By the 1890s, the 1868 high school was in need of replacement and the Board sought and obtained voter approval for the issuance of $40,000 in bonds to build a new high school. In December, bid proposals were reviewed - all of which were rejected because they exceeded amounts available to pay for construction. Cuts were made, new bids were solicited and construction of a new high school was authorized for the corner of Market and Monroe (on the site of where District Administrative offices are now located) for a cost in excess of $64,000, including land acquisitions. The new high school opened and was dedicated on January 2, 1897.
This building served as Bloomington High School until 1917 when a new high school was erected on the corner of Washington and McLean Streets. The 1897 was remodelled and served the district as Jefferson School until March 7, 1932 when it was destroyed by fire.