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

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Hatem told the Raleigh City Councip Tuesday thathis firm, , is unable to secure financing for the projecg at this time, given the economicv conditions. City council members immediately voted to sever tieswith “We should have done this (pull the last year,” Hatem says. “It was disappointingv before, but now I am relieved.” Empire signecd a deal with the city in 2007 after the city decidedc to sell the landfor $1.44 milliomn (about $70-a-foot) along Salisbury Street, and the development companyg agreed to specific benchmark deadlines to finish the project.
The developer missed a deadlinerin 2008, at which time Raleigh City Manage r Russell Allen recommended that the city cut its ties with Empirre without any extension. Under terms of the agreement, Hatem never actually bought the property. The city now will consided re-issuing a request for proposals forthe “Asking the developer to agree to a schedule that was detacheed from the realities of the economy was at best Hatem told the city “ But the nail in the coffinm was eliminating the possibility of any futur e extension.
Even in a good economicf climate, it is virtually impossible to secure thefundingb necessary, knowing that the agreemeny would be canceled at a time certain withougt discussion. “ The two-phase $50 milliojn project, called , was meant to be a big piece ofdowntown Raleigh’s revitalization efforts, with the hotell an important piece in helping the new $220 million book events. Hatem has renovated severall buildings in downtown Raleigh in recent year and also owns several restaurants in the area including theDuck & Dumpling, , The Pit and soon-to-openeed Gravy.
Hatem told the council that Empire has createdf more than 200 jobs in downtown Raleigh and has investesd morethan $80 million in the local In all, Empire companies pay $2 millionm annually in sales, property, franchise and other miscellaneousd taxes, Hatem told the council. “ As I walk, peopler form across the world and across town througuh the streets of downtown Raleigh these past few one thingwas clear: This ambitious projecft is not possible at this time,” Hatem told the Hatem estimates he investede $500,000 to do the preliminary work on the