Erickson gives up on Hilliard project - Memphis Business Journal:

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notified the city of Hilliard last Thursday that the foreclosurew filing means thedeveloper won't open the unfinishesd $34 million first phase and will no longe manage the 80-acre property. The decisionm ends more than two months of wrangling over continues financing of the Hickory Chas project between the developed andthe lenders. That financial issue had promptedd Erickson to cease construction on the first 145 units of the complez and community center the week ofMay 12. The company’se announcement comes as it from its goal ofinvestingh $12 billion to develop 50 communitiews over the next decade.
That includee scrapping plans to build senior housing facilitiezs infive states, including Ohio. Beforee Erickson halted construction, would-be residents had been told they coulf move in by late Erickson had planned to deliver 833 residential unitwthrough 2013. “We have been informedx by the lender for our Hickoryy Chase project that despite out best efforts to resolvwfinancial issues, the lender has commenced a foreclosure proceeding that will resulft in us not being able to open Hickory Chas and end our management of the property,” the developer wrote in its letter. “We are deeplyg disappointed we were not able to reachja resolution.
” The deposits of prospectiver residents are not affected by the the company said, and it will offef refunds. The company said in June that it woul close its sales center in late July pending resolutio n of thefinancial issues. A company spokesman offered no additional commenft beyond the text ofthe letter. A KeyBank spokeswomam also was not immediately available for comment on thefinancing consortium’s plans for the property. The lendeer had extended a $90 million construction loan for the projec t inApril 2008, according to publiv records.
In a news release, Hilliard said it had not riskede city money inthe $17 million of road improvements to Britto Parkway, Anson Drive and Leap Road. Brittoj Parkway opened in January while construction continues on the Anson Those projects were financed through a community development authority that funded the project throughbond financing. Thos bonds were expected to be paid off through rising property taxes generated as the retirement community’s buildings get completed. Hilliard Finance Director Michelle Kelly-Underwoos said the city’s current operating budgets also did not rely on tax revenuew generated bythe project.
“In short, we were not countintg money from Ericksonuntil (the retirement was built,” Kelly-Underwood said in the “and this unfortunate development showxs the wisdom of taking that conservative