UPDATE 8/19/10 4:19 p.m.
CHARLESTON, W.Va (AP) -- Developers proposing to build a hotel in downtown Huntington and a baseball stadium for Marshall University have been given state approval to issue $26.6 million in tax-free bonds.

The West Virginia Economic Development Authority gave its OK Thursday.

Developers Brad Burgess and Keith McGuire say they're trying to put together a $50 million financing package for the first phase of the RiverPlace project. They say the full project could cost $250 million.

Economic Development Authority David Warner says the agency may approve the sale of more bonds next month, depending on the fate of unrelated projects.

Burgess says the developers are still negotiating a lease with Marshall for the proposed stadium. He says they would pay to build the stadium, which also would be home to a college summer league team.

The Thayer group asked for $50 million for a project that would include a hotel, conference center, baseball diamond for Marshall University, restaurant, law enforcement training center and intermodal training center.

The WV EDA tabled the request until their August meeting. Of the $77 million available, $20 million remains on the table.

"We didn't get the results we hoped for, but the process continues and we'll re-group and re-think what we're doing," said Keith McGuire, with the Thayer Group.

"At least they didn't throw our application away," said Patrick Donovan, Executive Director of the WV Public Port Authority.

According to Donovan, he believes the WVEDA would like to see more information about the public part of the project, including the intermodal training center and law enforcement training facility. He says in a public-private project like this, the private developers are always able to move faster on their end. So, between now and then, Donovan says the port authority will review preliminary information from consultants and find out how to move forward.

Thayer Group, the port authority, Huntington, Cabell County and Marshall University officials have been working on this project for 14 months, long before they knew the discounted bonds would be available through the WVEDA. All sides involved say they plan to continue to push forward on this project.

Five other projects were approved including a project in Jackson County, Kanawha County and Nicholas County.

The ACF Industries project has become a landmark here along Huntington's Third Avenue. Only about ten years ago, more than 400 people worked here building rail cars. Today, this property pretty much sits empty. But, the WV Public Port Authority and some local developers have some exciting plans for the property.

"We're talking about a baseball stadium and track and field for Marshall University. Then, we're looking at a hotel, conference center and restaurant. That's the private project. For the public project, we're looking at a law enforcement training center, intermodal training center and research and development," said Patrick Donovan, Executive Director of the WV Public Port Authority.

This project not only includes the property the ACF buildings sit on, but also the giant parking lot across the street and a strip of land owned by Flint Pigment Group. It's a big area of land, nearly 50 acres. But, before any of this can happen, some important funding has to take place.

"The private developers are seeking Recovery Zone bonds from the WV Economic Development Authority. The Cabell County Commission has already cleared the way for all of this to happen," said Donovan.

Regardless of which way the funding goes, the ball is already rolling. The Port Authority has met with city, county and university officials and a lot of people are excited about the potential. For its next step, the port authority will start conducting feasibility studies to make sure the right project is presented at the right time.

The private developers, Brad Burgess from Lexington and Keith McGuire of Huntington will ask for those bonds from the West Virginia Economic Development Authority next Thursday.