Council approves sale of downtown garage to Connect Transit for transfer facility, sets timeline and parking terms
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Summary
The Bloomington City Council unanimously approved a $10 purchase-and-sale agreement and related lease with Connect Transit to demolish the downtown garage at 202 W. Market St., build a combined transfer facility and parking structure, and open the project in summer/fall 2028 if approvals go as planned. The city will contribute toward design and retain some parking control.
The Bloomington City Council voted to approve a purchase-and-sale agreement and a companion lease with Connect Transit on April 13, authorizing the transit agency to demolish the downtown parking garage at 202 West Market Street and construct a combined transfer facility and parking structure.
City Manager Jeremy Jurgens and Deputy City Manager Billy Tias told the council the sale is for a nominal fee ($10, according to the documents described in the presentation) and that Connect Transit would shoulder demolition and construction costs. The city would contribute $176,000 toward design; the parties expect the new facility to provide roughly 85 to 95 parking spaces while giving Connect designated space for operations. If approved, demolition and construction would begin in the first or second quarter of 2027 and last about 18 months, targeting a summer or fall 2028 opening, pending required approvals (including review by the Illinois Department of Transportation), the city said.
"We came up with an even better project for the community that is a whole lot less of an investment for the city," Deputy City Manager Billy Tias said, describing the design as responsive to downtown character while accommodating modern features.
Council member Montney raised questions from public comment about whether Connect Transit has complied with obligations in the existing intergovernmental agreement for fiscal years 2025 and 2026 and urged a formal service-level agreement so maintenance responsibilities would not remain subjective. Tias said some items have been met and that a separate service-level document would be drafted to specify maintenance obligations.
Council member Hendricks moved approval; Council member Ward seconded. The clerk recorded an electronic vote and the council announced the item passed with no nays.
The council then considered and approved a related lease that defines operating terms, parking allocations and maintenance responsibilities. Under the described framework the city would retain control of a portion of parking and handle snow removal and certain maintenance for the parking area, while Connect would maintain the transfer-station portions, officials said.
City documents presented at the meeting placed the project at roughly "60% design" at this stage and noted prior demolition estimates around $700,000 (from earlier years), with costs having risen since then. Officials said the design work and partnership include outreach with stakeholders and the public and that the project aims to move bus traffic out of the core of downtown.
What happens next: the agreements approved by the council establish terms to move to final design and lease negotiation. Several items the city flagged as next steps include final design approvals, a separate service-level agreement to define maintenance, and external approvals from state agencies such as IDOT before demolition begins.
