State, owners reach agreement on 'just compensation' for hotel that is eyeing the expansion of fairgrounds

JACKSON, Miss. (WLBT) – More than three years after talks began, the state could soon purchase the former Regency Hotel and Conference Center in downtown Jackson.

The hotel has been at the center of controversy for years, with the Jackson Municipal Court ordering its closure in 2022.

The state also requested a court order to have the property condemnedso it could be purchased to expand the Mississippi State Fairgrounds.

This month, Hinds County Judge Pieter Teeuwissen threw out a lawsuit between the Mississippi Department of Finance and Administration, Grandana LLC, Jain Ping Zhu and others after the parties agreed on “valuation and just compensation” for the property.

The case will go to trial on October 14, 15 and 16. The jury instructions had already been submitted to the Mississippi Electronic Courts database.

The hotel is located on Greymont Street, opposite the exhibition grounds. According to the complaint filed in 2022, DFA said the state sought the hotel and its six-acre parcel for the “expansion, safety and security of the Mississippi Fair Grounds.”

The state had already purchased the old Dennery’s restaurant as well as the nearby Oyo Hotel, both of which have since been demolished.

The lawsuit was filed after DFA, Zhu and Grandana were unable to reach an agreement on the price.

Months after that lawsuit was filed, in October 2022, Jackson Municipal Court Judge Jeffrey Reynolds ruled ordered the regency to closeciting multiple violations of the Jackson City Code.

Among them, he said there was mold in the facility, and a major gas leak in the main kitchen posed a fire hazard. He wrote at the time that if a fire broke out, many of the guests would have “no clear path to safety due to multiple locked doors and no working emergency lights.”

Zhu was given 180 days to demolish the structure or comply with city code. The owner was also instructed to immediately stop bringing in new tenants.

It was not known how much the hotel would be purchased for. DFA officials and an attorney for Grandana were not available for comment.

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