Council approves two downtown redevelopment deals, adopts FY2026 budget, names honorary streets and appoints mayor pro tem

Bloomington City Council on April 25 approved two redevelopment agreements intended to add nearly 400 housing units downtown and in the Empire Street corridor, adopted the city's fiscal year 2026 budget and approved two honorary street designations and a mayor pro tem appointment.

The council approved redevelopment agreements for (1) UEP Bloomington, LLC to convert the former State Farm building into 183 residential units and ground-floor retail, and (2) Holiday Properties' project on the former Verizon/Empire site for roughly 210 apartments across multiple buildings. Both measures passed in regular session with no nays announced. The council also adopted the FY2026 budget and enacted two honorary street namings; it appointed Councilmember Molly Ward as mayor pro tem by a 5–3 vote with one abstention.

The redevelopment agreement with UEP will convert the historic former State Farm building into a mix of 11 studios, 159 one-bedroom and 13 two-bedroom apartments, plus a high-end restaurant on the 13th floor and retail on the first floor. Under terms described by city staff, the city will reimburse a substantial portion of the project's TIF increment (annual reimbursement structure described in the agreement), provide 30 downtown parking passes, waive plan-review and permitting fees, and cap rent renewals to 2.5% annually for the first 10 years. The developer aims to submit plans by June 2025 and obtain final certificates of occupancy by December 2027.

The Holiday Properties agreement covers the Empire/Verizon site and would build about 210 apartments with amenity and parking improvements. The developer plans roughly $41.5 million in private investment. The city will provide a $500,000 TIF reimbursement for eligible expenses and annual reimbursements up to either 9.79% of project cost or $4,060,000 in total; permitting fees would be waived. Construction is expected to begin by Nov. 1, 2025, with a roughly two-year build timeline.

On the budget, the council adopted the FY2026 plan as presented by finance staff: a total citywide budget of about $318 million and a general fund appropriation in the neighborhood of $137 million. The adopted ordinance was stated in open session as a $317,809,336 net adoption number with a general fund net of $136,924,051 (the budget presentation contains line-item detail and supporting exhibits).

Two honorary designations were approved: the 300 block of Garfield Drive will carry the honorary name Kevin Cote Drive in recognition of Kevin Cote's 37 years of service as a city engineer; the 500 block of North Allen Street will carry the honorary designation Frank L. McSwain Sr. Drive. Both designations were presented by staff and approved by the council.

The council also appointed Councilmember Molly Ward as mayor pro tem to serve when the mayor is absent or incapacitated. The appointment passed on a 5–3 vote with one abstention; council members recorded three no votes and one abstention during roll call on that measure.

Votes at a glance
- Ordinance approving redevelopment agreement: UEP Bloomington, LLC (Old State Farm building) — Motion to approve moved and seconded in open session; outcome: approved (no nays announced).
- Ordinance approving redevelopment agreement: HP Bloomington Empire LLC (Empire/Verizon site) — Motion to approve moved and seconded; outcome: approved (no nays announced).
- Ordinance adopting FY2026 budget — Motion to adopt moved and seconded; outcome: approved (no nays announced).
- Resolution: Honorary designation, 300 block Garfield Drive as Kevin Cote Drive — Motion moved and seconded; outcome: approved.
- Resolution: Honorary designation, 500 block North Allen Street as Frank L. McSwain Sr. Drive — Motion moved and seconded; outcome: approved.
- Appointment: Mayor Pro Tem (Molly Ward) — Motion moved and seconded; outcome: approved 5–3 with one abstention.

Why it matters: The two redevelopment agreements together are expected to add nearly 400 housing units and bring major private investment into downtown and the Empire corridor; the FY2026 budget sets spending priorities for infrastructure, utilities and public safety for the coming year. The mayor pro tem appointment affects who officially stands in for the mayor at meetings and events.

Details and next steps: Developers will proceed through historic-preservation review and building-plan submission; city staff indicated TIF reimbursements and timing details will follow the respective agreements. The finance department will publish adopted budget books and line-item schedules online. No additional council action on these measures was announced at adjournment.