During the meeting, CCDC officials admitted the Sheraton hotel was in need of severe rehabilitation, and its status was causing a downward spiral at the Renasant Convention Center across the street. According to the CCDC, it has gotten more difficult to book events there.
This comes after the Memphis City Council voted 9-0 to buy the Sheraton Hotel for $22 million, with $30 million in bonds being issued through an arm of the Downtown Memphis Commission. Mayor Paul Young is proposing to use non-property taxes, such as sales taxes and other fees, to pay back the bonds
"We think it's an important investment for our community because we just invested $200 million in the convention center, and without that convention center hotel, it makes our investment not as impactful as it can and should be," Young said.
While the hotel is under 250 North Main LLC, the city will conduct studies and develop the budget over the next 12 to 18 months.
“When the city is ready to move forward with renovations, they will transfer that back to whatever organization the city identifies as the proper party in order to renovate the hotel,” said Chandelle Ryan, DMC President & CEO
During this time the Sheraton hotel will remain open over the next couple of years.