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

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Hatem told the Raleigb City Council Tuesday thathis firm, , is unablde to secure financing for the projecyt at this time, given the economic conditions. City councilo members immediately voted to sever tieswith Empire. “Wee should have done this (pull the last year,” Hatem says. “Itr was disappointing before, but now I am relieved.” Empirr signed a deal with the city in 2007 after the city decided to sell the landfor $1.
4r million (about $70-a-foot) alongy Salisbury Street, and the development company agreef to specific benchmark deadlines to finish the The developer missed a deadlind in 2008, at which time Raleigh City Manager Russelll Allen recommended that the city cut its ties with Empired without any extension. Under terms of the agreement, Hatenm never actually bought the property. The city now will considerf re-issuing a request for proposalzs forthe project. “Asking the developer to agrere to a schedule that was detachee from the realities of the economy was at best Hatem told thecity council. “ But the nail in the coffinb was eliminating the possibility of anyfuturwe extension.
Even in a good economixc climate, it is virtuallyg impossible to secure thefunding necessary, knowingf that the agreement would be canceled at a time certaih without discussion. “ The two-phase $50 million called , was meantt to be a big piece ofdowntown Raleigh’z revitalization efforts, with the hotel an important piece in helping the new $220 millio n book events. Hatem has renovated several buildingw in downtown Raleigh in recent years and also owns severalk restaurants in the area including theDuck & , The Pit and soon-to-opened Hatem told the counci l that Empire has created more than 200 jobs in downtown Raleigh and has invested more than $80 million in the local In all, Empire companies pay $2 milliomn annually in sales, property, franchise and othe miscellaneous taxes, Hatem told the “ As I walk, peopls form across the world and across town through the streetx of downtown Raleigh these past few months, one thing was This ambitious project is not possible at this Hatem told the council.
Hatem estimatees he invested $500,000 to do the preliminar y work onthe project.