A developer that has been planning a retirement home on Ohio University land since 2003 backed out of the project Friday because of a slowing economy and little support from the city.

Planning for the 16-acre plot near Stimson Avenue began in March 2003 and fell through Friday because National Church Residences, a non-profit developer, deemed the credit and housing markets too uncertain for prospective residents to sell their homes, spokesman Patrick Higgins said. The developer also cited higher interest rates for the property and delays with the project’s financing.  

Athens Health Partners Ltd., the company that runs a retirement home in The Plains, twice filed and then withdrew lawsuits to halt the project because both times the lease had not been approved by the state. The challenges cited a major disconnect between the value of the land and the lease payments, allowing the developer to undercut the competition.

OU officials have stuck by their independent appraisals of the land and have maintained that the lease payments are fair because the project would provide training ground for students and a means of retaining an elderly population.

Mayor Paul Wiehl questioned whether there was a demand for the retirement home and whether the space would be better left untouched.

 “From my point of view, the best use is keeping it open space for the soccer and rugby players,” Wiehl said.

Only three of seven City Council members were on board; the other four council members sat out because of their associations with OU, Wiehl said.

“Definitely, the political environment down there was a significant factor,” Higgins said.  

OU initially offered to lease the land for $1 per year, but raised the cost to $60,000 after the Department of Administrative Services rejected it.

The lease would require payments to begin immediately, which could have been difficult if construction stalled, Higgins said.   

It’s still too early to know what the university plans on doing with the land, said Director of Legal Affairs John Biancamano.

“There’s a lot of things going on in the economy right now, and it’s not clear who can build what these days,” he said.
Roger Vincent, president of Athens Health Partner’s parent company, did not return   phone calls for comment.