The City Council voted today to extend the deadline for downtown developer and owner of Empire Properties Greg Hatem’s contract to build the new mixed use tower, the Lafayette. This move countered that of City Manager Russell Allen, who was anxious to find new developers with financiers for developing the site. The tipping point was Hatem’s refusal to sign into an agreement to cover the cost of widening the street. The sum according to the contract would have been $50,000. Allen responded by trying to close the contract with Hatem and Empire Properties and reopening the bidding process.
Having been unable to convince potential investors, Hatem has outlined a new plan for the site by constructing two towers instead on one, and insisted he was in active talks with seven potential financial lenders.
Sounds a little like deja vu, right?
Yeah, a similar battle between the city and the developer happened back in June, with the Council agreeing to extend the contract with Hatem.
Paying more than just lip service to a commitment to downtown development, the City sided with Hatem again and then went further as to remove the fee imposed for widening the street! Under the new agreement, Empire Properties now has until November 1st to find its financiers.
In 2007, a rough and tumble municipal election pitted a wide field of candidates with a vision of a thriving downtown but with differing paths on how to get there. This debate erupted on various blogs (including this one), the Independent Weekly, and the charmingly old fashioned op-ed’s of the News and Observer. Some candidates won, some lost, but the debate continued. In the ensuing year, Greg Hatem and Empire Properties has lead the charge to transform Hargett and Wilmington Streets into a livable thriving center of Raleigh culture. In this humble writer’s opinion, the city council made the right choice.
Hatem’s commitment to reviving the area is well-evidenced and sincere. Granting the extension has given the developer needed time in an uncertain market. Denizens of downtown should look forward to this sustained commitment and hope that lenders will continue investing in the heart of the city.
Source: newraleigh.com
