New London – The city council has agreed to extend by two months the preferred developer status of the developer proposing to self-finance a $10 million redevelopment of the historic Lighthouse Inn.

The council in November chose Michael Dattilo, the owner of Water’s Edge Resort & Spa in Westbrook, as its preferred developer and authorized the city’s Office of Development and Planning to negotiate terms of a development agreement.

The preferred status would have expired on March 7 but was extended by the council on Monday until May 16.

The request for an extension was backed by Economic Development Coordinator Ned Hammond, who said in a report it will give Dattilo more time to “conduct his due diligence of the property and it should provide enough time to arrive at a mutually agreeable development agreement which we can bring to the City Council for approval.”

Dattilo has pitched the idea of rehabilitating the mansion on the 4.2-acre property at 48 Guthrie Place along with construction of up to 30 townhouse-style condominiums. Dattilo offered a $1 purchase price and asked for 15 years in tax abatements, both of which are subject to negotiations with the city.

Dattilo was chosen in part because of his financial wherewithal and experience in historic renovations and hospitality operations.

Hammond said in a status report to the council that the developer is working to reestablish rights to nearby Guthrie Beach, had an informal meeting with the Planning and Zoning Commission and is working with architects on a site plan.

The Lighthouse Inn  closed in 2008.

g.smith@theday.com