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Bloomington Redevelopment Commission approves city hall expansion

By Holden Abshier

Posted July 19, 2022

CFC Business Plaza at Showers currently occupies 320 W. 8th Street, which is a portion of the building that also houses city hall. (Pat Beane, WFIU/WTIU News)

Bloomington is moving forward in its effort to expand city hall 62,000 square feet. The new space is being vetted as the future home of both police and fire department administrative offices.

The city announced Friday plans to purchase 62,000 square feet of the Showers Building from Cook Financial Corporation, or CFC. The Bloomington Redevelopment Commission (RDC) approved the agreement Monday, but city council still must approve the purchase.

CFC’s asking price was $12 million, and the accepted price is $9.25 million. However, the city originally sought a lower price tag.

Two separate appraisals assessed the property at $5.5 million and $7.7 million. Under state law, Bloomington cannot ask for more than the average of the two appraisals, unless authorized by the RDC. Deputy Mayor Don Griffin said the city asked several times for a price between the appraisals.

“If the seller is not moving on that, you have to go ahead and adjust it if it’s something that you value,” Griffin said.

He said the appraisals are lower because they are based on the property’s income potential in the middle of the pandemic, with several empty offices. He said the city is not really looking at the building as income-producing property, but more as a replacement for what was damaged in the June 2021 flood.

“We have to look at it as ‘how much would it cost for us to build a property like that?’” Griffin said.

He said the current deal is $149 per square foot, whereas building a new facility would conservatively cost about $300 per square foot.

Commissioner Deborah Myerson said the new property would be almost three times the size of the current administrative offices, combined. She asked if the city intends to use the entire space for public safety.

“We don’t expect to use all that space,” Griffin said. “We do know that the current police station is undersized- they’re busting at the seams- but we’re going to wait for the experts to determine what we need for future growth for the police department.”

RDC’s approval of the purchase agreement allows the city to begin its 60-day due diligence inspection of the property. During this time, consultants will assess the building for future renovations and review current tenant leases.

“If someone has a five year lease, they have a five-year lease,” Griffin said. “We have to abide by that or help them find another space.”

The city hopes to close on the property by Jan. 31, 2023.