Bloomington approves Mall of America redevelopment extension despite concerns
The Bloomington City Council voted 4-2 on July 22 to extend deadlines for the Mall of America redevelopment project by two years, citing pandemic-related delays. The decision drew sharp criticism from one commissioner who called the long-running project a "neverending" drain on city resources.
The council approved a second amendment to the 2016 redevelopment contract with MAC Land Holdings, which governs how the Mall of America property will be developed and how tax increment financing—a tool that directs future tax revenue toward development—will be spent. The amendment extends two performance deadlines from 10 to 12 years and from 20 to 22 years, and adjusts financial thresholds for the project's phases.
Proponents framed the extension as routine. Commissioner Nelson noted the City Council had already approved it unanimously the night before, calling it "a pretty straightforward issue" and simply "an extension as we work together to get things done." Port Authority officials cited the contract's language allowing extensions for "unavoidable delays" including epidemics and government actions—a direct reference to the pandemic's impact on the project.
However, Commissioner LZ strongly dissented, arguing the $180 million in spending involved is anything but straightforward. "I think it's turned into a neverending project. I think it's got a fatigue factor to it," LZ said, expressing frustration with the developer's inability to secure private financing and the continued reliance on public tax increment funds. One other unnamed commissioner also voted against the amendment.
In other business, the council unanimously approved the Port Authority's 2025 financial audit, which received a "clean opinion"—the highest rating possible. Auditor Andy Herring reported no findings related to fraud, internal control problems, or legal compliance issues. The Port Authority saw a $1.4 million increase in tax increment revenue and an $11 million increase in overall fund balance during 2025.
The council also received updates on various development projects, including the Southtown development (expected to proceed without initial tax increment financing for its first phase), the Lindale Apartments project, and ongoing work on a water park at the Mall of America. Officials also announced the rebranding of a business support program from "Hatch Bloomington" to "Bloomington Loves Local," with renewed focus on supporting existing businesses.
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Other Topics from This Document
External Auditor's Report for 2025
Small Business Assistance Grant Program Review
Sewer Availability Charge (SAC) Programs Update
Administrator Updates and City Development Projects
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