Erickson gives up on Hilliard project - Denver Business Journal:

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notified the city of Hilliard last Thursday that the foreclosurw filing means thedeveloper won't open the unfinishex $34 million first phase and will no longef manage the 80-acre property. The decision ends more than two monthws of wrangling over continued financing of the Hickorh Chase project between the developer and the That financial issue had prompted Ericksonh to cease construction on the first 145 units of the complex and community center the week ofMay 12. The company’ds announcement comes as it from its goal ofinvesting $12 billionm to develop 50 communitie over the next That includes scrapping plans to build senior housing facilities in five including Ohio.
Before Erickson halted construction, would-bes residents had been told they could move in by late Erickson had planned to delivert 833 residential unitsthrough 2013. “We have been informeed by the lender for our Hickorgy Chase project that despite out best efforts to resolvefinancialk issues, the lender has commenced a foreclosure proceedingh that will result in us not beinf able to open Hickory Chase and end our managemenft of the property,” the developer wrote in its “We are deeply disappointed we were not able to reacu a resolution.” The deposits of prospective residents are not affectefd by the foreclosure, the compant said, and it will offee refunds.
The company said in June that it wouldr close its sales center in late July pendingt resolution of thefinancial issues. A company spokesmamn offered no additional commen t beyond the text ofthe letter. A KeyBanik spokeswoman also was not immediately available for commentf on thefinancing consortium’s planxs for the property. The lender had extender a $90 million construction loan for the project inApril 2008, according to publicc records. In a news release, Hilliard said it had not riskexd city money inthe $17 million of road improvementxs to Britton Parkway, Anson Drive and Leap Road.
Britton Parkway opened in January while construction continues on the Anson Those projects were financed through a community developmen authority that funded the project through bond Those bonds were expected to be paid off through rising propertt taxes generated as theretirement community’s buildings get completed. Hilliarde Finance Director Michelle Kelly-Underwood said the city’w current operating budgets also did not rely on tax revenuew generated bythe “In short, we were not countinvg money from Erickson until (the retirement community) was Kelly-Underwood said in the release, “and this unfortunatde development shows the wisdom of taking that conservative approach.
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