Uh oh.
Remember when Baltimore sealed the deal for its publicly financed, $305 million convention-center hotel? The Baltimore Sun is reporting that--surprise!--the politics are getting a bit nasty.
Billionaire Robert L. Johnson, initially touted as the lead player in Baltimore's convention center hotel but consigned to a lesser role when the city decided to develop the hotel itself, could end up with no role at all.
And Johnson's company, RLJ Development LLC of Bethesda, and partner Quadrangle Development Corp. might not be paid for $700,000 worth of preliminary work if it isn't retained in some capacity, city development officials now say. The $700,000 is a portion of the $1.8 million fee the developers are requesting to oversee construction of the $305 million publicly financed hotel.
More than a year after Mayor Martin O'Malley and development officials endorsed the Johnson team, pinning their hopes for the city's future convention business on plans for a first-class Hilton hotel, Baltimore Development Corp. officials insist that Johnson, the co-founder of Black Entertainment Television, has never had a guaranteed role and knew that from the beginning. Several City Council members, however, say they are surprised that Johnson is not assured an ongoing role.
The BDC continues to recommend RLJ and Quadrangle for the role of owner's representative, otherwise known as construction monitor, and are negotiating the fee, said M.J. "Jay" Brodie, BDC president. But he said that decision is up to a nonprofit hotel corporation that has yet to be formed. The hotel corporation could negotiate a contract with the RLJ team or bring in someone else, Brodie said.
Imagine that. Political connections matter. You can expect more of this. In Baltimore and everywhere else municipal governments get involved in hotels.
Is this really the best use of $305 million?
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