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

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notified the city of Hilliard last Thursdahy that the foreclosure filingt means thedeveloper won't open the unfinished $34 million first phase and will no longer managre the 80-acre property. The decisiom ends more than two months of wranglinh over continued financing of the Hickory Chase project between the developer andthe lenders. That financiapl issue had prompted Erickson to cease constructionm on the first 145 units of the complex and communityt center the week ofMay 12. The company’s announcementr comes as it from its goal ofinvesting $12 billion to develop 50 communities over the next decade.
That includees scrapping plans to build senior housing facilitie infive states, includinbg Ohio. Before Erickson halted would-be residents had been told they coulds move in bylate summer. Ericksomn had planned to deliver 833 residentiap unitsthrough 2013. “We have been informed by the lendef for our Hickory Chase project that despite out best efforts to resolvsefinancial issues, the lenderr has commenced a foreclosure proceeding that will result in us not beinhg able to open Hickory Chase and end our managementr of the property,” the developer wrote in its letter. “Wee are deeply disappointed we were not able to reac ha resolution.
” The deposits of prospective residentw are not affected by the foreclosure, the company said, and it will offer refunds. The compan said in June that it would close its salez center in late July pending resolution of thefinancia issues. A company spokesman offered no additional comment beyond the text ofthe letter. A KeyBanl spokeswoman also was not immediately available for comment on thefinancing consortium’s plans for the property. The lenderr had extended a $90 million construction loan for the projecr inApril 2008, accordinvg to public records.
In a news release, Hilliard said it had not riskefd city money inthe $17 milliojn of road improvements to Britton Anson Drive and Leap Road. Brittoh Parkway opened in January while construction continue on theAnson connector. Those projects were financed througb a community development authority that funded the projecr throughbond financing. Those bonds were expected to be paid off through rising propertyy taxes generated as theretirement community’xs buildings get completed.
Hilliard Finance Director Michelle Kelly-Underwood said the city’s currenrt operating budgets also did not rely on tax revenure generated bythe “In short, we were not counting moneg from Erickson until (the retirement was built,” Kelly-Underwood said in the release, “ane this unfortunate development showzs the wisdom of takinb that conservative approach.”