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TO: Mayor Richard C. Irvin
FROM: David Dibo, Executive Director
DATE: April 25, 2023
SUBJECT:
A Resolution Approving a $1,500,000 Loan to Fox Valley Developers to facilitate the leasing of about 27,900 square feet of approximately 50,000 square feet total health care facility, on the Bloomhaven Campus, previously known as the shuttered Copley Hospital and Amending Certain Provisions of the Original Redevelopment Agreement (RDA) (R19-382, November 12, 2019) relating to the City's share of TIF #14, (O20-071, October 13, 2020).
PURPOSE:
These two actions will secure a health care provider as the anchor tenant for the medical office portion of the Bloomhaven campus by providing needed affordable health care services to the near east side. It also assures the financing for the almost completed redevelopment. This in turn triggers additional funding of over $20 million ($62.2 million in total) that will pay off outstanding shorter-term loans, outstanding construction costs, deferred interest, and other scheduled liabilities.
BACKGROUND:
The $1,500,000 loan provides Fox Valley Developers with funding for their portion of the total tenant build out. Full build out is estimated to be approximately $5,500,000 with the developer contributing about 27% or $54/SF and the health care provider contributing the balance.
Financing of Bloomhaven was and remains grounded in maintaining the historic nature of the former Copley campus using Federal and State tax credits to provide substantial equity for the project. These credits are purchased by institutional investors who have considerable sway over financial decisions of the project including parameters related to refinancing. While leasing almost 60% of the commercial space is seen as a positive and another step toward achieving the financial results first estimated pre-pandemic about four years ago, this comes with strict requirements imposed by the tax credit investor including the clearing of all liabilities up fron...
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