Madison Mayor Dave Cieslewicz on Thursday endorsed a proposed $109 million redevelopment of The Edgewater hotel and said he’d seek $16 million in public assistance for the project after a consultant’s report urged the city to move quickly on the project and delay others, including a hotel for Monona Terrace.

 Cieslewicz said he also planned to move ahead with a public parking project near the convention center to improve chances of luring a hotel there later.

"The Edgewater is the best project for Madison to pursue right now," he said. "That doesn’t preclude a convention center hotel in the future."

The mayor said he will propose $16 million in tax incremental financing (TIF) support — $8 million in 2010 and $8 million in 2011 — for the Edgewater plan in his capital budget, which will be unveiled Tuesday.

Hammes Co., the developer, is seeking $16.8 million for the project, which would restore the original Edgewater, built in 1948, include a landscaped plaza atop a 1973 addition, create a staircase with terraces to the waterfront and raise an 11-story hotel tower on the east end of the property. The proposal includes bars, restaurants, meeting space and underground parking.

"The Edgewater project is compelling, has advanced to a significant stage of predevelopment, and would expand what Madison has to offer," a 13-page study by Hunden Strategic Partners of Chicago said. "The project deserves public political and financial support."

"Obviously, we’re very pleased," said Hammes president Robert Dunn, noting that the proposal has now been endorsed by the top hotel and economic analysts in the nation. "This can reshape Madison as a destination city."

City Council President Tim Bruer applauded Cieslewicz for putting a "placeholder" in the capital budget, but he said the project faces significant hurdles at the Landmarks Commission and Zoning Board of Appeals.

"We’re going to have to make a decision what’s in the best interests of the city," Dunn said.

Hunden, which earlier recommended a 400-room hotel to serve Monona Terrace, said such a facility remains a priority but now should be timed to open at least 18 months after the Edgewater.

"The delay is disappointing," said Deb Archer, president of the Greater Madison Visitor and Convention Bureau. "But conditions may become more favorable for the right project in the future."

Together, proposals by Hammes, Marcus Corp., The Fiore Cos., and Apex Enterprises, plus a 151-room Hyatt Place under construction, would add about 1,100 rooms, nearly doubling the current 1,200 rooms Downtown.

The hotels and related development, with a combined value over $300 million, would bring jobs, bars, restaurants and more, and boost the tax base.

But city officials have voiced concern about the Downtown’s capacity to absorb so many rooms, the effects on a proposed central library and on existing hotels, how to best support Monona Terrace and city financial support at a time of strained budgets.

The proposals include:

• Hammes’ Edgewater redevelopment, which adds 123 rooms for a total of 230 rooms and promises better public access to Lake Mendota.

• Marcus’ concept for a 275-room hotel that uses the Madison Municipal Building and includes a skywalk to Monona Terrace. Marcus, however, has been silent about its intentions in recent weeks.

• Fiore’s plan for a new central library, which includes a 250-room hotel on the current library site. The total value of the project is $88 million.

• Apex’s $100 million mixed-use project with a 300-room hotel at the corner of South Henry and West Wilson streets.

The study says the Marcus site is the priority but that its proposal "appears to be off the table" and the city should delay its bid for a convention center hotel until public leverage improves or better options arise.

Cieslewicz, confirming Marcus’ interest has cooled, said he’ll try to maintain momentum for a convention center hotel by including in his capital budget an underground parking garage beneath the Municipal Building and Government East garage across the street, which is deteriorating and destined for the wrecking ball.

Marcus, which operates a 14-story, 236-room Hilton hotel next to Monona Terrace, has a right of first refusal on the Municipal Building site until a TIF district in the area expires, which is expected to happen in about two years.

The Apex proposal, while attractive, "does not appear to be feasible," and the Fiore hotel, while a "positive project," would not create significant new demand and might siphon business from other hotels," the study says. Those projects should be adjusted and delayed until other projects are absorbed in the market.

Apex chairman Bruce Bosben questioned the study and vowed to move forward.

"They didn’t contact us," he said. "We’re asking for a building permit. We’re not asking for a handout."

Marcus and Fiore officials could not be reached.