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BOSTON-In an attempt to get a number of lagging hotel projects off the ground, the city says it has come up with what it calls a “new economic development initiative” that will provide a total of $40 million in financing. The city estimates that the new projects will generate $12 million in annual tax revenue and $6 million in linkage funds.

“Since 9/11 the institutional lending has decreased,” says Meredith Baumann, spokesperson for the Boston Redevelopment Authority. “They are not eager to put forth [financing] for hotels so there is a $10 to $15 million gap.” The city hopes to fill this gap by making available $40 million in Department of Housing and Urban Development loan funds. The city says that the new initiative is aimed at large-scale hotel projects that have all the required approvals and are ready to break ground, but have been stalled because of a lack of financing.

Baumann notes that while there are currently six hotel projects that fit the bill, the city anticipates providing funding to only three projects, with two receiving $15 million loans and the third receiving $10 million. Those projects, whose developers Baumann adds have all expressed some interest in the financing, include 500 Atlantic Ave., a 420-room hotel; the Convention Center Hotel, which is to be located on Summer Street in South Boston and will have 800 rooms in its first phase and Fan Pier, which is to be located at 28-70 Old Northern Ave. in South Boston and will have 600 rooms Others are Loews Boston Hotel, which is to be located on Stuart and Tremont Streets in Chinatown and will have 395 rooms; a 450-room hotel to be located at Northern Avenue and D Street in South Boston; and, One Court St. a 162-room hotel to be located in the city’s downtown area.Baumann emphasizes that there are no definitive awardees at this point.

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