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Last updated on February 11, 2012 at 0:00 EST

New Medical Center Takes Step Forward

December 15, 2005

By Kurt Van Der Dussen, Herald-Times, Bloomington, Ind.

Dec. 15–By a 9-0 vote of the Bloomington City Council, a major new medical office for Bloomington’s southeast side took a step forward Wednesday night.

The council voted to recommend passage of a resolution to grant Internal Medicine Associates a property tax abatement and “economic revitalization area” status for a site east of Sare Road halfway between Rogers and Rhorer roads.

The medical firm plans to close its small and outdated eastside office on Auto Mall Road and replace it with a 39,000-square-foot facility that would add 22 jobs.

The starting hourly pay and benefits for nondoctor staff would be $15.87, something council president Andy Ruff noted approvingly is in direct response to the city’s living wage ordinance.

City economic development director Ron Walker said while the tax abatement would spare IMA $386,000 in property taxes over 10 years, the project would produce $394,000 in property taxes over that time compared with $4,500 if the land remains vacant.

Dr. Larry Rink said a tax abatement was essential to the project. He said IMA’s profit margin is less than 1 percent.

“I know that’s hard to believe, but it’s true,” he said. “Every dollar counts.”

Council member Chris Gaal said the designation of a never-used site as an economic “revitalization” area was problematic, but the economic and social benefits for the community are so great he must support it. His colleagues agreed, with Republican Jason Banach joking it was the first time he’d ever agreed with every single thing Gaal said.

One big factor in the council decision was that so few doctors are on the southeast side, forcing many people to drive to the west side, adding to congestion. With this new office, Chris Sturbaum quipped, there will be fewer “dizzy people” driving crosstown for medical services.

The council is expected to vote approval in December. Because the request is for a property tax abatement, the council must approve it a second time in January.

In other action, the council voted 7-0, with David Rollo and David Sabbagh abstaining, to recommend an 11.6 percent city sewer rate increase.

The increase is $2.89 per month for an average residential customer using 5,000 gallons of water a month. It will be on February bills if the council votes final approval Dec. 21.

The rate hike is to cover rising city sewage treatment costs plus $18.3 million in bonds for a variety of sanitary and storm sewer improvement projects.

The council also discussed proposed major revisions to the city animal ordinance. The discussion and public questions and comments ran too late to be reported in today’s H-T.

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