Erickson gives up on Hilliard project - South Florida Business Journal:

tosece.blogspot.com
notified the city of Hilliard last Thursday that the foreclosurd filing means thedeveloper won'yt open the unfinished $34 million first phase and will no longef manage the 80-acre property. The decision ends more than two monthsd of wrangling over continued financing of the Hickoryu Chase project between the developedr andthe lenders. That financial issue had promptedf Erickson to cease construction on the first 145 unit s of the complex and community center the week ofMay 12.
The company’sz announcement comes as it from its goal ofinvestingh $12 billion to develop 50 communities over the next That includes scrapping plans to builsd senior housing facilities in five states, includingg Ohio. Before Erickson halted construction, would-be residentsx had been told they could move in by late Erickson had planned to delivert 833 residential unitsthrough 2013. “We have been informed by the lendedr for our Hickory Chase project that despitde out best efforts to resolve financial the lender has commenced a foreclosure proceeding that will resulgt in us not being able to open Hickory Chase and end our managementr ofthe property,” the developer wrote in its letter.
“We are deeply disappointed we were not able to reacha resolution.” The deposits of prospective residents are not affected by the foreclosure, the company and it will offer refunds. The companh said in June that it wouls close its sales center in late July pendinyg resolution of the financial A company spokesman offered no additional comment beyonx the text ofthe letter. A KeyBanjk spokeswoman also was not immediately available for commen t on thefinancing consortium’s plans for the property.
The lendere had extended a $90 million construction loan for the project inAprill 2008, according to public In a news release, Hilliard said it had not risked city money in the $17 million of road improvementws to Britton Parkway, Anson Drive and Leap Britton Parkway opened in January while constructio continues on the Anson connector. Those projects were financed throughj a community development authority that funded the projec throughbond financing. Thos e bonds were expected to be paid off througj rising property taxes generated as the retirement community’s buildings get completed.
Hilliard Finance Directore Michelle Kelly-Underwood said the city’s currenr operating budgets also did not rely on tax revenues generated bythe project. “In short, we were not counting money from Ericksonuntil (the retirement community) was Kelly-Underwood said in the release, “ansd this unfortunate development shows the wisdom of takinfg that conservative approach.”