Denver-based Swerdling and Associates is planning a 450-room Hyatt Regency Hotel fronting Broadway between Second and Third avenues, a location on which a Westin hotel previously was planned.
The developer is seeking tax increment financing provided by the Metropolitan Development and Housing Agency, contingent on Swerdling's local development group — IA Nashville Hotel LLC — closing on the purchase of the 1.5-acre SoBro tract, which includes, among other offerings, a Trail West retail location. Metro has said it willing to provide the incentives.
The $135 million project, the architect for which is Nashville-base ESa, will also include 25,000 square feet of meeting space and 350 on-site parking spaces, as well as retail and dining.
“The addition of this full-service Hyatt to our hotel inventory will allow us to aggressively pursue and secure additional convention events for the city," Butch Spyridon, president of the Nashville Convention and Visitors Bureau, said in a release. "It will be an important element for the long term success of the Music City Center and ignite ancillary development in and around lower Broadway."
Swerdling has developed a number of high-profile hotels — typically in conjunction with convention centers and airports.
Relatedly, Metro will provide Giarratana Nashville LLC tax incentives so that it can develop a Marriott, also in SoBro (read more here).
Mayor Karl Dean issued the following statement:
"With the Music City Center now open, there is a tremendous need for more hotel capacity, and private developers are interested in investing hundreds of millions of dollars into two separate full-service hotel projects in our city. Metro is willing to commit a modest amount of money in incentives — approximately $3 million to each project — contingent on them working out their private financing deals.
"In exchange for the assistance, they have committed to room-block arrangements to accommodate meetings at the Music City Center and to put in place a Diversity Business Enterprise program to ensure subcontractors during construction include minority-owned, women-owned and small businesses," Dean added. "No existing city revenue will be used. The incentives would be in the form of tax increment financing for [the] proposed Hyatt Regency on Lower Broadway and tax abatement for [the] proposed Marriott Hotel in SoBro. Both projects would generate significant employment and additional revenue for the city during construction and after completion of the hotels."
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