News
December 2, 2008
Planned Hillsborough Street Project Gets Backing From Bank
The Raleigh City Council voted unanimously today to allow Hillsborough Street Partners, LLC to move forward with plans to develop Reynolds Tower, a mixed-use project planned for 301 and 309 Hillsborough Street.
Council members determined that the developer had met one of the terms of a revised development agreement for the planned project, called Reynolds Tower. The revised agreement, approved by the City Council on Nov. 4, states that Hillsborough Street Partners had to obtain financing for the project by this past Monday, Dec. 1. To meet that obligation, Hillsborough Street Partners provided a letter to Mayor Charles Meeker from William L. Dawkins, the North Carolina/Virginia state president of Regions Bank. In the letter, Mr. Dawkins expressed the bank’s commitment to the Reynolds Tower project.
“In spite of these unusual economic conditions we remain committed to Mr. (Ted) 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,” Mr. Dawkins wrote in the letter.
Hillsborough Street Partners has agreed to purchase the City-owned property at 301 Hillsborough Street on an accelerated basis for $4.5 million, which includes a purchase price of $4.312 million plus accrued interest. Closing will be done by Dec. 31. In 2001, the City sold the developer the land at 309 Hillsborough Street. The developer also must meet certain other deadlines in the revised agreement or the City could exercise its option to repurchase the property at 301 and 309 Hillsborough Street. For example, site and foundation work must begin by Feb. 3, 2009 and construction of the project must be complete by March 15, 2011.
Prepared by:
John Boyette
Public Affairs Specialist
Public Affairs Department
For More Information Contact:
Julian Prosser
Assistant City Manager
Administrative Services Department
222 West Hargett Street
Raleigh, NC 27602
919-996-4282
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