WASHINGTON, DC-The Gray administration has informed Donohue Development that the district is cutting its ties with the firm in connection with the development of a hotel on city-owned property in the Mount Vernon Triangle.

In 2008, the District selected Donohue Development over a host of other firms to build a hotel on a city-owned parcel on 5th and I streets.

Donohoe initially unveiled a 475,000-square-foot project that included a 261-room Spanish luxury hotel by Meliá Hotels International and a 160-unit apartment building, with housing for artists, and retail space, according to the Washington Post.

However, the company made little progress in years of negotiations with the district, according to Jose Sousa, spokesman for Victor Hoskins, deputy mayor for planning and economic development. The district informed Donohue on Friday that it is severing its relationship with the firm on the hotel venture. Sousa says the district plans to re-bid the project later this year. See story in the Washington Post.