BLOOMINGTON – The City of Bloomington is pleased to announce that three locally recommended census tracts—including Hopewell, Seminary Park, and the area immediately west of the Trades District—have been selected by the State of Indiana for nomination as part of the federal Opportunity Zone 2.0 program.
The selection follows months of strategic planning and engagement led by the City of Bloomington’s Department of Economic and Sustainable Development to identify areas where Opportunity Zone status could help attract private investment and advance Bloomington’s long-term economic development priorities.
“We approached this process very intentionally, looking not simply at which areas were eligible, but where this tool could make the greatest difference for Bloomington’s future,” said Jane Kupersmith, Director of the City of Bloomington’s Department of Economic and Sustainable Development. “We are pleased that the state recognized the potential of these areas and the work already underway to position them for continued investment. This is an important step, but our work now shifts toward making sure we are prepared to turn this opportunity into meaningful projects and investment.”
The City’s Opportunity Zone planning process included a review of Bloomington’s eligible census tracts, site visits and a tour of potential areas; conversations with business and property owners, developers, and community partners; and a strategic planning session with City leadership, housing and planning officials, Monroe County stakeholders, Regional Opportunity Initiatives, local and regional economic development organizations, private developers, and other partners. Through that process, Bloomington identified three priority areas for consideration:
- Bloomington Trades District West — The west side of Bloomington’s innovation and talent district, where significant public investment, development-ready sites, proximity to Indiana University, The Mill, The Forge, and an active pipeline of residential and mixed-use projects create opportunities for continued private investment, business growth, housing, and innovation. This tract includes 17th Street on the north and 3rd Street on the south.
- Hopewell — One of Bloomington’s most significant redevelopment opportunities, where the former hospital campus is being transformed into a vibrant neighborhood. Significant City investment in infrastructure, site preparation, public spaces, and housing has positioned the area for its next phase of private development.
- Seminary Park — A strategically located gateway connecting downtown Bloomington, Hopewell, Switchyard Park, the Convention Center, the B-Line Trail, and surrounding neighborhoods. Opportunity Zone investment could support housing, small business growth, redevelopment of underutilized properties, commercial reinvestment, and stronger connections among these major community assets. This tract runs from 2nd Street on the north to Hillside Drive on the south.
“This announcement reflects the value of planning ahead and bringing the right partners to the table,” said Mayor Kerry Thomson. “Bloomington has tremendous assets, but realizing their full potential requires us to be intentional about connecting public investment with private opportunity. We are excited that these areas will move forward in the state’s nomination process, and we will continue working with our local, regional, and state partners to attract investment that strengthens Bloomington and contributes to the economic vitality of the broader region.”
Opportunity Zones are a federal economic development tool designed to encourage long-term private investment in eligible communities through federal tax incentives tied to Qualified Opportunity Funds. The program was made permanent through federal legislation enacted in 2025, establishing a recurring process for states to nominate eligible census tracts for certification by the Department of the Treasury.
Indiana’s 2026 selection process considered recommendations from communities and stakeholders across the state, along with eligible census tract data, agency priorities, regional input, and other factors. Indiana’s final nominations will be submitted to the federal government for certification, with the new Opportunity Zones scheduled to take effect January 1, 2027. Once the tracts receive their final approval, the Opportunity Zones will be ready to capture investment from Qualified Opportunity Funds. The state of Indiana’s 2.0 selections can be viewed on the map.
With the state nomination process complete, Bloomington will move into the next phase of its Opportunity Zone strategy. The City plans to continue working with developers, investors, property owners, regional economic development partners, and other stakeholders to identify investment-ready projects, strengthen development opportunities, and position Bloomington to fully utilize the Opportunity Zone program once federal certification is complete.
