Veterans Services seeks six-month extension for Metro South Hospital redevelopment plans

The Blue Island City Council meeting on February 11, 2025, focused on the ongoing development plans for the former Metro South Hospital site. Representatives from Veterans Services LLC, including Nick Stanford, provided an update on the status of the project and requested a six-month extension for the submission of the final development plan.

Stanford reported that since the council approved a preliminary plan in January, the company has been actively maintaining the property and working to eliminate various financial encumbrances. He noted that approximately $1 million has been spent to settle claims from lien holders, indicating a commitment to moving forward with the development. However, he acknowledged challenges in securing funding due to a lack of market interest in the originally proposed medical uses for the site.

The lender, Builders Capital, did not approve a funding request in 2024, citing insufficient market interest in medical facilities. In response, Veterans Services is exploring alternative uses for the property, including potential data centers, which could provide a more attractive investment opportunity. Stanford emphasized the importance of retaining the existing zoning approvals for senior housing and medical uses while seeking to diversify the development plan.

Council members expressed concerns about the current condition of the property, describing it as an eyesore and emphasizing the need for improvements, particularly regarding fencing and landscaping. They indicated that any extension of the development plan would be contingent upon visible enhancements to the site.

The council is expected to deliberate further on the extension request and the proposed changes to the development plan in upcoming sessions. The outcome will significantly impact the future of the former hospital site and the surrounding community.