As the clock winds down for the Lake County Board of Commissioners to receive proposals for a new convention center, Hammond Mayor Thomas McDermott said he has some concerns about the project.
Phil Taillon, president and CEO of the South Shore Convention and Visitors Authority, is urging people to wait until after proposals are submitted to have a conversation about the strengths and challenges.
“To talk about it prior to the submission date of Oct. 16, I think we’re really just making predictions, and that isn’t going to help in any way,” Taillon said. “Why don’t we just wait for the submissions to come in, and then we can review them individually?”
In May, the Lake County Board of Commissioners issued a request for proposals from potential developers that need to meet a completed specification package. The proposals are due Oct. 16.
Commissioners will select the entity or entities that partner to build and operate a convention center before June 1.
Commissioner Michael Repay, D-Hammond, said commissioners have heard speculation about proposals, but he doesn’t know how many they will receive until the deadline.
Hammond Mayor Tom McDermott said his city won’t submit a proposal for the Lake County Convention Center.
McDermott believes the convention center will become a financial burden for the host community, he said. He also believes it’s going to negatively impact the county’s other resources.
“I don’t think there’s a market for it unless we start cannibalizing what we already have,” McDermott said. “People are talking to us about the convention center wanting to steal business from Crown Point, Merrillville, Hammond and Highland.”
Under Senate Bill 434, the state will contribute $5 million every year for the next 20 years as a match for the developer that has a successful submission, Taillon said. McDermott is worried about how much the convention center could cost taxpayers after the 20 years is up.
McDermott believes no one is talking about concerns for the project.
“Why is the state of Indiana giving us money for a set period of time?” McDermott asked. “They’re going to offset the losses for a while, and then we’re going to pick it up.”
A feasibility study conducted by Johnson Consulting, a Chicago-based company, found that the potential convention center could bring nearly $60 million annually into the local economy, according to the Northwest Indiana Regional Development Authority. The study found that the facility could also create more than 1,300 jobs and boost local and state tax revenues by more than $3.5 million per year.
The city of Gary announced Sept. 20 that it will work with Hard Rock Casino on a proposal to bring the convention center to the city.
The agreement, which includes Robinson Engineering and AECOM, was approved by the Gary Board of Works at its Sept. 20 meeting.
“This collaboration represents a significant step forward in our efforts to revitalize Gary and create new development opportunities to serve the entire region,” Mayor Eddie Melton said in a statement.
Taillon said he’s talked with officials from several communities that were submitting proposals, but he declined to share which ones.
“We do not have a site that we are focused on,” Taillon said. “We are more focused on the Lake County Commissioners choosing the site and submission that will have the greatest positive impact on Lake County.”
When a proposal is accepted by the commissioners, negotiations will begin based on legislation and funding. The Lake County Council can raise the state innkeeper’s tax by as much as an additional 5% to provide a revenue stream. The state’s tax is currently 5%.
A private sector partner would be necessary for the project to move forward.
The Regional Development Authority will have financial oversight of the revenues collected, and the center will be overseen by a six-member board. Commissioners will appoint three members of the board.
Post-Tribune archives contributed.
