Bloomington’s New Vision for Southtown Shopping Center

Power centers. Strip malls. Shopping malls. Whatever you want to call them, they’re ubiquitous in suburban development, and Bloomington is no exception. The 37-acre Southtown Shopping Center is a regional draw, located right at the corner of I-35W and I-494. It’s the pinnacle of suburbia — vast parking lots, big-box stores (or at least the space for them), wide roads and even the Golden Arches. There’s more than meets the eye to this place, though.

Southtown is located in the Penn-American District, an area the city has earmarked for special development. In fact, across the road from Southtown is the Genesee mixed-use apartment complex, immediately adjacent to a grocery store. Next to it are three more apartment buildings, with another in construction at the time of writing. The area is served by Metro Transit’s Orange Line BRT.

All this to say: Southtown is a prime location for redevelopment.

Yet, the once great center (which opened in November 1960) now looks old, dated and empty. Some of the parking is even being used as storage for nearby car dealerships. Major anchors have closed down one-by-one: first Toys “R” Us, then Herberger’s and most recently Bed Bath & Beyond. Most of Southtown’s space is now empty or part of the vast ocean of over 2,100 parking spaces. 

To be sure, developers have tried to redevelop the site. Back in 2021, Southtown’s developer, Kraus-Anderson, submitted a proposal for a 132,000-square-foot Hy-Vee grocery store, as well as a 26,000-foot liquor store. Future office and residential stages were proposed as well. However, the plans were scrapped just months later, possibly as a result of rising construction costs.

Earlier in 2024, the portion of Southtown formerly occupied by Toys “R” Us was torn down, though its future was still unclear. Later in the year, Kraus-Anderson unveiled plans for a Dick’s House of Sport, poaching the retailer from Richfield, across I-494. The concept includes a two-story, 120,000-square-foot store and an attached 18,000-square-foot outdoor field. An additional phase would add a medical office building, though future development would be restricted by sanitary sewer capacity limitations. Bloomington’s Planning Commission and City Council both approved the plans in September. Despite Councilmember Lona Dallessandro calling them “uninspired,” the plans were passed unanimously by the council. Construction is expected to start some time in the fall.

Below, courtesy of Kraus-Anderson, is a conceptual rendering and site plan of future development.

Having lived in Bloomington my whole life and frequenting Southtown, I believe the plan is a net gain in terms of economic development — creating jobs and adding short-term improvements, including a sidewalk on Knox Avenue to the I-494 bus/pedestrian underpass (which currently dumps pedestrians into a parking lot), a raised crosswalk and much-needed landscaping. Kraus-Anderson also reaffirmed its commitment to creating high-intensity development in a corner of Southtown zoned for mixed-use separate from the rest of the center.

Perhaps we will see more of the dense transit-oriented development located across the street. Only time will tell what future opportunities may come to this historic place.

Related