June 24, 2026

Blue Island Mayor Opposes Data Center Developments at Prominent Sites

Blue Island Mayor’s Stance on Data Center Developments

Blue Island Mayor Fred Bilotto expressed his opposition to data center developments at the former MetroSouth Hospital and the Libby, McNeill, and Libby building. For months, Bilotto had refrained from taking a definite position on such developments. However, he now believes data centers might not maximize jobs, economic impact, and long-term community benefits. These are standards Bilotto considers crucial for serving the community’s interests.

“I have an obligation to treat every property owner fairly,” Bilotto said. “That said, being fair does not require us to lack a vision for Blue Island’s future.”

Proposal from Builders Capital

The mayor’s current opposition follows Builders Capital’s suggestion to demolish the hospital buildings and exchange the property for the city-owned Libby site to build a data center. While earlier communications from Builders Capital indicated plans to develop a data center at the former hospital site, formal plans have not been submitted. Public opposition from Blue Island residents was evident during an April meeting, prompting Builders Capital to reconsider their plans.

Bilotto believes both sites are unsuitable for data center developments. He emphasizes the need for developments at the hospital site that encourage activity and investment, given its strategic location near downtown, neighborhoods, businesses, and schools. The hospital was once Blue Island’s largest employer until its closure in 2019. The community has expressed a desire for the building to continue serving local needs.

Ownership Changes and Property Potential

Builders Capital acquired the hospital property after Lockwood Development Partners foreclosed due to a failed proposal for a senior living facility. Lockwood was unable to repay $44 million in loans owed to Builders Capital, resulting in the capital company taking over the site.

The Libby site, according to Bilotto, holds potential for significant economic activity through industrial or logistics development, which a data center would not provide. Bilotto stresses that the site’s potential should be thoughtfully considered.

Community Concerns

Residents, including Marie Mindeman, voiced opposition to data center developments at Tuesday’s City Council meeting. Mindeman advocates for small businesses and facilities that serve direct community needs, suggesting options like physician centers, imaging centers, and lab testing centers instead.

“We are a community of families and small businesses thriving beyond anybody’s expectation in the underfunded, underserved South Side communities,” Mindeman said. “For decades, we’ve been overlooked by economic development, but Blue Islanders persist.”

City Administrator Thomas Wogan stated there is interest from several developers in the Libby property. The city plans to explore revitalization options, aiming to make decisions that best serve residents for years to come.

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