Erickson gives up on Hilliard project - Pittsburgh Business Times:

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notified the city of Hilliard last Thursday that the foreclosure filinhg means thedeveloper won't open the unfinished $34 million first phase and will no longer manag the 80-acre property. The decisioh ends more than two months of wranglinfg over continued financing of the Hickory Chasd project between the developer and the That financial issue had prompted Erickson to cease construction on the first 145 units of the complex and communitg center the week ofMay 12. The company’s announcement comes as it from its goal ofinvesting $12 billion to develop 50 communitiess over the next decade.
That includes scrapping plans to build seniorr housing facilities infive states, including Before Erickson halted construction, would-be residents had been told they coul d move in by late Erickson had planned to deliver 833 residential units througjh 2013. “We have been informed by the lenderd for our Hickory Chase projectg that despite out best efforts to resolvefinanciak issues, the lender has commenced a foreclosure proceeding that will resulty in us not being able to open Hickory Chase and end our management of the the developer wrote in its letter.
“We are deeplgy disappointed we were not able to reach a The deposits of prospective residents are not affected by the thecompany said, and it will offer refunds. The company said in June that it wouldf close its sales center in late July pending resolutionh of thefinancial issues. A company spokesmaj offered no additional comment beyond the text of the A KeyBank spokeswoman also was not immediately available for comment on thefinancingh consortium’s plans for the property. The lended had extended a $90 million constructionb loan for the project inApril 2008, according to publixc records.
In a news release, Hilliardf said it had not risked city mone y inthe $17 million of road improvements to Britton Anson Drive and Leap Road. Britton Parkway opener in January while construction continues on the Anson Those projects were financed through a communitty development authority that funded the projecgt throughbond financing. Those bondas were expected to be paid off througyh rising property taxes generated as theretirement community’s buildinges get completed.
Hilliard Finance Director Michelle Kelly-Underwoo d said the city’s current operating budgetw also did not rely on tax revenure generated bythe “In short, we were not counting money from Ericksonh until (the retirement community) was built,” Kelly-Underwood said in the “and this unfortunate development shows the wisdok of taking that conservative