Developer seeks six-month extension for former Metro South Hospital plan; aldermen press for upkeep and written updates

Representatives for the developer of the former Metro South Hospital site asked the Blue Island City Council on Feb. 11, 2025, to extend the deadline to submit a final planned development until July 22, 2025, saying they have been working to clear title encumbrances and to secure funding after a lender declined financing last year.

Why it matters: The site is the subject of an approved preliminary planned development, and the developer said preserving approved senior-housing zoning and finding a viable commercial use for other portions of the property are necessary before final plans can be filed. Council members and nearby residents urged clearer information and immediate property improvements before any extension would receive favorable votes.

Nick Stanford, a representative for the developer, told the council the City approved a preliminary planned development for the property on Jan. 23, and the developer has spent roughly $1 million to settle liens and other encumbrances on title. "Nothing's been built. No plans have been submitted, and we acknowledge that," Stanford said, describing efforts to remove claims on the property and to solicit financing.

Stanford read a letter from Builders Capital, attributed to Kurt Altig, that said, in part, "Builders did not approve veterans' request for funding in 2024 due to lack of market interest in the medical uses of the plan development." Stanford said the developer is seeking alternative uses — including interest from data companies and potential ground-up construction on a parking area for a data center — and that any new uses would be returned to the planning commission and the council for approval.

Council members said they want more documentation before acting. An alderman asked for a written report summarizing the encumbrances settled and the specific changes Builders Capital has sought to the original proposal; another alderman asked the developer to summarize the uses being explored and any technical studies on utilities or water capacity that would affect feasibility.

Residents and an alderman raised maintenance concerns. One resident said tarps and fencing have failed in places and that overgrown vegetation and graffiti make the site "an eyesore." Stanford said the developer has maintained the property with year‑round landscaping, hired security and worked with the fire department on standpipe water access; he also said the developer would try to address vegetation and fence repairs if budget draws can be obtained.

Council members indicated they did not expect to vote on an extension at that meeting. An alderman said he "would not move in favor until those things are accomplished," and the council requested the written materials described above before considering action. The developer said it would return with additional information and would request further extensions if needed.

The developer also noted a city license allowing use of the nearby park for events; the developer said it is willing to extend that license if the city wishes.

Ending: No formal extension was approved on Feb. 11. Council members asked staff and the developer to provide a written report of title actions, lender feedback and proposed alternative uses — including any studies on power or water capacity for data-center use — and signaled they would consider conditions such as durable fencing and vegetation cleanup before granting an extension.