Port Authority Adopts Five-Year Economic Development Plan
The Bloomington Port Authority adopted a comprehensive five-year economic development strategic plan Tuesday, establishing a roadmap for expanding business services citywide and supporting economic growth across all sectors.
The plan, developed with consultant firm TIP Strategies through an 18-month process involving 130 participants, focuses on eight key objectives including supporting large employers, small business assistance, innovation and entrepreneurship, and talent attraction. Port Authority Administrator Holly outlined how the authority has grown from serving just the Mall of America area to operating citywide, with staff expanding from 2-4 people to approximately 10.
"Bloomington is a leading center in the region fostering innovation, supporting local businesses and enhancing the quality of life for all residents through equitable strategic and sustainable development," according to the plan's vision statement. The strategy emphasizes four guiding principles: inclusive and equitable growth, sustainability, collaboration, and service.
Commissioners also approved revised terms for a grocery space recapture agreement at Carbon 31 apartment building, designed to attract a new Latino grocery store tenant after the previous operator closed in February 2024. The changes simplify the rent structure with a two-year stabilization period and lower base rent to help ensure the new tenant's success.
The authority additionally appointed officers for another term, with current leadership continuing in their roles, and approved 120-day contracts for bond counsel and general counsel services with Julie Eddington's new firm while conducting a full RFP process. Budget adjustments totaling $219,000 were approved to carry forward unused 2024 funds, including money for the popular facade improvement grant program and the new Bloom facilitator position.
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Votes (8)
Appointment of Officers
Dissent: None
Moved by Commissioner Keller [6:58] · Seconded by Commissioner Hunt [8:29]
Commissioners discussed the re-appointment of current officers. While acknowledging the good work and continuity provided by the incumbents, there was a strong sentiment, led by Commissioner Keller and echoed by Commissioner Nelson, that the process should be more deliberate, considering future transitions and broadening participation within the commission to build institutional knowledge.
Consent Agenda Approval
Dissent: Commissioner Hunt abstained on item 3.2 (Designation of Official Repository).
Moved by Commissioner Keller [14:21] · Seconded by Commissioner Lutz [14:31]
The President proposed a single motion to approve all items on the consent agenda, which included designations for the official newspaper, official repository, electronic funds transfer, external/municipal auditor, financial management policies, and estoppel certificates. Commissioner Hunt's abstention from item 3.2 (Designation of Official Repository) was noted without requiring a separate vote.
Proposed Changes to Grocery Space Recapture Agreement at Carbon 31
Dissent: None
Moved by Commissioner Keller [38:08] · Seconded by Commissioner Lutz [38:08]
Kevin Kenny and Johnny Meeker (McGuff) presented proposed changes to the financial recapture agreement for the 9,500 sq ft grocery space at Carbon 31. The original tenant, Allendale Market, vacated, prompting a need for revised terms. The proposed changes aim to simplify the agreement, offer a two-year stabilization period with low base rent for a new tenant (a Latino market with grab-and-go options), and remove a business reserve fund. The goal is to make the space more attractive and financially feasible for a new 'destination' grocery store, addressing past marketing shortcomings and ensuring future success.
Appointment of Bond Counsel (Interim)
Dissent: None
Moved by Commissioner Peterson [47:47] · Seconded by Commissioner Hunt [47:53]
Holly, Port Authority Administrator, requested approval for a 120-day interim contract with Khattak Rock for bond counsel services. This follows the move of long-time bond counsel, Julie Eddington, from Kennedy and Graven to the new firm. The interim contract ensures continuity of critical legal services while the Port Authority transitions records and prepares for a formal Request for Proposal (RFP) process for both bond and general counsel.
Appointment of General Counsel (Interim)
Dissent: None
Moved by Commissioner Keller [48:24] · Seconded by Mayor Bussey [48:24]
Following the discussion on bond counsel, the Port Authority moved to appoint Khattak Rock for general counsel services on a 120-day interim contract. This mirrors the bond counsel arrangement, allowing for a seamless continuation of legal support due to Julie Eddington's firm change, while simultaneously preparing for a comprehensive RFP for both bond and general counsel services.
Port Authority Economic Development Strategic Plan Adoption
Dissent: None
Moved by Commissioner Keller [1:19:12] · Seconded by Commissioner Hunt [1:19:18]
Holly presented the new five-year Economic Development Strategic Plan, developed with Type Strategies, designed to guide the Port Authority's expanded citywide role. The plan's vision positions Bloomington as a regional leader in innovation and quality of life, driven by equitable, strategic, and sustainable development. It focuses on eight objectives, including large and small business support, innovation, thriving places, real estate, talent attraction, wraparound services, and marketing. Commissioners praised the plan's robust development process and emphasized the importance of its guiding principles for future decision-making and prioritization, with some advocating for a focused approach on key industries and comprehensive housing strategies.
2024 Budget Adjustments
Dissent: None
Moved by Commissioner Keller [1:37:23] · Seconded by Mayor Bussey [1:37:28]
Mary Kay presented 2024 budget adjustments for the General Fund and Park Development Fund. Changes included adjusting operating transfers due to lower expenses, reallocating employee time across funds, and distributing interest revenue. For the Development Fund, unspent budget from the Small Business Center was reallocated to salaries, and carryovers for programs like the Bloom Facilitator, Business Retention, and the Facade Program were approved for 2025. Discussion also touched on the broader policy of carrying over unspent funds, with differing views on flexibility versus strict budgetary adherence.
Annual Report (2024 Accomplishments) and Work Plan (2025 Priorities)
Dissent: None
Moved by Commissioner Keller [1:55:18] · Seconded by Mayor Bussey [1:55:25]
Holly presented the Port Authority's 2024 Annual Report, detailing its significant growth (15-fold increase in size), citywide expansion, and key accomplishments in real estate, business assistance (including the successful Facade Improvement Grant leveraging $5M in improvements), and placemaking. The 2025 Work Plan outlined priorities based on the newly adopted Economic Development Strategic Plan, including new responsibilities in workforce development (Bloom in Bloomington), commercial nodes, and ongoing efforts in real estate, business support, and administration. Commissioners expressed strong confidence in the staff's ability to execute the aggressive, yet well-founded, plan, emphasizing the need for flexibility and adherence to guiding principles.
Notable Quotes (22)
I believe in the past it may appear that we've been somewhat pro forma in doing this and I don't think any of us intended do that. I think we vote for people who we believe should do the jobs and, have done a great job and brought that with us.
we need to be cautious about making sure that we've plan for the future and transitions as many of us continue wrinkle in this.
I would agree with Commissioner Keller that we just need to make sure that as as we move forward with our discussions and any of the work that we're that we we make it as broad a tent as possible as we do our discussions... to make sure that it's as broad as possible within the Commission here so that as we wrinkle we all do that there's that there's that additional knowledge there's that additional understanding that additional appreciation of the work that that institutional knowledge.
I know on that one that Commissioner Hunt usually abstains and I think if Commissioner Had is okay what we can do is just note that she's abstaining if we have one motion that she's abstaining with respect to the depositories electronic funds transfer external auditor or municipal auditor financial management policies and then alpha be estoppel certificates.
The changes focus on simplifying recapture agreement so that that space is more easily marketable and the agreement is more easy for a new tenant to understand and realistically it's about removing the three step waterfall calculation... to a base bonus rent.
of course one of the things that's critically important is that a lot of us thought that there wasn't much of any effort to really solicit the people that lived in buildings around there when they opened the store.
This grocery store we're working with is Latino market with a grab and go option and quick service dining and they're also a destination grocery store... So rather than just being your local normal grocery store, we're hoping that this really is a destination and drives people.
if they do perform well then it's potentially a recapture amount of about 600,000 at the end of the term for the city. So we potentially recapture a little bit less than we had the maximum out but that was not guaranteed or we could recapture nothing.
Our General Counsel Bond Counsel Julie Eddington who was previously at In Graven has served the Port Authority for a very long time. It has transferred over to that firm and we have the option to continue to work with her on 120 day term will be recovering our records from Kennedy and Graven and then we will be performing an RFP for both services.
So it just so I'm clear on this this is for for interim for 120 days and then goes out to a full RFP to figure out where we where we go next that correct. Okay. For both the bond counsel and the general counsel services, thank you.
There's also desire to see the Port Authority start to offer a wider of economic development services specifically coming of the pandemic. There was a lot of interest in business assistance looking at small business support building those relationships but there are a wide array of things that economic development services can include.
Bloomington is a leading center in the region fostering innovation, supporting local businesses and enhancing the quality of life for all residents through equitable strategic and sustainable development.
I hope we focus in on the industries we want to focus on and not try to just be everything to everybody. We have some really good base already and we should really focus in on where we can make the most.
the thing I like the most is that we our principles and I might agree with you, Mr. Peterson. Commissioner and I think we will have to make choices but when you have first order principles to look at at least that those decisions can be made in light of those things.
What we're trying to accomplish and to use the principles we used to work with somebody where principles were the main thing in any plan that we had and I learned very well from that that if you focus everything around the guiding principles and keep coming back them as you work through the objectives, as you work through the strategies as you work through the individual specific kind of work that you're looking at doing if, you can keep coming back to the guiding principles. It's just a it's a huge help and a huge anchor for the entire in the entire plan.
Based on the actuals compared to budget our budget adjustment request for 2024 is basically some of the unspent budget for the Small Business Center materials and reallocating that to the salaries. And then we're also asking to carry forward some of the unused to 2025.
I don't know that we need to this conversation right now in terms of approving this but at some point we should have a conversation in terms of policy that if we don't spend the money I don't know that we carry it over... I think it's a larger conversation as we go forward on that just because you know, we had a position not filled for part of the year and it didn't cost as much don't I don't see the reason in that case to carry that money over to the next year and use it for something else.
I think there's a there's a we want to encourage the behavior if there's a planned expenditure and from a timing perspective it doesn't end up in the right fiscal year. We want I think we want to be kind of easy to move money from fiscal year to fiscal year because if we're not if we're not careful about allowing that on a routine basis or kind of a particular expenditure just from a timing perspective it puts department in the position of kind of use it or lose it for spending money and I think it the wrong sort of behavior.
the Port has grown about 15 times in size in a very short amount of time. It used to be just centered around the Mall of America expanding to South Loop which is that orange triangle there and we now work.
The Facade Improvement Grant Program you heard committed $223,000 which is leveraging over $5 Million in improvements. So that's been a significant impact.
This is a this is a good size robust team and a very talented team and to be honest, they're doing a good chunk of already. A lot of this is to to grow and expand the work for example the outreach to the business community and the work that we're doing with with the support and the Facade Program and so on and they're doing it already and to to push it forward I think to to be even bigger and better is something that this group can do. I got confidence them and I, I think the whole he's put together a good team.
And you know, there's an old military aphorism about plans for what you have until the first minute you engage with the enemy and then everything throws out the windows. I, I just don't think we can require or it be a good idea to require any further level of detail because then we'll be subject to someone saying walk in . But you said in you know on June 13th you take a left hand turn at 30 miles an hour you want at 29 miles an hour what the heck's the matter with you people so.
Ordinances & Resolutions (23)
Referenced in Commissioner Cynthia Hunt's Oath of Office.
Referenced in Commissioner Cynthia Hunt's Oath of Office.
The official oath administered to Commissioner Cynthia Hunt.
Agreement between the Port and BXP for Housing LLC related to the grocery space at Carbon 31, undergoing proposed updates.
State funding derived from the Metro Sales Tax, passed in the 2023 legislative session, for affordable housing projects.
Staff presentation outlining proposed uses for the Local Affordable Housing Aid funds.
A 120-day interim contract for legal services related to bonding, pending a full RFP.
A 120-day interim contract for general legal services, pending a full RFP.
A new five-year plan guiding the Port Authority's expanded citywide economic development services.
The City's strategic plan adopted in 2022, whose priorities are integrated into the Port Authority's work.
A parallel plan being completed now, integrating efforts to build a thriving and livable community, elements of which are in the Port's plan.
A tool accompanying the Economic Development Strategic Plan to track objectives, partners, and timelines.
The annual plan outlining the Port Authority's accomplishments in the previous year and priorities for the coming year.
A study that identified the Port Authority's strengths and led to its expansion into citywide economic development.
Tax Increment Financing Districts, for which the Port Authority is creating a management plan.
A Port Authority program offering grants to businesses for facade improvements, showing significant demand.
An internship program for youth workforce development, now under the Port Authority's purview.
A new partnership with DEED and SBA to offer business programming and one-on-one consulting 'without walls'.
An upcoming event for Bloomington's largest employers, led by the Mayor.
State legislative item being pursued to extend the public purpose period for the Ramada site, which was held out of development.
State legislative item being pursued by the Mall and others to extend the TIFF spending plan deadline beyond 2025.
State legislative appropriation being pursued to support the Bloom in Bloomington internship program.
Federal funding for the semiconductor industry, relevant to local companies like Polar Semiconductor and Skywater.
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Other Topics from This Document
Commissioner Oath of Office
Introduction of New Employee
Appointment of Port Authority Officers
Consent Agenda Approval
Grocery Space Recapture Agreement Updates (Carbon 31)
Local Affordable Housing Aid Usage
Appointment of Bond Counsel and General Counsel
Port Authority Economic Development Strategic Plan Adoption
2024 Budget Adjustments
Annual Report (2024 Accomplishments) and Work Plan (2025 Priorities)
Legislative and Staff Updates
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