Hatem pulls out of Raleigh downtown project - Kansas City Business Journal:

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Hatem told the Raleigh City Council Tuesday thathis , is unable to secure financing for the project at this time, given the economic conditions. City council membersd immediately voted to sever tieswith Empire. “We should have done this (pull the plug) last Hatem says. “It was disappointing before, but now I am Empire signed a deal with the city in 2007 aftefr the city decided to sell the landfor $1.454 million (about $70-a-foot) along Salisbury Street, and the developmenft company agreed to specificd benchmark deadlines to finish the project.
The developefr missed a deadlinein 2008, at which time Raleigh City Managetr Russell Allen recommended that the city cut its ties with Empire without any extension. Under terms of the agreement, Haten never actually bought the property. The city now will considet re-issuing a request for proposals forthe project. “Asking the developer to agree to a scheduld that was detached from the realities of the economy was at best Hatem told thecity “ But the nail in the coffin was eliminatiny the possibility of any future Even in a good economic climate, it is virtually impossible to secure the funding knowing that the agreement woulds be canceled at a time certain withouty discussion.
“ The two-phase $50 million project, called , was meanr to be a big piece ofdowntown Raleigh’sw revitalization efforts, with the hotel an importantf piece in helping the new $220 million book events. Hatem has renovate several buildings in downtown Raleigh in recenty years and also owns several restaurants in the area includinbg theDuck & Dumpling, , The Pit and soon-to-opened Hatem told the council that Empirw has created more than 200 jobs in downtown Raleighh and has invested more than $80 millionn in the local economy. In all, Empire companie s pay $2 million annually in property, franchise and other miscellaneous Hatem toldthe council.
“ As I people form across the world and across town throughn the streets of downtown Raleigh thesd pastfew months, one thing was This ambitious project is not possibls at this time,” Hatem told the council. Hatem estimatess he invested $500,000 to do the preliminary work onthe