City plays Indian giver in latest Coliseum deal.

Mayor Rudolf Giuliani last week revoked a $50 million budget increase offer to the Metropolitan Transportation Agency that was made as a "sweetener" for selling the Coliseum to Boston Properties for $100 million. The offer was originally advanced by Deputy Mayor John Dyson, who said the mayor was aware of the inducement. In retreating after the proposal became public, Giuliani denied he had formally agreed to the plan, and said since the MTA and developer Boston Properties, headed by Mortimer Zuckerman, had yet to reach an agreement on the sale of a portion of the Coliseum site, the scheme was officially taken off the table.

Additionally, under subsidies worked out with the city, Zuckerman would end up paying about $80 million for the land to construct a mixed-use office and retail tower of approximately 850,000 square feet. The Industrial Development Agency will finance part of that money, while the city would contribute $2 million each year for around 20 years to help defray $20 million of the most recent $100 million purchase price agreement, bringing the developer's tab to the $80 million.

While a tentative closing date had been scheduled for this Monday, April 18th, Boston Properties and the Triborough Bridge and Tunnel Authority - as the operating agency of the MTA that owns the Coliseum - met in court in the early part of last week. While not giving up their rights to close on that date, the parties each retained their rights to adjourn it to another time.

Under some of the original contract documents, in which Boston Properties was to pay $338.3 million for the entire property, the developers had the right to extend the closing an additional 90 days after the expiration of an initial 90-day closing notice. The first time period ended on March 14 and the second 90-day period ends in mid -- June.

Justice Ira Gammerman asked the parties to return to court on Tues. April 19.

According to a statement issued by Boston Properties, if the parties had not come to an agreement by that date, the judge would hold an expedited trial on the developer's claim that neither the MTA nor the TBTA are entitled to drawn down on Boston Properties $33.8 million letter of credit downpayment on the purchase.

Meanwhile, Council Member Ronnie Eldridge was advising the city to just let Boston Properties have their letter of credit back and try to redevelop the current Coliseum structure.