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CHICAGO-While the former Edgewater Medical Center remains mired in bankruptcy court proceedings, the city’s community development commission has endorsed nearly $15 in tax increment financing for its eventual redevelopment. The hospital in the 5700 block of North Ashland Avenue closed its doors in 2001 because of financial and legal problems.

The city expects the property in the Edgewater community will eventually be sold, most likely by the medical center owners’ creditors, to a developer, says Kathy Feingold of the department of planning and development. One already has surfaced with plans for residential development on the north end of the property, which had been used for parking.

Although no tax increment financing is being sought for that project, the city could spend up to $14.75 million over the 23-year life of the TIF district to help pay the developers’ costs of assembling property for a mixed-use development and demolition of seven buildings, one of them 87,000 sf, on an 8.6-acre site.

For now, though, the recommendation is good news for international financier Dexia Credit, which holds the bonds used by the current owners to buy the hospital. “We’re very pleased this matter has been presented to the community development commission,” says Greg Furda, an attorney representing Dexia. “We’re optimistic this will lay a foundation for the eventual redevelopment of this property.”

Property records indicate a Merrillville, IN-based entity has acquired eight parcels near the site and lined up a $5.54-million loan from Oak Brook Bank.

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