Knox County is turning up the heat on the developers behind the long-stalled Andrew Johnson building project, with officials demanding that work commence post-haste or risk a formal declaration of default. After over a year of inaction, since BNA Associates of Nashville took ownership with grand plans to transform the historic edifice into a luxury hotel, the developer finds itself in the county's crosshairs.
The patience of Knox County leaders is wearing thin, as evidenced by a letter, sent by G. Mark Mamantov, an attorney representing Knox County, and acquired by WATE. "The County has shown extraordinary patience in not declaring a default under the Development Agreement, but the County will be forced to do so if you do not promptly proceed with the project," the letter stated, laying out a 90-day ultimatum for the developers to present a workable schedule and break ground on the redevelopment. BNA Associates originally secured the deal back on Aug. 1, 2022, and were required to start construction within 60 days, which they have failed to do.
Further underscoring the county's frustration, Mamantov's letter to Philip Welker, co-founder of BNA Associates, pointed out that construction was initially supposed to commence on Sept. 30, 2022, as detailed in an article by WBIR. Following the acquisition, a modified agreement signed due to the pandemic's disruption of the travel industry required BNA to shift its focus from a boutique hotel to micro apartment units, which would eventually transition back to hotel rooms within five years.
The county has acknowledged the initial delays caused by COVID-19, supply chain issues, and high-interest rates, but with economic conditions returning to normalcy, there is expectation for projects like this to forge ahead. "The County understands and sympathizes that the pandemic, the related supply chain issues, and high-interest rates initially caused project delays, but markets have started to normalize, and other developers in our area are commencing work on similar construction projects," the county conveyed in the letter to BNA Associates, per Knox News. Should BNA fail to meet the 90-day deadline, the letter outlined the potential for the developer to be placed in default, and the property could revert to Knox County.
The Andrew Johnson building, a Knoxville landmark, continues to sit untouched, a mute testament to strained patience and unfulfilled promises. As the clock ticks down, the future of this historic site rests in the balance, hanging on the developers’ next move.
