JOLIET – The takeover date for Evergreen Terrace is not so certain as previously believed.
After Joliet won an appeal in the case last month, a city official said Aug. 1 was the target date by which Joliet would gain control of the apartment complex through a public-private corporation created to manage Evergreen Terrace.
But the president of the company that is the private partner said Friday that Aug. 1 is definitely too early.
“It will be sometime between now and the end of the year,” said Peter Holsten, president of Holsten Companies in Chicago.
Holsten said that is the timeline he was given by the U.S. Department of Housing and Urban Development because of the amount of paperwork that still needs to be completed before new management takes over Evergreen Terrace.
“The game plan is once HUD and the city are ready to move forward, we will step in and manage the property as is,” he said.
The city is considering redevelopment of Evergreen Terrace, which could lead to a reduction in the 356 apartments that are there now. But that could not happen for some time, because funding would have to be arranged first, Holsten said.
“The sourcing of founds for the property is going to take probably a couple of years, so nothing is going to be done with the property in that time,” he said.
City Manager Jim Hock, who previously gave the Aug. 1 takeover date, could not be reached for comment Friday. Mayor Bob O’Dekirk said he did not know when the city would take control.
“It’s tough to make any long-term plans without getting in there,” O’Dekirk said.
Holsten said he did not foresee any problems taking over management of the site, noting that his company has done that before at other properties.
“We will definitely be able to step right in when the time is right,” he said.
Joliet paid $15 million for Evergreen Terrace in August 2015 to meet a mandated deadline imposed by the federal court after the city was awarded condemnation. But HUD did not want to change ownership and management of the property while the appeal was pending.
Evergreen Terrace is privately owned. But tenants rents are subsidized by HUD, which has federal oversight of the property.