Bloomington eyesore brings debate on incentives

The old Mennonite hospital is still in the process of being demolished. (Terry James/WJBC)
The old Mennonite hospital is still in the process of being demolished. (Terry James/WJBC)

By Terry James

BLOOMINGTON – As summer approaches Bloomington Alderman Scott Black worries the pile of rubble at Main and Chestnut may not be the best first impression for visitors.

The old Mennonite hospital is being demolished, but crews are eight months behind schedule. The city council has approved a feasibility study to see if the area should be eligible for TIF property tax incentives. Alderman Kevin Lower said this is one TIF district too many.

“We’re affecting the entire community,” said Lower. “When you TIF an area that area is taken out of taxable income. You have to realize it’s not just the city of Bloomington, it’s a number of other entities including the airport.”

City Manager David Hales said he is working with District 87 to refine rules for which areas in Bloomington should be offered up to developers with property tax incentives attached.

“Truly we are looking for a win-win situation,” said Hales. “We all benefit when there’s significant redevelopment, when there is something new that is adding to the tax roles. Unfortunately in District 87’s boundaries they’ve been seeing more of a decline in assessed valuation which is not helping their bottom line.”

Terry James can be reached at [email protected].

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