Categories
Brick Theft Historic Preservation JeffVanderLou Northside Regeneration

Building Losses Continue to Accumulate in NorthSide Project Area

by Michael R. Allen

The sad end of the McEagle-owned four-family flats at 2621 Sullivan Avenue in JeffVanderLou is complete. Brick thieves have taken down the sturdy historic building, leaving a pile of rubble. Last year, a small fire struck the building (see “Fire Strikes House in JeffVanderLou”, October 30, 2008). The photograph above commemorates an only slightly better day for the building.

Mark this as yet another historic building to be lost under the ownership of McEagle and its subsidiaries. Two years ago, this building was occupied and had minimal code citations. Then, it went vacant and soon after was visited by fire. The owner, Sheridan Place LLC, did little to address the fire. According to city records, the Building Division had to board up the building in the wake of the fire and then sent notice to the owner.

Now, the building is gone. Would this building have contributed to a new historic district? Could it have been rehabilitated using state and federal historic rehabilitation tax credits? (McEagle listed a whopping $149.7 million in historic tax credits as revenue on its first-draft tax increment financing application.) Was this one of planner Mark Johnson’s “legacy properties” identified for preservation? We’ll never know, because McEagle has not divulged any of its preservation plans. We do know that this building sits in one of the projected “employment centers,” so it could very well have been doomed anyway. Yet that’s just a guess.

Citizens and their elected representatives contemplating a redevelopment agreement for McEagle’s NorthSide project need facts that demonstrate commitment on the part of the developer to back up all of its promises about historic preservation. Meanwhile, the facts that speak loudest about commitment to saving historic buildings don’t match the developer’s promises.

Ravaged brick buildings, constant fires, collapsing walls, missing boards and dozens of sound historic buildings now forever lost seem like the antithesis of the carefully-planned preservation of “legacy” buildings described by McEagle’s executives and NorthSide master plan author Johnson (of Civitas, Inc.). Certainly, this slipshod management belies Johnson’s immense professional reputation and commitment to progressive, community-oriented planning ideals. It’s hard for seasoned preservationists to believe that McEagle really wants to save historic buildings in the project area — but that is what the company and its planner keep saying they want to do.

Categories
Housing JeffVanderLou North St. Louis Northside Regeneration

Large Housing Development Underway in NorthSide Project Area

by Michael R. Allen

Thomas Avenue in the southeastern reaches of the JeffVanderLou neighborhood definitely is a construction zone. All day long, the street buzzes with the sound of large trucks, contractors speaking and power saws buzzing. The September deadline looms, and the developers are tough-minded about meeting that deadline. After all, these developers are known to be serious and uncompromising about their mission.

Has construction on the NorthSide project started in a big and visible way?

Not quite. The construction is part of a phased 90-house development, and sits fully engulfed by the boundaries of the NorthSide project. However, the developer is not McEagle Properties but the non-profit Habitat for Humanity. The project has not received tax increment financing, nor is is formally part of the larger and more visible development. The Habitat for Humanity project in JeffVanderLou is a modest, steady effort that will transform a few blocks and 90 families’ lives. If that is all that the project accomplishes — and I doubt that will be the end — it will have fulfilled a great need long before the larger project leads to even a shovel turn of earth.

Habitat for Humanity actually began this project in 2003, when it built 20 houses on Bacon, Garrison and St. Louis avenues in the northeast corner of the neighborhood. The St. Louis Equity Fund and the Jeff-Vander-Lou Initiative were development partners, and the Equity Fund remains involved in the subsequent phases. Neighborhood residents identified the need for this project as part of intensive community planning conducted as part of the Jeff-Vander-Lou Initiative process. This was development that came from the grassroots to serve the grassroots. These first homes largely consisted of two-story, flat-roofed townhouse-style buildings clad in brick and brick-like panels. Two of the double units on Bacon are shown here:

Architectural critics can pick at the details and materials, but I think that the houses demonstrate a creative use of a limited budget. The houses are compatible in form with their urban surroundings, and each one occupies a vacant lot. Construction ameliorated the effect of 20 vacant parcels in a pocket of the neighborhood. Readers who have lived in areas where there are 20 or more vacant parcels in a two-block area know exactly how transformative that can be.

Like McEagle, Habitat for Humanity thought about JeffVanderLou on a large scale. The organization identified the need for more construction in the southeast part of the neighborhood, around the intersection of Sheridan Avenue and Martin Luther King Drive north of the reclaimed Blumeyer housing project. In summer 2008, Habitat for Humanity built 27 houses on Sheridan Avenue that received the Platinum LEED certification. As the photograph above shows, Habitat built around existing occupied buildings (there was some demolition of vacant buildings) and introduced a different house model.

The predominate house model is now a front-gabled, one-story home with front porch. Habitat for Humanity’s architects developed two different models that alternate on longer expanses. There are differences in material colors, and homeowners have chosen some personal variations like substituting actual brick veneer for the concrete brick-like material more common to the development.

I think that the one-story model is charming, especially with the generous front porches. These houses embrace the life of the street, sending a strong message in a neighborhood that still has a lot of street crime. Eyes and ears on those porches will make a positive difference.

The houses now under construction on Thomas east of Elliott are 24 one-story, 1,184-square-foot houses that will sell for $77,000 each. These homes are of modest scale and materials, but there are unique things about them in addition to affordable price: these houses also meet Platinum LEED certification standards. Not only are these houses satisfying necessity in the social economy, they are doing the same in the ecological economy.

When this phase ends in September, a final phase that concludes in December will be underway. By New Year’s Eve, 90 for-sale houses will have been added to JeffVanderLou in six years. That’s an impressive feat for non-profit developers working on a community-driven process. Even more impressive will be the social impact of the houses.

As we contemplate the redevelopment ordinance that will initiate a much larger, private vision of development for this area, we should not forget that our best successes come from dreaming big but working small. Those who say that the scale of the solution must match the scale of the problem are right, but they are overlooking the scale of the community. As the Habitat for Humanity project shows, block by block makes a difference — and adds up to big results quicker than we think.

Some photographs of the Habitat for Humanity project are online here. Television station KETC’s Living St. Louis produced a segment on the project that appears online here.

Categories
North St. Louis Northside Regeneration

Loans to NorthSide in the News

by Michael R. Allen

The news of the failure of Corn Belt Bank and Trust is hitting St. Louis a little late — the bank failed in February. Now the failure is newsworthy because of the fact that the Pittsfield, Illinois-based bank loaned $14.8 million to holding companies controlled by McEagle Properties and its Chairman, Paul J. McKee, Jr.

McEagle was not Corn Belt’s only St. Louis customer. Corn Belt had a branch office in Clayton and made numerous real estate loans in the St. Louis market. To date, only one of those loans has been resolved through a deed of release filed by the Federal Deposit Insurance Corporation.

The problem with Corn Belt was that it was undercapitalized. Illinois regulators first issued a cease and desist order in December 2008 ordering the bank to resolve many problems with its management including “engaging in hazardous lending and lax collection practices.”

According to McKee, the loans with Corn Belt had the interest rolled into the loan so that there were no monthly payments. While such an arrangement was desirable to McKee (and, frankly, any other customer!), such loans sound exactly like “hazardous lending.”

Corn Belt is one of two banks that have made loans to the NorthSide project. The other bank is the Bank of Washington in Washington, Missouri. In January, the Bank of Washington extended a line of development credit to McEagle with a maximum amount of $27.6 million. Securing this loan are the holdings of six McEagle north side holding companies (Larmer, Union Martin, Babcock Resources, Dodier Investors, MLK 3000 and Sheridan Place).

Perhaps related to the loan to the NorthSide project is the loan of $20 million in Capital Purchase Program funds to the Bank of Washington in May. These funds were created as part of the Obama administration’s stimulus funding initiative.

L.B. Eckelcamp, bank chairman and prominent Republican political donor, told The Missourian in May that “[the funding] will allow us to remain extremely well capitalized and still increase our ability to take deposits and make loans by more than $100,000,000.”

Categories
Historic Preservation North St. Louis Northside Regeneration

Keep Your Buildings Standing to Keep Your Neighborhoods Strong

by Michael R. Allen

The title of this post is the title of my latest commentary for radio station KWMU, which aired today and can be found online here.

Categories
Brick Theft LRA North St. Louis Northside Regeneration St. Louis Place

The Precarious Condition of Two Beautiful Houses on St. Louis Avenue

by Michael R. Allen

Brick rustlers have returned to the lovely stone-faced house at 1930-6 St. Louis Avenue (see ““Who Would Destroy This Building?”, January 7, 2007). Most recently a funeral home, the house was first built in 1873 by wholesale grocery merchant Bernhardt Winkelman. Winkelman was one of the numerous new-money German-Americans whose lavish homes gave St. Louis Avenue the nickname “Millionaire’s Row.” Today, a different millionaire owns the property: developer Paul J. McKee, Jr. through holding company N & G Ventures.

The damage from 2007 concerned only a one-story flat-roofed addition behind the home, but this week’s damage concerns the side wall of part of the house. Since joists run laterally and rest in the brick side walls of most 19th century buildings, this damage will eventually cause collapse of the roof and floors. However, the thieves have only struck an addition to the Winkelmann house’s ell, so the original section is not yet damaged.

On May 21 and other occasions, McKee mentioned having a list of 60 “legacy properties” in his possession worthy of preservation. Is this house one of them? It should be. However, the list is a mystery to myself and many people in city government and the development world with whom I have discussed preservation issues related to the NorthSide project. We do know that the house at 1930 St. Louis Avenue made an official list that gives it undisputed historic status: the house is a contributing resource to the Clemens House-Columbia Brewery Historic District. It ought to be preserved, and McKee should secure it against further attack.

Across the street is another fine stone-faced house with a lovely wooden Italianate cornice. The house at 1925 St. Louis Avenue dates to 1879 and is owned by the city’s Land Reutilization Authority (LRA). The house is outside of the present historic district boundary. The front looks ragged but sturdy, but a walk around the side reveals the sad truth.

The east side wall of the ell is in shambles, although the second floor and roof are holding on for now. The condition of this house raises a preservation question related to NorthSide that has not been widely discussed: what happens to the numerous vacant historic buildings within the NorthSide footprint not owned by McEagle Properties and its subsidiaries? Most of those buildings are on the list of needed properties that McEagle submitted to the city’s Tax Increment Financing Commission in May. Is the building at 1927 St. Louis Avenue one of the 60 “legacy properties”? There are more than 60 historic buildings owned by McEagle worthy of preservation, and at least as many in the project area owned by LRA and other entities.

City officials should not wait for the list of legacy properties to set into motion a sensible preservation plan for the NorthSide project. If public financing is on the table, that can be leveraged to ensure that buildings like the two above can be mothballed for eventual redevelopment in future phases of the NorthSide project.

Categories
Events North St. Louis Northside Regeneration

Northside Development Forum Tomorrow

The Northside Community Benefits Alliance is hosting a forum tomorrow entitled “North Side Community Development 101.”

Categories
North St. Louis Northside Regeneration

McEagle TIF Hearing Will Be in the Evening

by Michael R. Allen

By a 5-4 vote, the TIF Commission today set a public hearing on the Northside Regeneration LLC (McEagle) application for September 23 at 6 p.m. at City Hall, room to be determined. The Commission deadlocked in a 4-4 vote between commissioners who preferred an 8 a.m. meeting and those who wanted a meeting at a time more convenient to the public. Chairman David Newberger broke the tie in favor of public participation.

McEagle Chairman Paul J. McKee, Jr. made a presentation and then joined Alderwoman Marlene Davis (D-19th) and Deputy Mayor Barbara Geisman for questions from the Commission. The meeting lasted nearly two hours. The TIF Commission seemed favorable to the project, although focused on learning more about key details. One question that was not answered was whether or not the Commission and City Hall would support city guarantee of half of the $410 million bonds if McEagle fails to monetize them. Geisman has indicated in press statements that the city is not supporting such backing at this time, and that the final TIF application will be much changed.

The TIF Commission meeting shows that the city is serious about completing a redevelopment agreement by year’s end, and also serious about negotiating with McEagle to craft a better deal for the city. It’s time for citizens who want changes made to speak clearly and carefully. What should be changed? How?

Categories
North St. Louis Northside Regeneration

NorthSide TIF Hearing Should Be Held in Evening When Public Can Attend

The agenda for tomorrow morning’s meeting of the Board of Tax Increment Financing (TIF) Commissioners contains an agenda item for which we were all waiting:

RESOLUTION NO. 09-TIFC-312 – RESOLUTION AUTHORIZING THE ISSUANCE OF A “NOTICE OF PUBLIC HEARING,” TO BE HELD ON SEPTEMBER 23, 2009 AT 8:00 A.M. FOR THE NORTHSIDE REGENERATION TAX INCREMENT REDEVELOPMENT PLAN FOR THE NORTHSIDE REGENERATION TAX INCREMENT REDEVELOPMENT AREA

Many people affected by the NorthSide proposal have been waiting for notice that city government was proceeding with its approval process. Since May 21, all residents and business owners knew were the suggested dates offered by McEagle Properties at a meeting.

However, a TIF Commission public hearing held at 8:00 a.m. is not likely to give many affected residents and property owners the chance to attend and provide input on the project. Of course the TIF Commission is considering only the TIF portion of the project, and its members are not in a position to consider other aspects of the project, but the public is likely to have a few comments on the size of the TIF package, the parts of the project on which the money will be spent and other relevant matters.

The TIF Commission should set its public hearing for the evening, not the early morning. Many TIF deals generate few comments, but the scope of NorthSide demands special care be given to duly including the public. The TIF Commission should not let people hijack the hearing as a de facto forum on the development project itself, but it should allow ample time for relevant testimony.

How about a 6:00 or 7:00 p.m. hearing?

A look at the slide shown by McEagle on May 21 indicates that the project’s approval process is two months behind McEagle’s desired schedule.

Categories
North St. Louis Northside Regeneration

NorthSide’s Discussion Board Gone?

by Michael R. Allen

After a one month, McEagle’s discussion board for NorthSide vanished from the Internet today. On the forum page is the message “We are currently in the process of restructuring our discussion board. Please check back in the future for updates.”

The discussion board recently had sprouted spam threads with titles including “R82 in Lexington buy xenical and propecia online,” “husband that is cheating?” “How to Plan and Build a Business Part-Time.”

Besides the spam, the fboard was notable for its silence. On July 10, blogger Rick Bonasch posted “Mum’s the word at McEagle’s NorthSide forum” at the NorthSide Blog, noting the lack of replies from McEagle to questions and comments posted on the board. On the board, after several posters including myself asked when answers might be coming, Julie Gagnon of McEagle responded that McEagle would handle responses at weekly project meetings and report back to online readers. No such post was ever made.

Categories
New York City North St. Louis Northside Regeneration Planning

From Done Deal to Dead Deal?

by Michael R. Allen

Next American City has an article by Katherine Mella entitled “Atlantic Yards: A Crash Course” that provides a great overview of Forest City Ratner’s controversial Brooklyn mega-project centered around a new sports arena.

The supposedly “done deal” project was pushed through at the state rather than local level to head off opposition. Aggressive agents made over-market-value offers to secure control of key property around desired public land (underused Metropolitan Transit Authority rail yards). Atlantic Yards bolstered political support by lining up labor leaders, clergy and others who typically might oppose a large project and mass use of eminent domain. To woo the urbanist community, Forest City Ratner hired superstar architect Frank Gehry to design the complex. Residents who would be pushed out by the project have always had an uphill struggle.

There are many parallels to the NorthSide project. However, one thing about Atlantic Yards that we have not seen with NorthSide is a political swing in favor of opposition. Mella’s article concludes by noting that Atlantic Yards has lost much of its initial advantages:

Being able to borrow money and raise capital in this fiscal climate has placed the project at a severe disadvantage. And with a less than exciting main attraction, resolute local opposition, and legal and financial hurdles, it is hard to say if Ratner’s Atlantic Yards will ever — or even ought to — come to fruition.

I suppose the perils of large-scale development have never been as clear as now. Atlantic Yards may have killed itself through sheer folly of its ambitious scope and clumsy execution. The development team behind NorthSide should take heed.