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Extell Development has lined up financing that could allow it to move forward on a supertall mixed-use hotel in the Theater District, equipped with an observation tower and high-elevation, 260-foot drop ride.

Gary Barnett’s firm has entered into a memorandum of intent with an unnamed bank that would provide as much as $1.3B of financing, consisting of a senior construction loan and mezzanine debt, for the development of what has been dubbed “The Torch,” according to a Feb. 25 filing on the Tel Aviv Stock Exchange, obtained by Bisnow and translated via Google.

Additionally, the filing says that the company has signed a letter of intent with an unnamed hotel chain that would also help firm up the financing. The brand has agreed to invest in the project’s construction and provide a guarantee that might allow Extell to land an additional $150M mezzanine loan.