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Boutique hotel with restaurant, bar proposed for Trades District

By Lucas González

Posted August 4, 2023

The hotel would be built at tract 3. It's one of four pieces of land up for sale at the Trades District. (Courtesy of City of Bloomington)

Bloomington’s downtown Trades District could soon be home to a 150-room boutique hotel, complete with meeting spaces, a restaurant and a bar.

The Mill, which manages the development and marketing of the Trades District, has received a proposal for the concept — the first to date for one of the four tracts for sale on the property.

The hotel would be built on a roughly .86-acre tract of land near the corner of North Roger and West 10th streets, directly across from the B-Line Heights apartment complex.

John Fernandez, The Mill’s senior vice president for innovation and strategic partnerships and former Bloomington mayor, said the concept aligns with the city’s overall goal for the Trades District: a mixed-use neighborhood with work and recreation opportunities for young professionals.

“The idea of the boutique hotel is that it would be a catalytic investment; it will bring a lot of people to the district itself,” Fernandez said. “It will provide new amenities that supports the vision of this vibrant neighborhood.”

Fernandez said the project is in its infancy, as The Mill and developer Alluin Development, LLC still have to work through the details of a project agreement before presenting it to the city’s Redevelopment Commission.

But a few prominent hotel brands are already competing for the project, according to Fernandez.

Alluin is expected to make a $35 million investment in addition to the roughly $1 million it paid to acquire the land, according to Fernandez.

“That means additional tax increment finance revenue north of $400,000 a year,” Fernandez said. “The combination of that, the jobs — probably about 50 people (will) work at that facility, the private investment and all that activity that it’s going to generate in terms of food and beverage and other kinds of benefits to the community … it’s going to be substantial.”

The project description sets May 2024 as the goal for the beginning of construction. The hotel itself could open as soon as fall 2025, Fernandez said.

There are still three tracts of land in the Trades District for sale. Fernandez said the city has not been “aggressively marketing” those tracts because it’s still working out the details of how the land is governed. However, he expects a more aggressive campaign in the coming weeks.

“We want to be very focused and targeted on the kinds of development we want to have happen that really does integrate into this kind of campus-like environment that we are seeking to create,” he said.