May 29--The field of development teams vying to join the city in a massive redevelopment near Capitol Square is down to two.

North Central Group has dropped from a city process to identify potential partners, leaving two teams -- Hammes Co./Majestic Realty Co. and the Journeyman Group/Gialamas Co./Marcus Hotels and Resorts/LZ Ventures.

Four teams had responded to a city invitation to show qualifications,

preliminary project concepts and financial capabilities for redeveloping two prime blocks now hosting the Madison Municipal Building

and Government East parking

garage.

The project, which must include a hotel guaranteeing a 250-room

block for Monona Terrace and other features, could cost more than $200 million.

Earlier this month, the city's Judge Doyle Square Committee eliminated one candidate, Mortenson Development, which offered a $113.7 million project with 300-room hotel and parking but whose application was deemed incomplete.

Now, North Central Group has

withdrawn. North Central also had

gaps in its application, which outlined

an $80 million proposal for two

hotels with up to 325 rooms and other features on the Government East block but no plan for the Municipal Building block.

North Central could revisit a partnership with the city under its original proposal, the company wrote to the city late last week.

"I'm disappointed we have less competition," said Ald. Mike Verveer, 4th District. "But I think we're very fortunate we have two strong candidates."

Hammes/Majestic Realty proposed a $210 million to $250 million project with the Municipal Building as part of a 250-room hotel and residential units on that block. The Government East site would host a boutique hotel with 150 to 200 rooms, first-floor retail, housing, office space and parking.

Journeyman and partners offered a $188 million project with 352 hotel rooms in one or two hotels and parking on the Municipal Building block. At Government East, the team would create first-floor retail, housing, office space and parking.

The city committee interviewed the Journeyman team earlier this month and Hammes/Majestic Realty on Wednesday. On June 11, the committee is expected to recommend who will be asked to submit more refined proposals.

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