Bloomington Council Explores Office-to-Residential Conversion Policies
The Bloomington City Council discussed facilitating the conversion of office buildings to residential use during this week's meeting, as the city grapples with a 15.5% office vacancy rate.
Mayor Tim Busse said the council examined pros and cons of converting some of the city's 107 office buildings, which are concentrated along Highway 494 and Lyndale Avenue. The vacancy rate is lower than downtown Minneapolis but higher than other Twin Cities suburbs, according to the discussion.
Council members noted that conversions could provide more housing options and breathe new life into underutilized buildings. However, they also expressed concerns about potential challenges including older buildings with deep floor plans, outdated systems and current city policies that may not support such projects. Some council members warned against encouraging conversions that could lead to office space shortages in the future.
The council directed city staff to continue researching the issue, develop educational materials and consider streamlining policies to make conversions more feasible. A public hearing on office conversion policies is planned for later this year.
Separately, Busse announced that Bloomington ranked 20th on Livability.com's Top 100 Best Places to Live list for the third consecutive year, moving up one spot from 2024. The city also received recognition during National Drinking Water Week, winning "Best in Glass" for tap water taste in Minnesota and advancing to represent the state in national competition in Denver next month.
This story was created by artificial intelligence (a large language model) based on the proceedings captured in the video below.
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▸Meeting Analysis
Mayor Tim Busse's weekly Council Minute for May 7 covers the City Council's discussion on converting office buildings to residential use, celebrates National Drinking Water Week highlighting Bloomington's award-winning water quality, and announces the city's recognition as #20 on Livability.com's Top 100 Best Places to Live list for the third consecutive year.
▸Source Document
[0:05] HELLO BLOOMINGTON. I’M MAYOR TIM BUSSE, AND THIS
IS THE COUNCIL MINUTE FOR THE WEEK OF MAY 5.
[0:10] AT OUR MEETING THIS WEEK, THE CITY COUNCIL HAD
A GOOD CONVERSATION ABOUT OFFICE BUILDINGS IN
[0:15] BLOOMINGTON. MORE SPECIFICALLY, THE DISCUSSION
FOCUSED ON WHAT THE CITY COULD OR SHOULD DO TO
[0:21] FACILITATE CONVERTING OFFICES INTO
A DIFFERENT USE, LIKE RESIDENTIAL.
[0:26] SOME QUICK BACKGROUND AND WE’LL START WITH A
QUIZ: ANY IDEA HOW MANY OFFICE BUILDINGS THERE
[0:31] ARE IN BLOOMINGTON? IF YOU GUESSED 107, YOU’RE
A PRETTY GOOD GUESSER. 107 OFFICE BUILDINGS,
[0:38] GENERALLY SPREAD THROUGHOUT THE CITY BUT
CONCENTRATED ON 494 AND ON LYNDALE AVENUE.
[0:44] YOU’VE PROBABLY HEARD THAT OFFICE VACANCY RATES
ARE HIGH IN SOME AREAS WHICH IS DUE TO CHANGING
[0:48] WORK PATTERNS – PEOPLE LEARNED DURING THE PANDEMIC
THAT WORKING FROM HOME IS A GOOD OPTION – AND AS A
[0:54] RESULT A LOT OF COMPANIES ARE ECONOMIZING WHEN
IT COMES TO OFFICE SPACE. HERE IN BLOOMINGTON,
[0:59] OUR OFFICE VACANCY RATE IS ABOUT 15 AND A
HALF PERCENT. LOWER THAN DOWNTOWN MINNEAPOLIS,
[1:05] BUT HIGHER THAN THE REST OF THE
TWIN CITIES AND OTHER SUBURBS.
[1:08] WITH THE HELP OF STAFF, THE COUNCIL TALKED OUR WAY
THROUGH THE PROS AND CONS OF CONVERTING SOME OF
[1:13] THAT OFFICE SPACE INTO SOME OTHER USE. ON THE
PLUS SIDE, CONVERTING OFFICE INTO RESIDENTAIL
[1:19] COULD PROVIDE MORE HOUSING OPTIONS INCLUDING
OPTIONS RELATED TO THE CO-LIVING DISUCSSION WE
[1:24] HAD LAST WEEK. CONVERSIONS CAN BREATHE NEW LIFE
INTO TIRED OR UNDERUTILIZED BUILDINGS AND TO THE
[1:30] SURROUNDING AREA. REUSE CAN HELP SPUR ADDITIONAL
REDEVELOPMENT IN AN AREA AND IN MANY CASES,
[1:36] REUSE IS A BETTER OPTION THAN A TEAR DOWN. THERE
IS ALSO A TRACK RECORD OF SUCCESSFUL OFFICE TO
[1:42] RESIDENTAIL CONVERSTIONS IN MANY CITIES, AND
I’VE HAD AT LEAST ONE CONVERSATION WITH AN
[1:47] OFFICE OWNER WHO WOULD LIKE TO CONSIDER
HOW THEY CAN CONVERT HERE IN BLOOMINGTON.
[1:51] ON THE FLIP SIDE, CONVERSIONS COME WITH
CHALLENGES. OLDER BUILDINGS MAY HAVE DEEP FLOOR
[1:56] PLANS, OUTDATED SYSTEMS, AND DESIGN LIMITATIONS
THAT MAKE RESIDENTIAL USE MORE DIFFICULT.
[2:02] ADDITIONALLY, CURRENT CITY POLICIES AND CODES MAY
NOT ALWAYS BE IDEAL FOR THESE TYPES OF PROJECTS.
[2:08] AND ALSO, THE SWEET SPOT FOR OFFICE VACANCY RATES
IS SOMEWHERE BETWEEN FIVE AND TEN PERCENT SO
[2:16] BLOOMINGTON IS NOT THAT FAR AWAY FROM BEING
IN BETTER POSITION FROM A VACANCY PERSPECTIVE.
[2:21] AND AS A COUPLE OF COUNCILMEMBERS POINTED OUT,
IT WOULD BE PROBLEMATIC IF WE ENCOURAGED OFFICE
[2:26] CONVERSIONS, AND THEN RAN INTO A SHORTAGE
OF OFFICE SPACE A FEW YEARS DOWN THE ROAD.
[2:31] THE BOTTOM LINE; THE COUNCIL ASKED CITY STAFF TO
CONTINUE LOOKING AT THIS, TO DEVELOP EDUCATIONAL
[2:37] MATERIALS, AND CONSIDER STREAMLINING SOME
POLICIES TO MAKE CONVERSIONS MORE DOABLE.
[2:43] WHILE NOT EVERY BUILDING WILL BE A FIT, THE
CITY IS PREPARING TO HELP PROPERTY OWNERS AND
[2:47] DEVELOPERS EXPLORE CONVERSION OPPORTUNITIES
AS THE MARKET EVOLVES. KEEP AN EYE OUT FOR
[2:52] A PUBLIC HEARING ON THIS LATER THIS YEAR.
THIS WEEK IS NATIONAL DRINKING WATER WEEK,
[2:57] CELEBRATED FROM MAY 4 TO MAY 10, 2025. FOR MORE
THAN 40 YEARS THE AMERICAN WATER WORKS ASSOCIATION
[3:04] HAS USED DRINKING WATER WEEK AS AN OPPORTUNITY
TO RECOGNIZE THE VITAL ROLE WATER PLAYS IN OUR
[3:09] LIVES AND TO APPRECIATE THE IMPORTANCE OF
CLEAN, RELIABLE WATER IN OUR COMMUNITY.
[3:14] WE ALL KNOW THAT HIGH-QUALITY DRINKING WATER IS
NOT ONLY ESSENTIAL FOR PUBLIC HEALTH BUT ALSO FOR
[3:19] OVERALL COMMUNITY WELL-BEING AND ECONOMIC GROWTH.
SAFE WATER SUPPORTS BUSINESSES AND INSTITUTIONS,
[3:26] STRENGTHENS OUR SCHOOLS AND HEALTHCARE
SYSTEMS, AND ENHANCES OUR QUALITY OF LIFE.
[3:30] GREAT TASTING WATER IS ALSO A POINT OF
PRIDE IN BLOOMINGTON. ACCORDING TO OUR
[3:35] ANNUAL RESIDENT SURVEY, DRINKING WATER IS THE
HIGHEST RATED PUBLIC SERVICE THE CITY PROVIDES
[3:41] AND LATE LAST YEAR THE CITY OF BLOOMINGTON WAS
AWARDED “BEST IN GLASS” IN A TAP WATER TASTE TEST
[3:46] HOSTED BY THE MINNESOTA SECTION OF THE AMERICAN
WATER WORKS ASSOCIATION. THIS IS THE THIRD TIME
[3:52] BLOOMINGTON HAS BEEN RECOGNIZED FOR HAVING THE
BEST TASTING TAP WATER IN THE STATE. NEXT MONTH,
[3:58] BLOOMINGTON WILL REPRESENT MINNESOTA AND WILL
PARTICIPATE IN THE NATIONAL COMPETITION IN DENVER.
[4:03] HATS OFF TO OUR WATER UTILITY
STAFF FOR THIER OUTSTANDING WORK.
[4:07] AND FINALLY, WE LEARNED THIS WEEK THAT ONCE
AGAIN THIS YEAR BLOOMINGTON WAS RECOGNIZED
[4:12] BY LIVABILITY.COM AS ONE OF THE TOP 100 BEST
PLACES TO LIVE IN THE U.S. THIS IS THE THIRD
[4:19] STRAIGHT YEAR BLOOMINGTON HAS MADE THE LIST,
AND THIS YEAR WE CHECKED IN AT NUMBER 20 – UP
[4:24] ONE SPOT FROM LAST YEAR AND AGAIN THE
HIGHEST RATED MINNESOTA CITY ON THE LIST.
[4:30] LIVABILITY.COM HIGHLIGHTED BLOOMINGTON'S ABUNDANT
PARKS AND OUTDOOR SPACES, STRONG EDUCATION SYSTEM,
[4:36] AND THRIVING LOCAL ECONOMY AS KEY REASONS
FOR THE RECOGNITION. THE CITY'S DIVERSITY,
[4:41] COMMITMENT TO SUSTAINABILITY, AND
PROXIMITY TO THE MINNEAPOLIS-ST. PAUL
[4:45] METRO AREA WERE ALSO NOTED AS FACTORS THAT
MAKE BLOOMINGTON A GREAT PLACE TO CALL HOME.
[4:50] WE’VE ALL SEEN THESE TYPES OF RANKINGS ONLINE
FOR EVERYTHING FROM MOST LIVABLE CITIES TO
[4:55] SCARIEST ROLLER COASTERS IN THE WORLD, AND AS
A RULE, TAKE THEM FOR WHAT THEY’RE WORTH. BUT
[5:00] LIVIABILITY.COM SPECIFICALLY FOCUSES ON WHAT
MAKES SMALL TO MEDIUM SIZED CITIES GREAT PLACES
[5:06] TO LIVE. FOR THIS RANKING THEY LOOKED AT CITIES
WITH POPULATIONS BETWEEN 75,000 AND 500,000.
[5:13] LIVABILITY CONSIDERS THAT SIZE TO BE THE SWEET
SPOT IN SIZE FOR RESIDENTS TO GET PLUGGED IN,
[5:19] FIND THEIR PEOPLE AND FEEL AT HOME FAST.
THE WEBSITE ALSO MAKES IT CLEAR THAT AFFORDABILITY
[5:24] IS ONE OF THE BIGGEST BENEFITS OF LIVING IN
A SMALLER CITY. THAT’S WHY THEY ONLY CONSIDER
[5:28] CITIES WITH A MEDIAN HOME VALUE OF $500,000 OR
LESS. THEY ALSO ANALYZE AVERAGE RENT AND HOME
[5:34] PRICES RELATIVE TO INCOME IN EACH CITY, AS WELL AS
OTHER FACTORS THAT INFLUENCE THE COST OF LIVING.
[5:41] THEY REALLY EMPHASIZE AFFORDABILITY WHICH IS
SOMETHING WE ALSO EMPHASIZE HERE IN BLOOMINGTON.
[5:46] THIS ENTIRE COMMUNITY HAS WORKED HARD OVER THE
PAST SEVERAL YEARS TO CULTIVATE AN ENDURING AND
[5:51] REMARKABLE COMMUNITY WHERE PEOPLE WANT TO
BE AND IT’S GRATIFYING TO SEE BLOOMINGTON
[5:56] RECEIVE MUCH DESERVED RECOGNITION. THANK
YOU FOR YOUR EFFORTS AND YOUR SUPPORT OF
[6:01] THE WORK UNDERWAY HERE. LET’S KEEP WORKING.
THAT WRAPS UP THIS WEEK’S COUNCIL MINUTE.
[6:07] THANKS FOR WATCHING, AND UNTIL
NEXT TIME, STAY SAFE, BLOOMINGTON!
This story was created by artificial intelligence (a large language model) based on the proceedings captured in the video below.
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