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California developer teams with Peabody Energy to develop lakefront community
By ALAN J. ORTBALS

   MARISSA - Peabody Energy and Praxis Development LLC have formed a joint venture to develop Peabody's long-dormant strip coal mine in Marissa, according to Adam Hill, acting economic development director for the village.

   Engineering and planning are currently under way and the parties are hopeful of starting construction this summer.

   For several years, Peabody has been seeking a partner in the redevelopment of the former River King No. 6 Surface Mine, which operated from 1964 through 1992. Praxis is a newly formed corporation of California developer Glen Hierlmeier who is also developing the Forest Lakes project in Caseyville. Hill says Hierlmeier has many years of experience and has developed more than 30 master-planned communities.

   The Marissa project will cover 2,200 acres and will contain some 1,200 home sites developed in two phases, according to Hill.

   Hill says the concept plan calls for a first phase of approximately 900 acres with 750 homes, nearly all of them waterfront properties. The second phase will be roughly 1,300 acres with an additional 400 to 500 homes. The first phase is projected to be about an eight-year project. No timetable has been established for phase two. Almost every property will have some type of waterfront availability, according to Hill.

   Home prices are currently planned in the $200,000 to $800,000 range. While developers expect that some of these will be second homes for weekend and vacation use, because of the site's proximity to downtown St. Louis, most will be the principal residence of the buyer.

   "We're trying to make this into a destination living point," said Hill, "however, we're really trying to get some moderately priced homes as well in order to serve the population in that market and to serve the future incoming population as a result of some of the other projects that are going on in the market."

   Marissa is about a 40-minute drive to downtown St. Louis. Commuters also have easy access to MetroLink at Scott Air Force Base. The proposed Gateway Connector would further improve accessibility, according to Hill.

   "After people do their preliminary work on Marissa, they say, 'Marissa? Come on.' And then, when they get to the site, immediately every single thing that they thought goes into the trash can because the site is so unbelievable," said Hill. "You really have a very unique development opportunity to create destination living. It's a very unique project that could really make a big difference to that portion of St. Clair County."

   The project will be supported with a tax increment finance district that was created by the village several years ago. In addition, the village, in conjunction with St. Clair County, has applied to the Illinois Department of Commerce and Economic Opportunity for an enterprise zone. The parties hope to learn in February if their application is successful.

   Peabody has worked with other developers in an effort to redevelop this property and Mayor Steuart McClintock remains somewhat skeptical.

   "I don't want to say yes for sure, because a couple of other times we thought we had somebody for sure and then it didn't go through," McClintock said. "There's one thing positive, but then after two other times where they say, 'Oh, yeah, it's going for sure,' and then bam, it doesn't. So, I don't want to get excited yet," he added.

   But Hill is far more optimistic.

   "This is now the second or third time that this site has been looked at," Hill said. "But now there has been some prefunding on the project and it's moving forward. All of the key items that need to be in place to begin a successful project have already been accomplished."