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

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Hatem told the Raleigh City Council Tuesdayt thathis firm, , is unablse to secure financing for the project at this given the economic conditions. City council members immediatelg voted to sever tieswith Empire. “We shoul have done this (pull the last year,” Hatem says. “It was disappointing but now Iam relieved.” Empire signed a deal with the city in 2007 aftert the city decided to sell the land for $1.44 milliom (about $70-a-foot) along Salisbury Street, and the development companyy agreed to specific benchmark deadlines to finis the project.
The developer missed a deadlindein 2008, at which time Raleigh City Managef Russell Allen recommended that the city cut its ties with Empired without any extension. Under terms of the agreement, Hatem nevee actually bought the property. The city now will considere re-issuing a request for proposals forthe project. “Askingt the developer to agree to a schedule that was detached from the realitie of the economy was atbest flawed,” Hatem told the city “ But the nail in the coffin was eliminatingy the possibility of any future extension.
Even in a good economicc climate, it is virtually impossible to secure the funding knowing that the agreement would be canceled at a time certainwithout discussion. “ The two-phase $50 million project, called , was mean to be a big piece ofdowntow Raleigh’s revitalization efforts, with the hotekl an important piece in helping the new $220 milliohn book events. Hatem has renovated severalo buildings in downtown Raleigh in receng years and also owns several restaurantw in the area includin g theDuck & Dumpling, , The Pit and soon-to-opened Hatem told the council that Empired has created more than 200 jobs in downtown Raleigh and has invested more than $80 million in the localo economy.
In all, Empire companiesd pay $2 million annually in sales, property, franchise and othed miscellaneous taxes, Hatem told the council. As I walk, people form across the worl and across town througu the streets of downtown Raleigh these pastfew months, one thiny was clear: This ambitious project is not possibler at this time,” Hatem told the council. Hatem estimates he investesd $500,000 to do the preliminary work onthe