Breakthrough leads to sale of city-owned historic building in downtown Belleville
Belleville City Council has agreed to sell a deteriorating city-owned building and vacant lot in a downtown historic district after more than two years of negotiation and controversy.
Earlier this month, the developers accepted the terms of a sales contract with a purchase price of $48,816 for 123-127 Mascoutah Ave. Aldermen unanimously approved it at their meeting Tuesday night.
The breakthrough was made possible by changes in the project proposal, according to developer Kathy Mordini, who is partnering with her daughter, Kinsey Mordini. Both are real-estate agents.
They dropped the idea of a “business incubator” with weekly outdoor pop-up markets for artists and other vendors in tents or kiosks; a commercial kitchen for cooking classes; and rental space for baby showers and other events.
“That’s what the City Market will be,” said Kathy Mordini, who had argued that their original concept would face too much competition from an indoor market proposed by Mayor Patty Gregory for a city-owned building next to Belleville City Hall a few blocks away.
Kathy Mordini now plans to move the office of her current business, Avenue Realty Associates, into the second floor of the 1887 brick storefront at 127 Mascoutah Ave. at Abend and Lincoln.
The first floor will be used as a “community space,” defined in the new project proposal as an “indoor and outdoor space for nonprofits and businesses to host community events.”
The changes will increase the “financial security” of the project, giving it a greater chance of success and reducing the possibility of default on requirements in the sales contract, according to Kathy Mordini.
“We want to do good things for the community,” she said. “If we have to pay a little bit more for the property than we think we should, then so be it.”
The Avenue Realty Associates office is now in a building owned by Kinsey Mordini at 122 Mascoutah Ave.
The Mordinis expect to spend more than $200,000 to renovate the storefront at 127 Mascoutah Ave. It’s in Old Belleville Historic District so it must meet guidelines to maintain its historic character on the outside.
The interior of the 2,400-square-foot building presents other challenges.
“It doesn’t have a furnace,” Kathy Mordini said. “It doesn’t have plumbing. There’s no electricity. We’ll have to get bids again because things have changed, but it’s going to be a pricey venture to get that place up and going.”
A private appraiser hired last year by the city appraised the building and lot at $72,000.
The City Council’s Economic Development and Annexation Committee came up with a discounted price of $48,816, using a formula designed to promote the sale and redevelopment of buildings that have been acquired by the city but are no longer needed.
The Mordinis balked at the price, characterizing the appraisal as unrealistic given that the building had been vacant for more than 25 years.
“It’s comparable to a lot of the properties I’ve sold for the historical society,” Kathy Mordini said in January. “When they’re in this condition, they’re selling more in the $20,000 to $30,000 range, if you’re lucky.”
But the Economic Development and Annexation Committee stood firm on the price and terms of the sales contract.
The Mordinis are buying the property under the corporate name Avenue Developments. They have two years to complete renovations and obtain a city occupancy permit, according to the contract. Then they must operate their business for five years.
If they default on the first requirement, they could be forced to return the property to the city. If they default on the second requirement, they would have to pay back the $23,184 discount.
“Roughly, it’s a five- to seven-year commitment, depending on how quickly she gets it rehabbed,” said Cliff Cross, the city’s director of economic development, planning and zoning.
The Mordinis first expressed an interest in obtaining the Mascoutah Avenue property in early 2021. Since that time, decision-making has been marked by controversy and frustration on all sides.
Early on, the Mordinis claimed that city officials privately indicated they would be willing to sell the building and lot for $1 to get them renovated and back on tax rolls. City officials have repeatedly denied that claim and defended the process as fair and transparent.
Here is a partial timeline of the property:
- The storefront at 127 Mascoutah Ave. was built in 1887 for Schopp Brothers Saloon. It housed taverns for 55 years.
- The building was used for other businesses until 1996, when a Hair Designers salon moved out.
A previous owner tried to open a microbrewery, but disagreements with city officials led him to locate in Swansea.
St. Clair County eventually acquired the property for back taxes.
- The city of Belleville bought the vacant lot at 123 Mascoutah Ave. for $3,257 in 2009 and the building for $23,000 in 2010.
- Officials essentially turned the property over to the Gustave Koerner House Restoration committee to be converted into a welcome center for the nearby historic site.
- Committee members determined that they couldn’t come up with the needed funds for renovations.
- The Mordinis told city officials they were interested in obtaining the property in early 2021.
- The city posted a request for proposals in April 2022, and the Mordinis submitted the only proposal.
- The Economic Development and Annexation Committee recommended the project to Belleville City Council the following May.
- Aldermen tabled the decision after some residents of Old Belleville Historic District voiced opposition related to noise, traffic and other issues.
- Other neighborhood residents supported the project, noting that the building’s dilapidated appearance had created an eyesore.
- Some people complained that the first project-proposal process was rushed. Aldermen asked city staff to post a second request for proposals in hopes of getting other ideas.
- After a six-week submission period, the Mordinis were again the only developers to submit a proposal.
This story was originally published June 21, 2023 at 6:50 AM.
