MEMPHIS, Tenn — On Tuesday, Memphis City Council voted 9-0 to buy the Sheraton Hotel for $22 million.
The city council passed the first of three votes on the proposal, which would keep the hotel from being sold at auction.
$30 million in bonds would be 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.
The Sheraton would then be given to a non-profit to operate the hotel for two years. After that, it would be returned to the city.
Mayor Young said it will be an important investment for the city and help its economic future.
"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.