WEST PALM BEACH, FL-The terms of the deal between Palm Beach County and the Related Co.'s and the Related Group's to build a large convention hotel here have changed and could affect the financing of the venture.

Changes to the terms of the deal for the 400-room hotel could be voted on by Palm Beach County Commissioners on June 4. Some of the changes include Related being responsible for operating the hotel for seven years, instead of during the life of its lease, according to the South Florida Business Journal. Also, Palm Beach County would be responsible for $27 million of the $100-million project, instead of $47 million including a $20-million guarantee on the developer's senior debt as was originally proposed.

“The elimination of the county's mortgage guarantee, along with the requirement for Related to guarantee that the hotel would stay operational for up to 98 years, created a significant financing challenge for the developer,” according to the county agenda item summary. “To overcome these financial challenges, Related requested that the operational guarantee be reduced to a period of seven years after execution of the agreements.” See story in the South Florida Business Journal.