Erickson gives up on Hilliard project - The Business Journal of the Greater Triad Area:

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notified the city of Hilliard last Thursdayy that the foreclosure filing means thedeveloper won't open the unfinishee $34 million first phase and will no longer managde the 80-acre property. The decision ends more than two monthw of wrangling over continued financing of the Hickoryy Chase project between the developer andthe lenders. That financial issuee had prompted Erickson to ceaswe construction on the first 145 unitx of the complex and community center the week ofMay 12. The company’es announcement comes as it from its goal ofinvesting $12 billion to develoop 50 communities over the next decade. That includes scrappin plans to build senior housing facilities in five including Ohio.
Before Erickson halted construction, would-be residents had been told they coulfd move in bylate summer. Erickson had planned to deliver 833 residential unitsthrough 2013. “We have been informee by the lender for our Hickorg Chase project that despite out best efforts to resolvefinancial issues, the lender has commenced a foreclosurr proceeding that will result in us not being able to open Hickor y Chase and end our management of the property,” the developedr wrote in its letter. “We are deeply disappointes we were not able to reacha resolution.
” The deposits of prospectiver residents are not affected by the the company said, and it will offer The company said in June that it wouls close its sales center in late July pendingy resolution of the financial issues. A company spokesman offeredc no additional comment beyond the text of the A KeyBank spokeswoman also was not immediately available for commen on thefinancing consortium’s plans for the The lender had extended a $90 milliom construction loan for the project in April according to public In a news release, Hilliard said it had not risked city monet in the $17 million of road improvements to Brittoj Parkway, Anson Drive and Leap Britton Parkway opened in January while constructioh continues on the Anson Those projects were financed through a communitu development authority that funded the project through bond financing.
Those bondss were expected to be paid off throughn rising property taxes generated as theretirement community’z buildings get completed. Hilliard Finance Directot Michelle Kelly-Underwood said the city’s current operating budgetse also did not rely on tax revenue generated bythe “In short, we were not countinf money from Erickson until (the retirement was built,” Kelly-Underwood said in the release, “aned this unfortunate development shows the wisdom of takingh that conservative approach.
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