The Bloomington Planning Commission praised the city's vision for a modern Penn American District. Then the commissioners unanimously shot it down.

At a meeting Thursday night, commissioners said a proposed rezoning for the area, which includes Southtown Shopping Center, was too aggressive and could damage existing businesses.

"I think it's imposing, on successful businesses, things that would cause harm to those businesses," said Commissioner Budd Batterson, who earlier called the proposal "a thrilling dream ... a wonderful, wonderful concept."

Commissioner Kelley Spies praised the "wonderful plans for the future," then added, "I just don't think the timing is in line."

The commission voted 6-0 to reject both a city code amendment and a zoning change affecting the Penn American District. The commission's votes are not binding on the City Council, which is scheduled to consider the district plan at its Oct. 6 meeting. But planning commissioners said they hoped their vote would send a strong message to the council.

"I think a vision is great," said Commissioner Ted Fischer. "But that doesn't mean it's attainable in the foreseeable future."

The city's planning staff had recommended passage of the rezoning proposal, which has been in the works for about two years. City planners want to encourage a more urban, dense style of development in the area.

"We just can't continue to keep building out at low densities," senior planner Julie Farnham told the commission. "We really need to start intensifying and filling in the core."

The proposed rezoning would allow existing businesses to remain as they are. But any new development or major redevelopment would have to follow the new zoning regulations, which call for taller buildings, more sidewalks, a grid street pattern and multiple uses including retail, housing, hotels and offices.

Linda McGinty of the Luther Companies, which operates several auto dealerships in the area, suggested that city planners are getting ahead of public sentiment.

"We have been here for over two years, through all these meetings, and I cannot recall one time a taxpaying citizen coming forward to express their support of what this plan is trying to accomplish," she said.

Kraus-Anderson Realty Co., which built Southtown in 1960 and stills owns the center, has vigorously fought the rezoning.

"It's nice to have the commission come forward and reiterate the concerns we all had as business owners," said Ken Vinje, director of properties and redevelopment for Kraus-Anderson.

"One of the things the commission expressed was to see the city staff working in collaboration with the property owners to create a redevelopment plan that works for both parties. That's really what we've been asking for."

Glen Markegard, Bloomington's planning manager, said the city has been meeting with business owners in the area for the past year, and likely would continue to do so. He said he was encouraged by the Planning Commission's endorsement of the overall vision for the Penn American District.

"The Planning Commission expressed strong support for the vision of the plan," Markegard said. "The question has more to do with the approach that's used in the implementation."

John Reinan • 612-673-7402