The City Council voted 7-1 to designate a 120-property area in central Bloomington as the “Cottage Grove Conservation District” Wednesday night.

Conservation districts act as the step before a historic district, regulating major projects like demolition and new construction, instead of governing all exterior changes.

Residents and speakers in favor of the designation say that they’re worried about the historic character of the neighborhood being lost to teardowns and the construction of student-focused apartment complexes.

Councilmembers had differing opinions on the impact of the conservation district on rising housing prices in Bloomington.

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Councilmember Courtney Daily said that historic preservation doesn’t always come at the cost of more affordable housing.

“To deny this request is to give the thumbs up for demolition and for cheap but overpriced development, where they will charge a lot more than people will be paying to live in these homes that are already here in Cottage Grove,” Daily said.

Lone “no” vote Councilmember Kate Rosenbarger said historic districts raise costs to owners and renters by complicating renovation, maintenance, and development.

“For me it is Econ 101 - The more supply we have, the more competition we have, the more we can stop prices from rising as fast as they are,” Rosenbarger said.

Conservation districts automatically turn into historic districts after three years, unless a majority of owners in the district object.