Negotiations between the city of New Orleans and Gatehouse Capital Corporation to redevelop the former World Trade Center have collapsed.
According to a statement released Wednesday by Mayor Mitch Landrieu's administration, the city rejected the developer's final offer to turn the long-derelict high-rise into a W Hotel with rental apartments on the top floor.
The New Orleans Advocate reports the city notified Gatehouse that it was terminating talks in a letter dated April 17.
The company's original proposal offered to make a single upfront payment of $10 million to the city in return for a 99-year lease, which would work out to an annual lease payment of $391,000. Officials said that amount was "significantly lower" than fair market value.