Developers submit bids for city lots Angelos wants Hyatt, while his competitor would keep parking

November 08, 1997|By Gary Gately | Gary Gately,SUN STAFF

A team led by Orioles principal owner Peter G. Angelos proposed a $150 million, 850-room Grand Hyatt for city-owned lots across from the convention center, while a competing developer offered to purchase the lots for $11.2 million.

The four-acre parcel, for which the city accepted development proposals through yesterday's noon deadline, drew no other proposals.

New York developer Harvey Schulweis, teaming with Houston-based Allright Parking Corp., would make improvements such as landscaping but retain surface parking on the site.

Schulweis is attempting to revive a failed bid to build a subsidized Westin Hotel on the former Baltimore News American lot he controls. He has said he wants to buy the west-side site because it's a bad location for a hotel.

Angelos would be principal owner of the proposed Grand Hyatt, with an 80 percent stake and a $20 million initial cash investment. Hyatt Hotels Corp. would hold a 20 percent share and invest $5 million for construction. The development team seeks about $51 million in public subsidies, including $16 million in bonds to be repaid with revenues from an 800-car underground garage and $10 million for the land.

But the Grand Hyatt team is dropping a request for $25 million in tax-increment financing -- bonds issued with the expectation that property taxes generated would cover the debt -- and instead is seeking roughly equivalent tax abatements over the next 20 years.

Pub Date: 11/08/97

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