Bloomington: Mayor Thomson Signals New Direction for College Square Property, Emphasizes Economic Development, Convention Center Progress, and Downtown Connectivity

Mayor Kerry Thomson today announced her administration's intent to move forward with a new approach for the College Square property at 200-226 S. College Avenue, following action by the Capital Improvement Board (CIB) to discontinue negotiations with Dora Hospitality.

The Mayor stated she will formally ask the Bloomington Redevelopment Commission (RDC) to place the property on the market for redevelopment focused on economic development uses and to pursue a new, narrower request for proposals that aligns with the City's long-term downtown economic and convention center goals.

"After months of good-faith efforts to make this site work for a convention center host hotel contractor, it has become clear to all parties—including our Capital Improvement Board leadership—that this property is not the right fit for that purpose," Mayor Thomson said. "The responsible step now is to move forward, put this asset back into productive use, and focus our energy on solutions that will deliver real economic benefit to the community."

The College Square property was acquired under the previous administration based on assumptions that ultimately proved unworkable. While the City explored multiple options to make the site viable, financing realities prevented the hotel project from moving forward.

Background on the Property

The Bloomington Redevelopment Commission acquired the College Square property in two transactions totaling approximately $7 million in 2019 and 2023 during the Hamilton administration, with the stated purpose of facilitating a Monroe County Convention Center expansion. However, as the convention center hotel development plans evolved, significant challenges emerged regarding the site's suitability for the host hotel.

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Following extensive site assessments and concept designs, Mayor Thomson worked closely with the Capital Improvement Board and potential developers to evaluate the property's viability. On December 17, 2025, the CIB formally communicated to Dora Hospitality that the city would not be donating the land for hotel development at this location.

Convention center host hotels serve a specific public purpose. Unlike typical hotels, host hotels are designed to support multi-day conferences by guaranteeing room blocks and stable group rates—requirements that are essential for a convention center to attract large events and generate new economic activity.

Mayor Thomson outlined the actions her administration is asking the Redevelopment Commission to make to resolve the situation and advance keep priorities.

1. Convention Center Hotel Development Moves Forward at More Viable Sites

The Capital Improvement Board will continue advancing a convention center host hotel at alternative locations that are better suited to meet operational and financial requirements.

2. College Square to Be Marketed for Economic Development Uses

The Mayor will ask the Redevelopment Commission to immediately begin the process of marketing the College Square property for private redevelopment.

The administration's intent is clear: future use of the site should prioritize economic development. A new request for proposals will narrow the scope of acceptable uses and may include hospitality or hotel development, among other economically productive options. Student housing will not be included as part of the redevelopment vision for this site.

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"This is valuable real estate in the heart of our community," Mayor Thomson said. "It needs to be contributing—supporting economic activity, strengthening downtown, and returning to the tax rolls."

"We've done the analysis," the Mayor added. "It's time to make a clear decision and move forward in Bloomington's best interest."

3. Supporting Downtown Economic Development

Mayor Thomson emphasized that proceeds from the College Square property sale are intended to support downtown economic development priorities, particularly at a moment when Bloomington—like communities across Indiana—is navigating new fiscal constraints. Recent changes in state law, including Senate Enrolled Act 1 (SEA 1), limit the City's ability to rely on traditional revenue growth tied to property taxes. As a result, the City must be more intentional about investments that strengthen the local economy, grow wages, and attract workforce talent.

4. Advancing a Connected Center City Vision

Placing the College Square property back into productive use is part of a broader effort to catalyze investment and connectivity across Bloomington's center city—linking the convention center, Trades District, Hopewell redevelopment, and Switchyard Park.

"It's time to get moving on an ambitious vision that will transform Bloomington's center city," Mayor Thomson said. "This is about unlocking the potential of an entire corridor and creating the kind of dynamic, connected urban environment that will serve Bloomington for generations to come."

The Redevelopment Commission is expected to consider next steps in the coming weeks, including development of a new request for proposals.

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