MEMPHIS, Tenn. — Memphis could be getting another Hyatt hotel downtown and this one will be grander than all the others.
The $190-million hotel will be part of the ‘One Beale’ project overlooking the Mississippi River. However, the agreement requires city taxpayers to loan the developer $10 million.
A 350-room luxury Grand Hyatt hotel could soon be a new addition to the Bluff City’s skyline.
Mayor Jim Strickland is calling it a "win" for Memphis.
But another 20-story addition, what will be the city’s newest luxury hotel in decades, didn't come without some back and forth.
"They've come to a resolution where the city will instead provide a $10 million loan to the project,” said Paul Young, the president of the Downtown Memphis Commission.
That’s now allowing the project to move forward.
Originally the city was exploring using a backstop – a process that would have put Memphis on the hook for all of the project’s debt.
When Mayor Strickland refused to sign that, it was back to the drawing board.
Thursday, the two sides agreed to a $10 million loan to the Carlisle Corporation.
“It provides an opportunity for us to have a luxury hotel to complement the $200 million investment that the city made in the Renaissance Convention Center,” Young said.
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An investment that has many wondering – will this be the ticket that might bring the NBA All-Star Game to Memphis?
“It puts us into running for events like the All-Star game. When companies are looking to book events for conventions, they won't large luxury hotels where they can get large room blocks together,” Young commented.
Memphis Tourism's Kevin Kane said it's great for Memphis to aspire to that, but said the city may need even larger hotels to meet NBA standards.
"If you look at Memphis, there's a sacrament, there's a handful of cities, Sacramento, Oklahoma City, there's a number of cities that unfortunately do not qualify for the 1000s and 1000s of hotels that the NBA requires close to the facility," Kane said."I don't know if the Hyatt complex will push us over the top to get that.”
As for whether Memphis should be in the banking business, Young, who announced his candidacy for mayor Thursday, said yes.
"The return that it'll bring in terms of property tax revenue, even with the tax that they that they have, in terms of the jobs that it'll bring in terms of the spin-off, that'll come from it, it is a positive gain,” said the DMC president.
As well as having more than 750 rooms with three Hyatt branded hotels on the banks of the Mississippi River.
“That's going to be a real shot in the arm for our group and meeting business and tourism and hospitality,” said Kane.
Next, Mayor Strickland must sign the deal and the agreement goes to the Memphis City Council.
That $10 million loan is set to be repaid in 10 years.