Judge Agrees to Release Feds from City's Evergreen Terrace Suit

The negotiated deal in which the federal government has agreed to drop legal action to stop the city of Joliet from purchasing Evergreen Terrace Apartments through condemnation was approved Tuesday by a federal judge. Here is a news release from the city's legal firm, Figliulo & Silverman, on the settlement, which Joliet Patch wrote about last week when it was approved by the Joliet City Council:

In a settlement approved in federal court Tuesday, the U.S. Department of Housing and Urban Development and the U.S. Department of Justice agreed to drop all of their claims and defenses to Joliet’s efforts to condemn a dilapidated apartment complex after a lengthy court battle.

The Hon. Charles R. Norgle of the U.S. District Court in Chicago approved the settlement between the city of Joliet and HUD after HUD agreed to drop its defenses to Joliet’s efforts to acquire the 356-unit Evergreen Terrace housing project. The housing project is located near downtown Joliet on 10 acres in the 300 block of North Broadway Street, adjacent to the river and Bicentennial Park.

The city has long asserted that the Evergreen Terrace project is blighted and an unsafe place to live. In addition to HUD, which was represented by the U.S. Department of Justice and the U.S. Attorney’s Office, the owners, controlled by the Gidwitz family, and four tenants represented by the Shriver Poverty Law Center and Jenner & Block have opposed the eminent domain action, claiming the housing project is not blighted and that the city’s plans to acquire the property and redevelop it with other affordable housing and a park was discriminatory and violated the Fair Housing Act.

Now, after more than one year of trial, HUD has agreed to drop its defenses, dismiss its allegations of discrimination and, if Joliet prevails in its case against the owners and four tenants, work with Joliet to redevelop the site and provide funds to promote affordable, safe and decent housing in Joliet.

HUD also agreed to reinstate millions of dollars in grants to the city of Joliet to be used to help those in need that the federal government had been withholding based on HUD’s allegations of discrimination.

One of the trial counsel for Joliet, Jim Figliulo of Figliulo & Silverman, P.C., praised the settlement. “This settlement is a victory for the city of Joliet, its citizens and the residents of Evergreen Terrace. It is not easy for a local government to stand up to the power of the federal government. Joliet has successfully done so in this case,” Figliulo said.

“The U.S. Attorney and the Department of Justice settled this case and finally dismissed their unfounded claims of discrimination. It is a good day when a local government can stand up for its rights against the power of the federal government and be vindicated. This settlement is one of those good days,” Figliulo said. “Millions of dollars in federal grants that have been withheld for years will now be reinstated to Joliet to help those in need. Unfortunately, it took years to obtain that result.”

In October 2005, Joliet officials passed an ordinance finding that the Evergreen Terrace was blighted and authorized action to acquire the property by eminent domain in an effort to resolve longstanding problems of crime and unsanitary conditions at the apartment complex. The city’s plans call for redeveloping the property into safe and affordable housing and a park, and using HUD funds to assist in that public effort.

The owners of Evergreen Terrace opposed the eminent domain action, alleging that the city’s findings of blight were a pretext and that the city’s action was discriminatory and a violation of the Fair Housing Act. The federal government intervened and in 2009 filed similar claims against Joliet, also alleging violations of the Fair Housing Act. Four tenants also intervened, making similar claims against the city.

All of the claims were consolidated, and on Sept. 27, 2012, a trial began before Norgle to decide whether Joliet had a valid public purpose to acquire Evergreen Terrace or whether the city’s asserted public purpose was a pretext and a violation of the Fair Housing Act.

Although the settlement resolves all of those issues between the federal government and Joliet, the eminent domain action and fair housing claims and defenses by the Gidwitz family and the four tenants have not been settled, and the trial continues between Joliet and these parties.

Under the settlement, if Joliet prevails in the eminent domain case against the owners and four tenants and acquires the property for just compensation, the city would have the option to develop the property with a combination of affordable housing, a community center and other park or other residential uses. The city and HUD will, through vouchers, which are funded by HUD, and other efforts, provide subsidized housing for all Evergreen Terrace residents either at Evergreen Terrace or elsewhere in Joliet, Will County, or other Section 8 housing of their choice.

The settlement includes provisions that would give tenants at least a year’s notice before any physical redevelopment occurs. The city also agreed to make sure that at least 115 units would be available in Joliet for subsidized housing.

The city of Joliet is represented by James R. Figliulo, Peter A. Silverman, Stephanie D. Jones, Carl A. Gigante, Thomas D. Warman and Melissa N. Eubanks, all of whom are attorneys of the Chicago litigation firm of Figliulo & Silverman, P.C.