wwww.athensnews.com/news/local/2008/oct/06/ncr-cites-cr -
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Published on: 10/6/2008
Last Visited: 11/5/2008
NCR spokesman Patrick Higgins said Friday the company's main reason for pulling the plug on the project was the collapsing credit market.
"There wasn't one single reason, but I think the biggest reason is today's financial market," Higgins said."We anticipate that it would be difficult to get a loan for the construction process."
Also a factor, Higgins said, was the fact that in the current economic climate, seniors who wanted to move into the facility might be having trouble selling their homes.
Higgins also confirmed, however, that NCR was somewhat concerned that the administration of Athens Mayor Paul Wiehl, elected last November, was not supportive of the project.
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Based on a recent conversation with the mayor, Higgins said, it was clear that "he absolutely was not behind the project."
In addition, Higgins noted, NCR's board was not pleased with a change made to the original lease, which would have required NCR to pay OU $60,000 a year regardless of the status of the project's completion.
A rival firm, Athens Health Partners, which runs a retirement home in The Plains, has challenged OU's proposed lease terms in court, arguing that the rent on the property should be much higher.That didn't play a role in the decision to scotch the project, however, Higgins said.
"I can tell you with 100 percent certainty, that had nothing to do with it," he said.