New London — Negotiations for access rights to Guthrie Beach appear to be holding up a proposed development at the historic Lighthouse Inn.

The City Council on Monday approved three-week extension, until June 6, for the preferred developer status of Michael Dattilo, a principal at Waters Edge Resort & Spa in Westbrook.

Dattilo was chosen in November from among a group of five finalists vying for development rights of the iconic, but vacant and deteriorating, inn. The council in November chose Dattilo as its preferred developer and authorized the city’s Office of Planning and Development to negotiate terms of a development agreement.

The preferred status would have expired on March 7 but was extended by the council once before, until this week.

Economic Development Coordinator Ned Hammond said the access to beach rights is an important aspect of Dattilo’s business plan for the property.

Dattilo’s plan is to self-finance an estimated $10 million project, with construction of up to 30 townhouse-style condos on the inn’s 4.2-acre property and a full restoration of the inn.

“Mr. Dattilo is very committed to this project, there’s no question about that,” Hammond said. “It’s been slower than we would have liked but we are hopeful within the next several weeks there will be some resolution.”

The former council at the time of the vote had questioned the $1 offer to buy the property, 15 years in tax abatements and waiver of the $40,000 water bill. Those terms, however, are to be negotiated and presented to the full council for approval at a later date.

The former council chose Dattilo on the recommendation from the Office of Planning and Development in part because of what they said was Dattilo’s financial wherewithal and experience in historic restoration and hospitality operations.

Economic Development Committee Chairman Don Venditto said the meeting between the two sides, Dattilo and Guthrie Beach board members, is expected to come as early as this week.

If there is no movement by the next Economic Development Committee meeting, Venditto said, the council would start to “look forward,” and could decide to go to another request for proposals or “something to get the property active again.”

Council President Erica Richardson said she was concerned that in eight months Dattilo has been unable to get a “yes” or “no” answer from the beach association.

“It should not take that long. We can’t keep stalling,” Richardson said. “I’m really hesitant about just dragging this on because of the Guthrie Beach Association.”

Guthrie Beach was originally part of the original estate owned by steel magnate Charles S. Guthrie and the mansion on the property, on the National Register of Historic Places, was built in 1902. The inn, which closed in 2008, lost beach rights under the last owner. The city acquired the property at a tax auction in 2013.

g.smith@theday.com