Thank you to all who made it to our Legislative Preview last Friday at the Hilton Garden Inn. We had a great turnout and members posed thought-provoking questions to Reps. Hall, Mayfield, and Pierce. If you missed the event, you can catch it on CATS here.

I'm currently in bill tracking mode and I'm following a number of bills that have been filed at the Statehouse. Here are some that have stood out so far:

Property Tax Bills

• SB1 amends the standard homestead deduction
  • 60% of a home's assessed value for properties over $125K
  • $48,000 plus 60% of remaining assessed value for properties under $125K
• SB6 would authorize county councils to establish a property tax payment deferral program
• SB68 would provide a property tax deduction equal to $120,000 for persons 65+
• SB105 would do away with annual adjustments of assessed values and, instead, adopt 4-year cyclical reassessments

Schools

• SB8 would make it so that school levy referenda may only be placed on the ballot during a general election primary or a general election. It also looks like schools will need to wait two years between a current levy expiring and a new levy being put on the ballot
• HB1136 would dissolve public school corporations if more than 50% of the students in that corporation's district are enrolled in schools not operated by that school corporation

Monroe County Food & Beverage Tax

• HB1080 would adjust the current breakdown of the Monroe County Food & Beverage Tax to give Ellettsville a share of the county's portion. I had the opportunity to go to the Statehouse and testify on this bill. Feel free to check out the committee video here for more on that discussion

Annexation

• SB126 would require a municipality that initiates an annexation to file a petition approved by:
  • At least 51% of the owners of non-tax exempt land in the annexation territory or;
  • The owners of at least 75% of the assessed value of non-tax exempt land in the annexation territory
• HB1362 would require a municipality that initiates an annexation to file a petition approved by:
  • At least 65% of the owners of non-tax exempt land in the annexation territory or;
  • The owners of at least 85% of the assessed value of non-tax exempt land in the annexation territory

I'll keep tracking these bills and many more as they make their way through the legislature.

The 2025 legislative session is right around the corner. And, at least on my part, there is an element of uncertainty as to how it might shape out this year. This will be the first session under new governor Mike Braun who recently released his priorities. His lieutenant governor (Micah Beckwith), who will oversee Senate proceedings, has already made headlines. Senate Democrats have been rocked by scandal and leadership challenges. And, on top of all of that, Medicaid shortfalls and an end to COVID-era stimulus funding mean we might see some belt-tightening and a smaller budget than in years past.

Despite all of this, here are some topics where we might see some movement on this session:

• Tax reform
  • Legislative leaders are contemplating how to bring property tax relief without crippling revenue streams for local governments. We could see some more local income tax opportunities in exchange for property tax changes.
• Energy infrastructure
  • While there may be an interest in looking at how the state can continue to support increased energy capacity and lower utility costs, the movement here may be marginal and an onus may be put on local governments to change their zoning and permitting processes
• Housing availability & affordability
  • Similar to energy infrastructure, the state may look at some matters around the margins, but there seems to be an appetite for putting the onus on local governments to change their zoning and permitting processes to make development less cumbersome
• Childcare
  • This continues to be an issue for our chamber members and for businesses across the state and we'll keep track of legislation filed on this topic. Expect to see some conversations around programs to support licensure and some discussion on deregulation.
• $2 per pack cigarette tax increase
  • This is an issue that both the Greater Bloomington Chamber and the state chamber have advocated for in recent sessions to help encourage positive public health outcomes. While the final outcome of this legislation is hard to predict, the President Pro Tempore of the Senate indicated that it is more likely to get through the Senate than in previous years, especially as it could provide an avenue to shoring up the Medicaid shortfall.
• Road funding formula
  • While we might not see any legislation make it through this year, we can likely expect further conversation about possible changes to the road funding formula, especially in light of inflation and the increase of electric and more efficient vehicles.
• Education & workforce development
  • Talent readiness & retention remains a top issue and we will likely see some legislation addressing apprenticeships and internships
  • While there have been discussions around Indiana's inability to retain students that attend colleges and universities in the state, I would expect solutions here to be part of a longer-term conversation.
  • In terms of education, House Democrats have outlined universal pre-K as a top priority. However, given budget constraints, there may not be much movement on this front.

The legislative session always provides ample opportunity for unexpected twists and turns. The Chamber Advocacy team will track these topics and whatever else may spring up during the 2025 session.

Bloomington Transit has announced the creation of Route 13, bringing much-needed service to areas including West Vernal Pike over the interstate to Park 48 and Ivy Tech. This historic route will provide the first-ever BT fixed-route bus service outside of city limits.

Per BT's press release: service will begin on Thursday, January 2, 2025. Buses will operate Monday-Friday. The first trip will depart from the Downtown Transit Center at 6:40 am and the final trip will return at 6:30 pm. There will be one trip per hour for a total of 12 trips per day. Information regarding timetables and a route map can be found here.

The Chamber's own Christopher Emge had this to say about the announcement of the new route: "I want to express our profound appreciation for this landmark achievement in expanding Bloomington Transit service to Park 48. This expansion, forty years in the making, marks a crucial advancement for our business and educational community in Monroe County. Together, we're building a more accessible, connected, and prosperous community for generations to come."

Businesses located along the route include Cook Medical, Berry Global, Singota Solutions, Simtra, and TASUS.

Overview of the Problem

The rise of Airbnb, VRBO, and other short-term rental platforms has created notable challenges within housing markets. The increased prevalence of these rentals is tied to significant effects on housing prices, especially for renters and those looking to buy homes. Studies, including one from the Harvard Business Review, indicate that short-term rentals like Airbnb account for approximately 20% of the average annual increase in rent nationwide. Furthermore, research from the National Bureau of Economic Research and California-based universities reveals that a 10% increase in Airbnb listings correlates with a 0.42% rise in rents and a 0.076% uptick in house prices. These shifts emphasize the need for regulatory action to alleviate the strain short-term rentals impose on the housing market.

While short-term rentals can bring economic benefits, such as boosting local tourism, they also drive up housing costs, reducing affordability for long-term residents. Regulatory strategies are essential to reduce these negative impacts while balancing economic contributions. Potential solutions include tax policies, zoning laws, administrative codes, and, in some cases, an approach resembling a de facto ban on certain short-term rental operations.

Potential Regulatory Solutions

1. Tax Policies
Tax policies aim to curb the rise of short-term rentals and direct funds toward affordable housing projects. For instance:

• California Senate Bill 584 imposes a 15% tax on rentals lasting less than 30 days, channeling revenue into affordable housing managed by public or nonprofit organizations.
• Los Angeles County applies a 12% Transit Occupancy Registration Tax to short-term rental stays, similarly directing these funds toward housing needs.

Purpose: Taxes deter short-term rental growth while supporting community housing initiatives.

2. Zoning Laws
​Zoning regulations can define legal areas for short-term rentals, setting boundaries on:

• Guest Capacity: Limits on the number of guests per rental.
• Stay Length: Restrictions on the maximum allowable duration for rentals.
• Permits: Requirements for property owners to obtain special permits or licenses for short-term rental operation.

Goal: This approach minimizes neighborhood disruption, reducing the risk of short-term rentals in areas best suited for long-term residents.

3. Administrative Codes
In California, administrative codes help ensure that properties used for short-term rentals maintain a connection to long-term residency:

• Owners must reside in the rental for at least 60 days before renting it out and must occupy it for 275 days annually.

Benefit: These requirements prevent properties from being exclusively designated as short-term rentals, allowing long-term rental availability.

4. De Facto Ban Approach
Some cities, such as New York City, have taken measures akin to a ban by placing strict occupancy limitations:

• Short-term rentals are only allowed in owner-occupied homes, with a maximum of two guests at any one time.

Outcome: New York City’s approach has reduced short-term rentals from 22,000 to approximately 7,000, thereby increasing the availability of long-term rental options.

State-Specific Regulations
Florida (SB 280)
Florida’s Senate Bill 280 permits local governments to enforce short-term rental regulations through:

• Registration Programs: Property owners must register rentals with local authorities.
• Guest Occupancy Limits: Limits are set at two persons per bedroom plus an additional two in common areas.
• Penalties: Property owners violating these stipulations may be fined up to $500 if the issue isn’t resolved within 15 days.

Effect: These regulations aim to help local authorities monitor and manage short-term rental impacts on the housing market.

Indiana
Indiana has explored regulations but has not yet enacted state-level controls on short-term rentals:

• Senate Bill 497: Proposed in 2019, it would have introduced taxation on rentals under 30 days, or those rented for more than 15 days annually. However, the bill did not pass, leaving tax compliance largely voluntary.

Challenge: Without regulation, Indiana’s short-term rentals remain less controlled, making it challenging to manage their impact on housing affordability.

Conclusion
With rising housing shortages in Indiana’s largest cities, adapting frameworks from other states could be beneficial. By implementing tailored regulations, Indiana has the potential to balance the interests of short-term rental operators with the need for affordable long-term housing.

Each year, we survey our members to gather feedback on the most important and impactful issues affecting their businesses at the local, state, and federal levels. We continually refine our surveys to focus on questions that help us track trends and gain insight into current events.
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The time has come for the 2025 Issues Survey, and we greatly appreciate those who have participated in the past. Your input is essential, as the survey results play a key role in shaping our legislative agenda and guiding our discussions with elected officials. Members will soon receive an email with a link to complete the survey. Please complete the survey by November 12th to help us set our priorities for the upcoming legislative session.

The 2024 General Election is now only 48 days away. A lot has happened since our last Elect Connect event. The Primary Election may has determined which candidates we can now pick from for a range of offices up and down the ballot. Not to mention the fact that the race for President got quite a shake-up earlier this summer.

During my course of study in Bloomington and my time as a fellow here at the Chamber, I've always felt that Bloomington has been very civic-minded and engaged. It would make sense for the city hosting our state's largest institution of higher education. Yet, maybe this is a sort of tunnel vision that comes from the bubble of a university campus and working in advocacy. Nonetheless, I was surprised to see that Monroe County's turnout of 63% in the 2020 election, was lower than the state average (65%). Only 16 other counties had turnout rates at the same or lower levels than Monroe County. While the turnout rates of those 17 counties offers some interesting correlations and points for discussion, I will leave that for another time.

One our missions here at the Chamber is to foster civic engagement. As such, we want to make sure we do our part to increase our turnout. First and foremost, there is still time to register to vote. In fact, you have until Oct. 7 to do so. You can go to indianavoters.in.gov to check your voter registration status or to register to vote online. If you'd like to vote in person or have any questions, you can contact the Monroe County Election Central at 812-349-2690. Second, Monroe County Election Central has released its list of polling locations. Those can be viewed using this link. Additionally, we have set up an election page on our website to help provide information on candidates for Monroe County-specific races. Finally, we're hosting our Elect Connect event on October 9th at the John Waldron Arts Center from 3:00-4:30pm where we'll hear from candidates vying for the County Commissioner District 3 and State Representative District 62 seats. To register for this free community event, use this link.

We look forward to seeing Monroe County's increased turnout in this election.

​​On September 24th, our county's Plan Department will hold a public hearing to discuss proposed changes to the Monroe County Development Ordinance (CDO). As this document significantly impacts our community's growth and development, it's crucial to understand its history, current state, and potential future. This post aims to provide you with an overview of the CDO, with a focus on residential zoning and recent efforts to streamline zoning designations.

WHITE PAPER Response to the CDO 

The CDO is undergoing significant revisions, marking the first major update since the 1997 Comprehensive Plan. One of the most notable proposed changes is in residential density regulations. The new ordinance seeks to promote higher density in certain areas, particularly those close to existing infrastructure and public services, while preserving lower-density residential zones in more rural or environmentally sensitive areas. This shift is aimed at accommodating the county's growing population while also managing sprawl, encouraging the development of more compact, walkable communities, and making better use of public transportation options.

What is the CDO & How DO I USE IT - VIDEO 

Key Changes:

1. Streamlined Zoning: The county is reducing zoning designations from 45 to 16, making it easier for property owners to understand applicable rules.
2. Revised Land Use: Allowed uses are being reduced from 372 to 174, potentially impacting what can be built or operated in different areas.
3. Density Adjustments: Some areas, particularly north of Bloomington, will see lower density limits, while others near Bloomington and Ellettsville may allow for greater density.

​The proposed changes reflect a shift towards smart growth principles, emphasizing mixed-use development, environmental preservation, and infrastructure efficiency. However, these changes also bring challenges and potential unintended consequences that our community needs to address.
Housing and Economic Development Concerns:

• The revision proposes changing about 9,300 acres from higher-density residential to lower-density rural designation.
• Residential acreage would decrease from 9.9% to 5.8% of county land, while rural acreage would increase from 83.1% to 87%.
• Business-zoned acreage would decrease by 12%, and industrial-zoned land would fall by 1%.

These changes could exacerbate existing housing shortages and affordability issues. With Monroe County's median home price at $300,900 (compared to $180,500 in neighboring Lawrence County), we must ensure that housing remains attainable for our workforce.

1. Housing Affordability and Availability:
   • Reduced residential acreage may limit housing supply, potentially driving up costs.
   • Larger minimum lot sizes in some areas (e.g., 2.5 acres instead of 1 acre) could promote sprawl and reduce housing density.
   • The CDO should consider provisions for diverse housing types, including duplexes, townhouses, and accessory dwelling units (ADUs).
2. Economic Development:
   • Reduction in business-zoned acreage may limit opportunities for commercial growth.
   • The CDO introduces more flexible zoning categories for commercial and mixed-use developments, which could stimulate business growth if implemented effectively.
   • Industrial development may be constrained by requirements for sewer access, which is currently limited in some areas.
3. Infrastructure and Services:
   • The CDO emphasizes development near existing infrastructure, which could lead to more efficient use of public resources.
   • However, restrictions on wastewater treatment facilities may hinder growth in areas lacking sewer access.
4. Environmental Considerations:
   • The update prioritizes environmental preservation, particularly in rural and environmentally sensitive areas.
   • However, larger lot sizes in some areas could lead to increased land consumption and habitat fragmentation.
5. Community Character:
   • The CDO aims to preserve the character of rural communities while allowing for some expansion.
   • Balancing growth with preservation will be crucial for maintaining Monroe County's unique identity..

Key Considerations for the Future:

• How can we balance the need for housing affordability with environmental preservation?
• What strategies can promote economic growth while maintaining our community's character?
• How can we ensure infrastructure development keeps pace with growth?
• What provisions are needed to adapt to changing demographics and workforce needs?

​The CDO update presents an opportunity to shape a vibrant, sustainable future for Monroe County. By engaging in this process, we can work together to create a community that balances growth, affordability, and quality of life for all residents.

Remember, your voice matters in this process. Take the time to understand these changes and share your thoughts with county officials. Together, we can create a development ordinance that serves the needs of our diverse and growing community.

At last night's County Council and today's County Commissioner meeting, both the Greater Bloomington Chamber of Commence (GBCC) and the Ellettsville Chamber advocated for an alternate site to the North Park location. 

HERE are the public comments from President & CEO of the GBCC Eric Spoonmore and Ellettsvile Chamber Board President Christa Curtis made to the Monroe County Commissioners at their regularly scheduled August 14th meeting. 

Below is the joint letter than went out to County public officials from both Chambers.  

Cities must evolve, grow.  Any discussion about urban development and population management must include annexation. The goal is to create communities that benefit current residents and ensure sustainable growth.  In unincorporated areas, achieving growth becomes increasingly difficult, scattershot, slower, less defined.  Monroe County remains the definition of this difficulty. In contrast, cities typically have the vision and resources needed for long-term urban planning. 

In the heated debate on Bloomington's annexation case, much of the issues facing this community gets lost.   The Chamber has no stance on the legal matters facing the city's annexation bid.  However,  there remains a firm belief that as  Bloomington thrives, so does the region. The community is seeing the benefits in the Envision Ellettsville Plan.  A wonderful opportunity to address the housing shortage and to create the quality of life we here have come to expect. The assumption always being that we all want growth. 

The Hamilton County Success Story
The cities of Carmel, Fishers, Westfield, and Noblesville of Hamilton County, have seen remarkable success through strategic urban planning, infrastructure investment, and a commitment to creating high-quality living environments. These achievements result from initiatives led by individual municipalities, not county-level efforts. For example, Carmel is nationally recognized for its extensive roundabout system and well-planned neighborhoods. The city's focus on mixed-use developments, such as Carmel City Center and the Arts & Design District, has fostered vibrant, walkable communities admired throughout the state.
 
Carmel's annexation of the Home Place area in 2018 exemplifies this success. By expanding its boundaries, Carmel extended its high-quality municipal services and implemented consistent urban planning. This allowed Home Place to align with Carmel's vision for growth, resulting in increased property values and improved infrastructure, further solidifying the city's reputation as a desirable place to live and work.
 
Similarly, Noblesville’s annexation of land along the State Road 37 corridor shows how municipal expansion can spur development. By incorporating this strategic area, Noblesville has attracted new businesses and residential developments, boosting the tax base and commercial activity. This annexation enabled the city to manage growth along a key transportation route, ensuring it aligned with the city’s long-term plans. This careful planning has helped Noblesville maintain its momentum as a thriving community.
 
Avon’s Struggles
In contrast, Avon, a western suburb of Indianapolis, faces significant challenges in planning and development due to its rapid growth and delayed incorporation, which only occurred in 1995. Unlike the cities in Hamilton County, Avon lacks the same level of strategic urban planning and infrastructure, making it difficult to manage growth effectively. Limited resources and fragmented governance have contributed to problems in coordinating projects. As a result, Avon struggles to provide the high-quality living environments and investment seen in its peer cities. Traffic congestion, particularly during peak hours, remains a significant issue for residents.
 
                                                                                     Part 2: The Overview

Efficient Infrastructure Use
Hamilton County demonstrates the benefits of municipal development, especially in terms of efficient infrastructure use. Concentrating growth within city limits allows essential services to be delivered more efficiently, reducing costs per capita and improving service quality. Large residential lots, however, can negate these benefits by increasing the cost of building sewer and water infrastructure. Monroe County's push for residential lots to be 2.5 acres, as proposed in changes to the CDO, places a burden on builders and complicates the provision of necessary infrastructure.
 
Annexation, which brings unincorporated areas into the city, enables municipalities to extend the advantages of city services to new regions. This results in better resource management. For example, public transportation networks can be expanded, reducing traffic congestion and pollution, thus promoting a more sustainable urban environment. Expanding transit services across multiple jurisdictions, however, can create complications. Currently, extending transit services outside Bloomington’s incorporated areas requires another layer of government approval and appropriations.
 
Environmental Sustainability
Urban sprawl is a concern for many growing communities. By focusing on municipal development, cities can help prevent sprawl and preserve the natural beauty of areas like Monroe County. Concentrating growth within city boundaries protects rural and natural areas, maintaining ecosystems that are vital to the region. Annexation also supports higher-density living and improved urban planning, leading to shorter commutes, easier transit expansion, and a smaller carbon footprint. This approach aligns with Bloomington's sustainability goals and promotes environmentally responsible growth.
 
Economic Growth and Stability
Annexation offers significant economic benefits to newly incorporated areas, making them more attractive to businesses. Under Indiana’s strong mayor system, municipal governments are more responsive and can address concerns quickly. For instance, former Carmel Mayor James Brainard achieved much more than he could have as a Hamilton County Commissioner. Cities in Indiana tend to have better infrastructure, a larger workforce, and enhanced services, which drive economic growth, increase job opportunities, and expand the tax base. Property values in annexed areas typically stabilize or increase, benefiting residents and bolstering local government revenues, which in turn allows for further investment in public services and infrastructure.
 
Stronger Governance and Planning
Effective governance and planning are essential for any growing city. Annexation gives municipalities greater control over regional planning, ensuring that growth aligns with the city’s long-term vision. This reduces conflicts between city and county regulations and fosters cohesive development strategies. Annexed areas also benefit from well-coordinated emergency services, resulting in faster and more effective responses. Additionally, residents of annexed areas gain a stronger voice in city governance, allowing them to participate in decisions and serve on boards and commissions.
 
The Challenges for County Government
While annexation brings numerous benefits to cities, it presents challenges for county governments like Monroe’s. A primary concern is the potential loss of revenue that counties rely on to fund essential services such as highways, jails, and court systems. As more areas are incorporated into cities, counties may experience a shrinking tax base, leading to budget constraints. Additionally, counties may lose control over certain areas, complicating the management of regional infrastructure and services. These challenges highlight the need for careful planning and collaboration between city and county governments to ensure that annexation benefits all stakeholders.
 
The Strategic Benefits of Annexation
Annexation should not be about merely expanding city boundaries. Critics of Bloomington's previous mayor argued that his annexation proposal focused too heavily on expansion. However, the true goal of annexation should be unifying community planning and improving service delivery. By incorporating nearby areas, cities can better manage growth, ensuring that new developments align with sustainability, economic stability, and quality-of-life goals.
 
Conclusion
Looking ahead, focusing on municipal development, managing growth, and strategically pursuing annexation are essential for ensuring thriving, sustainable cities. By concentrating growth within city limits and incorporating nearby areas, municipalities like Bloomington can make the most of their resources and continue to grow responsibly for decades to come.