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Court rules against the City of Bloomington in annexation case

By Joe Hren

Posted August 7, 2024

(From left) Monroe County Commissioners Lee Jones, Julie Thomas and Penny Githens with County Residents Against Annexation President Margaret Clements. (Lucas González, WFIU/WTIU News)

This story has been updated.

Bloomington’s attempt to annex more than 8,000 acres and 14,000 people into the city has hit another roadblock.

The court Wednesday ruled against the city of Bloomington and awarded some attorney fees filed by remonstrators blocking the city’s annexation attempt of Areas 1A and 1B. The ruling comes after a five-day bench trial that concluded May 3.

The two proposed areas had less than the 65 percent of remonstrance signatures needed to overturn annexation, but more than 51 percent of signatures to appeal in court.

Monroe Circuit Court Special Judge Nathan Nikirk stated the city didn’t introduce evidence of future development citing testimony the city doesn’t ‘need’ the land, it just wanted to ‘right size’ the boundaries.

Bloomington Mayor Kerry Thomson’s testimony included the need for affordable housing. Nikirk said that undermines the city’s policy of refusing to extend sewer service outside its boundary for a Habitat for Humanity project.

City Council Adopted Bloomington Annexation Areas in Sept. of 2021

The city also claimed the areas are urbanized, but the court’s own observations stated the areas are 'relatively rural' with limestone quarries and land zoned for agricultural uses.

Nikirk also cited conflicting population numbers in Area 1B. Calculations submitted into evidence in 2021 are different than in 2023 – two years after the annexation ordinance was passed. He said the numbers were not included in the Fiscal Plan or Annexation FAQs for the public to review.

The court did find the city adopted a satisfactory fiscal plan, complied with an outreach program and remonstrance opportunities, but did not agree with the city that the annexation would not have a significant financial impact on landowners.

“The court concludes that $20 million dollars (after four years of 1A and 1B annexation) is a significant financial impact.”

The court also considered ‘best interest’ testimony. The majority of landowners opposed annexation. Sixty-one percent were against it in Area 1A and 58 percent in Area 1B. The court said it also considered understaffing at the police, public works, and transit departments.

The court did deny the complaint from petitioners that the Monroe County Auditor disqualified certain remonstrance petitions due to lack of evidence.

Petitioners now have 45 days to request attorney fees. State law does require reimbursement up to $37,500 in reasonable litigation fees for each area.

County Residents Against Annexation President Margaret Clements said she is grateful the people were heard and the judge listened. She said she's highly in favor of smart growth, just not a unilateral vision.

"I would love to just think of all the positive results that could have happened if all of these people involved at the grassroots level, and myself, had dedicated out these hours in a positive, productive, shared vision - what we could have brought to Bloomington," Clements said. "But unfortunately, the city took a different route."

Communications Director Desiree DeMolina said in an email the mayor's office received the Order and is in the process of a thorough review.

"Although we are disappointed with the decision, we are evaluating our options and planning our next steps," she said.

Bloomington city officials are appealing another annexation ruling over the constitutionality of the state’s 2019 law on the validity of remonstrance waivers. That appeal was received by the Indiana Court of Appeals July 26.

Monroe Circuit Court Annexation Ruling by Indiana Public Media News on Scribd