The Bloomington Port Authority approved an amended grocery recapture agreement for Colonial Market at Bloomington Central Station during its May 20 meeting, marking a significant step forward for the long-awaited grocery store project.

The agreement modifies the financial structure from an EBITDA calculation to a base rent plus percentage rent model. Colonial Market will pay $5 per square foot starting in fiscal year 2027 after a two-year rent-free period, with annual increases of 2 percent. The store will also pay 4 percent of gross sales above the base rent annually.

In other business, commissioners authorized the sale of the Remodel property to the city for $1 to allow temporary use as a park. The three parcels near Mall of America were originally purchased in 2016 for economic development purposes, but the nine-year tax-exempt period has expired. The property may be used for recreational purposes such as a bike skills park while the Port Authority reevaluates long-term development options.

Staff presented a comprehensive update on the Commercial Nodes Toolkit project, showcasing successful business assistance programs including site and facade improvement grants that awarded $223,000 to ten businesses in 2024. The presentation included case studies ranging from small ribbon-cutting ceremonies to major redevelopment projects, illustrating the range of tools available to support commercial development.

The Port Authority also began discussions on developing a new mission statement to better reflect its expanded citywide economic development role. Commissioners will participate in a facilitated session to craft language that captures the organization's current work in business assistance, real estate development, and creative placemaking.