The Corporation of Hamilton has cancelled an exclusive development deal with Regent Hotels for a five-star hotel at the Par-la-Ville car park.

They pulled the exclusivity agreement in August after local developers Pembak Development Company, which is still putting together financing for the project, failed to meet conditions set down in the arrangement which was signed last February.

But yesterday businessman Richard Halsey of Pembak said he was still confident the hotel will be developed because he is in the final stages of arranging equity for the luxury project.

The Royal Gazette revealed last week that Regent Hotels, part of the Carlsson Group of companies which also includes the Radisson cruise ship company, wants to open a 120-bedroom hotel with Pembak, with an extra 80 condominium rooms that can be leased back to guests, plus 40 privately-owned condominiums.

The newspaper called Corporation Secretary Kelly Miller every day for more than a week to find out what was happening but she did not return telephone calls.

But last night, Mayor Lawson Mapp issued a statement saying the Corporation had terminated the exclusivity agreement with Pembak in August, but was still on amicable terms with the company.

Speaking from his home in the US, Mr. Halsey, who bought the Belmont Hotel in 2000, said he was still hopeful his company will be able to develop the site.

"There is an extended period of time we've been working on this and we are writing the Corporation a letter, that should be out in the next day or two, to say that we are far down the road and we are just waiting for the final bits of equity, and we will have to make a new presentation with them to hopefully get a new agreement with them," said Mr. Halsey.

"Yes, I am disappointed, but there is nothing I can do about it but sit down with them and arrive at a new agreement.

"I think we will. They have always been co-operative with us and I think they are just tired of waiting as it has been a long time.

"The major financing is completed and we are adding the final touches to the equity package. We have got some serious sources of equity and hopefully we can finalise it.

"Technically it did expire in August last year, but we've worked with them in good faith since then. I don't blame them. I am not arguing with them, I just want to get back with something we can work on."

Mr. Mapp said yesterday: "The conditions... were not met within the time scale envisaged in the memorandum of understanding and that document was formally terminated by the Corporation on August 25, 2003.

"While the Corporation continues to have amicable relations with Pembak Development Limited and remains willing to discuss any future proposals which that company may have, there is at present no exclusivity agreement between the parties, and the Corporation will be reviewing its options with regard to the potential development of this landmark site."