Demolition of several uninhabitable Springfield apartment buildings is on hold despite a local judge giving the green light to raze the structures.
The five structures are part of the 23-building Olde Towne apartment complex, located at the corner of Jefferson Street and Bruns Lane. Shortly after a judge ruled in the city's favor, the financial institution that holds the mortgage appealed.
"A bank out of New York appealed that decision to the Fourth District Appellate Court, so that is where the case is sitting. We are scheduled to have oral arguments before the court in a couple of weeks," Kateah McMasters, senior assistant corporation counsel for the city of Springfield, said.
In its appeal, the lender contends the buildings are worth more than the value ascribed to them by the city, she said. Although the case is pending before the appellate court, a circuit judge cleared the way for the city to take all the steps short of demolition.
"We've disconnected all of the utilities: gas, electric, water," McMasters said. "We have conducted asbestos testing on the buildings to be demolished and we have awarded a bid that includes asbestos mitigation and demolition of those buildings. The successful bid was in the amount of $508,000. ... We have that contract ready to go as soon as the court gives us a decision."
The complex, which was vacated in April, is owned by two New York investors who city officials say have told them they lack the money to make the necessary improvements. The current owners purchased the property at auction in November 2020 and paid $5.25 million for the 218-unit property, according to Sangamon County tax records.
McMasters said five buildings are on the city's list for immediate demolition. The city is seeking to have another three leveled at a later date. She said the appeal adds an element of uncertainty to the complex's future, noting even if the city wins its appeal, it could take months before a decision is rendered.
In the meantime, there is concern the vacant buildings will become homeless encampments.
"Periodically there are people in there, and we've had to go in and make sure that it's secured," Ward 9 Ald. Jim Donelan, who represents the area, said.
He added that it is his hope that the buildings not slated to be razed will be rehabilitated.
Donelan said at least two local developers, whom he declined to identify, have expressed interest in renovating the remaining buildings on the site.
"I'm hopeful. But at one time, the owners were just asking too much money for a property that has problems," he said. "It would be nice if somebody local that we know would care for the property – a developer that would truly put some funds into it and make it a viable, successful complex again – because there's a need for this type of housing in Springfield.
"And I'd love to see that section of the city thrive. ... (We need) affordable apartments that people could rent that are nice. We see them in other areas of the city. There's no reason why we shouldn't see them in the northwestern part," Donelan said.
The sprawling apartment complex was once one of the largest in Springfield and catered mainly to working-class people. The remaining tenants were forced to move out last spring after CWLP shut off the water and power. At the time, a spokesperson for CWLP told Illinois Times the city was owed more than $100,000 for water service to the apartments and electricity for the common areas.
