Baltimore Marriott Groundbreaking Stalled

BALTIMORE, MD— Urgo Hotels had hoped to break ground on the 176-room Marriott Residence Inn here before the end of the year but because opposition to the development and delayed loans the event will likely take place in January of next year, according to The Baltimore Sun. At presstime the development firm had both support from the city and opposition from preservationists and labor unions since the property was proposed five years ago. Last month the city approved a $3.2 million tax break called a PILOT, or payment in lieu of taxes, for the hotel. The development company initially requested no subsidy, but later retracted that intention after Sept. 11. The PILOT exempts the developer from local property taxes for 10 years, had initially been delayed because of city rules that require certain levels of investment and employment. In the end it was decided to reduce the limitations on the developer and provide the subsidy if, among other changes, it acquired the land at Light and Redwood streets and leased it to Urgo. However, officials at Local 7 of the Hotel Employees and Restaurant Employees Union said the city still would not be adhering to local and state investment and employment rules, and sued Oct. 10 in the Circuit Court for Baltimore City to stop the PILOT. At present, the city is seeking to have the suit dismissed. A hearing is expected next month. The latest delay in the project’s groundbreaking comes as a result of financing issues. Urgo is finalizing some details with lenders to ensure that it can finance the development of the new hotel. Along the way, the firm also had to overcome the objections of preservationists in knocking down historic buildings to construct this hotel. These groups stalled demolition with a late-night injunction, but Urgo ultimately prevailed. SOURCE: The Baltimore Sun