Mayor: East St. Louis building ‘strong foundation’ despite struggles

By Bob Pieper For Chronicle Media

East St. Louis Mayor Emeka Jackson-Hicks

East St. Louis is building “a strong foundation” for eventual resurgence, Mayor Emeka Jackson-Hicks assured during her second annual State of the City meeting, Aug. 6, at the city’s New Life Community Church.

However, much of her ambitious blueprint for the renewal of the City of Champions remains “work in progress,” Mayor Jackson-Hicks acknowledges.

And severe financial problems —including the potential state “interception” of up to half of the city’s annual operating budget —continue to threaten the city’s progress, the mayor emphasizes.

Newly forged alliances with a range of regional and national entities could potentially bolster progress in the city, the mayor reports. So could strengthened grassroots alliances with the city’s residents and small businesses, through the ESTLProud, and ESTLEngaged programs, as well as a new system of neighborhood organizations, she says.

Continuing fiscal problems at City Hall include annual operating deficits which have been growing for years but never reported by past administrations,  Jackson-Hicks said.

A $3 million operating deficit for the current budget year reflects an “accumulation of failed agreements, bad contracts, lawsuits, and collective bargaining contract” from past administrations, which the mayor says she is now working to resolve, she said.

Similarly, the city has been underfunding its fire and police pension plan since the 1990s, she said.

Citing 2017 legislation designed to protect public pension plans, both the East St. Louis police and fire pension boards have now filed suit against the city; asking the Illinois Office of Comptroller to intercept sales tax and other revenues, due the city, for deposit in pension funds rather than the city’s general fund.

If that happens, the city will lose an estimated $7.2 million of its projected $18.2 million in general operating funds this year; necessitating layoffs, the mayor said.

City, union and pension board representatives are currently attempting to work out an agreement to avoid the intercept.

Complicating the city’s fiscal situation: turnover in the city manager’s officer over recent years and a city council that refuses to make “tough decisions” on key issues, the mayor says.

A series of six audits, commissioned by Mayor Jackson-Hicks and scheduled for completion in September, are expected to provide specific guidance on long-term remediation of the city’s fiscal woes.

In the meantime, the mayor maintains, the future of one of America’s most downtrodden cities could still be bright.

“East St. Louis is prime real estate,” Mayor Jackson-Hicks said, noting the growth of the St. Louis region — and particularly Metro-East — as an international inland port. “We are working to market our riverfront and to work toward bringing a port to East St. Louis.”

To capitalize on its potential, East St. Louis has joined the Mississippi River Towns and Cities Initiative, comprised of 80 mayors from ten states along the Mississippi Waterways and ports.

Strengthened relationships with the BI-State Development Agency, Southwestern Illinois Conference of Mayors, East-West Gateway Council of Governments, the Illinois Municipal League, and numerous other state federal and local entities will help to ensure “East St. Louis is not only at the table but is not being left out of decision-making that impacts our community,” Mayor Jackson-Hicks said.

The not-for-profit, New York City-based National Development Council (NDC) —which has sponsored economic development projects in all 50 states over its 49-year history — has been brought in to implement its economic development system and train city staff in the processes. The NDC creates jobs in underserved areas through its New Markets Tax Credit Program and through its Small Business Lending Program, NDC Grow America Fund.

The City of East St. Louis is operating under a $3 million budget deficit. Trouble also is ahead on paying out pensions to police and fire following a lawsuit filed by local pension boards against the city. (Photo courtesy of City of East St. Louis)

Gov. Bruce Rauner, with federal approval, recently named five East St. Louis tracts as Opportunity Zones, offering special incentives to attract private development in low income areas.

While city officials originally hoped to have the entity of East St. Louis declared an Opportunity Zone, the town netted the lion’s share of the seven zones designated in St. Clair County.

“At the root of all of this has been the work to restore and rebuild relationships on a federal, state, local, public and private level – realizing that good working relationships is at the foundation for our future growth and success as a city,” Mayor Jackson-Hicks said.

“And what this administration has done is work to foster relationships, build creditability that has been lost due to pass administrations’ lack of follow-through and shady business practices,” she added.

The city must promote a competitive edge for local business to grow.

“No longer are we just competing on a local, regional and national level but we are contending with communities on a global level,” said Jackson-Hicks. “Our economic priorities are to redevelop Downtown East St. Louis into an economic engine for the region and a hub for innovation, creativity, and cultural activities. Additionally, we are working to establish targeted economic revitalization and investment throughout our neighborhoods as well as grow and develop small business and build mixed-use developments,” she continued.

Funded through an innovative public-private partnership, the city’s $8 million River Bridge District Project along the Mississippi Riverfront is already well underway. Phase 1 —reconstruction of Front Street between the Cargill and Bunge SCF grain towers —could be finished as early as next month.

Phase 2 — including a roundabout at the entrance of the Casino Queen — is about halfway to completion.

In other signs of hope, Ameren Illinois earlier this year unveiled a $10 million, 25,000-square-foot operating center in its existing Broadway facility in Downtown East St. Louis, rather than opting to move elsewhere.

Often cited as a “food desert,” East St. Louis could again have a full-service grocery. Harvest Market, which opened a small food store in the Walter Circle area earlier this year, hopes to secure, by spring 2019, $7 million in funding for a 50-employee supermarket, in an abandoned building (vacant for some 20 years) at 925 Missouri Ave.

NDC has already approved $2.6 Million in New Market Tax Credit for the project; with a HUD 108 loan from St Clair County and bank financing being sought to fund the remainder of the cost.

Not every step the city has taken has been without controversy, Mayor Jackson-Hicks admits. A $220,000 allocation to replace the roof and HVAC system at the East St. Louis Public Library – which the city was not required to make – drew criticism, in light of questions about library operations, she acknowledges, However, the action was necessary simply to keep the library open, she says.

REVITALIZATION PLAN

East St. Louis Mayor Emeka Jackson-Hicks reports action in each of the major areas outlined in her revitalization plan including:

  • Re-establishing of the city’s Regulatory Affairs Court to encourage accountable, consistent nuisance ordinance enforcement in a town where city workers are often called to clear tall growth on private property. A new judge is to be named this month. Legislation to formally reestablish the court is tentatively on the city council agenda for September.
  • Return of East St. Louis Housing Authority returned to local control after 30 years. A news governance structure for the authority is now under development by newly appointed local board members and a federally appointed administrator.
  • Insurance Services Office (ISO) Public Protection Classification Program upgrading of the East St. Louis fire suppression delivery system from a six to a four rating – a step that should mean lower insurance bill for property owners,
  • Remediation of all problems cited by the Illinois Department of Labor Occupational Safety and Health Enforcement Division in 2016 report on East St. Louis fire station,
  • Lower crime rates, including homicide, year over year; although crime remains a serious problem, the mayor emphasizes,
  • Three beautification projects, including restoration of the city’s downtown “Welcome to East St. Louis” sign, completed through the city’s Restoration of Hope volunteer program.
  • The new East St. Louis Grow America Fund offering $2 million in flexible fixed-rate loans to businesses,
  • More than 40 streets resurfaced,
  • The city’s first new police officer in five years, and
  • Holding more than 20 town hall meetings.

 

 

 

 

 

 

 

 

 

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