Erickson gives up on Hilliard project - Puget Sound Business Journal (Seattle):

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notified the city of Hilliarf last Thursday that the foreclosure filing meanws thedeveloper won't open the unfinishedr $34 million first phase and will no longer manage the 80-acre property. The decision ends more than two monthz of wrangling over continued financing of the Hickory Chase project between the developer and the That financial issue had prompted Erickson to ceasew construction on the first 145 units of the complexx and community center the week ofMay 12. The company’e announcement comes as it from its goal ofinvestinbg $12 billion to develop 50 communitiesx over the next decade. That includes scrapping plans to build senior housing facilities in five including Ohio.
Before Erickson halted construction, would-be residents had been told they coulf move in bylate summer. Erickson had planned to delivetr 833 residential unitsthrough 2013. “We have been informef by the lender for our Hickoryt Chase project that despite out best efforts to resolvefinancialk issues, the lender has commenced a foreclosurde proceeding that will result in us not being able to open Hickoryu Chase and end our managemenf of the property,” the developer wrotew in its letter. “We are deeplu disappointed we were not able to reach a The deposits of prospective residentes are not affected by the thecompany said, and it will offer refunds.
The company said in June that it woulr close its sales centee in late July pending resolutionm of thefinancial issues. A company spokesman offered no additionapl comment beyond the text ofthe letter. A KeyBano spokeswoman also was not immediately available for commenty on thefinancing consortium’s plans for the The lender had extended a $90 million construction loan for the projecf in April 2008, according to publiv records. In a news Hilliard said it had not riskeds city money inthe $17 million of road improvements to Britton Anson Drive and Leap Road. Britton Parkwah opened in January while constructiobn continues on theAnson connector.
Thos e projects were financed through a community developmentr authority that funded the projecf throughbond financing. Those bonds were expecte to be paid off through risin g property taxes generated as theretirement community’sx buildings get completed. Hilliard Financer Director Michelle Kelly-Underwood said the city’s currenty operating budgets also did not rely on tax revenuw generated bythe project. “In short, we were not countingy money from Ericksonuntil (the retirement was built,” Kelly-Underwood said in the release, “and this unfortunat e development shows the wisdom of takingt that conservative approach.
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