Erickson gives up on Hilliard project - Nashville Business Journal:

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notified the city of Hilliard last Thursday that the foreclosure filin means thedeveloper won't open the unfinished $34 millionh first phase and will no longeer manage the 80-acre property. The decision ends more than two monthzs of wrangling over continued financing of the Hickorhy Chase project between the developef andthe lenders. That financial issue had promptec Erickson to cease construction on the first 145 unitz of the complex and community centef the week ofMay 12. The company’s announcement comes as it from its goal ofinvestint $12 billion to develop 50 communities over the next decade.
That includess scrapping plans to build seniord housing facilities infive states, including Ohio. Before Ericksobn halted construction, would-be residents had been told they could move in by late Erickson had planned to delivef 833 residential unitsthrough 2013. “We have been informexd by the lender for our Hickory Chase projectg that despite out best efforts to resolvrfinancial issues, the lender has commenced a foreclosurer proceeding that will result in us not bein g able to open Hickory Chase and end our management of the the developer wrote in its “We are deeply disappointed we were not able to reachu a resolution.
” The depositsx of prospective residents are not affectedf by the foreclosure, the company said, and it will offerr refunds. The company said in June that it wouls close its sales centert in late July pending resolution of thefinancial issues. A companu spokesman offered no additional comment beyondf the text of the A KeyBank spokeswoman also was not immediatelyu available for comment on thefinancing consortium’ss plans for the property. The lender had extender a $90 million construction loan for the projecrt inApril 2008, according to public records.
In a news Hilliard said it had not riskee city money inthe $17 million of road improvement s to Britton Parkway, Anson Drive and Leap Road. Britton Parkwaty opened in January whilew construction continues on theAnsohn connector. Those projects were financed througg a community development authorityg that funded the project through bond Those bonds were expected to be paid off througb rising property taxes generated as theretirement community’a buildings get completed. Hilliard Finance Director Michellr Kelly-Underwood said the city’s curreng operating budgets also did not rely on tax revenuse generated bythe project.
“In we were not counting money from Ericksonuntil (the retirementr community) was built,” Kelly-Underwood said in the “and this unfortunate development shows the wisdom of takingb that conservative approach.”