Waukegan Health Center

Developer/Sponsor

Erie Family Health Center, Inc. 

Project Type

Substantial renovation and conversion into a Federally Qualified Health Center (FQHC)

Square Footage

25,500 square feet

Enterprise Investment

$9.25 million, New Markets Tax Credits

Description

Erie Family Health Center, Inc. will renovate a former bank building to create a new 25,500-square foot community health center in Waukegan, Ill., an aging industrial city about 40 miles north of Chicago. Erie will provide bilingual (English and Spanish) care to more than 45,000 patients, helping alleviate the high demand for services due to a growing low-income minority population. Services include comprehensive adult and pediatric primary care, women’s health, dental, mental and vision services. The Project will attain LEED Certification for New Construction and Major Renovation.

Investment

Enterprise provided $9.25 million in New Markets Tax Credit allocation, and Enterprise Community Loan Fund provided a $2.4 million term loan and $3.9 million in bridge financing. Chase was the New Markets Tax Credits equity investor. The project also received $4 million in capital grant funding from the Health Resources and Services Administration of the U.S. Department of Health and Human Services.

Focus on FQHCs

Federally Qualified Health Centers (“FQHCs”) are nonprofit community health centers which provide primary health care to low-income individuals and families regardless of insurance coverage or ability to pay. FQHCs are an important resource for delivering quality, affordable health care in low- income communities. Since 2012, a funding collaborative of Enterprise, Nonprofit Finance Fund and Chase has provided “one stop” NMTC financing for FQHCs, including NMTC allocation, NMTC equity, term debt and bridge financing. Erie HealthReach Waukegan Health Center is the fifth FQHC capital project financed by the collaboration with Enterprise allocation. Together these projects have expanded primary healthcare to low-income persons by creating 176,000 square feet of new health, laboratory and pharmacy space, and will provide approximately 189,000 additional visits to an estimated 54,000 additional patients each year.

Market

The new health center will be located in Waukegan, an aging industrial city 40 miles north of Chicago. Waukegan has seen a growth in its low-income minority population. More than 70 percent of low-income residents have been unable to access services from a safety-net health care provider because of insufficient health care capacity in the area.

Community Impact

Erie will expand its provision of accessible, quality care beyond Chicago, to the high-need city of Waukegan. At full capacity, the health center will serve 15,000 patients and 45,000 patient visits annually. The expansion will create approximately 40 permanent jobs and 100 construction jobs.

Sponsor

Erie was founded in 1957 by doctors from Northwestern Memorial Hospital in response to an unmet need for medical care for senior citizens in Chicago’s West Town neighborhood. Since then, Erie has grown to 12 sites, including six primary care centers, five school-based sites, and one teen health clinic on Chicago’s North and West sides and in Evanston, Ill. It is one of approximately 1,120 Federally Qualified Health Centers across the country that cares for medically underserved populations. In 2013, Erie managed over 243,000 visits to over 52,000 patients. Erie is a highly regarded organization that has received numerous national and local awards, including the Quality of Care Award for Excellence in Performance Measurement from the National Quality Center in 2010 and being named a top workplace by the Chicago Tribune in 2010-2013.

Investor

Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), which operates more than 5,000 branches and 14,000 ATMs nationally under the Chase and WaMu brands. Chase has 157 million credit cards issued and serves consumers and small businesses through bank branches, ATMs and mortgage offices as well as through relationships with auto dealerships and schools and universities. It also serves more than 30,000 commercial banking clients, including corporations, municipalities, financial institutions and not-for-profit entities. Chase provides loans, investments and community development services to meet the needs of low- and moderate-income communities. More information about Chase is available at www.chase.com.