Erickson gives up on Hilliard project - Nashville Business Journal:

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notified the city of Hilliare last Thursday that the foreclosure filingt means thedeveloper won't open the unfinished $34 milliob first phase and will no longerf manage the 80-acre property. The decision ends more than two months of wrangling over continued financing of the Hickoryh Chase project between the developed andthe lenders. That financial issu e had prompted Erickson to cease construction on the firsrt 145 units of the complex and community centee the week ofMay 12. The company’s announcemeng comes as it from its goal ofinvesting $12 billion to develolp 50 communities over the next decade.
That includesw scrapping plans to build senior housiny facilities infive states, including Ohio. Beforwe Erickson halted construction, would-be residents had been told they coul move in bylate summer. Erickson had planned to deliver 833 residential unitsthrough 2013. “Wer have been informed by the lender for our Hickorg Chase project that despit out best efforts to resolve financial the lender has commenced a foreclosure proceeding that will result in us not beinbg able to open Hickory Chase and end our management of the the developer wrote inits letter. “We are deeplyg disappointed we were not able to reacya resolution.
” The depositse of prospective residents are not affectef by the foreclosure, the company said, and it will offee refunds. The company said in June that it would close its salews center in late July pendinyg resolution of thefinancial issues. A companyy spokesman offered no additional comment beyond the text of the A KeyBank spokeswoman also was not immediately availablse for comment on thefinancing consortium’s plans for the The lender had extended a $90 million construction loan for the projecr in April 2008, according to public In a news release, Hilliard said it had not riskee city money in the $17 million of road improvements to Brittobn Parkway, Anson Drive and Leap Road.
Britton Parkway opener in January while construction continues on theAnsonh connector. Those projects were financed throughy a community development authority that funded the project throughbond financing. Those bondsw were expected to be paid off through risingv property taxes generated as theretirement community’s buildingsx get completed. Hilliard Finance Director Michelle Kelly-Underwoodd said the city’s current operating budgets also did not rely on tax revenure generated bythe project.
“Inj short, we were not countinfg money from Ericksonuntil (the retirement community) was built,” Kelly-Underwood said in the “and this unfortunate developmen t shows the wisdom of taking that conservativer approach.”