JOLIET – The city of Joliet has paid the $15 million for Evergreen Terrace, although it will be least a couple months before the property is in the city's hands.
City Manager Jim Hock said the check was sent Aug. 21, a few days after the City Council voted to buy the low-income housing complex.
Now, the city is negotiating the creation of a limited liability company through which it will co-own Evergreen Terrace with Holsten Real Estate Development and Management Corp., the Chicago-based company that will manage the complex.
The current owners also are appealing the federal court decision that led to the city acquiring Evergreen Terrace.
Depending on matters still to be settled in court, the city's takeover may be in two months or as long as two years, when the appeal is projected to be settled.
In the meantime Evergreen Terrace is paid for.
The exact final price was $15,093,412.85.
Hock said another $16,000 in interest charges were added because the city did not pay for Evergreen Terrace until 155 days after the price was determined by a federal jury.
During that time, the council was looking at potential redevelopment plans, and there was disagreement over whether the city should buy the housing complex. But the council voted 7-1 Aug. 18 to move ahead with the acquisition.
Hock said it will be "a couple of months" before the city goes through a 64-point checklist of ownership requirements from the U.S. Department of Housing and Urban Development.
At that point, the city expects to take over Evergreen Terrace, although HUD has told the city it may contest a change in owners until the appeal is decided.
While Evergreen Terrace has been privately owned, income was largely derived from rents subsidized by HUD. So, the federal agency has some control over the 356-apartment complex on Broadway Street.
"We can't take possession until HUD is satisfied that all these things are in place," Hock said.
The biggest item on the list, he said, is the creation of the entity that will own and manage Evergreen Terrace. Holsten will have 50-percent ownership of the property, but details of the arrangement are yet to be worked out.
• This article was updated to correct the number of units in Evergreen Terrace. There are 356 apartments. The Herald-News regrets the error.