ORDINANCE NO. 5972 ORDINANCE FOR DESIGNATION OF QUALIFIED PUBLIC USE FACILITY, CREATION OF THE 33 BEALE STREET TOURISM DEVELOPMENT ZONE TOURISM SURCHARGE AND OTHERWISE PROVIDING WITH RESPECT TO THE FOREGOING WHEREAS, Beale Street is one of America's premier tourist destinations, a major employer in the Downtown Memphis community and a key economic driver of the City of Memphis; and WHEREAS, Memphis Center City Revenue Finance Corporation ("CCRFC") is the fee owner of certain real property located at 33 Beale Street and 245 South Front Street, Memphis, Tennessee 38.103 (tax parcels nos. 00209900002C and 00209900008) ("Hotel Site"); and WHEREAS, CCRFC has leased to 33 Beale Street Hotel Company, LLC, a Delaware limited liability company ("Hotel Owner"), the Hotel Site and the improvements thereon pursuant to that certain Amended and Restated Lease Agreement dated as of August 22, 2025 (as amended, the '"PILOT Lease"), under which Hotel Owner has the right to acquire the Hotel Site and the improvements thereon at any time; and WHEREAS, the Hotel Site includes a hotel with 363 rooms, meeting and event space, commercial space, including ancillary dining and retail space, and related amenities ("33 Beale Hotel"); and WHEREAS, Hotel Owner proposes to make capital investments totaling more than Seventy Six Million Dollars ($76,000,000) over the next thirty (30) years for the consolidation of the hotels located at 33 Beale Street and 245 South Front Street to create the 33 Beale Hotel and the redevelopment and long-term preservation of the 33 Beale Hotel (the "33 Beale Hotel Project); and WHEREAS, TCA §67-4-3002 authorizes the City of Memphis to designate certain projects as "Qualified Public Use Facilities", including without limitation full-service hotels with not less than two hundred fifty (250) rooms and related retail, commercial, and parking space that are located in a tourism development zone; and WHEREAS, TCA §67-4-3003 authorizes the City of Memphis to charge a 5% Tourism Surcharge on goods and services used by visitors at a qualified public use facility and other related facilities (the ''Tourism Surcharge"); and WHEREAS, the 33 Beale Hotel Project is located in the portion of Downtown and Tourism Development Financing Act of 1998, which is codified at TCA §7-88-101 et seq., (the “TDZ Act"); and WHEREAS, the City of Memphis administration finds that it is wise, necessary, and advisable to designate the 33 Beale Hotel Project as a “Qualified Public Use Facility" within the meaning of the TDZ Act as codified at TCA § 67-4-3002(7); and WHEREAS, the City of Memphis administration finds that it is wise, necessary, and advisable to seek authorization from this Council to impose the Tourism Surcharge within the 33 Beale Hotel Project; and WHEREAS, to enact the Tourism Surcharge within the 33 Beale Hotel Project, the City of Memphis administration has proposed the ordinance set forth below (the "Tourism Surcharge Ordinance"); and WHEREAS, the City administration desires that the Council (i) approve the Tourism Surcharge Ordinance, and (ii) otherwise provide with respect to the foregoing. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Memphis as follows: 1. Sec. -1. Designation as Qualified Public Use Facility The hotel at the address municipally known as 33 Beale Street and 245 South Front Street, Memphis, Tennessee, containing not Jess than not less than two hundred fifty (250) rooms, and related retail, commercial, and parking space (the "33 Beale QPUF"), is hereby designated as a qualified public use facility as described in T.C.A. title 67, chapter 4, part 30 (as amended from time to time, hereinafter in this chapter called the "Act"). Sec. -2. Creation of District There is created the 33 Beale Surcharge District (the "District") in accordance with the Act. Sec. -3. District Boundaries The District created by this chapter shall be comprised of the area located in the city within the following boundaries: Approximately 3.254 acres known as 33 Beale as shown on Plat of record in Plat Book 279, Page 14 in the Register's Office of Shelby County, Tennessee consisting of: (Phase II) Final Plat- PD 18-10, Phase Two, Hyatt Centric at One Beale as shown on Plat of record in Plat Book 281, Page 3 in the Register's Office of Shelby County, Tennessee (approximately 2.26 acres). Municipal Address: 33 Beale Street (0 Wagner Place) Tax Parcel ID: 002099 00002C (Phase III) Final Plat - PD 18-10, Phase Three, as shown on Plat of record in Plat Book 288, Page 24 in the Register's Office of Shelby County, Tennessee (approximately 0.654 acres) consisting of: Parcel 1. Hyatt 2 Parcel: BEING A SURVEY OF PART OF PARCEL I, PART OF PARCEL II AND PART OF PARCEL III OF THE FRONT STREET DEVCO, LLC PROPERTY AS RECORDED IN INSTRUMENT 16117584, ALSO BEING PART OF PHASE III OF THE PROPERTY SHOWN ON THE OUTLINE PLAN FOR THE ONE BEALE P.O. AMENDED AS RECORDED IN PLAT BOOK 279, PAGE 14, BOTH OF RECORD IN THE SHELBY COUNTY REGISTER'S OFFICE, BEING LOCATED IN MEMPHIS, SHELBY COUNTY, TENNESSEE AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE INTERSECTION OF THE WEST RIGHT-OF-WAY LINE OF SOUTH FRONT STREET (80.00 FOOT WIDE PUBLIC RIGHT-OF-WAY) WITH THE NORTH RIGHT-OF-WAY LINE OF DR. M.L. KING JR. AVENUE (60.00 FOOT WIDE PUBLIC RIGHT-OF-WAY); THENCE N56°56’0 1”W ALONG THE NORTH RIGHT-OF-WAY LINE OF SAID DR. M.L. KING JR. AVENUE A DISTANCE OF 108.00 FEET TO THE POINT OF BEGINNING (N 318717.16-E 755672.60); THENCE NS6°56'01"W AND CONTINUING ALONG THE NORTH RIGHT-OF-WAY LINE OF SAID DR. M.L. KING JR. AVENUE A DISTANCE OF 30.00 FEET TO A POINT; THENCE N33°03'59"E ALONG A LINE THAT IS 138.00 FEET WEST OF AND PARALLEL TO THE WEST RIGHT-OF-WAY LINE OF SAID SOUTH FRONT STREET A DISTANCE OF 38.00 FEET TO A POINT; THENCE N56°S6'01"W ALONG A LINE THAT IS 38.00 FEET NORTH OF AND PARALLEL TO THE NORTH RIGHT-OF-WAY LINE OF SAID DR. M.L. KING JR. AVENUE A DISTANCE OF 20.17 FEET TO A POINT; THENCE N33°03'59"E ALONG A LINE THAT IS 158.16 FEET WEST OF AND PARALLEL TO THE WEST RIGHT-OF-WAY LINE OF SAID SOUTH FRONT STREET A DISTANCE OF 13.83 FEET TO A POINT; THENCE N56°56'01"W ALONG A LINE THAT IS 51.83 FEET NORTH OF AND PARALLEL TO THE NORTH RIGHT-OF-WAY LINE OF SAID DR. M.L. KING JR. AVENUE A DISTANCE OF 41.83 FEET TO A POINT, SAID POINT LIES ON THE EAST RIGHT-OF-WAY LINE OF WAGNER PLACE (50.00 FOOT WIDE PUBLIC RIGHT-OF-WAY); THENCE N33°03'59"E ALONG THE EAST RIGHT-OF-WAY LINE OF SAID WAGNER PLACE (SAID EAST RIGHT-OF-WAY LINE BEING 200.00 FEET WEST OF AND PARALLEL TO THE WEST RIGHT-OF-WAY LINE OF SOUTH FRONT STREET) A DISTANCE OF 26.67 FEET TO A POINT; THENCE S56°56'01"E ALONG A LINE THAT IS 78.50 FEET NORTH OF AND PARALLEL TO THE NORTH RIGHT-OF-WAY LINE OF SAID DR M.L. KING JR. AVENUE A DISTANCE OF 54.00 FEET TO A POINT; THENCE N33°03'59"E ALONG A LINE THAT IS 146.00 FEET WEST OF AND PARALLEL TO THE WEST RIGHT-OF-WAY LINE OF SAID SOUTH FRONT STREET A DISTANCE OF 31.50 FEET TO A POINT; THENCE N56°56'01"W ALONG A LINE THAT IS 110.00 FEET NORTH OF AND PARALLEL TO THE NORTH RIGHT-OF-WAY LINE OF SAID DR. M.L. KING JR. AVENUE A DISTANCE OF 1.00 FOOT TO A POINT; THENCE N33°03'59"EALONG ALINE THAT IS 147.00 FEET WEST OF AND PARALLEL TO THE WEST RIGHT-OF-WA Y LINE OF SAID SOUTH FRONT STREET A DISTANCE OF 56.00 FEET TO A POINT; THENCE S56°56'0I"E ALONG A LINE THAT IS 166.00 FEET NORTH OF AND PARALLEL TO THE NORTH RIGHT-OF-WAY LINE OF SAID DR. M.L. KING JR. AVENUE A DISTANCE OF 147.00 FEET TO A POINT ON THE WEST RIGHT-OF-WAY LINE OF SAID SOUTH FRONT STREET; THENCE S33°03'59"W ALONG THE WEST RIGHT-OF-WAY LINE OF SAID SOUTH FRONT STREET A DISTANCE OF 105.00 FEET TO A POINT; THENCE N56°56'01"W ALONG A LINE THAT IS 61.00 FEET NORTH OF AND PARALLEL TO THE NORTH RIGHT-OF-WAY LINE OF SAID DR. M.L. KING JR. AVENUE A DISTANCE OF I 08.00 FEET TO A POINT; THENCE S33°03'59"W ALONG A LINE THAT IS 108.00 FEET WEST OF AND PARALLEL TO THE WEST RIGHT-OF-WAY LINE OF SAID SOUTH FRONT STREET A DISTANCE OF 61.00 FEET TO THE POINT OF BEGINNING AND CONTAINING 19,008 SQUARE FEET OR 0.436 ACRES. Out Parcel 1: BEING A SURVEY OF PART OF PHASE III OF THE PROPERTY SHOWN ON THE OUTLINE PLAN FOR THE ONE BEALE P.D. AMENDED AS RECORDED IN PLAT BOOK 279, PAGE 14, AT THE SHELBY COUNTY REGISTER'S OFFICE, BEING LOCATED IN MEMPHIS, SHELBY COUNTY, TENNESSEE AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE WEST RIGHT-OF-WAY LINE OF SOUTH FRONT STREET (80.00 FOOT WIDE PUBLIC RIGHT-OF-WAY) WITH THE NORTH RIGHT-OF-WAY LINE OF DR. M.L. KING JR. AVENUE (60.00 FOOT WIDE PUBLIC RIGHT-OF-WAY); THENCE N56°56'0l"W ALONG THE NORTH RIGHT-OF-WAY LINE OF SAID DR. M.L. KING JR. AVENUE A DISTANCE OF 108.00 FEET TO THE WESTERN MOST SOUTHEAST CORNER OF THE PROPERTY SHOWN ON THE FINAL PLAT FOR PHASE 3 OF THE ONE BEALE PD AS RECORDED IN PLAT BOOK 288, PAGE 24; THENCE N33°03 '59"E ALONG THE WESTERN MOST EAST LINE OF SAID PHASE 3 A DISTANCE OF 61.00 FEET TO A POINT ON A SOUTH LINE OF SAID PHASE 3; THENCE S56°56'01"E ALONG A SOUTH LINE OF SAID PHASE 3 A DISTANCE OF 108.00 FEET TO THE NORTHERN MOST SOUTHEAST CORNER OF SAID PHASE 3, SAID POINT LIES ON THE WEST RIGHT-OF-WAY LINE OF SA1D SOUTH FRONT STREET; THENCE S33°03'59"W ALONG THE WEST RIGHT-OF-WAY LINE OF SAID SOUTH FRONT STREET A DISTANCE OF 61.00 FEET TO THE TO THE POINT OF BEGINNING AND CONTAINING 6,588 SQUARE FEET OR 0.151 ACRES. Out Parcel 2: BEING A SURVEY OF PART OF PHASE III OF THE PROPERTY SHOWN ON THE OUTLINE PLAN FOR THE ONE BEALE P.D. AMENDED AS RECORDED IN PLAT BOOK 279, PAGE 14, AT THE SHELBY COUNTY REGISTER'S OFFICE, BEING LOCATED IN MEMPHIS, SHELBY COUNTY, TENNESSEE AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE INTERSECTION OF THE WEST RIGHT-OF-WA Y LINE OF SOUTH FRONT STREET (80.00 FOOT WIDE PUBLIC RIGHT-OF-WAY) WITH THE NORTH RIGHT-OF-WAY LINE OF DR. M.L. KING JR. AVENUE (60.00 FOOT WIDE PUBLIC RIGHT-OF-WAY); TifENCEN56°56'01"W ALONG THE NORTH RIGHT-OF-WAY LINE OF SAID DR. M.L. KING JR. AVENUE A DISTANCE OF 138.00FEETTO THE EASTERN MOST SOUTHWEST CORNER OF THE PROPERTY SHOWN ON THE FINAL PLAT FOR PHASE 3 OF THE ONE BEALE PD AS RECORDED IN PLAT BOOK 288, PAGE 24, SAID POINT BEING THE POINT OF BEGINNING; THENCE N56°56'0I "W AND CONTINUING ALONG THE NORTH RIGHT-OF-WAY LINE OF SAID DR. M.L. KING JR. AVENUE A DISTANCE OF 62.00 FEET TO A POINT ON THE EAST RIGHT-OF-WAY LINE OF WAGNER PLACE (50.00 FOOT WIDE PUBLIC RIGHT-OF-WAY); THENCE N33°03'59"E ALONG THE EAST RIGHT-OF-WAY LINE OF SAID WAGNER PLACE A DISTANCE OF 51.83 FEET TO THE NORTHERN MOST SOUTHWEST CORNER OF SAID PHASE 3 (PLAT BOOK 288, PAGE 24); THENCE ALONG THE SOUTHWESTERN PORTION OF SAID PHASE 3 THE FOLLOWING CALLS AND DISTANCES: S56°56'01"E- 41.83 FEET; S33"03'59"W - 26.67 FEET; S56°56'01"E-20.l 7 FEET; S33°03'59"W-38.00 FEET TO THE POINT OF BEGINNING AND CONTAINING 2,935 SQUARE FEET OR 0.067 ACRES. Municipal Address: 245 South Front Street, Memphis, Tennessee Tax Parcel ID: 002099 00008 Sec. -4 Surcharge Assessment The making of Sales (as such term defined in the Act) by engaging in any Business (as such term is defined in the Act), except for those businesses exempt under T.C.A. title 67, chapter 4, part 712, in the District is declared to be a privilege. All such Sales shall be subject to the surcharge assessment provided in this Chapter and the City hereby levies such surcharge on all Sales. Sec. -5 Surcharge Assessment Rate The surcharge levied by this section shall be equal to five percent (5%) of the Sales Price (as such term is defined in the Act). Sec. -6 Mandatory Registration, Filing of Returns, Payment of Surcharge and Licensing All persons carrying on Business (as such term is defined by the Act) in the District, and all person who may hereafter carry on Business in the District, shall register with the City Treasurer for the purpose of assessment and collection of the surcharge. All persons so registered shall file a return detailing Sales for the prior month and surcharge collected on account of such Sales on or before the twentieth (20th) day of each calendar month and shall remit all surcharge collected during such month, together with any delinquent payments of surcharge, with such return. Each person who files a return and remits the appropriate amount of surcharge shall be granted a license which such person shall display within their place of Business. The City Treasurer is hereby authorized and directed to develop the forms for registration and filing monthly returns, as well as rules and regulations regarding the filing of the same. Sec. -7 Delinquent Payments Any nonpayment or delinquent payment of any surcharge shall be subject to the rights and remedies described in Chapter 5-24 of the Memphis City Code. Sec. -8 Allocation and Use of Revenues All revenues received by the city as a result of the surcharge, except for the reasonable expenses of the City Treasurer incurred as a result of its administrative duties under this chapter which shall not exceed one percent (1%) of the revenues, shall be designated for, and allocated to the payment of, the cost of the 33 Beale Hotel QPUF, including, without limitation, all debt issued or incurred in the consolidation of the hotels located at 33 Beale Street and 245 South Front Streel to create the 33 Beale Hotel QPUF and the redevelopment and long-term preservation of the 33 Beale Hotel QPUF, including principal, interest and other fees and charges. Sec. -9 Remittance of Revenues On or before the fifteenth (15th) day of each month, the City Treasurer shall remit all revenues received during the prior month, less the aforedescribed administrative fee, to CCRFC or its assignee. CCRFC, or its assignee, is hereby directed to deposit such revenues in accordance with the Act and any agreements governing the payment or reimbursement of costs incurred, or debt issued or incurred to finance or refinance costs, in connection with the development of the 33 Beale Street Hotel QPUF. Sec. -10 Termination of Surcharge The surcharge shall continue until terminated pursuant to the terms of the Act. 2. All actions heretofore undertaken by the Mayor or his designee and other officials, employees, attorneys and agents of the City in furtherance of the intent of this resolution, and of the documents authorized by this resolution, are hereby ratified, confirmed and approved. 3. The Mayor or his designee and other appropriate officials of the City are hereby authorized to enter into such agreements, and they and other appropriate officials of the City are hereby authorized to execute such certificates or other documents and take such other actions, as may be necessary or appropriate to carry out the intent of this resolution. 4. This Ordinance shall take effect from and after its adoption, the welfare of the City of Memphis requiring it. Sponsor: June 5, 2026 Md114903 ... more |