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 However, they also expressed concerns about potential challenges including older buildings with deep floor plans, outdated systems and current city policies that may not support such projects.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.