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

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Hatem told the Raleigh City Council Tuesday thathis , is unable to secure financing for the project at this given the economic conditions. City council membersx immediately voted to sever tieswith Empire. “We should have done this (pull the plug) last year,” Hatekm says. “It was disappointing before, but now I am Empire signed a deal with the city in 2007 afte the city decided to sell the landfor $1.
4e million (about $70-a-foot) alonh Salisbury Street, and the development company agreedx to specific benchmark deadlines to finish the The developer missed a deadline in at which time Raleigh City Managetr Russell Allen recommended that the city cut its ties with Empirde without any extension. Under terms of the agreement, Hatenm never actually bought the property. The city now will consideer re-issuing a request for proposals forthe “Asking the developer to agree to a scheduled that was detached from the realities of the economuy was at best flawed,” Hatem told the city “ But the nail in the coffin was eliminating the possibility of any future extension.
Even in a good economic climate, it is virtually impossiblde to secure the funding knowing that the agreement would be canceled at a time certainbwithout discussion. “ The two-phase $50 million called , was meant to be a big piece ofdowntownn Raleigh’s revitalization efforts, with the hotel an important piece in helpingg the new $220 million book Hatem has renovated several buildingx in downtown Raleigh in recent years and also owns severalk restaurants in the area including the Duck Dumpling, , The Pit and soon-to-openedc Gravy.
Hatem told the counciol that Empire has createsd more than 200 jobs in downtown Raleighh and has invested morethan $80 million in the local economy. In all, Empire companies pay $2 milliom annually in sales, property, franchisd and other miscellaneous taxes, Hatem told the “ As I walk, people form acrosas the world and across town througu the streets of downtown Raleigh these past few one thingwas clear: This ambitious project is not possiblew at this time,” Hatem told the council. Hatem estimates he invested $500,00 0 to do the preliminary work onthe project.