Tax abatement for affordable housing project next to new park to be weighed by Bloomington city council

By December 2022, Bloomington is expecting to see completed construction of Retreat at the Switchyard, a new housing project with 48 apartments designated as affordable.

The project is a 64-unit, 5-story building with first-floor retail space at the 1.5- acre site of the former Night Moves building on South Walnut Street, next to the new Switchyard Park.

To help the project along, Bloomington’s city council will be considering a resolution at its regular meeting on Wednesday that will take the required steps to give the project a tax abatement.

The resolution would set up the relevant parcels as an economic revitalization area and would approve a 10-year abatement schedule that would waive a total of $154,370 in taxes.

The first year’s abatement would be 100 percent of the taxes owed. That percent would ratchet down over a decade, so that $175,690 in taxes will have been paid by the end of the abatement period.

Next steps, after Wednesday’s expected council action to adopt the resolution, include a public hearing that’s set for June 16. The June 16 hearing will be followed by a city council vote to confirm, amend, or rescind the resolution adopted on June 2.

Another step, before construction can start in August on Retreat at the Switchyard, is a site plan review by the city plan commission.

Also at Wednesday’s city council meeting, a report will be heard on compliance for eight other tax abatements previously granted by the city council. Continue reading “Tax abatement for affordable housing project next to new park to be weighed by Bloomington city council”

Change to Bloomington tax abatement policy swaps in capital investment for job creation, making it easier to justify affordable housing projects

A change to the city of Bloomington’s tax abatement policy, approved by the city council on Wednesday last week, will make it easier for affordable housing projects to satisfy abatement criteria

The change replaces the basic criterion for tax abatement. In the previous policy, the basic requirement was that the project create full-time, permanent living-wage jobs.

In the revised policy, which won unanimous approval on Wednesday night, the basic requirement is creation of capital investment as an enhancement to the tax base.

Job creation is still a part of the mix for tax abatements. But it has the same status as two other criteria, listed under the basic requirement about creation of capital investment: significant increases to existing wages; and creation of affordable housing units. Continue reading “Change to Bloomington tax abatement policy swaps in capital investment for job creation, making it easier to justify affordable housing projects”

Bloomington’s city council asks for dollar amounts on active tax abatements, accepts report saying all are in “substantial compliance”

cropped tax abatement 2020-08-02 at 4.39.40 PM
Image links to dynamic version of the map, with clickable dots that reveal links to the resolutions on the tax abatements approved by the Bloomington city council, including vote tallies.

At last Wednesday’s regular meeting, Bloomington’s city council accepted a report about tax abatement activity over the last year, from the city’s five-member economic development commission (EDC).

The oldest tax abatement reviewed by the council dates back to 2013. The most recent one was last year.

By accepting the report, without taking further action, councilmembers were acknowledging that the companies are in “substantial compliance” with the commitments they made—related to jobs and affordable housing—that led the city council to grant them a tax abatement.

Councilmembers have requested that city staff provide some followup information, about the dollar amounts of tax abatements.

And the city council will likely soon be asked to approve revisions to the  guidelines on tax abatement compliance. The point of the revisions is to ensure that affordable housing projects don’t get analyzed as non-compliant due to a failure to create or retain the jobs they indicated in their applications. Continue reading “Bloomington’s city council asks for dollar amounts on active tax abatements, accepts report saying all are in “substantial compliance””

Monroe County tax abatement is $240K of enthusiasm for company that brings attention to curb

Georgia-based Proveli, LLC now has final approval for a tax abatement from Monroe County that’s worth an estimated $240,000 over a 10-year period.

The tax abatement is for both real and personal property at the site west of Bloomington on Vernal Pike, where the road jogs north for about a half mile. Continue reading “Monroe County tax abatement is $240K of enthusiasm for company that brings attention to curb”

County council OKs preliminary step in sign maker Proveli’s tax abatement proposal, would add 60 jobs

A Georgia-based company that recently bought local sign manufacturer Hall Signs is asking Monroe County for a tax abatement worth about a quarter million dollars.

In a preliminary step last Tuesday, Monroe County councilors gave the proposal a unanimous vote. The county council will likely take a final vote at its regular meeting next month, which falls on July 14.

Proveli, LLC is proposing to make about $4.5 million in capital investments over the next four years, adding 60 workers during the same period, who would earn a total of $2.3 million. Annual salaries for the workers—in fabrication, shipping, sales, and administration—would average around $39,000. Continue reading “County council OKs preliminary step in sign maker Proveli’s tax abatement proposal, would add 60 jobs”

Tax abatement for rehab hospital gets final OK from Monroe County

At its regular Tuesday meeting, Monroe’s county council voted unanimously to give final approval of a tax abatement to Ernest Health, Inc. worth about $3.1 million.

Sometime in June, the company is now expected to start building a $20-million inpatient rehabilitation hospital at the corner of Curry Pike and State Road 46. Ernest Health already operates 28 hospitals across the country—most of them in a swath of states from Texas up to Montana. Continue reading “Tax abatement for rehab hospital gets final OK from Monroe County”

County council gives preliminary OK to tax abatement worth about $3.1M, would still generate $3.1M of paid taxes


In May this year, at the corner of Curry Pike and State Road 46, Ernest Health might be able to start building a $20-million inpatient rehabilitation hospital. And if construction goes as planned, the multi-state health care company could be treating patients there as soon as a year later.

That depends in part on getting a tax break from Monroe County.

The project took one step towards getting that boost from the county council of Monroe County, at its regular meeting on Tuesday night. With a unanimous vote, the seven-member county council gave preliminary approval to a tax abatement for Ernest Health. Continue reading “County council gives preliminary OK to tax abatement worth about $3.1M, would still generate $3.1M of paid taxes”