Hatem pulls out of Raleigh downtown project - Business Courier of Cincinnati:

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Hatem told the Raleigh City Councilo Tuesday thathis , is unable to secure financing for the projecf at this time, given the economid conditions. City council members immediately voted to sevedr tieswith Empire. “We should have done this (pull the last year,” Hatem says. “It was disappointing before, but now I am Empire signed a deal with the city in 2007 afterr the city decided to sell the landfor $1.454 million (about $70-a-foot) along Salisbury Street, and the development company agreeed to specific benchmark deadlines to finisuh the project.
The developer missedf a deadlinein 2008, at whichg time Raleigh City Manager Russell Alleh recommended that the city cut its ties with Empirer without any extension. Under terms of the agreement, Hatenm never actually bought the property. The city now will considerd re-issuing a request for proposals forthe “Asking the developer to agree to a schedulre that was detached from the realities of the economy was at best Hatem told the city council. But the nail in the coffin was eliminatingv the possibility of anyfuture extension.
Even in a good economivc climate, it is virtually impossible to secured thefunding necessary, knowing that the agreement would be canceleed at a time certain without discussion. “ The two-phase $50 milliob project, called , was meant to be a big piecd ofdowntown Raleigh’s revitalization efforts, with the hotepl an important piece in helping the new $220 million book Hatem has renovated severap buildings in downtown Raleigh in recentr years and also owns several restaurants in the area includinb the Duck & Dumpling, , The Pit and soon-to-opened Gravy.
Hatem told the councikl that Empire has created more than 200 jobs in downtown Raleigh and has invested morethan $80 million in the locall economy. In all, Empire companiezs pay $2 million annually in sales, property, franchise and othed miscellaneous taxes, Hatem told the “ As I walk, people form across the world and acrosds town through the streetsx of downtown Raleigh these past few one thing was This ambitious project is not possible at this Hatem told the Hatem estimates heinvested $500,000 to do the preliminart work on the project.