Little has changed at the Andrew Johnson Building since Knox County accepted developer BNA Associates' $6 million bid nearly a decade ago. Now, the county is considering a new ultimatum.
The plans for the historic Gay Street building have evolved over time, with promises of micro apartments and a music-themed "Hotel Americana" that never materialized. The most recent concept, shared with Knox News in 2024, featured amenities including a black box theater and rooftop bar.
It's one of those notorious development projects that after spending years in purgatory seem like they might never come to fruition. A Knox County agenda packet shows commissioners will have a say Aug. 31 on measures that would ensure it does.
If they pass the proposed resolution,
BNA's deadline to start construction will be Dec. 31, 2026.
Why have Andrew Johnson building plans been delayed so long?
In 2017, the county accepted BNA's bid and its plans to turn the Andrew Johnson building back into a hotel.
Then came the slowdown, initially on the county's part as it navigated moving county school administrative offices to the TVA East Tower. In early 2020, the TVA deal was approved by the commission and the county school board. At the end of that year, a new pandemic-era plan to build micro apartments and later convert them to hotel rooms was greenlit.
In 2022, those plans were nixed and the developers − who are also behind the Oliver Hotel on Market Square − began advertising plans for a live music destination called the Hotel Americana. In November 2024, Knox News was told the name was no longer attached to the plans but that the vision was largely the same. At the time, BNA was anticipating construction would start in the coming months and last a year and a half before the 143-room hotel would be completed.
The drop-dead construction start date comes after many extensions and much flexibility. Mark Mamantov, a lawyer representing Knox County, sent a letter in March 2024 to BNA co-founder Philip Welker, making clear that construction needed to start within 90 days to avoid a default. More than 90 days later, construction had yet to begin.
Chris Caldwell, chief financial officer and co-chief of staff for Knox County, told Knox News in November 2024 the county had mainly been seeking a finalized timeline to hold developers accountable − and that Welker's response was sufficient.
Mutual patience was also a factor. BNA gave the county grace during the initial slowdown, allowing employees to remain in the building five years after the bid was selected in 2017. In return, Caldwell said, the county wanted to be patient with BNA.
High construction costs and interest rates following the pandemic have worked against BNA, Caldwell added.
But that patience appears to be nearing its limits. If commissioners vote in favor of the resolution this month, developers will have until the end of the year to start working on the building. The lender would take back possession of the building if the deadline is not met.
The long, fascinating history of the Andrew Johnson Hotel
When the hotel opened in 1929, it was the tallest building in Knoxville.
In its heyday, the Andrew Johnson Hotel was a hot spot for live music happenings, from hosting WNOX's “Mid-Day Merry-Go-Round” to accommodating guests such as Duke Ellington, Sergei Rachmaninoff and Hank Williams. The latter supposedly stayed there in the hours leading up to his death.
In addition to its musical guests, the hotel once hosted historic figures like Amelia Earhart, Paul “Bear” Bryant and King Hussein of Jordan. It also employed the city's first female hotel clerk.
By 1979, plans were being made to convert it into office space. In 1992, the building became home to Knox County Schools.
Hayden Dunbar Evans is the storyteller reporter. Email: hayden.dunbar@knoxnews.com. Instagram: @knoxstoryteller.
Support strong local journalism by subscribing at subscribe.knoxnews.com.
This article originally appeared on Knoxville News Sentinel: Knox County plans ultimate deadline for Andrew Johnson hotel developer | Exclusive
