Holsten Management Presents Evergreen Terrace Options to Joliet City Council

Residents concerned over the redevelopment of Evergreen Terrace turned out to a special meeting held at the Joliet City Hall Monday night.

Holsten Management Group gave a presentation on what they proposed to do with the site and submitted four different proposals. With each proposal came different cost tiers, depending on how much of the buildings will consist of section eight housing and how much remodeling will be done.

One of those options is to do nothing and operate the building as is. Under that option, Holsten’s nonprofit arm of the group would manage the buildings.

“Holsten Management would manage the property in a new way,” Holsten Management President Peter Holsten said. “Holsten Human Capital Development, our nonprofit affiliate, would be very involved with the daily lives of the residents there.”

No improvements would be made to the buildings under that option.

The council did not come to a decision regarding how to proceed, and City Manager James Hock reminded the council that an appeal from the current managers of Evergreen Terrace is still in play.

“We know that the owners are going to appeal this decision,” Hock said, referring to a judgement made recently that gave the city eminent domain over the site.

The owners of Evergreen Terrace, New West/New Bluff, intend to file an appeal not just against the condemnation of the site, or the city taking the property, but also the valuation of the property.

“It will be at least 18 months before you could even say let’s go ahead and start pursuing one of these options,” Hock said. “Our goal right now is to pay the money to the courts Sept. 1, take control of the property and then during that 18 month period operate it in an appropriate manner to ensure the safety and welfare of the residents in the facility.”

Evergreen Terrace was valued at $15 million and the city must pay that amount before it can take over the site.

“There is no answer today and we don’t need an answer today,” Hock said. “A lot of these things will happen in the next 18 months before you really take a look at these options and can implement any one of them.”

If the city doesn’t pay the $15 million by Sept. 1, a judge may order the city to pay the legal fees of New West/New Bluff, which would run around $7 million.

Evergreen Terrace had a history of failing its HUD inspections, but is passing them now. Due to these better conditions, the council suggested going back to the managers and having them run it while the city regulates it.

“There was an option on the table where we wouldn’t pay for any of their legal fees,” District 1 Councilman Larry Hug said. “If they’re passing their inspections, if they’ve improved it, if residents say it’s good living, why are we taking these risks? Why aren’t we going to current ownership and say, ‘Remember that offer you gave to us that we never saw, is that still out there?’”

Hug said if the council agrees to that, the judge won’t penalize them because it will be negotiated. According to Hug, the current managers of Evergreen Terrace offered to make that deal with them but the city’s former attorney never made the council aware of it.

But some want the city to straight out purchase the building instead of handing it back over to the current managers.

John Greuling, president and CEO of the Will County Center for Economic Development, said the numbers presented at the meeting should be an eye-opener for all.

“We think the redevelopment of Evergreen Terrace is a major, major component of the renaissance of downtown Joliet,” Greuling said. “We firmly believe the city should proceed with the acquisition of the property.”

Evergreen Terrace will be further discussed at the city council’s August 4 meeting.