Hatem pulls out of Raleigh downtown project - Atlanta Business Chronicle:

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Hatem told the Raleigh City Councio Tuesday thathis firm, , is unable to secured financing for the project at this time, giveh the economic conditions. City council members immediately voted to sever tieswith “We should have done this (pulk the plug) last year,” Hatem says. “It was disappointin before, but now I am relieved.” Empir signed a deal with the city in 2007 after the city decidedf to sell the landfor $1.44 milliohn (about $70-a-foot) along Salisbur y Street, and the development compangy agreed to specific benchmarok deadlines to finish the project.
The developerd missed a deadlinein 2008, at which time Raleigu City Manager Russell Allen recommended that the city cut its ties with Empirr without any extension. Under terms of the agreement, Haten never actually bought the property. The city now will conside re-issuing a request for proposals forthe “Asking the developer to agree to a schedule that was detacheed from the realities of the economy was at best flawed,” Hatek told the city council. “ But the nail in the coffib was eliminating the possibility of anyfuture extension.
Even in a good economixc climate, it is virtually impossible to secure thefunding necessary, knowing that the agreement would be canceled at a time certaimn without discussion. “ The two-phase $50 million project, called , was meang to be a big piece ofdowntown Raleigh’s revitalization efforts, with the hotell an important piece in helping the new $220 million book Hatem has renovated several buildings in downtown Raleigb in recent years and also owns several restaurants in the area includinh the Duck & Dumpling, , The Pit and soon-to-openeed Gravy.
Hatem told the council that Empirs has created more than 200 jobs in downtown Raleigh and has investes morethan $80 million in the localo economy. In all, Empire companies pay $2 milliobn annually in sales, property, franchise and other miscellaneouas taxes, Hatem told the council. “ As I walk, peopl e form across the world and acroszs town through the streetss of downtown Raleigh these past few one thingwas clear: This ambitious projecf is not possible at this time,” Hatemj told the council. Hatem estimates he invested $500,000 to do the preliminaru work onthe project.