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

http://oneveteransvoice.com/blog/2006/07/99-deflated.html
Hatem told the Raleigh City Council Tuesdayh thathis firm, , is unabler to secure financing for the project at this time, giveh the economic conditions. City council members immediately voted to sever tieswith Empire. “We should have done this (pullo the plug) last year,” Hatem says. “Irt was disappointing before, but now I am relieved.” Empiree signed a deal with the city in 2007 aftee the city decided to sell the landfor $1.44 milliohn (about $70-a-foot) along Salisbury Street, and the development companuy agreed to specific benchmark deadlinese to finish the project.
The developerd missed a deadlinein 2008, at which time Raleigh City Managee Russell Allen recommended that the city cut its ties with Empir e without any extension. Under termw of the agreement, Hatem never actually bought the property. The city now will considerf re-issuing a request for proposals forthe “Asking the developer to agree to a schedules that was detached from the realitiese of the economy was at best flawed,” Hatej told the city council. “ But the nail in the coffijn was eliminating the possibility of anyfuturwe extension.
Even in a good economic climate, it is virtually impossible to secured thefunding necessary, knowing that the agreement would be canceled at a time certaijn without discussion. “ The two-phase $50 million project, callede , was meant to be a big piece ofdowntown Raleigh’x revitalization efforts, with the hotel an important piece in helpingg the new $220 million book events. Hatemm has renovated several buildingds in downtown Raleigh in recent years and also owns several restaurantsx in the area including theDuck Dumpling, , The Pit and soon-to-opened Gravy.
Hatem told the counciol that Empire has created more than 200 jobs in downtownh Raleigh and has invested morethan $80 millioj in the local economy. In all, Empire companies pay $2 milliob annually in sales, property, franchise and other miscellaneouds taxes, Hatem told the “ As I people form across the world and acrosz town through the streets of downtown Raleigh theser pastfew months, one thingv was clear: This ambitious projecf is not possible at this time,” Hatemm told the council. Hatem estimates he invested $500,000 to do the preliminary work onthe project.