Bloomington City Council Deliberates on Development Challenges, Including Sewer Availability Charge Exemptions
- Meeting Overview:
At the recent Bloomington City Council meeting, discussions centered on the implications of development-related fees, particularly the Sewer Availability Charge (SAC), and its potential impact on future growth. The meeting also addressed various topics, including property assessments, the Community Health and Wellness Center project, and strategic plans for economic development.
One notable discussions was around the city’s Sewer Availability Charge (SAC), which has been a point of contention since its implementation. The SAC fee was established to fund sewer capacity projects anticipated through 2040. Despite being in place since January, no fees have been collected, prompting the council to consider potential exemptions. However, the administration recommended against any exemptions, emphasizing the need to maintain fiscal responsibility across all new developments. Council members expressed concerns about the fee’s potential to slow down construction activities, which were acknowledged by staff, who committed to monitoring developer feedback.
The council also explored the possibility of grants to offset costs. The debate further delved into the definitions of redevelopment versus infill development, clarifying that both could utilize the city’s development fund for infrastructure support, although the South Loop Development Fund does not permit funding for private development.
Council discussions extended to the Community Health and Wellness Center project, which has seen notable developments. Originally planned as a 136,000 square foot facility, the center has been reduced to approximately 103,000 square feet due to budget constraints. The design process continues with a focus on sustainability features such as geothermal and solar energy. Financial challenges, including the estimated impact of tariffs and potential funding losses of $5 to $8 million, have prompted the project team to explore ways to maximize the facility’s capacity, specifically the event banquet space.
The project aims to achieve a 90% cost recovery target and meet at least 70% of its daily capacity. Community feedback has been integral to the design, which includes multi-use spaces to enhance flexibility and revenue potential. The council was informed about interim locations for senior programs during the renovation of the current facility, Creekside.
Another area of focus was the public hearing on the 2025-2029 Consolidated Plan and the 2025 Annual Action Plan. The plan, which outlines strategies for utilizing Community Development Block Grant (CDBG) funds, emphasizes the need for affordable housing and economic development. The council discussed the allocation of federal funds and the importance of addressing community needs without housing issues like severe cost burdens or overcrowding.
The council also reviewed the interim city managers’ performance evaluation, expressing satisfaction with their leadership during the transition period. The desire to maintain the current structure of two interim city managers while beginning the search for a permanent city manager was affirmed, with plans to engage a search firm for the process.
Bloomington’s property assessment and market trends were presented, revealing a slowdown in construction activity and a decline in apartment market values, despite new construction additions. The residential property sector showed the most significant growth, but rising interest rates have created a “locked-in effect,” reducing housing market mobility.
Finally, the council considered the implications of cumulative fees on development projects, as highlighted by Councilmember Carter. The need for a comprehensive understanding of these charges was emphasized, especially in light of the newly adopted Economic Development Strategic Plan. Discussions also touched on potential exemptions for sustainability initiatives and the importance of ongoing community engagement.
Tim Busse
City Council Officials:
Dwayne Lowman, Shawn Nelson, Lona Dallessandro, Victor Rivas, Jenna Carter, Chao Moua
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Meeting Type:
City Council
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Committee:
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Meeting Date:
04/14/2025
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Recording Published:
04/14/2025
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Duration:
140 Minutes
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Notability Score:
Routine
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State:
Minnesota
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County:
Hennepin County
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Towns:
Bloomington
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