Stateway Gardens already is served by two Chicago Transit Authority elevated rail lines, but the Metra stop would serve reverse commuters with jobs in the southwest suburbs.

Congressmen Bobby Rush and Danny Davis submitted an application Friday for federal funding for the $6-million depot, says Stateway Associates LP CEO Richard Shields, and Metra is committed to paying 20% of the cost. "We feel we've accomplished a major milestone," Shields says.

However, Shields cautions the Metra station is just one item on a long wish list of projects being submitted. Even if it is approved, completion is about six years away, he adds. However, Shields tells GlobeSt.com the development team is optimistic given the anticipated number of reverse commuters who would use the Rock Island railroad line. He also notes it would be the only stop between the LaSalle Street Station Downtown and 87th Street, about 10 miles away.

The first building in Stateway Gardens' redevelopment will be the 80-unit, $16.5-million Pershing Courts. The CHA agreed to contribute $3 million to the financing package that also includes $6.8 million in tax credits, $4.37 million in city department of housing HOME funds, a $1.14-million FHA-guaranteed first mortgage from a private lender and a second FHA-guaranteed mortgage for $430,000 that would be repaid by tax increment financing.

"It's one of the more complex transactions," Shields tells GlobeSt.com. "The next phase will involve much simpler financing. You've got to start somewhere."

Stateway Associates is a venture formed by Mesa Development, Kimball Hill Homes, Neighborhood Rejuvenation Partners and Walsh Investors.

Instant Insights /

Stateway Redevelopment Could Be Transit-Oriented

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