It sounds great! Neither me nor my daughter had anything even remotely resembling a "sweet sixteen" party and I do remember a certain sadness and irony at the realization that being snowed in with no food in the house while my then-boyfriend, later exy #1 was caught in town by the storm was how I would forever after remember celebrating my sixteenth birthday.
My dd was living with her grandma when she turned 16 and I don't think they did anything special either.
We do remember these things in later life whether we want to or not. I'm so glad you're throwing this special party for your dd! I'd also like to add that if it is something you both enjoy and can do, she might like to dress up for the occaision; I always pictured a Sweet Sixteen party involving somewhat formal prom dress and tux type clothing, but I may be mistaken.
And of course food, lol; don't forget how much they eat. A very special birthday cake from a cake shop would be nice too.
I'm sure she'll love whatever you are able to manage. Be sure to take lots of pictures and don't forget to take some time for YOU to enjoy the party too.