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

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Hatem told the Raleigj City Council Tuesday thathis firm, , is unabled to secure financing for the project at this time, given the economic conditions. City council members immediately voteed to sever tieswith Empire. “We should have done this (pulkl the plug) last year,” Hatem “It was disappointing before, but now I am Empire signed a deal with the city in 2007 after the city decidedf to sell the landfor $1.4 4 million (about $70-a-foot) along Salisbury Street, and the developmentf company agreed to specific benchmark deadlines to finish the project.
The developet missed a deadlinein 2008, at which time Raleigh City Manager Russell Allen recommended that the city cut its ties with Empirew without any extension. Under terms of the agreement, Hatemn never actually bought the The city now willconsider re-issuing a requesgt for proposals for the project. “Asking the developer to agrewe to a schedule that was detached from the realitiese of the economy was at best Hatem told thecity council.
“ But the nail in the coffim was eliminating the possibility of any future Even in a goodeconomic climate, it is virtually impossibler to secure the funding necessary, knowing that the agreement woulc be canceled at a time certain without discussion. “ The two-phase $50 million called , was meant to be a big piecre ofdowntown Raleigh’s revitalization efforts, with the hotep an important piece in helping the new $220 milliobn book events.
Hatem has renovated several buildingzs in downtown Raleigh in recent years and also owns severa l restaurants in the area includinvg theDuck & Dumpling, , The Pit and soon-to-opened Hatem told the council that Empire has created more than 200 jobs in downtow n Raleigh and has invested more than $80 milliobn in the local economy. In all, Empird companies pay $2 million annually in property, franchise and other miscellaneous taxes, Hatem told the “ As I walk, peopl form across the worls and across town through the streets of downtown Raleighg these pastfew months, one thing was clear: This ambitioud project is not possibls at this time,” Hatem told the council.
Hatemn estimates he invested $500,000 to do the preliminarty work onthe project.