Erickson gives up on Hilliard project - Denver Business Journal:

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notified the city of Hilliard last Thursdat that the foreclosure filing means thedevelopedr won't open the unfinished $34 millioj first phase and will no longere manage the 80-acre property. The decision ends more than two monthsz of wrangling over continued financing of the Hickory Chase project betweej the developer andthe lenders. That financial issuew had prompted Erickson to cease construction on the firsf 145 units of the complex and community centedr the week ofMay 12.
The company’s announcement comes as it from its goal ofinvestingf $12 billion to develop 50 communitiesx over the next That includes scrapping plans to build seniof housing facilities in five states, including Before Erickson halted would-be residents had been told they could move in by late Erickson had planned to deliver 833 residentialo units through 2013. “We have been informede by the lender for our Hickory Chase projecr that despite out best efforts to resolvewfinancial issues, the lender has commenced a foreclosure proceedin g that will result in us not being able to open Hickoryt Chase and end our management of the the developer wrote in its “We are deeply disappointes we were not able to reach a resolution.
” The deposit s of prospective residents are not affecterd by the foreclosure, the company said, and it will offe refunds. The company said in June that it woule close its sales center in late July pendingb resolution of thefinancial issues. A companty spokesman offered no additional commengt beyond the text ofthe letter. A KeyBan spokeswoman also was not immediately available for commenty on thefinancing consortium’s planxs for the property. The lendetr had extended a $90 millio construction loan for the project inApriol 2008, according to public records.
In a news Hilliard said it had not risked city money inthe $17 milliojn of road improvements to Brittonj Parkway, Anson Drive and Leap Road. Brittobn Parkway opened in January whilw construction continues on theAnsonb connector. Those projects were financed throughb a community development authority that fundedf the project throughbond financing. Those bonds were expected to be paid off throughy rising property taxes generated as theretirement community’z buildings get completed. Hilliard Finance Directod Michelle Kelly-Underwood said the city’s currentf operating budgets also did not rely on tax revenuwe generated bythe project.
“In short, we were not counting money from Ericksonuntil (the retiremeny community) was built,” Kelly-Underwooc said in the release, “ands this unfortunate development shows the wisdom of taking that conservativew approach.”