The lion's share of the tax increment financing budget, $36.4 million, is earmarked for rehabbing existing buildings on the 22.6-acre site along the Stevenson Expressway. Of the four buildings on the Mercy Hospital campus, only the main building is not considered to be in deteriorated condition. A 40-unit rental building for hospital residents is now vacant, but is expected to be included in the redevelopment.

The hospital, where 43% of its patients are on Medicaid, has targeted $65 million in needed capital improvements, either in rehabbing buildings or curing deferred maintenance, according to a report by the S.B. Friedman & Co. consulting firm.

A 175-unit building will be at the northwest corner of King Drive and 26th Street. Five buildings with 125 units will be built at 25th Street and King Drive, according to plans drawn up by SCB & Associates. A 180-unit building on the southwest corner of the site, on 26th Street and Prairie Avenue, will be reserved for senior housing. The western half of the site also will include another 340 units in 10 buildings. Units will range from townhouses, as well as condominiums in three-, six- and nine-flat buildings.