BOSTON-Plans to convert the Boston Police headquarters into a luxury hotel suffered a serious setback when city officials turned down Landmark Ltd’s 63-unit proposal. The 76-year old building has seven stories.

There were initial concerns about owner Mustafa Tatlici’s $16-million bid but the developer has a number of international boutique hotels to his credit. In fact, earlier this year a Boston Department of Neighborhood Development was quoted as saying that Tatlici’s plan was “head and shoulders above the rest.”

Thomas Philbin, DND’s spokesman, could not be reached by press time but he is quoted as saying that the agency became frustrated after Tatlici failed to move the project along. The final straw came when Tatlici said he wanted his permits in place before pursuing the financing.

The agency will not be reissuing another request for proposals but will reopen the process to the four other developers who initially submitted bids: Saunders Hotels, the Raymond Property Group, Sage Hotels and Congress Group Ventures. Proceeds from the sale are targeted for affordable housing in the city.

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