From the City’s website:
The Raleigh City Council voted 5-3 today against giving the developer of Reynolds Tower an additional six months to close on property at 301 Hillsborough Street that would have been part of the site for the mixed-use project. The council’s action terminates the City’s agreement with the Reynolds Company LLC to develop the mixed-use project on City-owned property at 301 and 309 Hillsborough Street.
Under the development agreement with the City, Reynolds Company LLC had to meet certain deadlines or the City could void the agreement and repurchase the property at 309 Hillsborough Street at the selling price. In 2001, the City sold the developer the land at 309 Hillsborough Street for $458,000. The development agreement has been revised numerous times over the past eight years to accommodate extensions granted to the developer.
Reynolds Company LLC sought the latest six-month extension after missing a Dec. 31 deadline to close on the property at 301 Hillsborough Street. The developer had agreed to purchase the property from the City on an accelerated basis for $4.5 million. In a letter to members of the City Council, Reynolds Company LLC cited the current economic downturn for not being able to close on the property last Dec. 31.
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