It's been seven years since the city of Joliet moved to seize Evergreen Terrace, calling the federally subsidized housing complex a dilapidated, dangerous and dirty place to live.

But the owners, residents and the Department of Housing and Urban Development fought back. They argued the property seizure is nothing more than a racist bid to snatch prime property, which sits across the Des Plaines River from downtown and Harrah's casino, and displace the overwhelmingly African-American residents who live there.

A long-awaited trial over whether Joliet had grounds to seize Evergreen Terrace, home to some 700 families, started Thursday at the U.S. Dirksen Courthouse with highly charged allegations that Joliet officials had made offensive public statements about residents who had come to town from Chicago public housing projects that were razed.

"Their interest (was) in ridding the city of people they've labeled as rats and whores," said Kate Elengold, an attorney for HUD.

There were audible gasps from tenants in the courtroom when they heard the alleged descriptions.

Joliet attorneys, however, argued that Evergreen Terrace, which is owned by New West and New Bluff limited liability partnership, had fallen into terrible disrepair and had become a hotbed of gang activity and drug violence in 2005 when the city initiated eminent domain proceedings.

"It was necessary to take the property to abate the nuisance," Joliet's attorney, James Figliulo, said in his opening statement. "… It was riddled with crimes. It was deplorable. It was a blight on the community."

Figliulo flashed photos showing missing windowpanes and walls that appeared to have been kicked in. He talked of soaring crime rates and "chronic" owner neglect. He told the judge the city moved to take the property so it could clean it up, develop it as mixed-income housing and offer residents vouchers to move if they wanted.

The attorney also denied there was any racial motivation, calling Joliet a working-class, diverse town and saying the city wanted to improve living conditions for the residents.

The attorneys for the tenants and owners said Joliet only filed to seize the property after Evergreen Terrace's owners and HUD made moves to secure long-term financing that would provide cash for major renovations and keep the subsidized housing in town.

They alleged Joliet altered its policies to reduce low-income housing. Even if Evergreen Terrace residents had opted to take vouchers, there was not enough subsidized housing in Joliet to accommodate them, they said.

While the eminent domain has been fought in court, New West and New Bluff, controlled by the family of Ron Gidwitz, secured new financing with HUD and made $5 million in renovations, adding a 24-hour welcome center and new playground and upgrading parking lots and units. Figliulo, however, said for purposes of eminent domain, all that matters is the condition when the city wanted to seize it.

Dean Polales, attorney for New Bluff, said Joliet was never interested in improving conditions.

"When he says blight, he means the people," Polales said. "When he talked about nuisance, he is talking about people."

asweeney@tribune.com