Bloomington RDC OKs $25K for real estate appraisals, preps sale to hotelier for convention center project

At its regular meeting on Monday night, Bloomington’s redevelopment commission (RDC) approved $25,000 for appraisals of real estate in the city’s TIF (tax increment finance) district.

No specific properties were listed in the resolution approved by the five-member board.

But it’s apparent that one of the properties, for which two fair market appraisals are needed, will be the former Bunger & Robertson property—which is across 3rd Street, north of the Monroe Convention Center.

The RDC owns the property, which is located at 4th Street and College Avenue, having purchased it in two separate transitions in 2019 and 2023, for a total of about $7 million. Now the RDC could be looking to sell it.

The former Bunger & Robertson property is now eyed by Dora Hospitality as the best site for a hotel to complement the planned new convention center. Dora is the hotelier preferred by the Monroe County capital improvement board (CIB).

It was at a meeting two weeks ago when the Monroe County capital improvement board (CIB) approved Dora Hospitality as its favored hotelier, out of the three that responded to its RFP (request for proposals).

The motion approved by the CIB included encouragement to the RDC and Dora Hospitality to start negotiating and to urge the RDC move forward without delay. Authorizing $20,000 for appraisals is the way the RDC is moving forward with urgency.

The whole $20,000 won’t be needed for just the two appraisals of the former Bunger & Robertson property. Based on Bloomington’s online financial records, when it purchased the property, the RDC paid a total of around $10,000 for the four appraisals that were required—two each for the two separate pieces of land that made up the whole property.

But at Monday’s meeting, city attorney Larry Allen told RDC members that the additional money could be needed to get appraisals of other parcels, which the RDC might be interested in purchasing. When it comes to purchasing property, Allen said, specifying the property in question in a resolution authorizing the expenditure can lead to land speculation, which would not serve the RDC’s interest.

Allen refrained from mentioning specifically any properties that the RDC might be looking to sell or buy.

Allen put it like this: “At this moment, we anticipate obtaining two [appraisals] immediately for convention center related property.” Allen added, “This would allow us though a little bit of leeway between those two appraisals till the end of the year, if we need to get any other updated appraisals.”

Speaking against approval of the $20,0000 for appraisals was Bloomington resident Joe Davis, who is opposed to the expansion of the convention center.

Davis put it like this: “It is foolhardy to expand the convention center in the way that it is proposed—because this is public land.” He continued, “Its highest and best use is for the public. It is not for local government to create business enterprises such that they can generate more operating funds by taxation.” Davis added, “That is not the role of local government.”

Here’s a breakdown of the past appraisals for the two parcels that made up the whole Bunger & Robertson property:

Based on the figures released by the city of Bloomington earlier this year, Bloomington’s RDC paid $255,000 less than the average of two appraisals for the bigger parcel, and $565,000 more than the average of two appraisals for the smaller parcel.

First Appraisal and Mordoh & Associates are firms that do real estate appraisals. Here’s how the two appraisals stacked up against the purchase prices paid by the RDC.

The next meeting of the Monroe County CIB is set for Wednesday (Oct. 23) at 3 p.m. The main agenda item will be consideration of the final project definition (aka schematic design) from the architect, Schmidt Associates.  The CIB could vote to direct Schmidt Associates to start its final design work. Completion of the convention center project is now targeted for around mid-2027.