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Developer Seeks Loan

March 26, 1989|EVELYN DE WOLFE | From staff reports

Stalled work on the Compton Lazben Hotel, begun in 1986, may resume shortly following a request to Compton's City Council last week for a loan of at least $1.5 million to the developer of the long-delayed, $30-million project.

Naftali Deutsch, a principal in several firms building the city-backed hotel and convention center, told officials that he cannot complete work because he is $3 million short.

City Manager James Goins confirmed his intent to recommend to council members that they accept Deutsch's offer to come up with $1.5 million if the city is willing to loan him the other $1.5 million.

The project has been beset by financial problems, labor disputes and work stoppages since it began. The original completion date was May, 1988, but city officials agreed to adjust the completion date to mid-December.

Loaning more money to Deutsch is only one of several alternatives to get going on the project again, Goins said. One could include suing Deutsch and his partners for breach of contract and hiring a new contractor to finish the job.

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