Realizing they cannot challenge a 2017 court order; the Joliet City Council approved a $77 million plan to redevelop Riverwalk Homes.
Mayor Terry D’Arcy and City Council members have been debating whether low-income housing should be part of the riverfront in downtown as they discussed the city’s plans for Riverwalk Homes on the west side of Des Plaines River and across from downtown in the 300 block of Broadway. Despite wanting a project that would highlight the city’s downtown area, the council approved the project at Tuesday’s meeting.
The low-income apartment complex was previously known as Evergreen Terrace apartments, now Riverwalk Homes will go through a transformation requiring a demolition of about half the buildings and redevelop 177 residential units. The number is less than the 356 units initially proposed as the residents of the other 179 units will receive rent subsidies or housing vouchers from the U.S. Department of Housing and Urban Development to move anywhere in the country if they do not want to stay in Joliet or Will County area, per the agreement the city reached with HUD.
The city won a condemnation lawsuit in 2014 to buy Evergreen Terrace when it was privately owned as officials at the time cited deteriorating living conditions and criminal activity as reasons to take over the low-income housing complex. After gaining control of the complex three years later, the city and Holsten Development, the management of the complex and the City of Joliet’s partner in complex changed the name from Evergreen Terrace to Riverwalk Homes.
The $77 million project to fund the costs associated with demolition and redevelopment would be funded mostly with tax credits from HUD. If Joliet failed to follow through with the redevelopment plan, the city would have pitted them against HUD as the federal agency reached a successful settlement with Joliet requiring continued low-income housing on the site and the city could be charged with contempt of court.
Reconstruction of the project is not expected until at least next year and could take 1-1/2 years to complete, according to information provided at the city council meeting.
Joliet council members Larry Hug and Jan Quillman on Tuesday voted against the preliminary planned unit development of Riverwalk Homes. Councilwoman Suzanna Ibarra abstained for ethical reasons.
