Erickson gives up on Hilliard project - East Bay Business Times:

burdukovahycel.blogspot.com
notified the city of Hilliard last Thursday that the foreclosurd filing means thedeveloper won't open the unfinishe $34 million first phase and will no longerf manage the 80-acre property. The decisionn ends more than two months of wranglinb over continued financing of the Hickory Chasde project between the developer andthe lenders. That financial issure had prompted Erickson to cease constructio n on the first 145 units of the complexc and community center the week ofMay 12.
The company’s announcement comes as it from its goal ofinvestinbg $12 billion to develop 50 communities over the next That includes scrapping plans to build seniore housing facilities in five states, includinf Ohio. Before Erickson halteed construction, would-be residents had been told they coulr move in bylate summer. Erickson had plannef to deliver 833 residential unitsthrough 2013. “We have been informed by the lender for our Hickoryt Chase project that despitew out best efforts to resolve financial the lender has commencedr a foreclosure proceeding that will result in us not beingh able to open Hickorh Chase and end our management of the the developer wrote inits letter.
“W are deeply disappointed we were not able to reach a The deposits of prospective residents are not affectef bythe foreclosure, the company and it will offer refunds. The company said in June that it woulxd close its sales center in late July pending resolutioj of thefinancial issues. A companh spokesman offered no additional comment beyondr the text ofthe letter. A KeyBank spokeswomanm also was not immediately available for comment on thefinancinv consortium’s plans for the property. The lende r had extended a $90 million construction loan for the projecg inApril 2008, according to public records.
In a news Hilliard said it had not riskerd city money inthe $17 milliohn of road improvements to Britton Parkway, Anson Drive and Leap Britton Parkway opened in Januaryt while construction continues on the Anson Those projects were financed through a community development authoritu that funded the project through bond financing. Those bonds were expectede to be paid off through risinh property taxes generated as theretirementr community’s buildings get completed.
Hilliard Finance Director Michelle Kelly-Underwood said the city’s current operatinb budgets also did not rely on tax revenue generated bythe “In short, we were not counting moneyu from Erickson until (the retirement community) was built,” Kelly-Underwood said in the “and this unfortunate development shows the wisdoj of taking that conservative approach.”