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Additional height OK’d for proposed boutique hotel at former Peoples Bank

By Lucas González

Posted December 27, 2023

A rendering of the proposed hotel at 200 E. Kirkwood Ave. (Courtesy of City of Bloomington)

A boutique hotel planned to be put at the former Peoples State Bank on Kirkwood Avenue is positioned to be one story taller and include more than double the number of rooms previously proposed.

Last week, the Bloomington Board of Zoning Appeals granted a variance allowing for additional height to be added to the 200 E. Kirkwood Ave. property.

The project owner, Bailey 8, LLC, previously proposed adding two floors and 21 apartments to the two-story building but has since scrapped those plans. It now wants to redevelop the property into a five-story, 47-room boutique hotel.

The project will preserve the original building, which is on the city’s list of historic structures.

The Peoples State Bank building. (Courtesy of City of Bloomington)

Elliott Lewis, the owner of Bailey 8, LLC, said additional space will allow the project to be more in line with the number of rooms that is standard for boutique hotels.

“We’re at 47 rooms, which is kind of in the sweet spot for boutique hotels, apparently,” Lewis said. “The project, as it has developed, is going to be one that I think will be a great addition to Kirkwood Avenue, which is, by far, Bloomington’s visitor street that people like to come and stay on.”

An alternate rendering of the proposed development. (Courtesy of City of Bloomington)

The height addition was supported in November by the Bloomington Historic Preservation Commission, which has weighed in on the project because of the original building’s historical significance.

The city council designated the building a local historic site in June 2022.

Project plans call for hotel amenity space, including a restaurant/bar and dining area, on the building’s first floor. The fourth floor will include an outdoor patio intended for lounging, outdoor events and exercise classes.