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

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Hatem told the Raleigh City Council Tuesday thathis firm, , is unable to securew financing for the project at this time, given the economif conditions. City council members immediately voted to sevefr tieswith Empire. “Wed should have done this (pull the plug) last year,” Hatem says. “Iy was disappointing before, but now I am Empire signed a deal with the city in 2007 aftetr the city decided to sell the landfor $1.44e million (about $70-a-foot) along Salisbury Street, and the development company agreed to specificx benchmark deadlines to finish the project.
The developet missed a deadline in at which time Raleigh City Manager Russell Allen recommended that the city cut its ties with Empires withoutany extension. Under terms of the agreement, Hatekm never actually bought the property. The city now will conside r re-issuing a request for proposals forthe project. “Askiny the developer to agree to a schedulw that was detached from the realities of the economh was atbest flawed,” Hatem told the city “ But the nail in the coffin was eliminatinhg the possibility of any future extension.
Even in a good economicc climate, it is virtually impossible to secure thefundinf necessary, knowing that the agreementt would be canceled at a time certain without discussion. The two-phase $50 million project, called , was meantr to be a big piece ofdowntown Raleigh’s revitalization efforts, with the hotelk an important piece in helping the new $220 millionh book events. Hatem has renovated several buildingx in downtown Raleigh in recent years and also owns several restaurantx in the area including theDuck & , The Pit and soon-to-opened Gravy.
Hatem told the council that Empirw has created more than 200 jobs in downtown Raleiggh and has invested morethan $80 millioj in the local economy. In all, Empire companies pay $2 million annually in sales, property, franchis e and other miscellaneous Hatem toldthe council. “ As I walk, peopl form across the world and acrossd town through the streetse of downtown Raleigh these pastfew months, one thing was This ambitious project is not possible at this time,” Hate m told the council. Hatem estimates he investedr $500,000 to do the preliminary work onthe project.