Blue Island Mayor’s Stance on Data Center Proposals

Blue Island Mayor Fred Bilotto recently expressed his opposition to constructing data centers at both the former MetroSouth Hospital and the Libby, McNeill and Libby building. After several months of not taking a stance, Bilotto stated that such developments would not provide the optimal employment, economic impact, or long-term benefits that the community requires.

Bilotto emphasized his responsibility to treat all property owners fairly, while still maintaining a vision for the future of Blue Island. He explained how Builders Capital, the property owners, had proposed demolishing hospital buildings to erect a data center at the Libby location in exchange for the hospital property. Plans had initially focused on developing a data center at MetroSouth, but no formal steps had been taken. Opposition from residents led to reconsideration of these plans.

The mayor maintained that the hospital property, located at 12935 Gregory St., should foster developments that actively contribute to the community, considering its proximity to essential parts of downtown. MetroSouth was the largest employer in Blue Island before its closure in 2019, and locals desire it to continue serving the community.

Builders Capital had acquired the hospital property after the previous owners, Lockwood Development Partners, faced foreclosure. Lockwood had plans for a senior living facility, but failed to clear a $44 million debt, leading to the transition to Builders Capital.

Bilotto argued that the Libby property could generate substantial economic activity and job opportunities. He highlighted the potential for a major industrial or logistics hub at this location, discouraging dismissive attitudes towards such prospects.

The Libby building, found at 13636 S. Western Ave., became city property following an agreement in 2025, after enduring legal and building code challenges. It spans 500,000 square feet over five stories and is situated on several acres. Landmarks Illinois had named it one of the state’s most endangered historic sites in 2024.

City Administrator Thomas Wogan noted that various developers showed interest in the Libby site in 2025, with the city considering options for its revitalization. During a City Council meeting, several Blue Island residents, including Marie Mindeman, expressed their preference for developments that cater to small businesses and healthcare facilities rather than data centers.

Mindeman emphasized the resilience and growth potential of the South Side communities despite historical neglect. Both Bilotto and city officials remain uncertain about the future of the properties but are committed to decisions that align with the best interests of residents.