The City of Bloomington’s yearslong effort to expand its boundaries has, yet again, met a legal obstacle.
An Indiana appeals court ruled Tuesday that Bloomington does not have grounds to challenge a 2019 state law it claims thwarts its annexation attempt, and even if the city could, the law does not impair its contracts with landowners under state or federal law.
A special judge previously ruled against the city’s annexation attempts twice last year. Bloomington last expanded its limits in 2004.
The city began its most recent annexation efforts in 2017, a move former Mayor John Hamilton said would “right-size the city.” Mayor Kerry Thomson continued Hamilton’s efforts and has said it will aid economic development. In an email, City Communications Director Desiree DeMolina said the city and its legal team are evaluating its next steps but have made no determination yet.
But annexation has faced staunch pushback from residents concerned about taxes, local laws and further developments, among other reasons. Margaret Clements, president of County Residents Against Annexation, wrote in an email the group is thankful for the court’s decision.
"We should never forget that a super majority of property owners have demonstrated that they are opposed to their involuntary annexation,” she wrote. “We encourage the City to accept this decision.”
Clements also said the CRAA encourages the city to drop its “ill-advised” challenge against a ruling on areas 1A and 1B, two territories the special judge separately held that the city couldn’t annex.
“It is time to allow the rifts to begin to heal,” she wrote.
Legal history of annexation efforts
The city’s legal woes are based on remonstration waivers — agreements signed by landowners saying they won’t challenge future annexation attempts by the city. Historically, Bloomington has provided sewer or water service to landowners outside city limits in exchange for these waivers.
In 2017, the city began its current annexation effort, but the state legislature passed a law that year prohibiting Bloomington’s attempt. The city challenged, and the Indiana Supreme Court overturned the law in 2020, arguing the state’s concerns weren’t unique to Bloomington and thus didn’t justify a special law.
But before that ruling, the state passed another law in 2019 — the one the appeals court ruled Bloomington couldn’t challenge Tuesday — which invalidated over 80% of the existing remonstration waivers, according to the city.
In September 2021, the Bloomington City Council adopted annexation ordinances for seven territories, increasing city limits by around 10,000 acres and 15,000 people. The city mailed a notice of the ordinances to landowners in these areas, triggering the remonstration process.
If 65% or more of landowners in one of these territories signed a remonstration petition, the annexation would be void. If 51% or more of a territory signed, it would be subject to judicial review.
In five of the seven territories, enough landowners filed petitions for the annexation to be void. In the other two, it was left up to judicial review. The city agreed to let a judge rule on the two territories, 1A and 1B, while it challenged the 2019 law regarding the other areas.
Last August, Special Monroe Circuit Court Judge Nathan Nikirk ruled the 1A and 1B annexations could not proceed because it was not in the “best interests of owners of land.” The city appealed that decision.
The city has argued that prior to the 2019 law, five territories would’ve been valid to annex, and only two would be subject to review. As a result, Bloomington argued the 2019 law violates the contract clauses of the U.S. and Indiana Constitutions. These clauses both declare states cannot pass laws impairing the obligations of contracts.
In June last year, Nikirk ruled against the city for the remaining five territories, saying political subdivisions of Indiana, like Bloomington, can’t bring federal constitutional challenges against the state. He also ruled the contract clauses are designed to protect private contracts, not those with local governments.
Bloomington appealed, which led to the appeals court upholding Nikirk’s ruling Tuesday. Judge Elizabeth Tavitas issued the opinion, and Judges Melissa May and Mary DeBoer concurred, after hearing arguments in December. The appeals court further ruled that the 2019 law does not impair the city’s contracts with landowners outside its limits, as the contracts are for municipal service, not annexation.
