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A recommended development strategy would include single family dwelling units (yellow), multi-family units (pink), and apartments (brown). Image: Urban Land Institute.

City, Institute Consider ‘Affordable’ Housing at Hospital Site

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The Urban Land Institute released a draft of their recommendations for the redevelopment of the IU Health Bloomington Hospital site on Second Street. At the top of its list is housing.

Bloomington’s housing market has the highest prices in the state. But it lacks workforce housing, and low-income rentals for seniors, young adults, and artists.

A graphic, provided by the ULI, depicts varied housing on the back side of the current IU Health Bloomington Hospital site. It includes single family homes, and a section of condos for young professionals. The ULI placed a market value of around $135,000 – $300,000 on the condos.

In a public discussion yesterday, Monroe County Commissioner Amanda Barge balked at the range, saying it’s not affordable for many area residents. Bloomington Mayor John Hamilton says he’s committed to expanding housing affordability across all income levels.

Former Bloomington Mayor Tomi Allison urged city officials to retain ownership of the land as a tool to ensure long term affordability.

Other ULI recommendations include restoring a street grid, and using the property to link area neighborhoods and green spaces. Deputy Mayor Mick Renneissen said ULI envisions what’s referred to as a ‘living street,’ running east-west to the B-Line, with the potential for gathering places in green spaces.

The Second Street side of the site could see some office and retail space, as well as an arts community center.

The ULI also recommends the city keep the hospital’s 400-space parking garage to serve the potential office and retail spaces. Renneissen values the garage as an $8 million asset.

The city has already put out a request for qualifications for a master developer to coordinate the redevelopment of the site. Mayor Hamilton and Deputy Mayor Mick Renneissen say the Request For Qualifications was issued “just to see who’s out there.” That RFQ closes Friday.

Mayor Hamilton says the master developer could be responsible for public engagement on the project. City Council member Chris Sturbaum represents the district where the hospital is located. He questioned whether that would be a conflict of interest for the developer.

Hospital Site Re-utilization Steering Committee Chair Vi Simpson gave committee members the option to stay involved as the project takes shape over the coming decade.

IU Health is projected to leave and demolish the current hospital site sometime in the year 2022. The actual build out of the re-purposed site could go into 2024.

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