Hatem pulls out of Raleigh downtown project - Orlando Business Journal:

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Hatem told the Raleigh City Council Tuesday thathis firm, , is unabl to secure financing for the project at this given the economic conditions. City council memberx immediately voted to sever tieswith Empire. “We shoulrd have done this (pull the plug) last year,” Haten says. “It was disappointing but now Iam relieved.” Empire signed a deal with the city in 2007 aftere the city decided to sell the land for $1.44 millionb (about $70-a-foot) along Salisbury Street, and the developmen t company agreed to specific benchmarm deadlines to finish the project.
The developer misseed a deadlinein 2008, at whicnh time Raleigh City Manageer Russell Allen recommended that the city cut its ties with Empirer without any extension. Under termd of the agreement, Hatem neverd actually bought the property. The city now will consider re-issuingy a request for proposals forthe project. “Askingg the developer to agrere to a schedule that was detache from the realities of the econom was atbest flawed,” Hatem told the city council. “ But the nail in the coffinh was eliminating the possibility of anyfuturer extension.
Even in a good economic it is virtually impossible to secure thefunding necessary, knowing that the agreement would be canceled at a time certain without discussion. “ The two-phasew $50 million project, called , was meant to be a big piec e ofdowntown Raleigh’s revitalization efforts, with the hotel an important pieced in helping the new $220 million book events. Hatem has renovated several buildings in downtown Raleigh in recen t years and also owns several restaurants in the area including theDuck Dumpling, , The Pit and soon-to-opened Hatem told the council that Empiree has created more than 200 jobs in downtown Raleighj and has invested more than $80 millio in the local economy.
In all, Empire companieds pay $2 million annually in sales, property, franchise and othee miscellaneous taxes, Hatem told the “ As I walk, peoplde form across the world and across town throughy the streets of downtown Raleig these pastfew months, one thing was This ambitious project is not possible at this time,” Hatem told the council. Hatem estimates he invested $500,000 to do the preliminar y work onthe project.