Blue Island Mayor Opposes Data Center Developments

Mayor Fred Bilotto of Blue Island announced his opposition to using the former MetroSouth Hospital and the Libby, McNeill and Libby building as sites for data centers. For months, he refrained from taking a position on the matter. Now, Bilotto expressed that such development would not meet the community’s need for jobs, economic impact, and long-term benefits.

Bilotto emphasized his duty to treat all property owners fairly. However, he also highlighted the importance of having a vision for the city’s future. His stance follows a proposal from Builders Capital. The company suggested demolishing the hospital buildings and trading the property for the city-owned Libby site to establish a data center.

Initially, Builders Capital aimed to build a data center at the MetroSouth Hospital site, despite lacking formal plans. This idea faced public opposition during a meeting in April, where a representative’s comments were openly criticized. Following the backlash, the property owners wrote to the city, offering the Libby site instead for their data center plans.

“I have an obligation to treat every property owner fairly,” Bilotto said. “That said, being fair does not require us to be without a vision for Blue Island’s future.”

Bilotto expressed his disapproval for data centers at both locations. He argued that the hospital site at 12935 Gregory St. has the potential for a development that would boost local activity and investment. The nearby downtown, neighborhoods, businesses, and schools offer strategic advantages. The hospital was the city’s largest employer until its closure in 2019, and many residents wish for the building to continue serving the community.

Builders Capital took control of the hospital property after previous owner, Lockwood Development Partners, defaulted on a $44 million loan. Lockwood’s initial plan was to transform the site into a senior living facility.

Regarding the Libby site, Bilotto sees it as an opportunity to bring a significant number of jobs to the area. He believes that a data center does not align with this potential. “The Libby site has the potential to become a world-class industrial or logistics development capable of bringing hundreds of jobs and significant economic activity,” Bilotto noted. “That potential should not be dismissed lightly.”

The Libby property, located at 13636 S. Western Ave., is a significant asset for the city, particularly with its historic designation by Landmarks Illinois. Transferred to Blue Island following legal disputes, the five-story building spans 500,000 square feet on several acres.

City Administrator Thomas Wogan mentioned that several developers have shown interest in revitalizing the Libby property since 2025. The city plans to explore these opportunities further.

During a recent City Council meeting, Blue Island resident Marie Mindeman voiced her concerns against data center developments. She advocated for alternatives like small businesses, a physician center, and medical testing facilities, emphasizing Blue Island’s community spirit and need for economic attention.

“We are a community of families and small businesses thriving beyond anybody’s expectation in the underfunded, underserved South Side communities,” Mindeman stated.

Mayor Bilotto assured residents that while the future of both properties remains uncertain, decisions will focus on long-term benefits for the community.