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BOSTON-The Bay Village Neighborhood Association has agreed to drop its opposition to a $150 million hotel project in the center of the theater district here, in a deal which stipulates that tall buildings cannot de developed in other parts of the neighborhood. The agreement was accepted by the Boston Redevelopment Authority, which has already approved the project.

The developer, Sawyer Enterprises, wants to build a 25-story Loews Hotel here and this deal is a crucial hurdle for the project. The agreement reportedly specifies that two sites in the neighborhood – one that is owned by the Sawyer family and the other that is controlled by the city – will not be subject to zoning designations. This would enable buildings more than 45 feet high on the Sawyer property and buildings more than 65 feet high on the city-controlled parcel.

However, Sawyer still has to win over the Zoning Commission for the project to be able to go forward. The developer is seeking urban renewal zoning for its parcel, which would allow for the proposed hotel’s height. A number of local activist groups oppose the designation, which the Commission will vote upon next week.

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