The most pressing discussion involved the redevelopment of Southtown, a 40-acre site that has seen considerable changes over the past six decades. The conversation highlighted the demolition progress, with only about 15,000 square feet remaining to be cleared for the first phase of redevelopment. This phase includes the planned construction of a new two-story Dick’s Sporting Goods store, encompassing 120,000 square feet with an 18,000 square foot outdoor sports court. The store is expected to serve as a major retail anchor, drawing significant foot traffic to benefit surrounding smaller retailers.

In addition to the retail development, the plan includes mixed-use buildings with grade-level retail and residential units above. These will be particularly concentrated along Knox Avenue and American Boulevard. The redevelopment aligns with the Pan American District Plan’s goals, focusing on urbanization and beautification. However, the project faces challenges, such as existing leases and parking controls, which necessitate careful planning and strategic execution.

The commission discussed the importance of establishing a Tax Increment Financing (TIF) district to leverage state statutes, as they have a three-year window following the demolition of buildings to do so. The urgency of timely action was emphasized, alongside the collaborative approach with various stakeholders to address the challenges and metrics associated with the proposed programs.

Concerns were also raised about the impact of ongoing construction on I-494, which affects access to Penn Avenue. The commission acknowledged these challenges but stressed the importance of proceeding with the redevelopment process. They discussed strategic placement of parking structures, considering that current parking needs might change over time. The planning team expressed a commitment to adaptable parking solutions and presented a vision for a mixed-use medical office building in the northeastern corner of the Lucky 13 site, which could total between 110,000 to 150,000 square feet, with an additional medical office planned for a future phase.

Further discussions centered on the potential establishment of a TIF district, which could support future development phases, including stormwater management and creating a more walkable area. The commission noted the “ticking clock” of three years.

The meeting also featured an in-depth presentation from Andy Donahue, the state director of the Minnesota SBDC. Donahue provided an overview of the SBDC’s role and services, emphasizing a partnership with the Bloomington Port Authority to enhance small business services and technical assistance in the community. He detailed the SBDC’s operations and its impact in 2023, with approximately 31,000 consulting hours provided to nearly 4,400 clients statewide, resulting in about $117 million in capital accessed by businesses.

Donahue highlighted the SBDC’s focus on supporting a diverse range of businesses, including those in main street sectors, manufacturing, and food and agriculture. He noted the program’s efforts to support underserved communities, including women, veterans, and BIPOC-owned businesses, with 128 out of 160 new businesses started in 2023 belonging to these groups. Future initiatives were also discussed, including potential agreements with tribal nations and other economic development organizations to enhance support for business planning and access to capital in rural and tribal areas.

The commission also reviewed the preliminary budget and levy request for 2025, with the aim of fostering orderly economic development within Bloomington. The preliminary budgeted revenue for 2025 is $3.394 million, with budgeted expenses at $2,721,571. This difference is intended to build reserves and support the strategic acquisitions fund. The budget includes initiatives for expanded commercial and mixed-use development services, facilitating applications related to the Opportunity Housing Ordinance, and providing business assistance to small businesses and early-stage entrepreneurs.