The 300 apartment building downtown will be transformed into a boutique hotel called "Hotel Indigo."

But the people currently living there say they're being forced out because of it.

ViaNova Development, a Chattanooga-based development group recently bought the building for $6 million. The building next to The 300, which is used for commercial space, was also acquired for $2 million.

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Hayley Doss, who has lived at The 300 for the past three years, says she has heard hotel rumors for about two months now. She claims the new management has been tiptoeing around it until an email was sent out Thursday saying the rumors are true. Now, she and many others will have to move out.

“It's been a pure blessing to be able to stay here and save money and be right downtown,” says Doss.

Director of Operations at ViaNova, Heather Everette, says it’s not clear when construction will start or when tenants will have to be out.

“We have been in constant communication with all the tenants since day one making sure they understood the possibility of this happening. Yesterday we informed them as to what the building would be turned into but that we do not know at this time when they will need to leave. We promised to give them a 90 day notice and return their entire security deposit back to them in full once this happens.”

Doss says her lease isn't up until August.

“They're not going to renew any leases. Right now, we're month to month. They're saying that it could be three months, it could be six months, but they don't know and they're not letting us know. All that they're letting us know is what they can't do any more and what we owe,” says Doss.

Doss says those living just a few blocks away at the Clemons Lofts are going through the same thing.

“They have about three months right now to get out, so it's affecting a lot of us,” says Doss.

ViaNova turned the building into apartments two years ago, but sold the six-story building to a California developer called TMC Group last month. It will be a boutique hotel.

Between a new $60 parking fee, what she calls "unjust bills" and trying to find somewhere else to stay, Doss says it's been a headache.

“It's just like they make it up as they go and it's just not fair," Doss says. "I get that business is business but have a little compassion for your tenants that have been here and this has been our home and respect us.”

Channel 3 reached out to the city. Mayor Berke's Deputy Chief of Staff, Kerry Hayes, says they just learned about this plan Friday. He says since they don't own the building they can't intervene.