Laramie Bank project sheds one partner but Housing Center promises progress

Real estate developer put in receivership. New par tner being vetted

By IGOR STUDENKOV and MELODY MERCADO Austin Weekly News and Block Club Chica go

The effective shuttering of Heartland Housing, Heartland Alliance’s affordable housing unit, will slow down, but not stop, the redevelopment of the historic Laramie State Bank property, 5200 W. Chicago Ave., said Athena Williams, executive director of the Oak Park Regional Housing Center, a lead partner on the INVEST South/West project.

In 2021, the Austin United development team spearheaded by Williams’ organization and Heartland Alliance, a long-time Chicago immigrant assistance and anti-poverty organization, was picked as the winning bidder for the Laramie State Bank in Austin under the city’s INVEST South/West Program. That development broke ground in November with $47.7 million in city funds pledged to the conversion. But Heartland Housing ran into financial trouble during the pandemic, and in late May, the Cook County Circuit Court appointed Habitat Company as a receiver, taking over management of its affordable housing buildings.

Williams told this newspaper that the Austin United development team is currently working to choose another real estate development firm, and they expect to make a final selection by June 24. The Housing Center still hopes to begin construction this fall, and they expect it to finish up within another 18 months

Austin United plans to turn the historic bank building into office space, retail and a bank branch, and build a brand-new 78-unit, six-story apartment building with a public plaza on vacant land west of the bank. Williams said that they will build the housing first and begin renovating the bank buildin around 3 to 4 months later.

On May 11, the city of Chicago filed a motion in Cook County Circuit Court to appoint a receiver for Heartland Housing’s 14 affordable housing properties across the city, and a judge granted the motion four days later. That effectively took day-to-day control of those buildings from Heartland Housing and turned it over to The Habitat Company, a prominent Chicago real estate firm that manages a wide range of properties, from public housing to high-rent luxury buildings

A receiver is a court-appointed officer that acts as a neutral party to manage assets or properties when they are not being properly maintained or fall into legal or financial trouble. In its motion asking the court to appoint a receiver for the Heartland buildings, the city cited unpaid utility and trash bills, building code violations and the expected loss of its property insurance.

The lapse in insurance coverage could potentially impact low-income tenants by putting government subsidies at risk, the city stated in court filings. Those subsidies help keep rents affordable for the tenants in more than 800 units in those buildings.

“Heartland Housing is no longer able to manage its Chicago properties … as of May 31, 2023,” the city’s motion said.

Heartland Housing’s properties included Mae Suites, 148 N. Mayfield Ave. in Austin, and two North Lawndale apartment buildings at 1235 S. Sawyer Ave. and 1251 S. Sawyer Ave.

In a written statement, Ed Stellon, Heartland Alliance’s chief external affairs officer, stated that economic conditions coming out of the pandemic made it difficult for the agency to sustain the properties

“During the pandemic, federal mandates limited our ability to pursue rent collection and at the same time, rising inflation dramatically escalated our operating costs,” he stated. “We’ve also experienced the same staffing crisis as everyone else. In the end, de- spite our best efforts, these challenges proved too much for Heartland Housing to overcome financially.”

Heartland Alliance’s plan to sell Heartland Housing didn’t pan out, leading to its properties being placed in receivership, Stellon said.

Williams said she wasn’t aware of Heartland’s issues until January, shortly after Austin United got a building permit for the Laramie Bank project. Austin United was doing some due diligence, and city officials started to express concerns about Heartland Housing’s financial status and its impact on the Laramie Bank project, according to emails obtained by Block Club Chicago.

In an email to a city De partment of Housing official, Earl Chase, executive director of Heartland Housing, disclosed that his agency was parting ways with Heartland Alliance, the organization’s sole financial backer. Heartland Housing was in the process of being purchased by another “not-forprofit affordable housing provider,” Chase wrote.

“Subject to all required consents from lenders, partners, and other parties, closing is projected to take place later this year,” he added.

Chase’s message was shared with other top city officials, including Maurice Cox, commissioner of the Department of Planning and Development, and Samir Mayekar, then a deputy mayor overseeing economic development. A city lawyer said that Heartland’s shaky status could threaten the financing for the bank project.

“The entire deal’s credit underwriting is directly implicated with this news,” said Adam Walker, assistant corporation coun- sel for the city.

In a statement, officials with the city’s Department of Planning and Development said a changed partnership structure for the Laramie Bank project is under review “with Heartland Housing being re placed by an experienced residential developer.”

“Partnership details are expected to be finalized for a City Council introduction this summer,” officials said.

Ald. Emma Mitts (37th), whose ward includes the Laramie Bank site and who has been supportive of Austin United’s plans, said she still has confidence in the project.

“I am a firm believer in working with our city and community partners to assist people and build pathways that ensure every Chicagoan has affordable housing information, convenient retail resources, and diverse business opportunities to help them generate economic sustainability and generational wealth for the future,” she said.

Williams described the situation as a small stumbling block.

“We are moving forward. Nothing is stopping this train,” she said, adding that they had to “pause it for a while” as Heartland tried to sell its housing unit and went through the court process.

Williams said that, once the new real estate developer is selected, it shouldn’t take long for the process to restart again.

“They’d just to have to go through underwriting with the city and the lenders, and they’d have to go through 2 to 6 weeks,” she said. “I’m a believer that when there’s a will, there’s a way. The city has been very supportive. I’m now looking at the new partner and I’m hoping for continued support in the community and support from the funders.”

YOUTH SPORTS Unifying force

from page 1 tions and churches and the Chicago Police Department to provide opportunities for youth to participate in free baseball, basketball and archery. The goal of the league is not only to provide safe spaces for youth

LIBRARY North Avenue location

from page 1 agreed to set aside space on the first floor which the library district would purchase, condo-style, and build out into a library. But negotiations have stalled as the two sides are trying to settle on a purchase price.

Last week, Galewood Neighbors and The North Avenue District launched a petition urging the city to get back on track. Galewood Neighbors president Steve Green told this newspaper that Jakovljevic suggested that a show of support from the community might help. While the developer is still interested in having the library in his building, there is only so long he can live with the indecision before deciding to lease or sell the space to someone else.

At 12,000 square feet, the new space would be a significant improvement over on the West Side, but also to help them lear n valuable skills through sports

On Saturday, the baseball teams of kids in grades 3 through 8, posed at the stairwell of the Garfield Park Golden Dome to celebrate the start of the fifth season of the Chicago Westside Police & Youth Sports Conference. This season, they will be playing baseball in five West Side parks, including Columbus Park, Garfield Park, Moore Park, La Follette Park and Franklin Park Police officers from four districts – the 10th, 11th, 15th and 25th – par- the 400-square-foot room in the park district fieldhouse, which was closed for much of the pandemic simply because its dimensions made social distancing impossible. Jakovljevic deliberately built out the library space to comply with the code requirements for a branch library. In 2019, State Rep. Camille Lilly (78th) and now-State Sen. President Don Harmon (39th) put $600,000 for either building a new Galewood library or building out/renovating the existing building. The deadline to spend that money has been pushed back several times since then. While Ald. Chris Taliaferro (29th), whose ward includes all of Galewood, has been supportive of the project, the library district insisted the U.S. Bank building was just one of the several possible sites. In the past, they also brought up the issue of funding the larger library’s operations The most recent sticking point hinges on the value of the space.

During his May 27 community meeting, Taliaferro said the city sent an appraiser, and the price the appraiser came up with ticipate as coaches for the baseball teams, in partnership with a church and non-profit volunteer who also serve as coaches and mentors for youth.

Chicago Westside Sports was founded in 2018 by Lt. Jer maine Harris of the Chicago Police Department, Pastor Steve Epting of Hope Community Church and Stephanie Marquardt, executive director of City of Refuge Chicago.

Collaboration is at the center of the community volunteers and young sports players was too low for Jakovljevic. After some back and forth, the library system agreed the price was probably too low, so it’s sending a different appraiser. Taliaferro said that this may take another “3 to 4 months.”

He subsequently told this newspaper that, as of June 7, there hasn’t been any progress.

In a recent interview, Green said that Jakovljevic suggested that a petition showing that the community “still wants the library” wouldn’t hurt. They decided to time it until after the election was over and Johnson had a few weeks to settle in. But the new mayor’s approval, Green said, was vital for the project to get any traction.

Chicago’s library system is governed by a board of directors appointed by Chicago mayors. Furthermore, the library system works with the city on its capital projects, since it doesn’t have its own capital budget.

“It’s gone on for over 10 years, and left a lot of people frustrated, because Galewood residents wanted their own library,” Green said. “It seems like the closest we’ve been in a long time, there’s actually a place for experience, helping all community members work together in areas that have historically experienced high-crime and disinvestment in youth. it, the developer actually designed that first floor especially for the library, it’s perfect, it’s ready to go, it’s ready to be built out. So, to be so close and to have it fall through would’ve been very disappointing. We felt [the petition] would help to make a positive statement, to reinforce that people want a library.”

“The ‘three-legged stool’ model at Chicago Westside Sports is a true example of an allhands-on-deck approach,” the police department’s Harris said in a social media post.

Under this model, all parties -- churches, nonprofits and police -- work together to bring positive, lasting change for West Side youth.

Judith Alexander of the North Avenue District said her organization ag reed to help with the petition because they might be able to reach people Galewood Neighbors can’t.

“A library has never been more wanted anywhere than in Galewood,” she said. “They need a real library, and it will be used, absolutely no doubt about that. And the North Avenue location is absolutely a good one, because of the convenience. It’s on a couple of bus lines [CTA Route 72/ North Avenue and Pace route 311], and there’s ample parking.”

To sign the petition, go to https://for ms. gle/EAZygee v882VQUJN8

Public Notice

PUBLIC

Notice

NOTICE

Invitation To Bid To Metropolitan Water Reclamation District Of Greater Chicago

Sealed proposals, endorsed as above, will be submitted back to the District via an electronic upload to the Bonfire Portal only, from the date of the Notice for Request for Proposals, up to 11:00 A.M. (Chicago time), on the proposal due date.

CONTRACT 23-665-13

LANDSCAPE MAINTENANCE AT VARIOUS SERVICE AREAS (RE-BID)

Group A:

Estimated Cost: $ 600,000.00

Group B:

Estimated Cost: $ 375,000.00

Group C:

Estimated Cost: $ 225,000.00

Group D:

Estimated Cost: $ 138,000.00

Total Estimated Cost:

$ 1,338,000.00

Total Bid Deposit: None

Bid Opening: July 11, 2023

Voluntary Technical Pre-Bid Conference via ZOOM: Thursday, June 22, 2023 at 10:00 am CST.

Compliance with the District’s

Affirmative Action Ordinance

Revised Appendix D, Appendix V, Appendix C, and the Multi Project Labor Agreement are required on this Contract.

***************

The above is an abbreviated version of the Notice-Invitation to Bid. A full version which includes a brief description of the project and/or service can be found on the District’s website, www.mwrd. org; the path is as follows: Doing

Business > Procurement and Materials Management> Contract Announcements. Specifications, proposal forms and/or plans may be obtained from the Department of Procurement and Materials Management by downloading online from the District’s website at www.mwrd.org (Doing Business > Procurement & Materials Management > Contract Announcements). No fee is required for the Contract Documents. Any questions regarding the downloading of the Contract Document should be directed to email: con‑ tractdesk@mwrd.org or call 312‑751‑6643

All Contracts for the Construction of Public Works are subject to the Illinois Prevailing Wage Act (820 ILCS 130/1-et.seq.), where it is stated in the Invitation to Bid Page.

The Metropolitan Water Reclamation District of Greater Chicago reserves the right to reject any or all Proposals if deemed in the public’s best interest.

Metropolitan Water Reclamation District

By Darlene A. LoCascio, Director of Procurement and Materials Management

Published in Austin Weekly News June 14, 2023