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City council approves alleyway vacation at future Trades District hotel site

By Donnie Burgess

Posted May 7, 2025

John Fernandez, former Bloomington mayor, speaks on behalf of The Mill regarding an alleyway vacation. (Donnie Burgess, WFIU/WTIU News)

Development of the future Trades District hotel site is one step closer to reality.

The Bloomington City Council voted 7-1 Wednesday night to vacate a 20-foot section of an alleyway, which runs in a north-south direction just north of the Trades District Parking Garage between 10th Street and Maker Way, to make way for a new hotel.

John Fernandez, senior vice president for innovation and strategic partnerships for The Mill, said the platted alleyway has never been used as a traditional alley.

It currently sits attached to a parking lot.

*Graphic displaying the current alleyway up for vacation, located north of the Trades District Parking Garage.* *(Bloomington City Council Legislative Packet)*

“This alley vacation is going to enable us to, I think, create a much more effective design, more efficient use of the land, and it’ll enable the hotel development to happen in a way that will ensure better street activation,” Fernandez said.

Developers, including Alluin Development, LLC, will need to present a site plan to city planners later this year. There is a verbal commitment to build a new east-west, L-shaped alleyway that will serve as an entry and exit for the future hotel.

*A concept visual showcasing the future Trades District hotel and L-shaped alleyway. (Bloomington City Council Legislative Packet)*

Plans include a 150-room boutique hotel with meeting spaces, dining options, and a bar east of Rogers Street and north of 10th Street.

Councilmember Matt Flaherty was the lone vote against. He said he’s concerned with turning public land over to private developers. He also urged city leaders to consider fully connected street and alleyway grids for future developments.