Senior housing developer could finally replace old hospital
Aurora officials are optimistic that a nonprofit developer's senior housing plan could spell the end for the old Copley Hospital, which has been vacant on Lincoln Avenue for 14 years.
Mercy Housing Lakefront, a Chicago subsidiary of Colorado-based Mercy Housing, is prepared to propose a plan for 300 units of senior housing and open space on the old hospital site. The group also plans to purchase, rehab and sell several residences around the hospital site.
Cindy Holler, president of Mercy Housing Lakefront, said Tuesday the organization will be applying for the second round of Neighborhood Stabilization Project funding through the Kane County Board this morning.
Holler said the group will request that Kane County issue up to $16 million in private activity bonds, which would be a part of more than $25 million in matching funds that Mercy Housing Lakefront is finalizing.
If successful, Holler believes that money will leverage over $73 million in federal money to assist in the acquisition, rehabilitation or development of 1,700 units in Elgin, Carpentersville, St. Charles and Aurora during the next three to five years.
The Copley project alone is expected to cost about $33 million in development costs, she said.
"This site is in the middle of a residential area and developers have been looking at it for years," Holler said. "It interrupts the grid of the neighborhood, so it's important that you deal with that big piece of blight while looking to bring the market back."
Mercy is calling this project a catalyst because it also plans to help stabilize the surrounding neighborhood by purchasing, rehabbing and reselling a number of other homes in the area.
But Holler said the proposal was so preliminary that Mercy has not produced any site plans.
Ultimately, if Kane County recommends the plan for approval, Mercy would have 120 days to submit the proposal to the Department of Housing and Urban Development, or HUD.
Third Ward Alderman Stephanie Kifowit said she likes the sound of the plan but is cautiously optimistic.
"We've seen so many plans for that site that haven't worked out over the years, it's hard to get your hopes up anymore," she said. "Once that building comes down and it's for real, I'll throw a party."
If the Mercy project were to be approved, Chief of Staff Bill Wiet said, a series of public meetings would be held throughout the city to update residents on the status of the site.
Holler said her group is ready to move ahead next spring, with or without the funding.
"We believe in the site, so regardless of the HUD money, we want to do what we can without waiting around for HUD approval," she said. "My guess is that it will probably be spring of next year before people see things happening. But this is definitely a 2010 project."