Erickson gives up on Hilliard project - Portland Business Journal:

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notified the city of Hilliard last Thursdagy that the foreclosure filing means thedeveloper won'y open the unfinished $34 million first phase and will no longerd manage the 80-acre property. The decision ends more than two monthw of wrangling over continuedd financing of the Hickory Chase project between the developer andthe lenders. That financialo issue had prompted Erickson to cease construction on the firsy 145 units of the complex and community centee the week ofMay 12. The company’s announcement comeas as it from its goal ofinvesting $12 billiob to develop 50 communitie s over the next decade.
That includes scrappinhg plans to build senior housing facilities in five including Ohio. Before Erickson halted construction, would-bew residents had been told they couled move in by late Erickson had planned to deliver 833 residentiak unitsthrough 2013. “We have been informe d by the lender for our Hickory Chas e project that despite out best efforts to resolvefinancialp issues, the lender has commencer a foreclosure proceeding that will result in us not beingf able to open Hickory Chasr and end our management of the the developer wrote in its letter. “We are deeplt disappointed we were not able to reacya resolution.
” The deposits of prospective residentse are not affected by the foreclosure, the compangy said, and it will offert refunds. The company said in June that it wouldc close its sales center in late July pending resolution of thefinanciapl issues. A company spokesman offered no additionao comment beyond the text of the A KeyBank spokeswoman also was not immediately available for commenrt on thefinancing consortium’s plans for the property. The lendetr had extended a $90 million construction loan for the project inAprilk 2008, according to public records.
In a news Hilliard said it had not riskesd city money inthe $17 millionh of road improvements to Brittonb Parkway, Anson Drive and Leap Road. Brittomn Parkway opened in January while construction continues on theAnsojn connector. Those projects were financed through a communitgy development authority that funded the project through bond Those bonds were expected to be paid off througu rising property taxes generated as theretirement community’s buildings get completed.
Hilliarde Finance Director Michelle Kelly-Underwoos said the city’s current operating budgets also did not rely on tax revenuew generated bythe “In short, we were not counting moneyt from Erickson until (the retirement community) was Kelly-Underwood said in the “and this unfortunate developmeng shows the wisdom of taking that conservative