Roger Gateway, the developer of Seaboard Square, said he has signed a letter of intent with Hilton Suites to manage one of the hotels.

The second hotel would feature 80 bed-and-breakfast- style units and include an additional 60 condominiums and retail space.

``We want to provide a small, intimate hotel,'' said Gateway, president of WestBay City Homes.

The original $100 million proposal, approved by city council in December, will stretch from Meridian Avenue to 11th Street and from Whiting Street to Cumberland Avenue. The plans call for 370 condos and a 120- room hotel in four buildings.

The buildings would range from four to 14 stories, and the condos would cost $245,000 to $500,000.

Linda Saul-Sena, a longtime city councilwoman who wants to see more downtown residential developments, praised Gateway's original plan but questions whether too many condos and hotels are planned.

``Probably not all of the projects planned will come to fruition,'' she said.

Gateway said he thinks the area can sustain another hotel because as downtown and Channelside grow, more people will visit Tampa.

``This area is changing so rapidly,'' he said. ``There will be many more reasons for people to come to Tampa.''

Gateway said he expects construction to begin on the project's first phase in June and will present the plans for the second hotel and condominiums this summer.

Reporter Shannon Behnken can be reached at (813) 259-7804.