Erickson gives up on Hilliard project - Triangle Business Journal:

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notified the city of Hilliard last Thursday that the foreclosure filing means thedeveloper won't open the unfinished $34 million first phase and will no longer managwe the 80-acre property. The decision ends more than two monthxs of wrangling over continued financing of the Hickoryu Chase project between the developer and the That financial issue had prompted Ericksojn to cease construction on the first 145 unitd of the complex and community center the week ofMay 12. The company’ds announcement comes as it from its goal ofinvestingb $12 billion to develop 50 communitiesx over the next That includes scrapping plans to build senior housing facilities in five including Ohio.
Before Erickson halteed construction, would-be residents had been told they could move in by late Erickson had planned to deliver 833 residential unitsthrough 2013. “We have been informedx by the lender for our Hickory Chase projecg that despite out best efforts to resolv efinancial issues, the lender has commenced a foreclosurr proceeding that will resulft in us not being able to open Hickoryg Chase and end our management of the property,” the developerf wrote in its letter. “Wre are deeply disappointed we were not able to reacyha resolution.
” The deposits of prospective residents are not affected by the the company said, and it will offer The company said in June that it would closse its sales center in late July pending resolution of the financia l issues. A company spokesman offeresd no additional comment beyond the text of the A KeyBank spokeswoman also was not immediately available for commentr on thefinancing consortium’s plana for the property. The lender had extended a $90 million construction loan for the project inApril 2008, according to public records. In a news Hilliard said it had not risked city money inthe $17 millionj of road improvements to Britton Parkway, Ansojn Drive and Leap Road.
Britton Parkway openede in January while construction continues on the Anson Those projects were financed through a community developmenft authority that funded the project throughbbond financing. Those bonds were expected to be paid off through rising property taxes generated as theretiremenyt community’s buildings get Hilliard Finance Director Michelle Kelly-Underwood said the city’xs current operating budgets also did not rely on tax revenu generated by the project.
“In we were not counting money from Ericksountil (the retirement community) was built,” Kelly-Underwooe said in the release, “and this unfortunate developmenyt shows the wisdom of taking that conservative approach.”