So I have this correct, U2 is just providing the "virtual ground" on a +-2.5v split power supply?
edit: The output will oscillate around 2.5 volts ("virtual ground") with that gain of 2. I don't know about the sensor output or design.
Due to the design of the 741, the output will not get lower than 1 volt, nor higher than about 4 volts.