Evergreen summit in D.C.
Friday, July 29, 2005
Printable FormatJOLIET HERLAD NEWS
By Charles B. Pelkie
Joliet apartments: Obama, Weller, housing secretary discuss complex
The nation's top housing official met late Thursday with U.S. Rep. Jerry Weller, R-Morris, and Sen. Barack Obama to discuss the fate of Joliet's beleaguered Evergreen Terrace apartment complex.
Representatives for House Speaker Dennis Hastert and Sen. Richard Durbin as well as U.S. Rep. Bob Ney, R-Ohio, chairman of a federal housing subcommittee, also attended the meeting in Washington with U.S. Housing Secretary Alphonso Jackson.
Joliet officials have objected to a request by Evergreen Terrace's owners to refinance the federally subsidized apartments. They have accused the owners of mismanaging the crime-plagued complex and allowing their tenants to live in filthy and dangerous conditions.
Weller, who has been pressing the city's case with HUD over the past two years, coordinated Thursday's session in an effort to gauge the housing secretary's position on a federally backed refinancing package for Evergreen Terrace.
High-level talks
Alan Tennille, Weller's deputy chief of staff, noted the congressman also pressed Jackson for feedback on the city's proposals to relocate Evergreen Terrace's tenants and redevelop the property to include a combination of low-income and market-rate housing units.
The city has offered to buy the Evergreen Terrace property for $5 million. Joliet officials also have presented HUD with a redevelopment plan that calls for razing three of Evergreen Terrace's most troubled high-density buildings and replacing them with mixed-income townhouses and condominium-style apartments.
City Manager John Mezera, however, has noted that for redevelopment to occur, HUD must forgive an $11 million mortgage on the property and expand portable vouchers that tenants would use to relocate.
Tennille, who attended the session, said Jackson is aware of the problems with the apartment complex and that his "concern is for the people of Evergreen Terrace."
Julian Green, who is Obama's press secretary, said the senator also is concerned about the tenants. "The senator wants to make sure that no one is left in the street," he said.
Indeed, HUD officials stressed that the city has roughly 1,000 public housing units, 1,000 portable vouchers and a waiting list of roughly 1,000 people who are seeking those vouchers, Tennille said.
City officials insist that the local market has enough available Section 8 housing to accommodate Evergreen Terrace tenants if HUD will grant extra vouchers.
HUD officials in attendance suggested the city could try to buy the property from the owners, seek out a third-party buyer or exercise its eminent domain authority.
Mezera noted that the owners, who include members of the wealthy Gidwitz family, have not responded to the city's $5 million offer. Ronald Gidwitz, who is running for Illinois governor as a Republican, has defended the management of the property and accused the city of trying to wipe low-income housing off the map in Joliet.
Tennille said Weller spoke with a representative of the Gidwitz family Thursday to discuss the city's offer. Weller was told the property is not for sale, Tennille said.
Mezera described the Gidwitz family and their management company, the Burnham Cos., as "the wild card in this whole thing."
He also noted that exercising eminent domain powers to acquire the property is complicated by HUD's involvement. If the city pursues that option, the courts will determine the sale price for the owners. But Joliet officials must negotiate with HUD over the mortgage and whether it will grant more portable vouchers for tenants.
Meeting next month
HUD officials agreed to meet in Joliet with city leaders in August to discuss Evergreen Terrace.
Tennille noted that HUD's delegation stressed it must comply with the law. HUD two years ago signed off on refinancing under the federal Mark to Market program. But former HUD Secretary Mel Martinez put the closing on hold after meeting with city officials in September 2003. Refinancing has been in limbo since then.