"Since 9/11 the institutional lending has decreased," saysMeredith Baumann, spokesperson for the Boston RedevelopmentAuthority. "They are not eager to put forth [financing] for hotelsso there is a $10 to $15 million gap." The city hopes to fill thisgap by making available $40 million in Department of Housing andUrban Development loan funds. The city says that the new initiativeis aimed at large-scale hotel projects that have all the requiredapprovals and are ready to break ground, but have been stalledbecause of a lack of financing.

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Baumann notes that while there are currently six hotel projectsthat fit the bill, the city anticipates providing funding to onlythree projects, with two receiving $15 million loans and the thirdreceiving $10 million. Those projects, whose developers Baumannadds have all expressed some interest in the financing, include 500Atlantic Ave., a 420-room hotel; the Convention Center Hotel, whichis to be located on Summer Street in South Boston and will have 800rooms in its first phase and Fan Pier, which is to be located at28-70 Old Northern Ave. in South Boston and will have 600 roomsOthers are Loews Boston Hotel, which is to be located on Stuart andTremont Streets in Chinatown and will have 395 rooms; a 450-roomhotel to be located at Northern Avenue and D Street in SouthBoston; and, One Court St. a 162-room hotel to be located in thecity's downtown area.Baumann emphasizes that there are nodefinitive awardees at this point.

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