What’s the future for Belleville’s economy? Mayoral candidates tout their views

The fate of two former hotels in Belleville has been highlighted by mayoral candidates as they’ve talked ahead of Tuesday’s election about their vision for economic development in the city.

One of the challengers, Patty Gregory, said the rundown condition of the former Executive Inn on Centreville Avenue hurts the economic prospects of the city.

The incumbent, Mayor Mark Eckert, said the $14.2 million restoration of the former Hotel Belleville/Meredith Home into a senior housing development called Lofts on the Square is a sign of economic progress in the city.

Gregory, the founder of Art on the Square, is on Tuesday’s ballot facing off against Eckert. Jeffrey “J.D.” Dixon, who has led demonstrations for racial and social justice, is running as a write-in candidate.

The BND has talked to the candidates and reviewed their comments on the campaign trail about their plans to improve Belleville’s economy, with issues including the Executive Inn, the Lofts on the Square, the proposed extension of TIF 3, the future of the Lindenwood University and St. Elizabeth’s Hospital sites and the handling of vacant properties in the city.

Executive Inn dispute

“How can we attract businesses, housing and economic development into a city when we have properties that actually look like this?” Gregory said in a video she posted on Facebook. The video shows broken out windows at the former Executive Inn at 1234 Centreville Ave.

“Does this administration allow things to snowball until the properties are such a problem and such a mess that it just becomes overwhelming?”

Gregory also said the vacant, dilapidated building causes neighboring property values to diminish.

In response, Eckert said the city has been battling the Executive Inn owner for several years to get the site cleaned up.

A lawsuit was filed against Manhar Bhakta on Oct. 16 and a judge has ordered Bhakta to submit a demolition plan by April 19.

“Now the lawsuit’s filed and we’re hopeful,” Eckert said. “But I’m just saying, it’s easy to say what somebody else should do until you’re in their shoes, or you’re in that office.”

Bhakta, who also owns the Belleville Inn & Suites on South Belt West, wants the city to help him tear down part of the Executive Inn building and repair another part.

Eckert said the city received an estimate that it could cost $800,000 to clean up the site. He added that the site is not in TIF 3 and isn’t eligible to receive funds which could be used to help pay for improvements.

“It bothers me greatly,” Eckert said of the Executive Inn site. “But the city of Belleville doesn’t have an extra $800,000 to just take it on ourselves.”

Eckert noted that the Illinois Environmental Protection Agency also has taken action regarding the former hotel. A representative of the EPA was asked about the status of the site but has not yet released information on it.

Bhakta said he recently spent $12,000 to surround the building with a fence topped with barbed wire.

Lofts on the Square

Eckert cited the Lofts on the Square project as a sign that the city’s economy is growing under his administration.

Renovation of the former Hotel Belleville/Meredith Home building began last year and is expected to be completed in July for seniors to move into new apartments.

It is being developed by the Southwestern Illinois Development Authority, also known as SWIDA, which is working on the project with St. Louis-based Bywater Development Group.

“It’s looking great inside,” Eckert said about a tour he recently took to see the reconstruction.

The building, one of the dominant structures on the Public Square, was built in 1931 and operated as the Hotel Belleville. It later was the Meredith Home for retirees and operated by the Diocese of Belleville.

Here’s the city’s stake in the project: Belleville bought the building from the diocese for $487,500 in 2010 and spent $121,000 to repair the roof in 2016 after deciding not to tear it down as once proposed.

Those costs totaled $607,500 but the Lofts on the Square developers paid $600,000 to buy the building from the city. The city has agreed to pay up to $426,000 over a 10-year period for rental vouchers but a development agreement calls for SWIDA and Bywater to seek federal rent vouchers so the city could stop funding them.

If the Lofts on the Square opens as planned, the six-story building would return to the property tax rolls and could yield $30,000 annually in property tax revenue.

Mike Lundy, the executive director of SWIDA, said the first floor of the building is expected to be commercial space but a tenant has not been lined up. For more information about the project, email to info@swida.org.

TIF 3 extension

The winner of Tuesday’s election will have to deal with the consequences of the possible loss of Tax Increment Finance funding since the TIF 3 district is scheduled to expire on Dec. 31.

Belleville has proposed a plan to extend TIF 3 for 12 years. Money generated by TIF 3 has been used to help pay for a new police station on West Main Street, a new firehouse off Illinois 15, renovations at City Hall to comply with the Americans with Disabilities Act, sewer system improvements, streetscape projects and as tax incentives for businesses.

In the 2019-20 fiscal year that ended on April 30, 2020, the district had about $11.7 million in expenditures with about 38% of that being sent to local school districts, according to city records.

The mayoral candidates were asked in the BND candidate questionnaire about how they would handle TIF 3.

Dixon initially said on his questionnaire that he wants residents to decide the future of TIF 3, but during a mayoral debate on Thursday, he said TIF 3 should not be extended.

“I plan on running a government empowered by the people where they will be involved in every aspect of our local government,” he wrote in his questionnaire response. “The people need to weigh in on this matter and we need to see what they want.”

Eckert said he supports the proposal to extend the TIF.

“I believe Belleville has used TIF very effectively,” he wrote in his questionnaire response. “TIF has allowed us to repair many streets, sewers, attract new businesses, demolish many derelict buildings, purchase equipment, and repair city buildings.”

Gregory said an audit is needed before she would support a plan to extend the district.

“I will be doing a special audit to look at all TIF funding and spending. After that is completed, then I can decide on whether the TIF 3 extension of 12 years is necessary,” she wrote.

Michael Hagberg, a former Belleville Township trustee, said if TIF 3 is allowed to expire, he estimates that a homeowner with a $150,000 home could save $300 in property taxes.

Jamie Maitret, the city’s finance director, however, said “That’s not very likely” because the city and school districts that benefit from TIF 3 will likely need to adjust their tax levies to compensate for the lost revenue. She the “best case scenario” would be that a homeowner’s property tax bill would be about the same.

TIF 3 was created in 1986 and covers most of the city.

To get the TIF to extend for another 12 years, the city needs to have the St. Clair County Board and 10 area school districts agree to the extension. As of this past week, the city had not received an answer from any of these districts about whether they want to keep TIF 3 in place.

If the area districts agree to the plan, the city would have to get state lawmakers to approve the extension.

Eckert said state lawmakers want unanimous support from the local districts or otherwise the issue would not be introduced.

If the extension is approved, it would bring the TIF’s lifespan to 47 years.

TIF supporters say the money is used to improve infrastructure, help raise commercial property values, and assist businesses that produce significant retail sales tax revenue needed to run the day-to-day operations of the city.

TIF opponents say the sites getting TIF assistance would be developed anyway and that it allows a local government to pick the “winners” who get a TIF grant while other companies don’t get a grant.

Lindenwood and St. Elizabeth’s sites

During the mayoral debate Thursday, the candidates were asked about their ideas for the Lindenwood University campus in the former Belleville West High School site and the former St. Elizabeth’s Hospital site in downtown Belleville.

Both sites are currently privately owned by the respective organizations.

A Lindenwood spokeswoman said in an email that the university “is considering opportunities to sell this property in the future.” After shutting down its undergraduate program, Lindenwood recently sold more than 50 homes and apartments once used for student housing for about $4.45 million.

After moving to a new hospital along Interstate 64 in O’Fallon, St. Elizabeth’s tore down most of its downtown Belleville buildings and has listed 14.4 acres for sale with Balke Brown Transwestern.

Dixon said he wants the residents to be involved in the future development of the sites.

“I think that will bring us the best benefit for the city because the people will be completely involved,” he said. “And they’ll be able to decide what happens in their community.”

Eckert said he has spoken to Belleville Bishop Michael McGovern about the possibility of senior housing on the St. Elizabeth’s site, similar to the nearby The Cottages at Cathedral Square. However, he suggested the St. Elizabeth’s development would be good for residents who wanted to live in the Cottages development but were not allowed to because they did not meet income restrictions.

He said he would like to see a pharmacy and grocery store on the site.

As far as Lindenwood, he said city officials have been working to find someone to take over the campus at 2600 W. Main St.

“I can tell you, I have had many meetings even in the last six months about Lindenwood alone. There are some possibilities,” he said.

Eckert said he would like to see someone “take advantage” of the “state of the art” Illinois State Police forensic laboratory next to the college.

Gregory said she also would like to see a connection made between the crime lab and the Lindenwood University campus.

“I have long thought about collaboration with the crime lab,” she said, adding that she had spoken to a former Lindenwood official years ago about this possibility.

Gregory said as far as the St. Elizabeth’s site, she said, “We could have a new pool there. Because we need something for our youth.”

Belleville closed its municipal pool in 2012 but does plan to build a splash pad in Bicentennial Park this year.

She also said that a project like the Cottages at Cathedral Square would be a “wonderful idea.”

“One of the most important things that we can do is get companies in with higher paying jobs. Therefore, people will want to invest in the St. Elizabeth property.”

Vacant houses

Gregory has raised concerns about Eckert’s handling of the city’s vacant building ordinance, which was passed in 2018.

“We are still not following vacant housing codes,” Gregory said. “We are not following codes to clean up in having cars that have no tires on them. A lot of this could be cleaned up if we sat down, reviewed everything on the books and see where we need to address these issues.”

Gregory echoed concerns raised by Ward 4 Alderman Raffi Ovian who spearheaded the vacant building ordinance in an effort to to increase property values and bring in new residents.

Ovian criticized Eckert and city officials for “not enforcing” the ordinance.

In response, Eckert said properties have either been torn down or repaired in Ovian’s ward and that there are seven other wards that also need attention. As far as the ordinance, Eckert said there has been turnover in the housing department and a new director recently took over and that he will address the issue.

Also, more 20 homes have recently been demolished through a state grant.

Each of the city’s 16 aldermen can submit one vacant property to be considered in the vacant building program. Then, the housing department is supposed to determine whether the home or building should be cited. Property owners can be told to submit a plan to either make repairs or demolish the building.

What do the candidates say?

In interviews with the BND, Dixon, Eckert and Gregory each outlined their thoughts on economic development in Belleville.

Here are highlights of the candidates’ comments:

Jeffrey ‘J.D.’ Dixon

Dixon said he wants to support new business starts in Belleville.

“As I’ve been campaigning, especially talking with minority small business owners, they have told me they have had problems as far as procuring business licenses and ... things of that nature in order to do business here in Belleville.

“They’ve had problems procuring easy licenses, that should only take maybe 30 days, but instead it’s stretching out for a whole year. So that is something that definitely has to change and it’s something that I will change if I win mayor of Belleville.”

The U.S. Census Bureau has estimated that Belleville’s population dropped 7.7% between 2010 and 2019 and Dixon said the best way to stop the decline is to promote “social, racial, economic and environmental” reform.

“So for the ones that are moving out, they’re not liking the direction that Belleville is going in, and that’s why there is a definite need for change,” Dixon said. “There needs to be social, racial, economic and environmental change reform here in Belleville. And that is the way to not only stop people from moving out but bring people into Belleville to stimulate the economy and raise the population.”

Mark Eckert

Eckert said the city’s economy had to weather the COVID pandemic for the past year but he believes there were positive signs.

“We had 77 business occupancy permits issued in 2020 and that’s a pretty fair amount of new businesses that started in that year of very difficult economic times,” he said.

Along with the Meredith Home project, Eckert cited other examples of economic development, including a new assisted living facility called the Villas of Holly Brook off Frank Scott Parkway, a new McDonald’s and a new A&W restaurant to be built on Carlyle Avenue and a planned Freddy’s Frozen Custard in the Belleville Crossing shopping center.

“There’s a lot of hope for improvement and newness, even in a very difficult year to 18 months,” he said. “So we’re going to remain diligent, we’re going to remain working hard and optimistic. I just hate it when ... we tend to put a spin usually around election times that we’re not living to our potential.

“I think what we need to do is partner together and figure some of these challenges out and make them determine opportunities for the city.”

Patty Gregory

Gregory raised questions about the status of Belleville’s economy since Eckert took office in late 2004.

“I guess the big question to ask is, are we better off than we were 16 years ago? Have we seen growth?” she said.

“Have we seen new housing starts? Have we seen economic development with better paying jobs? And compare that to some of the things that we have lost. So is this working for us?

Gregory said the estimated population loss hurts the city’s economic prospects.

She said as director Art on the Square she constantly meets visitors who say they love the people of Belleville but that the city needs to do a better job of seeking economic development.

“They say good things about Belleville,” she said. “But yet, I don’t know if we promote, promote, promote. Do we actually go out and reach to learn about new developments? To learn about new businesses that might want to build here? I think we need to reach out more. We need to let them know we’re open for business and this is what we have to offer.”

This story was originally published April 3, 2021 at 7:00 AM.

Mike Koziatek

Belleville News-Democrat

Mike Koziatek is a former journalist for the Belleville News-Democrat