Wayne Risher - The Commercial Appeal -

The proud new operator of the American Queen said Monday that the 418-foot sternwheeler will sail out of Beale Street Landing next April on its maiden voyage as a rechristened excursion ship.

Great American Steamboat Co. and Memphis officials announced that the steamboat company's affiliate, HMS Global Maritime, closed last week on a $15.5 million purchase from the Department of Transportation's Maritime Administration. The Maritime Administration wound up owning the ship as a previous owner's mortgage holder.

CEO Jeff Krida said the steamboat company would open an office next week in One Commerce Square and begin the process of creating 589 jobs and an estimated $89.5 million a year economic impact.

The ship, currently in Beaumont, Texas, will be moved to a dry dock in Morgan City, La., for about $5 million in repairs, mostly mechanical. It's been out of service since 2008.

Krida joined representatives of a local investment group, Pittco Management; Memphis Mayor A C Wharton; and Riverfront Development Corp. president Benny Lendermon at City Hall. The city is loaning $9 million in federal Housing and Urban Development funds to leverage private investment in the $31 million project.

"This is the kind of project that builds on our strengths as a river city, and at the same time helps us bring badly needed jobs to Memphis," Wharton said.

He said the steamboat company had agreed to a 35 percent minority participation goal in its contracts.

Lendermon said docking facilities at Beale Street Landing are expected to be completed by year's end, in plenty of time for the American Queen's startup next spring. A park component of the landing will be built next year.

City officials credited the Strong Cities, Strong Communities partnership with the federal government as instrumental in expediting the steamboat's sale to HMS Global Maritime.

The White House Domestic Policy Council chose Memphis as one of the communities to benefit from closer working relationships with federal agencies including the Department of Transportation.

Krida said about 20 percent of the American Queen's travels will be out of Memphis, with the remainder spread among ports of call in a 13-state service area.

An $89 a passenger boarding and docking fee will be collected wherever the boat goes, with the revenue going to repay the Memphis loan over 10 years. The docking fee will drop to $15 after the loan is paid off.

The boat will winter in New Orleans, Krida said, and move to northern locales such as Minnesota during the summers.

Krida said in addition to economic benefits as the boat's home port, the city will get a boost from the company's plan to include a pre-trip deluxe hotel room stay in each trip sold.

That's 7,000 to 10,000 hotel room nights per year, he said.

-- Wayne Risher: (901) 529-2874