The Franklin Square Neighborhood Project
Commercial Redevelopment
A phased, high-density, mixed-use redevelopment of the former Mennonite Hospital / Electrolux site.
The Franklin Park Foundation has proposed a comprehensive commercial redevelopment of the former Mennonite Hospital / Electrolux North America headquarters site, integrated with the adjacent Certified Historic Restoration of Franklin Square. Together, these two components form The Franklin Square Neighborhood Project.
The comprehensive revitalization of this important neighborhood will close an existing gap in the commercial, cultural, and community synergy linking Downtown Bloomington to the Bloomington Center for the Performing Arts, Illinois Wesleyan University, Carle Regional Medical Center, Uptown Normal, and Illinois State University.
As Master Developer, the Franklin Park Foundation has dual capacities as a tax-exempt organization to hold property title and collect rent income for the for-profit redevelopment component, and to receive tax-deductible contributions and make grants for the not-for-profit certified historic restoration component.
The Case for Redevelopment
A New Approach
In 2016, the Bloomington City Council purchased the former Mennonite Hospital / Electrolux site and resolved to redevelop it utilizing the Tax Increment Allocation Redevelopment Act. The City and Illinois Wesleyan University subsequently agreed to jointly market their adjacent sites and solicit development proposals.
Despite significant effort, the conventional development approach has not succeeded. Of 157 developer inquiries between September 2019 and July 2021, none resulted in a development agreement. Analysis of a subsequent multi-family proposal concluded that the projected property value fell well below the developer’s submitted estimates.
The Foundation’s proposal offers a different model — one that leverages the Foundation’s tax-exempt status, historic tax credits, TIF financing, and an integrated approach that ties the commercial redevelopment to the historic restoration, creating a project greater than the sum of its parts.
Development Program
Mixed-Use Product Mix
The provisional product mix totals 155,000 square feet across 4.09 acres, with turn-of-the-century design elements to complement the Franklin Square Historic District.
Multi-Family Residential
32,000 SF
Mix of 1–3 bedroom units with turn-of-the-century appearance
Hospitality
75,000 SF
Lifestyle and wellness-focused hotel emphasizing rest, nutrition, exercise, and productivity
Retail & Restaurant
24,000 SF
Contemporary casual dining, outdoor seating, cafes, pop-ups, and seasonal food carts
Office / Flex
24,000 SF
Professional, technical, and incubator space
Preliminary Budget
Project Investment
Commercial Redevelopment
$125.6M
Historic Restoration
$18.3M
Total Project
$143.9M
Financial Strategy
Redevelopment Funding Sources
Tax Increment Financing (TIF)
TIF increment financing through an expanded Redevelopment Project Area, utilizing Tax Increment Revenue Notes as authorized by the City Council’s 2016 resolution.
City of Bloomington Incentives
Building demolition, environmental cleanup, utility relocation, infrastructure improvements, structured parking, streetscape improvements, property tax abatements, Enterprise Zone benefits, and sales tax rebates.
Historic Rehabilitation Tax Credits
20% Investment Tax Credit for qualified Certified Historic Rehabilitation costs.
Gap & Permanent Financing
Construction loans for non-TIF eligible development costs, transitioning to long-term permanent financing at project stabilization.
Project Timeline
Redevelopment Schedule
The estimated total redevelopment duration is 64–76 months, organized across the following phases:
Final Feasibility Analysis & Redevelopment Agreement — 6–12 months
Phased Project Schedule (CPM) — 3 months
Schematic Design — 6 months
Design Development — 6 months
Contract Documents — 3 months
Bidding & Construction — 24 months
Final Completion & Commissioning — 4 months
Stabilization — 12–18 months
Our Team
Development Team
The Franklin Square Neighborhood Project will require an experienced team of development professionals working alongside the Master Developer. The Foundation’s proposed team includes:
Master Developer — Franklin Park Foundation
Project Architect — General Design, Inc.
Commercial & Public Finance — Northmarq Capital
Tax Counsel — Cox & Fulk, LLC
TIF & Development Counsel — Livingston Law Firm
Historic Tax Credits — Novogradac
Accounting & Audit — Baker Tilley
Foundation Consultant — Moss Adams
Development Advisor — Luxopolis SA de CV
Read the Full Proposal
Download the complete Redevelopment & Restoration Proposal submitted to the City of Bloomington.
Support the Franklin Square Neighborhood Project
Your tax-deductible contribution helps make this transformative project a reality.
Franklin Park Foundation is a 501(c)(3) nonprofit · EIN: 88-0701718