City gives Angelos 3-month extension on Hyatt project Financing, other issues of proposed hotel unsettled


November 20, 1998|By Kevin L. McQuaid | Kevin L. McQuaid,SUN STAFF

The city's economic development agency yesterday gave Peter G. Angelos three more months to resolve outstanding issues concerning the development of a Grand Hyatt hotel on city land near the Baltimore Convention Center.

But in granting Angelos the time, the Baltimore Development Corp. said the $150 million Hyatt project must make "substantial progress" in lining up financing, studying traffic patterns around the proposed hotel and resolving other issues.

The board also hinted that the extension -- Angelos' third -- could be his last if the group decides sufficient progress hasn't been made.

"Things will depend on the progress," said Roger Lipitz, the BDC's chairman. "If we feel that substantial progress has not been made, it would put their exclusive negotiating rights for that site at risk. We can't go on indefinitely with relatively no progress."

In addition to financing, which has been arduous for hotel projects to obtain because of recent turmoil in capital markets, -- Angelos must submit to the BDC documents describing the 850-room hotel's management agreement with Hyatt Hotels Co.

Angelos and members of his team have made public statements dTC lately claiming that a management agreement with Hyatt has been reached. But Lipitz said the BDC has received nothing in writing.

Angelos' biggest hurdle could be in obtaining financing. Although he has said publicly that talks with several labor union pension funds on financing are continuing, an agreement to finance the project remains outstanding.

Tom Marudas, an Angelos spokesman, said Wednesday that "a formal detailed announcement will be forthcoming."

Pub Date: 11/20/98

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