Raleigh, N.C. — 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.