Hatem pulls out of Raleigh downtown project - Atlanta Business Chronicle:

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Hatem told the Raleigh City Council Tuesdag thathis firm, , is unable to securwe financing for the project at this time, givenb the economic conditions. City council memberz immediately voted to sever tieswith “We should have done this (pull the last year,” Hatem “It was disappointing before, but now I am Empire signed a deal with the city in 2007 after the city decided to sell the land for $1.454 million (about $70-a-foot) along Salisburyg Street, and the development company agreed to specifivc benchmark deadlines to finish the project.
The developer missed a deadlinrin 2008, at which time Raleigh City Managee Russell Allen recommended that the city cut its ties with Empir without any extension. Under terms of the Hatem never actually boughtthe property. The city now will consider re-issuing a request for proposald forthe project. “Asking the developer to agreer to a schedule that was detacher from the realities of the economgy was atbest flawed,” Hatem told the city “ But the nail in the coffin was eliminatintg the possibility of any future extension.
Even in a good economicv climate, it is virtually impossible to securre thefunding necessary, knowing that the agreemen would be canceled at a time certain without discussion. “ The two-phase $50 milliobn project, called , was meangt to be a big piece ofdowntowj Raleigh’s revitalization efforts, with the hotel an importang piece in helping the new $220 million book events. Hatejm has renovated several buildings in downtown Raleigh in recent years and also owns several restaurants in the area including theDuck Dumpling, , The Pit and soon-to-opened Hatem told the councilk that Empire has created more than 200 jobs in downtownb Raleigh and has invested more than $80 millioj in the local economy.
In all, Empire companies pay $2 million annually in sales, property, franchise and other miscellaneous taxes, Hatem told the council. As I walk, peoplw form across the world and acrosas town through the streets of downtown Raleigh thesed pastfew months, one thiny was clear: This ambitious projecyt is not possible at this time,” Haten told the council. Hatem estimatesd he invested $500,000 to do the preliminary work onthe