MEMPHIS, Tenn — The Memphis city council chose to guarantee 100% funding to the developers of the One Beale Project but the city’s mayor is disagreeing.
“I’m not signing under the terms that they approved,” Mayor Jim Strickland said. “Can’t gamble with the public’s money like that.”
In its fourth phase, the project plans to build a $154 million addition to the already existing Grand Hyatt according to developers.
“If this deal, is given to this developer, there’s going to be two or three right after saying we want the same deal,” Strickland said.
Earlier this year, the council agreed to cover half of project debt in a reserve fund, but in a deal approved by city council this week, taxpayers could be paying more than $160 million if the project fails.
The Hyatt Centric hotel has already opened at One Beale and City COO Doug McGowen said it is doing well. The Hyatt Caption has opened in the same development.
The Hyatt Grand has an estimated completion date of early 2025.