Memphis residents and visitors may soon notice a slight increase in their hotel bills. The Memphis City Council has voted to raise the city's hotel-motel tax by a half percent to 4%, which is the maximum rate allowed by the state. According to Action News 5, this adjustment is aimed to secure the future presence of the Memphis Grizzlies by funding necessary renovations to FedExForum. The measure passed unanimously during the council's session yesterday.
As per The Commercial Appeal, the increased funding will to initially be used for deferred maintenance at FedExForum as well as design work for the full scope of renovations. According to Memphis Mayor Paul Young, as mentioned at a committee meeting earlier this year, the approach to carrying out the renovations in phases could not only reduce interest costs but also allow the arena to maintain operations during the NBA season while meeting the league's evolving standards.
The renovation project has a hefty price tag estimated at $550 million. A substantial part of this sum, $80 million, has already been directed to the Memphis Sports Authority following a city council vote last month. These funds are part of a larger $350 million allocation from the state earmarked for stadium projects in the Memphis area.
The decision by the council is not solely an investment in infrastructure, but also a commitment to the city's relationship with the Grizzlies, whose current lease is poised to conclude at the end of the 2028-29 NBA season. This step ensures that the necessary funding is in place to fulfill a long-term plan to keep the team in Memphis. As reported by the Daily Memphian, the tax increase contributes the final public funds needed for a renovation aimed at ensuring the Memphis Grizzlies remain in the city for the long term.
