Swansea trustees debate ‘build-to-rent’ subdivision as neighboring mayors weigh in
“If Swansea doesn’t do it, another municipality will.”
Some version of that point always seems to make its way into discussions about a proposal to annex and rezone 49 acres of farmland for a controversial new subdivision in a now-unincorporated area, where four municipalities are quickly converging.
But mayors of Fairview Heights, Shiloh and O’Fallon said the developer hasn’t approached them, and that annexation isn’t even possible for the city of Fairview Heights.
“The land isn’t contiguous to our boundary,” said Mayor Mark Kupsky.
The proposed subdivision, called White Oak Commons, would be north of Thouvenot Lane, which connects with Frank Scott Parkway, between Old Collinsville Road and Hartman Lane.
The project has faced opposition from some area residents because of its density and potential impact on everything from traffic congestion to workload for village police and firefighters. Some 274 homes would be built 10 feet apart and rented, not owned.
Dawn Elser, superintendent of Central School District 104 in O’Fallon, expressed concern last month about possible overcrowding at the grade school and middle school where subdivision residents would send their children.
If developers were to approach Shiloh, their plan likely wouldn’t be approved in its current form, according to Mayor Bob Weilmuenster.
“It doesn’t meet our zoning requirements for square footage or distance between homes,” he said. “We have those requirements for a reason. It’s about quality of life for our residents (and consistency among neighborhoods).”
O’Fallon Mayor Herb Roach declined to comment specifically on White Oak Commons but said any subdivision in the city goes through a rigorous process to ensure it meets zoning standards. Officials recently asked the developer of an apartment complex to reduce density by 25%.
Roach said he would also inquire about the developer’s reputation and plans for subdivision ownership.
“Is it something that’s going to be owned for six months, then they’re going to sell it off?” he asked. “Or do they split it up with multiple owners? If you’ve got multiple owners, that can cause problems because maybe one group takes care of its facility and another group doesn’t.”
A subdivision of rental homes with one owner in O’Fallon would be zoned multi-family under city ordinance, putting it in the same category as apartment complexes. That allows 16 units per acre.
Kupsky said the proposed Swansea development doesn’t seem that much different from a townhouse or condo complex, and he would be focused on quality of construction if it were coming to Fairview Heights.
Tie-breaker causes delay
A Georgia company called Next Chapter Neighborhoods plans to buy the 49 acres from Hospital Sisters Health System if the Swansea Board of Trustees agrees to annex it and rezone it from farmland to planned business district. The land is listed at $1.96 million.
Trustees were expected to decide at a board meeting on Sept. 6, but the vote was postponed until Sept. 19 on recommendation by Dan Rousseau, an associate of John Kurowski, the village’s attorney.
At issue was a vote last month by Swansea Mayor Mike Leopold to break a 3-3 tie in the board’s Community and Economic Development Committee, which was deciding whether to send the question on annexation and rezoning to the full Board of Trustees. He voted “yes.”
On Sept. 6, Rousseau told committee members that the mayor’s vote violated board rules, as White Oak Commons opponents had argued. The committee revoted 5-1 to send the question to the full board on Sept. 19. At-large Trustee Richard “Rocky” McDonald voted “no.”
“I thought it should’ve gone back to the Planning and Zoning Board for more review,” he said.
McDonald said officials have received information about the project and process that wasn’t known when citizens on the village’s Planning and Zoning Board voted 3-3 in July on whether to recommend the annexation and rezoning to the Board of Trustees via the Community and Economic Development Committee. One member was absent.
McDonald said he would like more direction from Planning and Zoning Board members, who are tasked with studying projects, before casting his final vote.
“I think the density (of the subdivision) is very high, but we haven’t seen a detailed plan, so I’m going to try to keep an open mind,” he said. “Information isn’t bad. Information is good. Having all the information allows you to make an educated decision.”
McDonald said one of his questions is whether a vote for annexation and rezoning would tie the village’s hands in any way later or keep officials from requiring certain changes to the development plan during the plat-approval process if they saw fit.
Mayor Leopold didn’t respond to requests for comment on White Oak Commons.
Planning and Zoning Board Chairman Justin Chapman declined to comment, as did Andrew Malzer, vice president of development for Next Chapter. He had traveled from Georgia to attend committee and Board of Trustees meetings on Sept. 6, expecting a decision.
It’s not known how much municipal property-tax rates figured into the developer’s choice of where to seek annexation. Rates in 2021 were .1444% of taxable value for Shiloh, .8235% for Swansea and .8358% for O’Fallon (city and library), according to the St. Clair County Tax Computation Report.
All are significantly lower than Belleville’s rate of 2.3323%. Fairview Heights doesn’t levy property taxes.
$300,000 in tax revenue
Swansea would receive about $168,000 in annual property-tax revenue if White Oak Commons were built in the village, according to Village Administrator Ben Schloesser.
That’s in addition to nearly $127,000 in per-capita revenue from motor fuel, transportation, cannabis and other state funds, based on an estimated 570 residents in the subdivision.
“With property taxes and those per-capita funds, we’re approaching $300,000 on an annual basis,” Schloesser said. “The nicest thing is that this is a private development, so we’re going to get all these residents (and revenue), but we don’t have to pay to repair their roads.”
If built, White Oak Commons would follow a national trend of “build-to-rent” subdivisions, which are billed as an alternative to apartment complexes for people who can’t afford or don’t want to buy.
Several area residents voiced opposition to the development at a Planning and Zoning Board meeting on July 12, citing potential problems related to traffic, property values, stormwater runoff, subdivision maintenance, first responders and school overcrowding.
At the Sept. 6 meetings, opponents included several residents of Bristol Hill, a traditional subdivision of single-family-owned homes in Swansea, directly west of the HSHS land.
“We know that the property is going to be developed,” said resident Janet Kaemmerer. “My issue is the number: 274 homes crammed 10 feet apart. I think that’s too much.”
Kaemmerer said Next Door representatives have promised around-the-clock maintenance, regular power-washing of homes and other actions to keep the subdivision nice, but there’s no agreement with the village that the company will retain ownership.
Next Chapter, which is based in the Augusta suburb of Evans, Georgia, sold its two other similar developments in Georgia and South Carolina. It’s now building a third in Fort Wayne, Indiana.
“I feel like Swansea has not made any statements on how they’re going to protect us,” Kaemmerer said.
All six Swansea Board of Trustees members serve on the Community and Economic Development Committee. On Aug. 15, Trustees Jeff Parker, Brian McGuire and Matt Lanter voted to send the question of annexation and rezoning to the full board, according to Village Clerk Tyler Thompson. Trustees Cary Lewis, Marilyn Neumeyer and McDonald voted “no.”
Malzer, the Next Chapter vice president, said last month that the market was “absolutely screaming” for developments such as White Oak Commons, and a report by Swansea Building and Zoning Director Joe Iliff referenced a strong demand for housing in the area.
Shiloh Mayor Weilmuenster said he’s not sure if more rental units are the answer.
“Right now, there are a lot of apartments that are right up against our border, and you have to wonder when there’s a saturation point, and whether you can get the rents that they’re asking (for White Oak Commons),” he said. “It’s kind of like having a gas station on every corner. They’re not all going to survive.”
Rents at White Oak Commons would range from $1,200 to $1,400 for one-bedrooms, $1,400 to $1,600 for two-bedrooms, $1,600 to $1,900 for three-bedrooms and $1,900 and up for four-bedrooms, according to Malzer.
This story was originally published September 14, 2022 at 5:30 AM.
