Bloomington, Indiana – Three areas of Bloomington could soon gain access to a federal investment tool designed to draw private capital into communities targeted for redevelopment and economic growth.
The State of Indiana has selected three census tracts recommended by Bloomington — covering Hopewell, Seminary Park and the area immediately west of the Trades District — for nomination under the federal Opportunity Zone 2.0 program. If federally certified, the new designations are scheduled to take effect Jan. 1, 2027.
Bloomington’s Department of Economic and Sustainable Development spent months reviewing eligible areas and determining where Opportunity Zone status could have the strongest local impact. The process included site visits, discussions with property owners, businesses and developers, and planning with city, county and regional economic development partners.
“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 department Director Jane Kupersmith.
One selected tract covers Bloomington Trades District West, stretching roughly from 17th Street to 3rd Street. The area includes development-ready sites near Indiana University, The Mill and The Forge, along with residential and mixed-use projects already in the pipeline.
Hopewell represents another major redevelopment area. The former hospital campus is being transformed into a new neighborhood after significant city spending on infrastructure, site preparation, housing and public spaces. Officials see the Opportunity Zone designation as a potential way to attract private investment for the project’s next phase.
The third area centers on Seminary Park and runs from 2nd Street south to Hillside Drive. Its location connects downtown, Hopewell, Switchyard Park, the Convention Center, the B-Line Trail and nearby neighborhoods. City officials say future investment could support housing, small businesses, commercial redevelopment and underused properties.
“This announcement reflects the value of planning ahead and bringing the right partners to the table,” Mayor Kerry Thomson said.
“Bloomington has tremendous assets, but realizing their full potential requires us to be intentional about connecting public investment with private opportunity.”
Opportunity Zones provide federal tax incentives for qualifying long-term investments made through Qualified Opportunity Funds. Federal legislation enacted in 2025 made the program permanent and created a recurring process for states to nominate eligible census tracts.
Indiana will now submit its selections for federal certification. The state’s complete Opportunity Zone 2.0 selections are available on the Indiana Economic Development Corporation map.
Bloomington, meanwhile, plans to work with developers, investors, property owners and regional partners to identify projects that could be ready for investment once federal approval is complete.
