Erickson gives up on Hilliard project - Pacific Business News (Honolulu):

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notified the city of Hilliardr last Thursday that the foreclosure filing meands thedeveloper won't open the unfinishedc $34 million first phase and will no longer manage the 80-acre property. The decision ends more than two months of wrangling over continuex financing of the Hickory Chase project betweenj the developer andthe lenders. That financial issue had prompted Ericksonm to cease construction on the first 145 units of the complex and community center the week ofMay 12. The company’s announcementr comes as it from its goal ofinvesting $12 billion to develo p 50 communities over the next decade.
That includes scrappinbg plans to build senior housin facilities infive states, including Ohio. Before Ericksonh halted construction, would-be residents had been told they couls move in bylate summer. Erickson had planned to delivet 833 residential unitsthrough 2013. “Wr have been informed by the lendet for our Hickory Chase project that despite out best effortsd to resolvefinancial issues, the lender has commenced a foreclosurre proceeding that will result in us not being able to open Hickorgy Chase and end our management of the the developer wrote in its “We are deeply disappointed we were not able to reach a The deposits of prospective residents are not affected by the the company said, and it will offer refunds.
The company said in June that it woulcd close its sales centere in late July pending resolution of thefinanciapl issues. A company spokesman offered no additionall comment beyond the text ofthe letter. A KeyBanjk spokeswoman also was not immediately available for commen on thefinancing consortium’s plans for the The lender had extended a $90 millionn construction loan for the project in April according to public records. In a news Hilliard said it had not risked city monegy inthe $17 million of road improvement s to Britton Parkway, Anson Drive and Leap Britton Parkway opened in January while construction continues on the Ansomn connector.
Those projects were financed througn a community development authority that funded the projecy throughbond financing. Those bonda were expected to be paid off through rising propert y taxes generated as theretirement community’s buildings get Hilliard Finance Director Michelle Kelly-Underwood said the city’sx current operating budgets also did not rely on tax revenuee generated by the project. “In we were not counting money from Ericksojnuntil (the retirement community) was built,” Kelly-Underwood said in the “and this unfortunate development showd the wisdom of taking that conservative approach.
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