No north option for convention center expansion: CIB won’t negotiate with Bloomington for land
The Monroe County capital improvement board (CIB) will not be negotiating with the city of Bloomington on the acquisition of land north of the existing convention center for a planned expansion project.
That was the point of an email message sent on Monday (May 13, 2024) to Bloomington corporation council Margie Rice from Jim Whitlatch, who is the CIB’s legal counsel.
Here’s the key sentence from Monday’s email message: “This email is intended to let you know that the CIB is not entering into negotiations for the acquisition of the North property.”
The north property, at 4th Street and College Avenue, which is now owned by Bloomington’s redevelopment commission (RDC), is the former site of the Bunger & Robertson law firm.
A May 6, 2024 letter from Rice to Whitlatch had made clear the expectation that the city of Bloomington would seek reimbursement for the property, if the CIB wanted to use it for the expansion project.
That would have meant a reimbursement to the city of Bloomington’s RDC for about $7 million in TIF (tax increment finance) money that was used to buy the land, in two separate transactions—one in 2019 and the other in 2023.
Bloomington mayor Kerry Thomson had previously told The B Square that the compensation for the land would not necessarily have to take the form of $7 million in cash paid at one time. It could have included approaches with installments paid over time, or arrangements in the form of land swaps. But Thomson said that the city has critical affordable housing needs that the land should, in some way, help meet.
The source of funds that the CIB would have tried to tap, to make the reimbursement, would have been the food and beverage tax fund balance. The current fund balance for the city’s share of food and beverage tax is around $17 million. Acquiring the former Bunger & Robertson parcels would have reduced the amount the CIB could put up front for the project to around $10 million.
The 1-percent tax on prepared foods and beverages generates around $4 million for the city of Bloomington.
Whitlatch’s email to Rice came after a Monday executive session held by the CIB, on the topic of real estate transactions, which is allowed under Indiana’s Open Door Law.
Whitlatch’s email now sets the stage for the CIB to discuss which of the other options it considers best for an expansion of the convention center—east, west or south. Monroe County government has indicated a willingness to donate land to the east, which it owns.
At their regular Tuesday night meeting, Monroe County councilors had a special discussion item on their agenda about the CIB’s position that it would not try to acquire the former Bunger & Robertson property for a northern expansion of the convention center.
Councilor Jennifer Crossley said the choice of the site of an expansion belongs to the CIB. She put it like this: “The duty of the CIB is to select the site for the expansion center.” Crossley spoke of the “lanes” that different organizations have, and put the decision on site selection for the convention center in the CIB’s lane.
Councilor Marty Hawk called the seven CIB members a “stellar” group, adding that the community is fortunate to have their assembled expertise. Hawk stated that the CIB members “want the best for this community.”
Councilor Geoff McKim expressed support for Bloomington mayor Kerry Thomson’s position about requiring reimbursement—if the northern property were chosen as the preferable direction for expansion. But McKim also supports the CIB’s decision not to use food and beverage tax money to purchase the property from the city of Bloomington.
McKim said that the northern expansion option was not a part of the initial concept for the expansion—until former Bloomington mayor John Hamilton initiated the purchase of the Bunger & Robertson property. Hamilton had directed the purchase of the land without the involvement, or notice, or discussion with any of the stakeholders of the convention center, McKim said.
The convention center expansion was never planned to go north, McKim said. He put it like this: “We will do just fine with the other three options.” McKim added, “I have my own personal preferences, but I leave it in the capable hands of the CIB to make that decision.”
McKim said he also respects the position of the mayor and the current city council that they are not interested in donating the property. About the city of Bloomington’s position, as expressed by both mayor and the city council, McKim said, “I fully support that decision.”
Councilor Cheryl Munson thanked the CIB for their decision to move ahead, without spending food and beverage tax revenue for the north property. That would have meant “a significant impact” on the CIB’s budget for the actual expansion construction, Munson said.
Council president Deckard said that the CIB is “doing precisely what it was designed to do.”
At Wednesday morning’s meeting of the board of county commissioners, support for the CIB and its approach to the convention center expansion found additional support.
Commissioners Penny Githens and Lee Jones both said they supported the idea of not using the former Bunger & Robertson property for the convention center expansion. Not precluded would be a use of the property for a hotel affiliated with the convention center, Githens pointed out.
President of the board of commissioners Julie Thomas thanked the CIB members, which she noted were appointed by the county council, the county commissioners, the city council and the mayor.
Thomas praised the CIB’s decision not to use food and beverage tax revenue to purchase the Bunger & Robertson property from the city, because that $7 million would have come out of the construction budget for the new convention center
About the CIB, Thomas said: “Our job is to let them do their job.”
