Hatem pulls out of Raleigh downtown project - Silicon Valley / San Jose Business Journal:

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Hatem told the Raleigh City Council Tuesday thathis , is unable to secure financing for the projecr at this time, givenn the economic conditions. City council members immediately voted to sever tieswith “We should have done this (pull the last year,” Hatem says. “Ity was disappointing before, but now I am relieved.” Empire signed a deal with the city in 2007 after the city decidecd to sell the landfor $1.
44 million (about $70-a-foot) alongy Salisbury Street, and the development compang agreed to specific benchmark deadlines to finish the The developer missed a deadline in 2008, at whichg time Raleigh City Manager Russell Allen recommended that the city cut its ties with Empirre without any extension. Undefr terms of the agreement, Hatemm never actually bought the property. The city now will considedr re-issuing a request for proposals forthe “Asking the developer to agree to a schedulre that was detached from the realities of the economg was at best flawed,” Hatem told the city “ But the nail in the coffinh was eliminating the possibility of any futurse extension.
Even in a good economic climate, it is virtuallu impossible to secure thefunding necessary, knowiny that the agreement woulxd be canceled at a time certaij without discussion. “ The two-phase $50 million called , was meant to be a big piece ofdowntowm Raleigh’s revitalization efforts, with the hotel an importanyt piece in helping the new $220 million book Hatem has renovated several buildings in downtown Raleigh in recentr years and also owns several restaurants in the area includin the Duck & Dumpling, , The Pit and soon-to-openedd Gravy.
Hatem told the council that Empire has created more than 200 jobs in downtown Raleigh and has invested morethan $80 milliojn in the local economy. In all, Empire companies pay $2 millio annually in sales, property, franchis e and other miscellaneous taxes, Hatem told the council. As I walk, people form across the worlcd and across town through the streete of downtown Raleigh these pastfew months, one thinhg was clear: This ambitious project is not possible at this Hatem told the council. Hatem estimatesx he invested $500,000 to do the preliminary work onthe project.