Illinois Business Journal - Madison and Venice Share $13 million housing development

MADISON - A debris-laden, blighted strip bisected by Washington Avenue - linking the cities of Madison and Venice - is getting a new lease on life with a $13 million housing project.

The first phase of the project, completion of 42 two- and three-bedroom townhouses, is on track for its October target date. The remaining 42 units will be finished by August 2004.

The new housing replaces the boxcar abodes - railroad cars welded side-by-side, covered with siding and dry walled inside - that were built on the west side of Washington Avenue in the mid-'80s.

As the years passed, the boxcars were difficult to maintain and they became safety hazards, especially in the event of a fire, said Madison Mayor John Hamm. "When I came into office in '97, the boxcars were drug infested," he added. "There were 16 cameras in the housing project and they helped us a get a grip on the problem."

The images captured on camera - both the security cameras and aerial shots of the derelict structures on the street - made a convincing case in obtaining financial backing for new development.

"A total of $10 million of the project is funded through equity invested because of low-income housing tax credits in a program administered by the Illinois Housing Development Authority," said developer John Downs.

In addition, loans were secured for the project through the Illinois Housing Development Authority, Madison County Housing Authority and Madison County.

"The project was a collaboration between the city of Madison, the Madison County Housing Authority, the city of Venice and Madison County," said Downs, a member of the National Development Council who works as a consultant for Madison County. "We're hoping to make them the nicest apartments in the area."

The Washington Avenue Apartments are being built by Morrissey Construction Co. and will be managed by McCormack Baron Salazar Inc. The two-bedroom townhouses will have about 1,000 square feet of space, while the three-bedroom dwellings will have about 1,200 square feet. Rental fees for the subsidized apartments will range from $350 to $500 per month. All units will be equipped with washers, dryers, refrigerators, stoves and alarm systems.

The alarm systems are routed to the city of Madison and security cameras will be installed throughout the complex. Hamm, who recently assumed the additional role as executive director of the community's housing authority, said the cities of Madison and Venice established an intergovernmental agreement for the apartments, with Madison taking responsibility for fire, police and inspection services.

Venice Mayor Tyron Echols said his community was eager to be a part of the shared development. "Mayor Hamm and I work well together," he said. "This project is going to be beneficial to both communities.

"We have high hopes that there will be similar projects in Venice," Echols said, "and further expansion of good, sound, decent housing."

The Washington Avenue Apartments are the second major housing development in Madison. The first project was the demolition of a former meatpacking plant at the corner of 12th and Greenwood Streets to make way for a six-duplex senior citizen complex. Long-range plans include building five single-family dwellings on Market Street to complement the townhouses on Washington Avenue.

"Since 1997, 200 buildings have been torn down in Madison, but the boxcars were a different animal because they were steel," Hamm said.

No match for a wrecking ball, the railroad cars demanded a more labor- and time-intensive demolition process. "They had to be cut open like a tin can, flattened down and then hauled away," he said.

Morrissey Construction Co. Project Manager Rod Roentz said it took 60 days of preparation at the site before construction started. Crews had to contend with underground piping and clearing years' of accumulated debris. "Despite the weather, the project is on target," Roentz said. "We currently have six buildings standing."

In October, Madison County Housing Authority's Grenzer Homes will be demolished to make room for the remaining 42 units of the complex. Potential tenants have already started submitting applications for the new apartments.

Madison County Community Development helped relocate residents who had been living in the boxcars and the Grenzer Homes. Such well-coordinated cooperation among all those involved is the secret behind successful development endeavors, according to Downs.

"Madison County is innovative and willing to work creatively for development," he said. "Madison, Venice and the county are each taking a role in figuring out how to make sure everything is working out for this project. They make other opportunities available for developers in that area."

Downs speaks from experience. He was the developer for the senior citizen complex in Madison as well.

"When we set out to gain site control of that area two years ago, there was $250,000 in back taxes and unpaid sewer bills," Hamm said about the Washington Avenue endeavor. "Bob Luken, a tax buyer in the area, offered to help us get site control when he heard about the project."

In addition, the taxing bodies of the community - such as Southwestern Illinois College and Madison School District - got the project rolling by agreeing to abate the delinquent taxes at the city's request.

"Taxpayers did not lose any money with this project," Hamm said. "The funds that the city put up for the demolition fees have been recouped, and it's estimated that $65,000 per year will come back to the taxing bodies after the units are built and occupied."