Brodie explains parking bonds for Wyndham

December 23, 1997

I MUST INFORM your readers that The Sun's Dec. 15 editorial, "$20 million question . . . Wyndham Hotel: City Hall offered subsidies Paterakis developers did not even ask for," is incorrect and misleading.

Having reviewed the record to test my recollection that, as I was quoted, the parking revenue bonds had "been there from the beginning," here are the facts:

From the developers' submission dated Dec. 12, 1996, responding to the Baltimore Development Corp.'s request for proposals: "We propose that the city issue $25 million in tax exempt parking revenue bonds to support the proposed development."

From the developers' submission dated June 17, 1997, responding to the conditions set forth by BDC in the exclusive negotiating agreement: "The City of Baltimore would issue $19,600,000 in tax-free parking revenue bonds to construct 100 percent of the garage . . ." [and] "City will issue 25-year tax-exempt bonds. Interest rate assumed to be approximately 5.5 percent."

So the July 18 development agreement, approved by the Board of Estimates, that cited ". . . not less than" $19.6 million in parking revenue bonds is completely consistent with the history of this element of the hotel financing.

As soon as the financial negotiations between the city and the developer are complete, the details of both proposed private and public financing will be made available.

Included in those negotiations is the funding method for the parking garage, an integral part of any major hotel development.

M. J. Brodie

Baltimore

The writer is BDC president.

Pub Date: 12/23/97

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