City cancels deal to sell land to office-tower developer
Posted February 3, 2009
Raleigh, N.C. — The City Council voted Tuesday to retain ownership of a site on Hillsborough Street where a developer had hoped to build a downtown tower.
Raleigh lawyer Ted Reynolds, the lead partner in Hillsborough Street Partners, developed plans for a 23-story mix of retail shops, a hotel and condominiums at the corner of Dawson and Hillsborough streets.
Hillsborough Street Partners was supposed to purchase the city-owned property for $4.5 million in December and have the foundation in place by Tuesday. The city sold adjacent property to the group in 2001.
Reynolds asked city officials for a six-month extension on the purchase, citing the slow economy. The City Council, which last summer gave Reynolds additional time to line up financing for the $65 million project, voted 5-3 to reject the latest request and terminate his purchase agreement.
The tower was to include 17,500 square feet of retail space, a 136-room hotel and 26 condos on the top floors.