City of Belleville sells vacant lots for $1 to developers who promise to build homes
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A program that encourages redevelopment in Belleville by essentially giving away city-owned vacant property that is no longer needed or wanted is getting a jump-start this spring.
The president and vice president of a Swansea-based construction company have made it their mission to acquire up to 37 of the city’s vacant lots, build “affordable” homes and sell them to families.
C.A. Jones Inc. has acquired titles for two of the vacant lots and is in the process of acquiring three more, according to Vice President Rick Swain, who also is a real-estate agent. Four families have signed contracts to buy homes. Construction has started on one.
“We’re in business to make money, so every time we build a home, obviously we benefit from the profit that we make,” Swain said. “Quite frankly, we build enough homes in subdivisions that we didn’t need this (Infill) program, but what a great way to give back to the communities we serve.
“Building these homes in St. Clair County, which is the No. 1 county that we serve, it’s a privilege, and anytime we can help out Mayor Patty Gregory, we definitely want to do that.”
In the past 12 years, the city has demolished about 100 derelict homes and other buildings and acquired lots by buying them at county property-tax auctions or foreclosing on liens from demolition costs.
The city’s Infill Redevelopment Program kicked off in 2019. It provides a framework for selling unwanted or unneeded vacant homes, commercial buildings or lots for $1 to developers who sign agreements, promising to meet building standards and complete renovations or construction in a set period of time.
Gregory said she’s been particularly interested in the program as a way to reduce city costs for mowing vacant lots.
“Second, I’ve always been interested in revitalization and rehabbing,” she said. “I knew the city had the (Infill) program, and I thought if we could get these vacant lots into the hands of homeowners, it would put them back on the tax rolls.”
Other goals are stabilizing neighborhoods, increasing home ownership and raising property values, particularly in older sections of Belleville, said Cliff Cross, the city’s director of economic development, planning and zoning.
While the Infill program also is designed to encourage renovation of derelict homes and commercial buildings, many young, working families don’t have time for that, Gregory said.
“There’s a certain group of people that love doing the rehabs,” she said. “But there’s also people who want to move into something brand new.”
74 vacant lots up for grabs
The city of Belleville owns hundreds of parcels of land. Some are used for government offices, parks, storage facilities and parking lots. Others are vacant lots or properties with vacant homes or commercial buildings on them.
The city bought some of the properties after the Great Flood of ‘93, according to City Clerk Jenny Meyer.
“We had a lot of flooding, and the federal government gave us money to buy (flooded) lots,” she said. “Those are properties we can never sell, per our agreement. They will always stay with us. We made them into green space.”
Last year, Meyer compiled a list of 74 vacant lots that the city would be willing to sell for $1 as part of the Infill program. Many already have utility hook-ups from demolished homes.
Cross said he’s been inventorying the vacant lots and talking to developers, trying to determine which ones are “buildable” based on size and other factors.
The economic development department posted a notice on the city’s website in 2021, inviting developers to get pre-qualified for the Infill program. Cross said only one, C.A. Jones Inc., submitted an application, although others have expressed interest.
“We’re only looking for quality, reputable developers who can perform,” he said. “We’re not going to give lots to people who are going to hold onto them for 20 years and do nothing with them.”
Some lots are too small for homes, Meyer and Cross said. Those may eventually be offered to neighbors who want to enlarge their yards.
City employees mow about 60 properties, including parks, said Jason Poole, public works director. The city also pays about $100,000 a year to a contractor who mows vacant lots and privately-owned yards with overgrown grass. Private owners are billed, but many don’t pay.
“The number of properties (that need to be mowed) has gone up, plus mowing costs have gone up,” Poole said.
Home prices start at $225,000
C.A. Jones Inc. has been in business for 28 years. The construction company builds about 100 homes a year, according to Swain.
Gregory said she met owner Mike Needles shortly after becoming mayor in 2021 and asked him to consider helping with Belleville redevelopment, but she welcomes other developers.
Those who buy vacant lots from the city for $1 as part of the Infill program must sign development agreements that outline what is expected in terms of building standards and construction timelines.
“Of course, (the homes) would have to be compatible with other homes in the neighborhood,” Gregory said. “If it’s an older neighborhood full of small bungalows, then you don’t want to see a huge modern house in the middle of it.”
C.A. Jones Inc. has acquired titles for two vacant lots, Swain said. One is at 24 Queensway Drive, where ground has been broken for a home under contract. The other is at 1008 Cart Road, which is still available.
The company is in the process of acquiring titles for vacant lots at 201 Portland Ave., 316 E. B St. and 1712 Scheel St., where homes already under contract will be built. It’s eyeing another 32 lots.
“We’ve got 10 more people in the pipeline right now who are working with lenders to buy (homes on) these properties,” Swain said. “So I think we’ll have 15 or 20 by the end of this year.”
C.A. Jones Inc. is offering five designs for frame homes considered appropriate for older neighborhoods and lot sizes that are available, including two-stories and ranches, with or without basements or garages.
Prices range from $225,000 to $500,000. The company is promising to complete homes four months after contracts are signed.
“We’re getting the lots for $1, and instead of our company marking that up and trying to make money off the lot itself, we’re passing the savings right along to our buyers,” Swain said.
“Most lots that we build on are typically priced somewhere between $30,000 and $90,000, so there’s an instant savings for these particular buyers of somewhere between $30,000 and $90,000.”
This story was originally published April 1, 2024 at 6:00 AM.
