Joliet mayor wary of Riverwalk Homes plans

Terry D’Arcy has become the second Joliet mayor to question city plans for Riverwalk Homes.

The Joliet City Council on Tuesday will hear a presentation on plans for demolition and redevelopment of the the low-income housing complex previously known as Evergreen Terrace, a project that has been in the works since 2018.

The council could vote later this month on tax credits that would fund most of the $77 million cost of the project, which would reduce the number of units at Riverfront Homes from 356 to 177.

D’Arcy, who took office in May, has held off signing an agreement with federal authorities to move ahead with the redevelopment.

The mayor said this week he questioned whether low-income housing on the site should remain at all, although he wants to first hear the presentation to be made on Tuesday.

“I think we could do a new-build structure, and we could have a new use for that riverfront property,” D’Arcy said.

Riverwalk Homes is on the west side of the Des Plaines River and across the river from the city’s downtown. Opponents of the city’s successful condemnation suit to acquire Evergreen Terrace, which had been privately owned, questioned Joliet’s commitment to maintaining low-income housing on the site.

D’Arcy’s predecessor, Bob O’Dekirk, opposed the takeover of Evergreen Terrace. O’Dekirk questioned whether the city should try to manage a low-income housing complex especially amid legal challenges from the federal government.

The project, however, has enjoyed broad support from city councils and two previous mayors since Joliet initiated the federal condemnation suit in 2005, contending that living conditions had worsened and criminal activity had festered under the previous owners. The city won the case in 2014 and gained control of the housing complex in 2017.

Backing out of the redevelopment plan would likely lead to a showdown with federal authorities, including the U.S. Department of Housing and Urban Development. HUD settled a lawsuit with the city calling for continued housing on the site.

“HUD’s expectation is that we follow the settlement agreement,” interim City Manager Rod Tonelli said.

Joliet already has delayed redevelopment from an original schedule to begin in 2021 as it sought funding through the Illinois Housing Development Authority.

“HUD has been understanding of our need to secure this financing,” Tonelli said.

IHDA now has approved tax credits that would fund most of the costs of demolition and redevelopment.

On Tuesday, Holsten Development, the city’s partner in managing Riverwalk Homes, will present the City Council with an update on the redevelopment plan. The council would likely be asked to vote later this month on whether to accept the tax credits.

D’Arcy said a decision on Riverwalk Homes now could be premature.

“We’re in the middle of trying to put together a long-term comprehensive plan for our city,” he said.

The city is developing its first comprehensive plan in decades.