Blue Island Mayor Fred Bilotto has expressed opposition to plans for data center developments at two prominent local sites: the former MetroSouth Hospital and the Libby, McNeill and Libby building. The announcement on Tuesday marked a shift from the mayor’s previous neutrality on the issue.
Bilotto cited concerns that such developments would not meet the city’s criteria for maximizing job creation, economic impact, and long-term benefits to the community. “Being fair does not require us to be without a vision for Blue Island’s future,” Bilotto said, emphasizing the importance of aligning property development with broader community goals.
The opposition follows a letter from Builders Capital, the current owner of the former hospital property, proposing to demolish the existing hospital buildings and pursue a data center project on the city-owned Libby site instead. Earlier this year, Builders Capital had indicated intentions to develop a data center on the former MetroSouth Hospital site at 12935 Gregory Street. However, community opposition surfaced during an April meeting, followed by a public backlash at a May event where a representative for the property owners faced vocal criticism from residents.
Bilotto highlighted the strategic significance of the hospital site due to its location near downtown Blue Island, residential neighborhoods, local businesses, and schools. Prior to its closure in 2019, MetroSouth Hospital was the city’s largest employer, and many residents have expressed a desire for the property to continue serving community needs rather than being repurposed as a data center.
Builders Capital acquired the hospital property in March after foreclosing on previous owner Lockwood Development Partners. Lockwood had proposed converting the site into a senior living facility but defaulted on a $44 million loan, leading to Builders Capital’s takeover.
Regarding the Libby, McNeill and Libby building at 13636 S. Western Avenue, Bilotto stressed its potential as a site for industrial or logistics development that could generate substantial employment and economic activity. The five-story, 500,000-square-foot structure, which sits on several acres, was transferred to the city earlier this year following legal disputes and numerous code violations. The building was also designated one of Illinois’ Most Endangered Historic Places of 2024 by Landmarks Illinois, underscoring its architectural and historical significance.
City Administrator Thomas Wogan noted that multiple developers had expressed interest in revitalizing the Libby site and that the city intended to explore various redevelopment options.
Local residents also voiced opposition to data center projects during Tuesday’s meeting. Marie Mindeman called for development focused on small businesses, healthcare services such as physician offices and imaging centers, and lab testing facilities, reflecting community aspirations for more diverse and locally beneficial economic growth.
Bilotto acknowledged uncertainty over the future of both properties but affirmed the city’s commitment to making thoughtful decisions that would serve Blue Island’s residents for generations to come.