The Federal Deposit Insurance Corp. reopened bidding yesterday for the Radisson Plaza Lord Baltimore Hotel, saying none of the sealed bids submitted Tuesday was acceptable.
FDIC officials would not say why the bids were rejected, said William S. Roohan, a vice president of CB Commercial Inc., which is coordinating the sale. The agency had set minimum requirements of a $6.9 million bid with a non-refundable 5 percent deposit and financing of the balance by someone other than the FDIC.
One bidder said he thinks all of the bidders tried to "low-ball" federal regulators.
"If [regulators] got one over $6.9 million they would have taken it," said Larry Dirgo, a Texas-based adviser to Mount Vernon Properties of Baltimore, the only group to have acknowledged bidding. He wouldn't disclose how much Mount Vernon bid.
The new round of bidding will extend until July 29 at 5 p.m., and bids can be sent to CB Commercial's Baltimore office, Mr. Roohan said. Bids will be opened the next day, and the winning bidder will be notified July 31.
A public announcement will not be made until the deal closes, he said, which would happen within the following 30 days.
The FDIC hasn't lowered its requirements for bidding, he said: "Everything is the same except the dates."
Mr. Dirgo said the FDIC is likely to be disappointed. "What happens in the last part of the bidding is everyone who's not for real comes out of the woodwork." That may have convinced the government that a new bidder might offer more, he said, adding, "I think visions of sugarplums they have dancing through their heads are not going to be realized."
The Lord Baltimore, a 66-year-old downtown landmark with 440 rooms, has belonged to the government since January.
Developers who restored it in the mid-1980s defaulted on a loan from a New York savings and loan institution that has been taken over by the government.