File #: 24-2910    Version: 1 Name: Aloha Motel - CDBG-CV Fixed-Site Shelter
Type: Report Status: Approved
File created: 4/25/2024 In control: Workforce, Housing & Community Development Committee
On agenda: 5/16/2024 Final action: 6/13/2024
Title: 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 o...
Indexes: TONI PRECKWINKLE, President, Cook County Board of Commissioners, SUSAN CAMPBELL, Director, Department of Planning and Development
title
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 Cou...

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