By Eric Stock
BLOOMINGTON – Mayor Tari Renner said he has one question for the developer who has submitted a proposal to tear down and redevelop an entire block in downtown Bloomington – would the city get a return on its investment?
“Are his projections about property taxes that would come in – that one’s probably pretty good – and then the sales tax projections per-square foot, are those reasonable, prudent, conservative measures?,” Renner asked. “If they are then we can probably work out all the other details, if not then maybe there are no other details to work out.”
PODCAST: Listen to Scott and Colleen’s interview with Renner on WJBC.
Renner told WJBC’s Scott Laughlin the city is still reviewing Jeff Giebelhausen’s proposal. The city would buy the property for about $8.5 million once the buildings are torn down, though the Commerce Bank building could still be salvaged.
The city would sell bonds to pay for the sale and would look to recoup its cost through tax revenue the project would generate.
Renner said any environmental studies or appraisals would have to be done by the developer.
“We need to have assurances Giebelhausen is going to deliver what he says he is going to deliver,” Renner said. “If he doesn’t do it, he doesn’t get the money.”
In a proposal that’s posted on the city’s website, Giebelhausen projects added tax revenue of between $765,000 and $1.1 million per year based on which project the city might choose.
Renner said the city has also had plenty of offers from other developers if it becomes a ‘shovel ready’ project. Renner said interest from developers has grown since Route 66 Visitors Center opened in downtown Bloomington in April.
Giebelhausen’s proposal details six options for developing the site. All of mixed-use retail and residential. Three of the options include a hotel. Four of the options would allow for the renovation of Commerce Bank rather than tearing it down. The city would pay to rave the Front ‘N’ Center building, DUI Counter Measures and the former Elks Lodge.
Renner said there’s no timeline even if the city decides to pursue the plan. Giebelhausen’s proposal suggests a completion date of late 2017.
Eric Stock can be reached at [email protected].
