MEMPHIS, Tenn. — Memphis Mayor Jim Strickland said Thursday the City of Memphis has reached an agreement for a new hotel at One Beale downtown.
In a news release Thursday morning, Strickland said the city came to an agreement with the Grand Hyatt developers to build the hotel. He said the deal “greatly limits” the risk of financial loss for Memphis, and gets rid of impacts to the city’s bond rating a debt capacity.
The mayor said the city will pay an advance of $10 million to the City Revenue Finance Corporation (CCRFC) to begin the process, and the developers will get a grant up to $10 million from CCRFC “to be repaid in 10 years.”
Mayor Strickland said Memphis will get additional property taxes from the hotel of $378,000 per year during the PILOT’s term. After the PILOT expires, he said property tax payments will go up to $1,512,000 per year.
The agreement will next go to the Memphis City Council.
“This is a win for the City of Memphis, and I look forward to the day when the Grand Hyatt transforms our skyline,” said the mayor.
