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Commission replaces lapsed hotel conveyance agreement, approving new conveyance to Allen IU Trades District Hotel LLC
Summary
After a previous conveyance offer lapsed, the commission approved resolution 25-83 to enter a replacement conveyance agreement with Allen IU Trades District Hotel LLC (Aluen/Alluin variant), removing a partner (Pure Development) whose contract expired; the new agreement keeps prior terms and extends due diligence to the end of the year.
The Bloomington Redevelopment Commission voted unanimously June 16 to approve a replacement conveyance agreement for redevelopment property in the Trades District, moving forward with Allen IU Trades District Hotel LLC after a prior conveyance agreement with Pure Development lapsed.
Why it matters: The hotel project is a major redeveloper-led initiative in the Trades District. The commission's action re-establishes a development path after an earlier offer expired and enables continued design, permitting and financing work toward a full-service hotel on RDC property.
Background and rationale
Staff explained the original conveyance agreement required closing within 30 days after the end of a feasibility period; the closing did not occur and the prior agreement therefore terminated on its own terms. Staff reported that Pure Development is in litigation and that there is no acting receiver to continue under the prior agreement.
City staff and the preferred developer brought forward a replacement agreement with Allen IU Trades District Hotel LLC (a partner to Aluen) to preserve progress already achieved: environmental reviews, initial planning meetings with city planning, and partial alley vacation work needed for site layout. Staff described the new agreement as updated to reflect current conditions and to set a new due-diligence period that runs through the end of the year.
Terms and timing
Staff said the purchase price under the replacement agreement is higher than Aluen's initial solo proposal and that other contractual payment terms remain consistent with the prior agreement. Staff reiterated that closing and payout schedules are tied to development milestones and that the earliest meaningful payments to the RDC will not occur until project construction and operation milestones are met (the payout schedule remains as previously negotiated).
Decision and next steps
Commissioners asked about timeline risks and payout timing; staff said planning and permitting schedules are being coordinated with city departments and the developer and that the project team expects to accelerate design and review now that the alley vacation is resolved. The commission approved resolution 25-83 and delegated staff to continue permitting coordination and contract execution.
Ending: Commissioners emphasized the need to maintain coordination across departments and that the replacement agreement keeps the project moving without reopening the original development competition process.
