After sitting vacant for nearly a quarter of a century, the landmark former Copley Hospital campus in Aurora is about to undergo a $110 million renovation and be repurposed into an innovative living community, which would combine a variety of uses following the city of Aurora government’s approval Tuesday, Nov. 5 of a redevelopment agreement with Fox Valley Developers, LLC. This landmark agreement paves the way for the creation of more than 740 jobs in the Aurora area during construction and 260 permanent jobs in the community, which would generate tens of millions in new income.
“For a quarter of a century progress was delayed, the campus decayed, and the East Side of Aurora suffered through uncertainty, blight, and unsafe conditions,” said mayor of Aurora, Richard Irvin. “This 25-year puzzle was outmatched by the creativity, tenacity, and determination of the City and developers. Where others fell short, or didn’t even try, through partnership, we are going to reinvest in the Campus and renew the Bardwell neighborhood. Once again, this historic neighborhood will be anchored by a thriving campus offering health care, residential, education, and recreational amenities.”
The Campus began operating as a hospital in 1888 and when vacated by Copley Hospital in 1995, the nine-acre campus had eight buildings with 341,000 square feet of space that was abandoned and fell victim to vandalism and decay. Last summer, Fox Valley Developers agreed to its remediation, and secure, and persevere the Campus for redevelopment and recently completed that $18.5 million phase of the project.
“We are humbled and honored to have the opportunity to deliver this historic transformation for the City of Aurora and residents of the neighborhood and thank the City for partnering with us to make this a reality,” said Russell Woerman a member of Fox Valley Developers and owner of an Aurora area construction firm. “Solving this problem will lift up the entire community, create hundreds of jobs, and provide tens of million in new income to benefit Aurora families for decades to come.”
Fox Valley Developers, LLC, is an Aurora-centric group of business leaders who have come together with the shared vision of preserving, restoring and repurposing the historic Campus. Members of the development and investment group include Russell Woerman, Ronald Woerman, Jason Konrad, Paul Konrad, Dr. Stathis Poulakidas, and Michael Poulakidas.
The campus will maintain its iconic visages and the renovations will be completed to the standards of a historical renovation. Plans have been developed in coordination with preservation officials. The development plan calls for the combination of a variety of uses that will create an integrated, connected campus within the neighborhood:
- Senior Residential: Three wings of the building will be converted into up to 102 units of senior living and will be managed by Bourbonnais-based, Gardant Management Solutions.
- Aurora Life – An Independent Apartment Community: Families in need of a long-term solution for their adult-children with cognitive and developmental disabilities will benefit from the creation of the independent apartment community.
- Neighborhood Health Care: Through a partnership with Vituity, a physician-owned and physician-led partnership access to medical care will be returned to the campus and a larger suite of medical services is being development under the guidance of Dr. Stathis Poulakidas. Family Focus has agreed to open a location at the campus.
- Education: The East Aurora School District 131 is creating a centralized administrative center at the Campus and next to Bardwell Elementary, the District’s largest elementary school. The streets will be reconfigured to create a park connecting the administrative center and elementary school.
- Recreation and Parks: Fox Valley Developers acquired additional land next to the Campus for the purpose of donating it back to the community for creation of a new park. The Fox Valley Park District has received a grant from the Illinois Department of Natural Resources to help build the neighborhood park. Additional landscaped walking paths and open space will reconnect the campus to the neighborhood.
“As business leaders invested in Aurora already, we have always seen the untapped value and potential of this Campus and neighborhood,” said Jason Konrad, member of Fox Valley Developers and whose firm will serve as general contractor. “We are ready to deliver on this promise, unlock the true potential of the Bardwell neighborhood and create a renewed sense of pride, purpose, and prosperity at this iconic and historical campus.”
Including the phase one remediation effort and the second phase of construction, a total of $128.5 million will be invested in the campus. The Aurora City Council approved a redevelopment agreement that requires occupancy permits to be issued for portions of the campus, before any of the $9 million of incentives to reimburse costs are provided by the City. The remainder of the redevelopment agreement is from a “pay-as-you-go” TIF, meaning the new value created by the project pays for the incentive and the project’s uses produce no cost to local schools.
A third-party fiscal impact study conducted by Pilewski Financial identified $13.9 million in projected fiscal returns to the City of Aurora by unlocking the economic potential of this property including:
- The City’s share of the TIF split is estimated at $7.4 million and there is no impact to local schools
- The City will receive $2.9 million in one-time fees and taxes from construction phase
- By creating new jobs at the campus, the City is expected to benefit from at least $3.6 million in new taxes from indirect and induced spending from the new disposable income created in Aurora over next 25 years
- An improved campus will improve property values in the greater Bardwell neighborhood – by 2026 the campus is projected to have its annual property tax payment increase 2,400% from current levels
The next three years will provide economic stimulus in the local economy resulting in approximately 740 jobs and $52.5 million in new personal income, equal to $71,000 per job created during this time period.
Today the Campus provides zero jobs, but once stabilized the uses at the Campus will create 260 jobs in the community and generate $16.9 million in new labor income annually, or $388.7 million in new local labor income over the life of the TIF.
The project is being financed by using a variety of equity sources, including investments from Enhanced Capital, US Bank, Capitol One, Sterling Bank and the National Trust Investment Corporation.
Renderings, floor plans and information about the transformation access can be found at www.foxvalleydevelopers.com.
Jason Crane/The Voice
— Fox Valley Developers