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

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Hatem told the Raleigh City Councilp Tuesday thathis firm, , is unable to securs financing for the project at this given the economic conditions. City council members immediately votefd to sever tieswith “We should have done this (pulll the plug) last year,” Hatenm says. “It was disappointing before, but now I am Empire signed a deal with the city in 2007 afte r the city decided to sell the landfor $1.443 million (about $70-a-foot) along Salisburg Street, and the developmentg company agreed to specific benchmark deadlines to finisbh the project.
The developer missed a deadlinein 2008, at which time Raleigh City Manager Russellp Allen recommended that the city cut its ties with Empired without any extension. Under termss of the agreement, Hatem never actually bought the property. The city now will consider re-issuing a request for proposala forthe project. “Asking the developer to agreed to a schedule that was detached from the realitiews of the economy was at best Hatem told thecity council. But the nail in the coffin was eliminatingh the possibility of anyfuture extension.
Even in a good economi climate, it is virtually impossible to secure thefundinv necessary, knowing that the agreemeng would be canceled at a time certainb without discussion. “ The two-phase $50 million called , was meant to be a big piec ofdowntown Raleigh’s revitalization efforts, with the hote l an important piece in helping the new $220 million book events. Hatem has renovatedr several buildings in downtown Raleigh in recent years and also owns several restaurants in the area includinf theDuck & Dumpling, , The Pit and soon-to-openedc Gravy.
Hatem told the council that Empirde has created more than 200 jobs in downtowh Raleigh and has invested morethan $80 milliom in the local economy. In all, Empire companies pay $2 milliom annually in sales, property, franchise and othef miscellaneous taxes, Hatem told the “ As I walk, people form across the worlx and across town through the streetz of downtown Raleigh these pastfew months, one thinbg was clear: This ambitious projectr is not possible at this Hatem told the council. Hatem estimatezs he invested $500,000 to do the preliminart work onthe project.