The developers have stated that unless there are financialconcessions on both sides of the deal they cannot go ahead with theproject. The hotel is considered vital to the success of theconvention center. Richard Friedman, Carpenter's local partner sayshe has no comment, but the reduced fees would save $1.5 a yearmillion over 30 years.

The Masssachusetts Convention Center Authority is also planningto lower the rent it will charge but it is unclear how much lessthey can go. When Starwood was chosen as the developer, it agreedto pay $12.6 million in average annual rent on a 50-year lease.Marriott International Inc., the losing finalist in the bidding,offered $8 million annually and the MCAA cannot cut rent down tothat level without reopening the bidding.

The developers are also reportedly looking for a tax break underChapter 121A of state law. The mayor's office did not return callsby presstime, but Mayor Thomas M. Menino is quoted as saying thatsuch a tax break would be considered a subsidy defying biddingrules and inviting the prospect of lawsuits from losingbidders.

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