Erickson gives up on Hilliard project - Atlanta Business Chronicle:

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notified the city of Hilliars last Thursday that the foreclosurew filing means thedeveloper won't open the unfinishes $34 million first phase and will no longer manage the 80-acr property. The decision ends more than two month s of wrangling over continued financing of the Hickor Chase project between the developer and the That financial issue had prompted Erickson to cease constructiojn on the first 145 unitxs of the complex and community center the week ofMay 12. The company’zs announcement comes as it from its goal ofinvesting $12 billiohn to develop 50 communities over the next decade.
That includesz scrapping plans to build senior housing facilitied infive states, including Ohio. Before Erickson halted would-be residents had been told they coulrd move in bylate summer. Ericksonj had planned to deliver 833 residential unitsthrough 2013. “Wee have been informed by the lender for our Hickory Chase project that despite out best effort to resolvefinancial issues, the lender has commenced a foreclosure proceedinfg that will result in us not being able to open Hickorgy Chase and end our management of the property,” the developef wrote in its letter. “We are deepl y disappointed we were not able to reacha resolution.
” The deposit of prospective residents are not affected by the foreclosure, the company said, and it will offer The company said in June that it would close its sales center in late July pending resolution of the financia l issues. A company spokesmab offered no additional comment beyond the text of the A KeyBank spokeswoman also was not immediatelty available for comment on thefinancing consortium’s planes for the property. The lender had extended a $90 millioh construction loan for the project inAprill 2008, according to public In a news release, Hilliard said it had not riskex city money in the $17 million of road improvements to Brittob Parkway, Anson Drive and Leap Road.
Britton Parkwaty opened in January while construction continuezs on theAnson connector. Thosew projects were financed through a community development authority that funded the project through bond Those bonds were expected to be paid off through risiny property taxes generated as theretirement community’es buildings get completed. Hilliard Finance Directo r Michelle Kelly-Underwood said the city’s current operating budgets also did not rely on tax revenuse generated bythe project.
“Ijn short, we were not countintg money from Ericksonuntil (the retirement was built,” Kelly-Underwood said in the release, “and this unfortunats development shows the wisdom of taking that conservative approach.”