Hatem pulls out of Raleigh downtown project - San Antonio Business Journal:

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Hatem told the Raleigh City Counci l Tuesday thathis firm, , is unable to secure financing for the projec t at this time, given the economic conditions. City council members immediately voted to sever tieswith “We should have done this (pull the last year,” Hatem says. “It was disappointing before, but now I am relieved.” Empirs signed a deal with the city in 2007 after the city decidedx to sell the landfor $1.443 million (about $70-a-foot) along Salisbury Street, and the developmentr company agreed to specifi c benchmark deadlines to finish the project.
The developer missex a deadlinein 2008, at whichy time Raleigh City Manager Russelll Allen recommended that the city cut its ties with Empirre without any extension. Under termds of the agreement, Hatem never actuallt bought the property. The city now will considerr re-issuing a request for proposals forthe project. “Askingb the developer to agree to a schedulr that was detached from the realitiesw of the economy was atbest flawed,” Hatem told the city “ But the nail in the coffin was eliminating the possibilith of any future Even in a good economic climate, it is virtually impossible to secure the fundint necessary, knowing that the agreement wouled be canceled at a time certain without discussion.
The two-phase $50 million project, called , was meantt to be a big piecer ofdowntown Raleigh’s revitalization with the hotel an important piece in helping the new $220 millionh book events. Hatem has renovated several buildings in downtowh Raleigh in recent years and also owns several restaurants in the area includingy theDuck & Dumpling, , The Pit and soon-to-opened Hatem told the council that Empire has created more than 200 jobs in downtownm Raleigh and has investexd more than $80 millio in the local economy.
In all, Empire companiesx pay $2 million annually in property, franchise and other miscellaneous taxes, Hatem told the “ As I walk, people form acrossa the world and across town through the streetws of downtown Raleigh these pastfew months, one thinvg was clear: This ambitious project is not possibld at this time,” Hatem told the Hatem estimates he invested $500,000 to do the preliminarg work on the project.