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

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notified the city of Hilliard last Thursday that the foreclosur filing means thedeveloper won't open the unfinished $34 millioj first phase and will no longer manage the 80-acre The decision ends more than two monthx of wrangling over continued financing of the Hickory Chase project between the developerr and the lenders. That financial issue had prompterd Erickson to cease construction on the firsf 145 units of the complex and community centeer the week ofMay 12. The company’s announcement comee as it from its goal ofinvesting $12 billion to developp 50 communities over the next That includes scrapping plans to build seniodr housing facilities in five states, includint Ohio.
Before Erickson halted construction, would-be residents had been told they could move in by late Erickson had planned to deliver 833 residential unitsthroughu 2013. “We have been informed by the lenderf for our Hickory Chase project that despite out best effortws to resolvefinancial issues, the lendefr has commenced a foreclosure proceeding that will result in us not beingg able to open Hickory Chase and end our management of the the developer wrote in its letter. “We are deeply disappointe d we were not able to reacha resolution.
” The depositws of prospective residents are not affectef by the foreclosure, the company and it will offer The company said in June that it wouled close its sales center in late July pendintg resolution of the financial issues. A companyu spokesman offered no additional comment beyond the text of the A KeyBank spokeswoman also was not immediately available for comment on thefinancing consortium’s plans for the The lender had extended a $90 million construction loan for the projectr in April 2008, according to public In a news release, Hilliard said it had not risked city money in the $17 million of road improvementd to Britton Parkway, Ansobn Drive and Leap Road.
Britton Parkway opened in Januarty while construction continues on theAnsonb connector. Those projects were financer through a community development authoritu that funded the project througjbond financing. Those bonds were expected to be paid off through risingb property taxes generated as theretirement community’s buildings get completed. Hilliar d Finance Director Michelle Kelly-Underwood said the city’s curreng operating budgets also did not rely on tax revenuw generated bythe project.
“In short, we were not counting money from Ericksonuntil (the retirement community) was Kelly-Underwood said in the release, “anf this unfortunate development shows the wisdom of taking that conservative approach.”