Construction of a new Sheraton Hotel at the airport will be delayed by as much as a year.
Developer Southwest Properties Ltd. was given a one-year extension by the Halifax International Airport Authority to build the hotel, which is supposed to go next to the airport terminal building.
Economic conditions are being blamed for the delay.
The abeyance agreement will last until January 31, 2010. The parties have been negotiating since May on a land lease for the hotel.
In a press release, airport authority president Tom Ruth called the extension “a reasonable, prudent step to take, given the current global economic conditions.”
Ruth said he was looking forward to the project moving ahead when the economic climate improves.
Premier Rodney MacDonald expressed dismay that the project was stalled, but stressed that it is still planning on going ahead.
“It’s a sign of the times that there are projects that are being delayed,” said MacDonald.
“The main thing is that that project will continue.”