Grand Hyatt project bonds get preliminary approval
A Downtown Memphis Commission board has given preliminary approval for the issuance of up to $95 million in economic development bonds to support the construction of the Grand Hyatt hotel.
The Center City Revenue Finance Corporation voted in favor Tuesday but will have to give final approval before the bonds could be issued. That could come as early as next week during a special-called meeting, DMC President Paul Young said.
Bonds would be paid off over time through $2.25 of the $2.75 local option sales taxes generated on sales within One Beale Surcharge District that the development is allowed to capture. Revenue would also be generated through the 5% surcharge assessment on sales within the One Beale Surcharge District, according to the development team.
A representative of the developer said the sales and surcharge tax revenues for the portions of the project that are open are exceeding projected revenues. The Memphis City Council has also voted to backstop the bonds for up to $3.5 million a year for the life of the bonds if the sales and surcharge revenues fall short.
The bonds would partially fund the $235 million luxury hotel, the third Hyatt-brand
hotel planned for the One Beale development.
The 364-key hotel will also feature about 36,000 square feet of meeting and event space, a full-service spa, an infinity-edge pool, a fitness center, a Hyatt Grand Club Lounge as well as dining options.
Developer Chance Carlisle plans to break ground on the hotel in the coming weeks with construction expected to take about 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 reached via email at Corinne.kennedy@commercialappeal.com