The projected cost of Nashville’s new Omni Hotel that will anchor Music City Center has risen to $273 million, but Metro’s financial obligation has not changed.
The original estimate for the 800-room hotel was $250 million.
At a joint committee meeting of the nine-member Convention Center Authority, Metro Finance Director Richard Riebeling updated members on final negotiations between the city and Omni that are still ongoing.
The authority already signed off on a preliminary project agreement five weeks ago, but will be asked to approve a final agreement Thursday, Oct. 7. The agreement would then be subject to Metro Council approval.
“We’re paying the same amount of money as we were before,” Riebeling said of Metro’s obligation. “It was an estimate of $250 [million], but now they’ve got a budget. It will continue to evolve. It may be $273 [million], it may be a little more, it may be a little less.”
Under the terms of public-private final deal, Metro would pay Omni $25 million in tax-increment financing in 2011, and another $103 million over 20 years from revenue generated by the hotel through tourist-targeted taxes. Omni would cover the rest of the costs.
Convention Center Authority attorney Charles Robert Bone said the scope of the project outlined in the final agreement is no different than the preliminary plan. The hotel would include 560 parking spaces, 60,000 square feet of meeting space, four restaurants and a spa and fitness center, among other amenities.