A Bloomington commission is trying to close a funding gap so a developer can build the host convention center hotel.
The redevelopment commission (RDC) tabled a resolution that would essentially offer up the former Bunger and Roberston property at Third and College.
The city purchased the property in 2019 for $7 million for convention center use.
The Capital Improvement Board (CIB) overseeing the expansion project is not using the property for that purpose, instead building the expansion east of the current center on land that was already owned by the county.
The CIB selected Dora Hospitality to develop the companion hotel. Dora wants to build it north of the current center on the Bunger and Robertson property but the negotiations between Dora and the city have stalled.
There’s a significant financial gap to get the high-quality hotel the CIB wants.
The gap comes from having to add a parking structure, amenities like a full-service restaurant, and not being able to have long-term stay units not available for convention center business.
The company also can’t charge higher rates during peak event weekends while serving convention center events.
RDC legal advisor Dana Kerr said it’s just an incentive with no promise the deal can be made. A funding gap would still remain.
“This would be one where you’re providing the land for the project for economic development purposes or what the value of the increase in the economy that you would receive,” Kerr said.
CIB President John Whikehart said economic benefits include $9 million in new annual revenue and up to $18 million annually in new jobs and tax revenue.
“If not a hotel, I’m not certain what other private developer can offer you what provides the same economic benefits to our community on that site as what a host hotel will provide,” he said.
He said the CIB offered to reduce design costs by $15 million as well.
But most city council members said they’re opposed. Council member Isabel Piedmont Smith said this is taxpayer money that could be spent on many more important and urgent community needs.
“It seems to me the CIB could do another RFP with revised qualifications and see what happens,” she said. “This whole thing is premised on one developer demanding certain things.”
The RDC meets next Dec. 15. The CIB meets Dec. 17 – the deadline it imposed on a hotel agreement in October.
