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PROPOSED COMMUNITY DEVELOPMENT BLOCK GRANT CARES ACT (CDBG-CV)
Department: Planning and Development
Other Part(ies): BEDS Plus Care, Inc. (or its single-purpose entity, Cicero Avenue Transitional Shelter LLC)
Request: CDBG-CV Program Project Loan
Total Development Cost: $6,175,000.00
Project Loan Amount: $2,800,000.00
Fiscal Impact: None
Account(s): 11900.1013.54026.580170
Summary: Cook County’s Department of Planning and Development staff respectfully submits the recommended investment of $2,800,000 of Community Development Block Grant CARES Act (CDBG-CV) funds to BEDS Plus Care, Inc. (or its wholly-owned, single purpose entity, Cicero Avenue Transitional Shelter, LLC) for the acquisition of the Aloha Motel, an existing hotel located in Chicago directly adjacent to southwest suburban Burbank. The loan will have a thirty-year term, carry no interest, and will be fully forgivable at maturity.
The Aloha Motel is currently being leased by BEDS Plus Care, Inc. (BEDS) and operates as a fixed-site shelter for the homeless. CDBG-CV loan funds will be used by BEDS to acquire the Project for conversion to a permanent, fixed-site transitional shelter. The acquisition will ensure the property remains a permanent fixed-site shelter serving residents of Cook County while greatly reducing annual operating costs by removing room rental charges. After closing, BEDS will renovate the Project using other funding sources, thus improving the long-term viability of the physical plant and the subject collateral.
The acquisition funds will provide 55 units with up to 80 beds of fixed-site, non-congregate shelter in Chicago and the near southwest suburbs. The Project is well-situated within proximity to public transit, the borrower/service provider’s headquarters, and in the provider’s service area.
I respectfully request approval of this project, and that the Bureau Chief of Economic Development or his/her designee be authorized to execute, on behalf of the County of Cook, any and all documents necessary to further the project approved herein, including, but not limited to, funding agreements, intergovernmental agreements, amendments, and modifications thereto. The approval of this project by the Honorable Body will permit staff to issue necessary commitments to allow this project to move forward.
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