|By Thomas Grillo, Boston
HeraldMcClatchy-Tribune Regional News
September 15, 2009 - Nearly four months after the city announced plans to issue a $10 million loan to the stalled W Hotel project, the money still hasn't been borrowed.
The final piece of financing in the $232 million project has prevented Sawyer Enterprises from completing the hotel/condo development in the city's Theatre District.
Evelyn Friedman, director of the Department of Neighborhood Development, said city officials have been haggling for months over the terms of the deal.
"We asked the developer to provide three or four properties in addition to the W as collateral to cover the $10 million loan in case something blows up and the condos don't sell," she said. "We expect to close later this month."
The condos are for sale at a time when luxury home sales in Boston have plunged by 39 percent this year, according to the Warren Group.
John Connolly, Sawyer's vice president of development, refused to say how many units have pre-sold.
The city approved plans for the 26-story hotel and condo project in 2006. The developer secured a $190 million loan from Prudential Insurance Co.
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