Illinois Business Journal - Parsons Place enters second phase

If the strength of cities lies in their neighborhoods, then East St. Louis should prepare itself for positive changes.

The Parsons Place housing initiative in the Emerson Park neighborhood has begun Phase II of development, following what developers and community leaders say was an overwhelming response to Phase I.

"We really underestimated the demand for this, and so did everyone else," said Barbara Freeland, executive vice president for McCormack Baron Salazar Inc. The company is partnering with the Emerson Park Development Corp. to develop the project.

Phase I is comprised of 171 units of one-, two- and three-bedroom apartments, of which 75 percent were leased under the low-income housing tax credit program and 25 percent are market rate apartments. Phase II will include 102 similar units.

"We're not talking about just lower-income residences," Freeland said. "We are doing a mixed-income development so that we are clearly attracting market-rate families. This has created the kind of economic mix that we think is critical in the redevelopment of neighborhoods."

The Illinois Housing Development Authority provided the first mortgage for the project and awarded the low-income housing tax credits. U.S. Bancorp is an equity partner and purchased the tax credits. The city of East St. Louis is another major player in the financing of the project, providing $2 million of tax increment financing funds. Much of the TIF revenues went into public improvements such as streets and lighting.

"I think this neighborhood organization has proven that it can successfully manage federal dollars in planning particular projects and completing them," said Vickie Kimmel Forby, executive director of EPDC. "We evaluate our projects carefully. We have an excellent track record."

The two entities have redeveloped 30 acres of land in East St. Louis' Emerson Park neighborhood that had previously been abandoned, she said. The new neighborhood is anchored by a swimming pool, a large park and a community center. It is located near the Jackie Joyner-Kersee Boys & Girls Club and is bounded on the south by MetroLink.

"The best place to get feedback on the neighborhood is by riding the MetroLink," Forby said. "You hear people from all over the area commenting about how badly a project like this was needed. You also hear about how East St. Louis used to be an incredible city and how it looks as if it's making a comeback."

Freeland said Parsons Place has created an opportunity in to show that transit-oriented housing does work.

"We're hoping that other communities along the MetroLink light rail system see that opportunity and promote housing similar to what we've done," she said.

The development has brought 350 new residents to a neighborhood that had approximately 50 households.

"The goal we set for Parsons Place was to be able to move local people into decent, affordable housing so that we could take down the remaining structures that did not meet code," Forby said. "Another goal was to be able to attract future development for decent, affordable, single-family housing."

Future plans include the development of 12 single-family homes. Four such homes are already complete, she said.

The multi-family units are the kind of high quality housing that the area was lacking, according to Freeland.

Parsons Place is the first privately developed rental housing project in East St. Louis in 30 years. Prior to its creation, the Illinois Public Housing Authority had been the largest landlord in the area.

"It's been our goal to provide more than just safe, sanitary, decent housing," said Freeland. "There's a soft side - or a 'people' side - that we always require to be a part of our developments. Our goal is to work within neighborhoods that have taken control. We would not be in this neighborhood without the support of the Emerson Park Development Corp."

The EPDC originally started as a small neighborhood association of citizens who demanded improvements in their area, Freeland said. It has evolved into a well-run organization that provides social services as well as organizing redevelopment.

Four different tax credit redevelopment companies courted the EPDC before the organization selected McCormack Baron Salazar.

"It was the only company with the level of patience and expertise to sit down with lay people and explain how the tax credits were used," Forby said. "McCormack Baron Salazar was good about showing us how the cash flow would work properly."

One of the most important aspects of the project, Freeland said, is how it has transformed the longstanding perception of the area.

"The location of the neighborhood right along the Interstate 64 corridor also provides the opportunity to change the image of East St. Louis," said Freeland, "as people drive by and see all these new rooftops going up. It literally has begun to change the image of the city, which is extremely important if that area is to survive."