City of Memphis, Grand Hyatt developer reach deal for One Beale development
MEMPHIS, Tenn. (WMC) - The City of Memphis and developers for the Grand Hyatt reached a deal Thursday for the One Beale development in downtown Memphis.
The city shared the announcement saying the multi-million dollar deal to build the hotel “greatly limits the risk of financial loss and eliminates any impact on our bond rating and debt capacity.”
The city is set to make an advance lease payment of $10 million from the City Revenue Finance Corporation to facilitate the transaction.
The developers will receive a grant of up to $10 million from CCRFC to be repaid in 10 years.
The announcement further explains:
“It should be noted that City government will receive additional property taxes from this hotel during the term of the PILOT of $378,000 per year. After the PILOT expires property tax payments go up to $1,512,000 per year.”
The city says it will be asking for the City Council’s approval of the deal as soon as possible.
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