A busy Monday night meeting saw the Bloomington City Council approve a balanced budget for the fiscal year starting May 1, and move forward with redevelopment agreements at two prominent locations in the city.
The separate unanimous approvals for the $68 million mixed-use renovation of the former State Farm building downtown and a $42 million housing project at the former Verizon site on East Empire Street both drew applause from the crowd gathered in the council room at the McLean County Government Center.
Both projects will be facilitated by a host of incentives from the City of Bloomington, including tax increment financing [TIF] district benefits.
“I don't think there could be much debate that this is going to be one of the most transformative projects to come before the city in decades,” City Manager Jeff Jurgens said of the plans by Rockford-based Urban Equity Properties [UEP] to repurpose the State Farm building as the G.J. Lofts.
“It will breathe new life into an iconic building. It will add much needed housing, and it will infuse our downtown with renewed energy and purpose.”
UEP’s “adaptive re-use” development, which faced years of delays for various reasons, calls for 183 residential units, first-floor retail space, and a high-end restaurant on the 13th floor. The residential breakdown has 159 one-bedroom apartments, 13 two-bedroom units, and 11 studio apartments.
Director of Development Services Kelly Pfeifer said UEP has agreed to cap renewal rate increases to 2.5% for the first 10 years after the apartment complex opens.
“This is a commitment to mitigating the upward pressure of rents in a low supply environment,” said Pfeifer.
Other city incentives include planning and fee waivers, a reimbursement of 92% of property taxes flowing from the property’s increased value, and an annual payment of more than $128,000 per year through 2048 — equaling the TIF base amount.
With the other redevelopment, Holladay Properties hopes to start construction in November on a seven-building apartment complex with 210 residential units on the north side of Empire, not far from Eastland Mall.
“We are very excited to bring another housing development to our community to address much needed housing needs, especially in this area,” said Jurgens.
The complex will have one-, two-, and three-bedroom units, green space including a dog park, surface and indoor parking, and other amenities.
Economic Development Manager Ellen Robertson said the city will reimburse $500,000 in eligible expenses from the TIF fund, along with 100% of the future increment annually up to 9.79% of the total project cost, or $4.06 million.
Several of the speakers during public comments commended the city for reaching the two redevelopment agreements.
“This has been at least five years in the making for both of these, so you guys have a couple monumental projects on your hands that could breathe some life and revitalize some much needed properties,” said Patrick Hoban, head of the Bloomington-Normal Economic Development Council.
Combined, the two projects will add 400 housing units to the Bloomington market by the end of 2027.
“That is huge for this community. That's huge for any community,” said Deputy City Manager Billy Tyus. "We talk about the need for 4,500 units, and it’s a number that's growing. So, there's still work to do, but this is a significant dent and it matters.”
Budget approval
Finance Director Scott Rathbun told the council the budget submitted for approval had no changes from the proposal outlined in detail in February. The $318 million budget, with a general fund figure of $137 million, represents a 4% decrease from the previous year’s budget.
“The decreases really were driven from some capital project reschedules, pushed out to subsequent years, and then in the general fund, we had some overall, general operating cuts and equipment delays,” said Rathbun.
The budget includes $81 million in spending for capital projects, down more than $7 million the year before.
A separate, subsequent agenda item amended the budget to add the city’s $45,000 contribution for financial support of the McLean County Museum of History. This was necessary to allow council member Cody Hendricks to vote on the full budget, then recuse himself from vote on the museum funding since he has a personal tie to the museum’s operations.
In other business
A pair of split council votes resulted in the appointment of Mollie Ward as the mayor pro tem, a position that had been vacant since Donna Boelen resigned from her Ward 2 seat in late December.
Council members Nick Becker, Sheila Montney and Kent Lee voted in opposition, while Micheal Mosley abstained.
“This was on the agenda at a previous council meeting, and I was upset that it was removed. I think it should’ve been appointed then; really, I think it should’ve been appointed before then,” said Hendricks in nominating Ward, the council’s most senior member.
Becker and Montney sought to postpone a vote on choosing a mayor pro tem until after the newly-elected council members are in place. That motion failed on a 5-4 vote.
“In three or four weeks, 30% of the people sitting up here are not going to be up here,” said Becker, who did not seek reelection in Ward 5. “This is a position that impacts people that are going to be up here for the next two years.”
“We have had this position vacant, and it has not created any hardship for anyone that I am aware of, that we would need to have this sense of urgency at this point to have this vote,” said Montney. “It just doesn’t feel right to me.”
The mayor pro tem fills in for the mayor during absences or other incapacities.
The council also voted in favor of a pair of honorary street renaming ordinances, designating the 300 block of Garfield Drive as Kevin Kothe Drive and the 500 block of Allin Street in recognition of the Rev. Frank L. McSwain Sr.
Among items approved unanimously as part of the consent agenda were:
- An amendment to the Connect Transit ordinance to enable the system to expand its service area deeper into McLean County [the Town of Normal approved a corresponding item last week];
- An agreement totaling close to $161,000 with George Gildner, Inc., for the Pepper Ridge Sidewalk and Route 66 Path improvement project;
- A $125,000 contract with Pace Analytical Services for lab work requested by the water department;
- Spending $96,000 for polymer water supply treatment material;
- Purchasing a $55,000 heater for Holiday Pool.
Four proclamations were presented in recognition of Kothe, the retired longtime city engineer; Community Development Week; Arbor Day; and the Blue Bow Campaign for Child Abuse Prevention Month.
The mayor recognized a total of 18 appointments and re-appointments to various city boards and commissions.
