City approves purchase price for Chattanoogan

CHATTANOOGA, Tenn. (WDEF) – The Chattanooga Downtown Redevelopment Corporation has approved a purchase price for the Chattanoogan Hotel and conference center.

It was the latest step after earlier approved the PFM Group to help. That’s a nationwide financial services company for government clients.

Chattanooga Redevelopment Corporation President Daisy Madison said, “So from April to now, we have come from bids, we have landed on a price that is thirty-two million dollars, which, fortunately is adequate to cover or defense the associated debt, uh, for the construction of the associated hotel.”

The hotel will now become part of the Schulte Hospitality group.

The Managing Director for PFM Group, Tom Morsch, stated, “They own 102, I believe other hotels throughout uh, 25 or 26 states around the country they’re based in Lexington, Kentucky, and uh Shulte Hospitality Group, they’re familiar with uh, convention center hotels and uh, I expect that they’re going to, they’re very excited about this sale, they’re very excited about, uh Chattanooga.”

The hotel was built in 2001 with money from a 129-million dollar bond issue, and has not performed as hoped. There’s still some 37-million dollars in bond debt.

“That will allow us to put this property back on the tax rolls, back into the private sector, and uh, we will be able to do, and save up to thirty million dollars in future debt service costs as a result,” said Daisy Madison.

Morsch expressed gratitude for the decision when saying, “Chattanooga is a great city. And what we were selling was really Chattanooga and the future of Chattanooga. So it is a destination that people want to be in, and the sale of this hotel just proves that out, um, I think we exceeded our expectations with respect to the sale, and we’re very pleased with the outcome.”

Final documents were drawn up by the board to complete the agreement.