GROVE - Because of the country's economic downswing, private financing to build a multi-million Grand Lake luxury resort is on hold, said Peter C. Boylan, III, Peninsula Resort and Club developer.

“The construction financing is on hold pending stabilization of the global capital markets and the federal rescue plan,” Boylan said before the U.S. House of Representatives voted to reject a $700 billion bail-out plan.

The House and the U.S. Senate has since approved a plan.

Delaware County commissioners approved a tax increment financing package that provides $25 million in tax revenue over 25 years to developers for amenities associated with the construction of a new hotel resort.

“I don't think anyone has a handle on what the capital markets will do in light of Congress' vote,” Boylan said.

Boylan said new real estate development projects are generally unable to obtain financing in the current financial environment.

“I think it is fair to say that virtually all real estate developments are on hold,” Boylan said. “All of the development entitlements are in place including the marina permits and county the TIF district that should allow us to proceed when the capital markets stabilize … We remain confident in our ability to complete the equity financing on the project when the debt construction financing markets open again for real estate development projects of this scope,” Boylan said.

Construction costs to build the new resort are approximately $500 million.