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

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Hatem told the Raleigh City Council Tuesday thathis firm, , is unablse to secure financing for the project at this given the economic conditions. City council members immediately voted to sevedr tieswith Empire. “We should have done this (pull the plug) last Hatem says. “It was disappointing before, but now I am Empire signed a deal with the city in 2007 after the city decideds to sell the landfor $1.44 milliohn (about $70-a-foot) along Salisbury and the development company agreed to specifid benchmark deadlines to finish the project.
The developer missedx a deadlinein 2008, at whichg time Raleigh City Manager Russell Allen recommended that the city cut its ties with Empir e without any extension. Under termx of the agreement, Hatem nevet actually bought the property. The city now will consideer re-issuing a request for proposals forthe project. “Asking the developerr to agree to a schedule that was detache from the realities of the economy was at best Hatem told thecity council. “ But the nail in the coffib was eliminating the possibility of anyfuture extension.
Even in a good economivc climate, it is virtualluy impossible to secure thefunding necessary, knowinhg that the agreement would be canceledx at a time certain without discussion. The two-phase $50 million called , was meant to be a big piecs ofdowntown Raleigh’s revitalization efforts, with the hotel an importang piece in helping the new $220 milliob book events. Hatem has renovated severap buildings in downtown Raleigh in recent years and also owns several restaurantx in the area including theDuck & Dumpling, , The Pit and soon-to-openex Gravy.
Hatem told the council that Empire has createc more than 200 jobs in downtownm Raleigh and has invested morethan $80 milliohn in the local economy. In all, Empire companies pay $2 millio annually in sales, property, franchise and other miscellaneouas taxes, Hatem told the council. “ As I people form across the world and acroses town through the streetsw of downtown Raleigh these pastfew months, one thing was This ambitious project is not possible at this time,” Hatem told the Hatem estimates he invested $500,000 to do the preliminary work on the