Bloomington poised to build thousands of housing units amid concerns
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A proposed multi-neighborhood project in Bloomington could create 6,000 units of diversified housing for a city strapped for affordable and available housing. However, the land in question presents environmental and planning challenges for the development poised to be the largest proposal of its kind in the city’s recent memory.
“The opportunity to develop this land is an important one for Bloomington, as we have few large expanses left,” a Bloomington Plan Commission staff report reads.
Currently, the developers, Carmel-based Sullivan Development LLC and Muncie-based The Ridge Group, are working through the commission for a proposal asking to approve a new zoning district and the expansive housing development proposal. The first of likely three meetings was July 10, with the ensuing dates likely to present a more and more refined proposal, the next of which is Aug. 14.
If recommended by the commission, the proposal will move to the Bloomington Common Council for a final vote.
“It’s definitely heading in the right direction,” said Scott Robinson, Bloomington planning and transportation director.
Multi-million dollar questions
The initial proposal would create five new neighborhoods with between 4,450 to 6,000 units in total. Housing types would include everything from single-family homes to a potential 10-story apartment building, which would be the tallest in Bloomington. At least 15% of constructed housing would also be required to be affordable, and the initial development plans said that may be increased. Developers also plan to build what is considered “missing middle housing,” meaning duplexes, condos and townhouses.
The developers want to include open and commercial space, meaning there is potential for outside community gathering areas as well as new businesses and restaurants. The plan also notes they want to add another fire station to the area and assist Duke Energy with a new utility hookup. Additionally, developers said they plan for the area to be walkable.
Scott Robinson, Bloomington planning and transportation director, talks about how Bloomington is missing the housing this project is geared to build.
The lot is part of a larger, older Planned Unit Development district from 1999, which is a flexible but tailored zoning designation the City of Bloomington uses to give developers the ability to create innovative commercial and housing solutions. Existing neighborhoods and apartment buildings were built years and decades ago in the district located along Weimer Road off Second Street, but the proposed property is largely untouched and full of potential builder headaches.
The land was purchased for $13.2 million in January, and Robinson said developers have been meeting with the city almost weekly to receive feedback and better tailor the project to the city’s needs.
“There’s not many times you can put together 140 acres of development in a top three market in the state,” said Tyler Ridge of The Ridge Group, at the commission meeting. “This is one of them, so we were aggressive and went after it.”
Robinson said the number of units and stories will likely be pared down and will be reflected in an updated proposal at the next meeting. However, he said this plan will address the “very big issue” of housing availability in the city.
“We are really pushing that desire to have a very good mix of housing types with this proposal,” Robinson said. “So it can help address a wide range of housing needs for all walks of life for Bloomington residents.”
The project is estimated to take eight years. Two neighborhoods are prioritized to be finished first since they are easiest to hook up to utilities due to their location. Robinson said the possibility of a tax increment financing district is also still in the cards to provide funding for necessary infrastructure projects in the area.
City officials and developers will also need to work through the city’s Unified Development Ordinance, which dictates zoning and development rules. The developer’s proposal seeks to step outside some of those regulations and capitalize on incentives to build bigger.
Community reservations
Residents raised concerns over the project both in person at the Plan Commission meeting and on social media. They centered around three topics: environmental impact, density and the condition of Weimer Road. They didn’t dispute over the need for housing but asked for more planning.
Residents from a neighborhood built on the existing PUD, called Arbor Ridge, had a host of complaints about putting this level of density outside downtown, saying the development would not be consistent with the single-family and paired homes already existing there. The rooftops of their homes peak out of the trees atop of large hill where the development could take place below. Others were concerned with the placement of such tall buildings in a rural area, which is over two miles from downtown.
The development measures just under 140 acres and is filled with mature foliage, rolling topography, wetlands and wildlife. The Bloomington Environmental Commission sent a letter to the Plan Commission for the last meeting saying it has concerns over how the development’s current plans will affect the existing ecosystem.
“The EC understands the current need for housing, but is opposed to prioritizing that need over environmental protection during this time of climate and ecological crisis,” the letter read.
One woman asked during the July 10 meeting what the city and county will do about stormwater drainage since she feared construction may worsen a flooding problem she has had extensive and expensive issues with in the past. Another resident said the area is “environmentally fragile” and significant care needs to be taken when building on it.
“If you’re gonna go through with this, my appeal is really make ’em do it right,” he said.
Weimer Road is a rural parkway increasingly used like a suburban one. It’s two lanes, winding, has tree cover and features a one-lane bridge. Several brought up how the road already needs updating with its current traffic uptick and said just the stress of the construction vehicles required to work on this project will be too much for the area’s infrastructure — never mind the new resident traffic.
The Plan Commission told the developers they would need to conduct several surveys to understand how a development this big will affect things like traffic and the ecosystem.
Robinson said Wednesday he believes the developers expect to meet the current environmental regulations laid out in the UDO. He also said the city, county and developers will work together to address issues with Weimer Road.
The housing squeeze
Bloomington plans to grow steadily, according to the housing study, but housing projects have not kept pace. A 2020 Housing study estimated the city would need to build 236 new units per year, which is lower than the city’s Comprehensive Plan recommendation, to keep up.
It goes without saying Bloomington is a college town and one criticized by its residents for catering too often to Indiana University students, who account for half the city’s population during the academic year. A common complaint among students is the expensive and limited rental market. At the same time, permanent residents often scoff at the number of proposed developments that aim to capitalize on the student crowd since they too are dealing with a similar, potentially more difficult shortage.
This proposal is a bit more skewed to the general population rather than student housing, Robinson said. There’s not usually a designation for whether a person is or isn’t a student for those complexes, but they are typically marketed and designed for the student population; this proposal is not that. This development will also add a subsection of housing between renting an apartment and owning a home as well at those two options, he said, and all of which Bloomington is lacking.
“A lot of our market right now is rental market focused mostly towards Indiana University students,” Robinson said. “But there is needs for other housing in the community.”
Limited home-buying opportunities exist in the city, especially for low- and middle-class residents, as prices keep increasing and the inventory is condensed. Census data shows 35% of residents own their home in the city whereas the state rate is nearly 70%. A Bloomington couple was recently the subject of an article in The New York Times where they asked if $300,000 would be enough for a down payment on a house with the city’s current housing market.
Rentals on the other hand present a different problem. According to Census data, the average monthly rent in the city is $988, compared to the state average of $891. A previous study said Bloomington’s estimated vacant rate was close to 9%, but the most recent 2020 housing study said it may actually be closer to 2%. The report said this low of a percentage could reduce housing opportunities and inflate rental prices. Robinson said the city is currently over 92% occupancy rate.
Rent is of course factored into the cost of living, which continues to climb nationally, and is a major topic of concern for the lower-income population. Though likely skewed by the unique stature of students, Bloomington has a 32% poverty rate, and the city’s median household income is just under $42,000 a year.
IU has its own housing constraints, which spill over into the city. Often, the residence halls are reserved primarily for first-year students, pushing everyone else to the rental market, and subsequently, raising the demand and rent.
“You look at the availability of housing and how tight our housing market is,” Robinson said. “It demonstrates there’s definitely a pent-up demand. The diversity of options out there is pretty limited.”