Updated: 10/21/2008 12:18:01 AM
A judge ruled Monday that a major downtown Knoxville development can move forward at the site of the former Tennessee Supreme Court building. Chancellor Daryl R. Fansler said plans for a new 200-room hotel at the old state supreme court building does not violate an ordinance prohibiting the city from building a convention center hotel. An ordinance passed on December 9, 2003, said the city could not provide public funds to build a new convention center hotel. On September 13, 2007, the city requested proposals for construction of a hotel on former Tennessee Supreme Court building site. The Franklin L. Haney company owns the Holiday Inn Select, currently the only hotel directly beside the Knoxville Convention Center. Long-time Holiday Inn Select employee Emanuel "Chico" Martin filed the law suit claiming the plans would violate rules barring the city from building a convention center hotel. Fansler ruled the project did not violate the ordinance because the facility includes more than a hotel and no public funds would be used. Fansler's ruling stated, "The court finds that no public funds or financial resources of the City of Knoxville will be used for the development." The plans call for condos, retail shops, office space, and a parking garage in addition to the 200 hotel rooms. The plans also include a pedestrian crosswalk across Henley Street to the convention center. Bill Lyons with the City of Knoxville said the judge's ruling was a positive step for the downtown area.
"We think it is a great addition to that section of Henley Street and that's going to directly benefit Knoxvillians in jobs, in sales tax and down the line in property tax as well," said Lyons.
The Franklin L. Haney company is currently attempting to sell the Holiday Inn Select.
