The Bloomington City Council is expected to vote Monday on changes to a redevelopment agreement for the former State Farm building downtown, including a $42 million Phase 1 that would bring a Starbucks to the property by July 2027.
UEP announced in April 2025 that it was moving ahead with a $68 million renovation of the former State Farm building with financial assistance from the City of Bloomington. UEP planned 183 residential units, plus a ground-floor retail and a destination restaurant on the 13th floor, in a development called “G.J. Lofts,” a nod to State Farm founder G.J. Mecherle.
“Since approval of the agreement, the Developer has requested an amendment due to changing market conditions which have necessitated the need to build out the project in 2 stages with a potential four-month window between the end of phase 1 and the beginning of phase 2,” city staff wrote to the council in a memo ahead of Monday’s meeting.
Here is the proposed phasing of the plan:
- Phase 1A – G.J. Lofts Phase 1 ($42 million): July 2026–July 2027. Includes 57 apartments, ground-floor commercial space including Starbucks, a top-floor restaurant, and core infrastructure supporting the full project.
- Phase 1B – Garage Rehabilitation ($2 million): April–July 2027. Rehabilitation of the Park Plaza garage at 112 E. Jefferson Street, which has fallen into disrepair and been closed, restoring about 91 parking spaces and one retail space. The amendment requires public daytime parking on the first floor of the rehabilitated Park Plaza garage.
- Phase 2 – G.J. Lofts Phase 2 ($27 million): November 2027–October 2028. Includes a food hall, additional retail and restaurant space, and approximately 126 apartments.
The developer is also asking for a $600,000 loan from the city if they can’t secure state historic tax credits. If credits or other grant funding are awarded, the city loan will not be issued or will be reduced accordingly. If the loan is given, it would be funded primarily from Downtown TIF [Tax Increment Financing] funds, with any remaining balance temporarily advanced from the general fund.
