The Metro Council’s first official briefing on plans for a new downtown Omni hotel that would anchor the city’s new convention center is scheduled for next Thursday.
In a letter sent to council members, At-large Councilwoman Megan Barry and Councilman Rip Ryman have organized a joint committee meeting on Sept. 2 at 4 p.m. for council members to learn about details of a new $250 million, 800-room hotel that would be built south of the Country Music Hall of Fame between Fourth and Fifth avenues.
Barry is the newly appointed chair of the council’s Budget and Finance Committee, while Ryman chairs the council’s Convention, Tourism and Public Entertainment Facilities Committee.
The briefing will include a presentation delivered by Metro Finance Director Richard Riebeling and Omni representatives.
Calling the hotel a “championship win” for Music City Center, Mayor Karl Dean on Tuesday unveiled a public-private hotel plan in which Omni would initially take on $250 million in construction and other related costs.
In turn, under the proposal, Metro would direct tourism-related tax revenue generated by the hotel’s operation to Omni as an “economic development enhancement grant” valued at $103 million. Metro would pay the sum incrementally over 20 years. Because those revenue streams are by law reserved to first pay off debt for the new convention center, non-tax revenue would back up Metro’s financial obligation for the hotel.
To cover the company’s costs in purchasing the land, Omni would also collect $25 million generated through tax-increment financing.