Community Corner

What Is Status Of Allenton Development?

At Tuesday's Eureka board of aldermen meeting and public hearing, homeowners at Ashton Woods subdivision wanted to know why they are paying annual assessments for a huge, surrounding commercial development project that still lies dormant.

Just off Interstate 44 near the Allenton/Six Flags Road exit in Eureka lies the rubble remains of what was to be a huge development of 1,300 homes plus significant commercial development. The Jones Company Ashton Woods project that once infused wild enthusiasm into many people a few years ago now prompts bittersweet reactions as the 141 existing homeowners seek to understand why they are paying annual assessments for a multimillion development that hasn't happened.

The project's history and progress has been drawn out over years, wearing on homeowners' patience.

The nation's and region's downturn in real estate development obviously crippled this once hopeful project as well.

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The original developer of the residential and commercial project, JBA Eureka LLC, went defunct in August 2009; Great Southern Bank now owns the property. Bank managers have been seeking a new developer to jumpstart the project. In the meantime, homeowners who were part of the original phase of the overall development are assessed an annual fee of $300 per household.

Nearly 25 Ashton Woods homeowners attended Tuesday's Eureka board of aldermen meeting to participate in a public hearing that was a five-year review of the project referred to as the "South I-44 Redevelopment Plan and Project."

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Eureka Mayor Kevin Coffey said a Community Improvement District (CID) willingly was put in place at the initial development phase. He said it was meant to contribute a $3 million portion to the overall funding needed for road and bridge improvements to support the projected traffic and activity. "But the original intent was for the assessment to be spread out over 1,100 to 1,300 households, not just a few hundred homeowners," he said.

"A project of that size takes a lot of financing. The main sewer pipe alone at the JCA project was a $3 million cost."

Representing the legal CID entity for the project at Tuesday's hearing was Armstrong and Teasdale lawyer Stephanie Grise. She said the project was still on hold, and that the developer, which at the moment is the bank, has no obligations to do anything more than what is required by state laws through the Department of Economic Development.

The Allenton entity does have a board of directors who meet once a year, said Grise. "These are administrative meetings only, to handle the $7.5 million in TIF bonds issued," said Grise.

She reported the revenue generated for the project since August 2006 was $1.5 million.

Ryan Moss, Ashton Woods' resident and director of the homeowners' association there, asked why it was fair for anyone to continue with a special assessment on the homeowners through the CID when there has been no activity toward increasing the property values in the area.

During the interaction among all parties at the hearing, it was established that the Allenton CID entity has had $20,000 in administrative expenses. Grise said admin costs include such items as conducting an annual audit, maintaining a database, and securing the bonding.

Moss pointed out that $17,000 of the $20,000 expenses was paid by the homeowners' assessments, without anything to really show for the money.

"When we came here to build our homes, we were 'promised' a large commercial/residential project was occurring," said Moss. "And if you ask my wife, a new Target was part of that project."

Moss and the other residents in attendance said they were told that the CID assessment was supposed to improve their property values within five years, but their concern and frustration has come from the lack of any development at all.

Homeowners in the area are subject to the assessment for up to 25 years, city officials said.

The bank recently invested more money into burying the rock rubble and dressing up the area, said Coffey.

He said the board of aldermen and city staff recently decided to move forward with making road improvements in the Ashton Woods area. Typical road maintenance near the Allenton project had been somewhat at a standstill, given that city planners had thought the roads would be torn up and replaced by overall new construction.

Grise said the project can continue in the "on-hold status" until Aug. 4, 2012, when the bank and Eureka city officials will be required to readdress the project and determine how to proceed.


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