The Bloomington City Council on Oct. 13 approved an economic incentive agreement to support a planned redevelopment by a local Honda dealership, which city staff said expects $6.5–7 million in private investment to renovate its site on Veterans Parkway.

Development Services Director Kelly Pfeiffer described the project as a retention and rebranding effort that will modernize the dealership and keep it operating at the site during construction. Pfeiffer said car dealerships produce significant sales tax and that the proposed development includes a remodel, continued inventory and an on-site car wash.

Under the agreement presented to council, the city would rebate 50% of the municipal and home-rule sales taxes generated above an annual baseline of $299,000 for a seven-year period. The staff presentation described $299,000 as the five-year average prior to the projected increase. The transcript of the meeting contains a garbled reference to a cap; the ordinance exhibit in the packet should be consulted for precise cap language and maximum rebate amount.

Council member Ward opposed the incentive, saying the city has residents still seeking relief from repeated basement flooding and sewage damage after historic floods and that providing a rebate to a profitable private business while unmet resident needs persist is inappropriate. “I cannot in good conscience support this, when we still have people who are not being helped by the very kinds of funds that we're turning back with this,” Ward said.

Council member Strazza and others argued the deal promotes retention of a long-standing business at an important corridor and that projected additional tax revenue and long-term presence outweigh the rebate cost.

Strazza moved approval and Hendricks seconded. The motion passed; the mayor called the nays as Council members Kearns and Ward.

Why it matters: The agreement uses incremental tax rebates to subsidize private redevelopment as a retention strategy. Supporters said the investment will modernize a high-traffic corner and maintain taxable operations; opponents raised equity and budget-priority concerns, citing unmet resident needs.

Next steps: Staff will finalize the agreement documents and proceed with the incentive terms approved by council; the development is expected to begin soon, per the staff presentation.