The city says there’s no deal on the Bloomington Convention Center companion hotel.
The Capital Improvement Board gave the city and Dora Hospitality until Dec. 17 to announce a formal joint agreement.
Dora was recommended more than a year ago to develop the former Bunger & Robertson site. The city’s redevelopment commission (RDC) bought the land north of the existing convention center for $7 million as an option for the expansion project.
But both sides couldn’t narrow a significant funding gap to get the high-quality hotel the CIB wants.
Some city officials wanted to hand over the land. CIB President John Whikehart said they also reduced the scope of the hotel by $15 million.
Most public comment against the land offering said it’s taxpayer money that could be spent on more important and urgent community needs.
A memo from some city council members states other funding options should be considered, or the land should be sold or transferred from the county for affordable housing.
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On Monday night, the RDC expressed formal support for the project in a resolution but left out any land incentives, stating only the land may be made available on terms to be determined by the RDC.
Dora representative Vince Dora said the company remains resolute to get a deal done, whether it’s this site or another farther from downtown and the convention center.
“I can easily build a hotel that doesn’t require an incentive package, but that doesn’t help you guys sell rooms or bring conventions in,” he said.
Lack of amenities and greater distance will make the convention center a harder sell. Convention hotels also have blacked out rooms at lower rates than other hotels.
Whikehart and a few other board members were puzzled as to why the city was shocked the hotel needed incentives.
“In many of our communities in the state of Indiana, the opening volley is we have land, infrastructure, and tax abatement. Will you please come here,” he said.
Bloomington Mayor Kerry Thomson said the land is a key piece of downtown redevelopment linking a contiguous strip of businesses.
“We're not talking about affordable housing or the convention center. Our city needs both, right?” she said. “We also need a thriving business and visitor climate to bring in the income to be able to support affordable housing.”
Listen to more: Bloomington's Thomson on hotel, encampment removal, Hopewell
Whikehart said economic benefits include $9 million in new annual revenue and up to $18 million annually in new jobs and tax revenue.
Thomson said serious conversations need to take place about what incentives are available, especially after last year’s Senate Enrolled Act One affected tax financing tools.
“We should ensure that we have the highest level of private investment, and we should also be talking to the county,” she said.
The CIB will draft a new hotel proposal by January’s meeting if Dora decides another piece of land isn’t viable or withdraws from the project.
