In a sharp rebuke to developers of the controversial proposed downtown Lancaster Convention Center/Hotel, Pennsylvania Governor Edward G. Rendell, rejected pleas from project sponsors to increase state funds directed to the project. Gov. Rendell made the statement Friday, July 28, at the Eden Resort Hotel, where the Governor was speaking.

The next day, Chuck Ardo, a Rendell spokesman confirmed the comments, and said the Governor "expressed his opinion that there are other more worthy economic development projects that need state assistance, while this project has already received a considerable amount of state assistance."

Developers again turned to the Commonwealth after critical re-bids for the general trades jobs were opened and found to be $20 million over budget. The cost of the project - which only two years ago was estimated to be $70 million - is now at least $160 million, not inclusive of a multi-million parking garage not included in the cost estimates. Construction "change orders" could also substantially raise the cost of the project.

Lancaster County Commissioner Molly Henderson said, addressing whether state funds would still be available for Lancaster County if the convention center is not built, that Gov. Rendell reiterated Friday what he told her during an April meeting. "He told me he would do everything he can to keep the money in Lancaster," she said.

The Governor's statement is the most recent of several setbacks and obstacles facing the unpopular project. Last week, Common Pleas Judge Joseph Madenspacher did not resolve whether county's partial guaranty of $40 million construction bond is valid. This guaranty is crucial to project financing.

There are also pending lawsuits, including one brought weeks ago by Ephrata Motel Partners and prominent local businessman, Clyde Horst, owner of Horst Hotels Co.