Local News

Financing in place for downtown tower

Posted December 2, 2008

— The City Council voted unanimously Tuesday to allow a developer move forward with plans for a tower downtown.

Raleigh lawyer Ted Reynolds, the lead partner in Hillsborough Street Partners, plans to build a 23-story mix of retail shops, a hotel and condominiums at the corner of Dawson and Hillsborough streets.

The council determined that Reynolds had financing for the $65 million project in place by a Monday deadline.

“In spite of these unusual economic conditions, we remain committed to Mr. Reynolds, his investors and this project and have issued a term sheet outlining potential loan terms for financing the acquisition of the parcel owned by the city currently under contract to Mr. Reynolds,” William Dawkins, North Carolina/Virginia president for Regions Bank, wrote in a letter to Raleigh Mayor Charles Meeker.

Hillsborough Street Partners will purchase city-owned property at 301 Hillsborough St. for $4.5 million by Dec. 31. The city sold adjacent property to the developer in 2001.

Other deadlines Reynolds must meet include having a foundation in place by Feb. 3 and a completed project by March 15, 2011.

City Manager Russell Allen suggested the city terminate its agreement with Reynolds after he missed an Aug. 1 deadline to have his financing in place, but the City Council decided to give him more time in light of the nationwide credit crunch.

The tower is expected to include 17,500 square feet of retail space, a 136-room hotel and 26 condos on the top floors.


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  • ncwebguy Dec 8, 2008

    Less city-owned land, with the city *making* money on its investment? Check.
    A hotel without any cash incentives? Check.
    More condos from which peope can walk to work, reducing traffic? Check.

    Yet people still complain? Why? They don't even know what they are complaining about, only that they have to complain about everything that may improve the city.

    Why would a private devloper spend $30 million to feed the homless instead of constructing a building? They probably aren't good cooks, and then you would complain that the homeless are being fed bad food. What other buldings should not have been built to feed the homless? Crabtree? Triangle Town Center? Schools? Fire Departments? Police headquarters?

  • WRAL is joe_dirt Dec 3, 2008

    Gripes? Public vs. non-public funds, it all greases the same plams in Wake/Raleigh.

  • Phrostbite Dec 3, 2008

    Uhm, why all the gripes, no public money is being used for this project.

  • wakemom Dec 3, 2008

    i like the idea. i aint paying for it so oh well..

  • atc2 Dec 3, 2008

    Excellent, build it now (do the 32 floors, not the 23)! Good for the Reynold's, they build quality projects. Hopefully the sidewalk atmosphere and retail will be extensive!

  • Frank Downtown Dec 3, 2008

    Creating a transportation hub on Cabbaras should be a priority and they could allow retail/resturants there as a means to make a train/bus combined "union station" more economically stable.

  • lizard Dec 3, 2008

    how 'bout using the extra money to pay off debt? These politicians are using the "crisis" to justify their spending addiction. Makes no sense.

    Don't feed the homeless and maybe they'll go elsewhere. Don't furnish jobs to illegals and they'll leave too.

  • WRAL is joe_dirt Dec 3, 2008

    How about having a regular building and use the "extra" 30 million for feeding the homeless. Cmon Raleigh, the Charlotte wanna-be concept just ain't doing it for us any more.