Evergreen Terrace: Jim Glasgow, Terry D'Arcy Announce Great News

JOLIET— Will County State’s Attorney James Glasgow and Joliet Mayor Terry D’Arcy announced that a decision by the Illinois Supreme Court will save the City of Joliet from paying out $6 million in back property taxes sought by the former owner of the Evergreen Terrace.

According to a press release from Will County State's Attorney spokeswoman Carole Cheney, the Illinois Supreme Court issued a unanimous decision agreeing that the plaintiff, MB Financial Bank, was not entitled to repayment of property taxes it paid between the date the condemnation complaint was filed and the date the city of Joliet took possession of the property because MB enjoyed the continued use and benefit of the property during that time.

“It would have been a devastating blow to the City of Joliet had it been ordered to refund over $6 million lawfully collected between 2005 and 2017,” D’Arcy remarked in Glasgow's press release. “On behalf of the citizens of Joliet, I applaud the decision reached by the Supreme Court that protects our citizens by requiring the MB Financial to accept responsibility for paying property taxes throughout the period it owned the Evergreen Terrace property. As the newly elected mayor of Joliet, I have to say this is quite the housewarming gift.”

Glasgow called the ruling "a literal fiscal bonanza for taxpayers.”

“The Supreme Court’s decision means that the City of Joliet is not required to reimburse MB Financial Bank, which owned and operated Evergreen Terrace during the pendency of the condemnation proceeding, for the property taxes the bank was legally obligated to pay," Glasgow noted. "The ruling is a just and equitable victory for the taxpayers of Joliet since MB Financial Bank, not the City of Joliet, continued using and profiting from the property until the City took possession.”

Cheney noted that MB Financial Bank had argued it was entitled to property taxes paid between the date the condemnation complaint was filed and the date the City of Joliet took possession of the property. In rejecting this argument, the Supreme Court found that “it would be unreasonable to find that the plaintiffs are relieved from having to pay any of the property taxes that accrued during that time.”

In 2005, the City of Joliet had filed a condemnation complaint and sought to acquire ownership of the Evergreen Terrace apartment complex through eminent domain. The City acquired title to the property in 2017 following 12 years of litigation. While the litigation was pending, the apartment complex remained in operation and the owner, MB Financial Bank, N.A., continued to pay property taxes without protest. MB Financial filed a complaint in 2018, seeking a refund of the property taxes it had paid between the date the City filed the condemnation complaint and the date the City acquired ownership of the property.