The Northwest Indiana Regional Development Agency has $6 million set aside for blight elimination in Gary next year, matching an equal amount to be put up by the city.
Spending that money requires the city to put up an equal amount, President and CEO Sherri Ziller told the RDA on Thursday.
The total of $12 million is for work in phase 1 of the demolition project. The idea is to raze structures seen as blighted and an obstacle to future development.
Earlier this year, Hard Rock Northern Indiana gave Gary the first $3 million toward the city’s share of the project.
The RDA’s share will be reimbursed by the state, $3 million in the current fiscal year and $3 million after July 1. The state money was provided for in the legislation that enabled the potential creation of a new convention center in Lake County.
That law requires the money to be spent in the transit development district created in the vicinity of the Gary Metro Station, an intermodal facility downtown.
Transit development districts are being created in the vicinity of South Shore Line stations as a feature of the Double Track NWI project to increase capacity for passenger service between Chicago and Northwest Indiana along the traditional route of the South Shore Line.
The RDA is continuing to work with communities, providing technical resources to help them realize the benefits of transit development districts, Ziller said. A TDD functions much like a tax increment financing district but with the added benefit of capturing the increase in income tax revenue as well as the increase in property tax revenue within the district.
The TDD is a Northwest Indiana creation that has sparked national attention. Communications Director Dave Wellman and consultant Aaron Kowalski presented a session recently for the American Planning Association’s Indiana, Kentucky and Ohio area, Ziller noted.
“The RDA continues to see significant local, regional and national developer interest in our districts,” she said.
Beyond the TDD boundaries already established, the RDA is working with communities to create new ones at South Bend International Airport, Valparaiso’s transit center by Journeyman Distillery, and a third one to serve both Beverly Shores and The Pines.
The Gary Metro Station TDD could be expanded further south on Broadway, Ziller said.
Like with Michigan City’s new South Shore Line station under construction, a new Gary Metro Station could be built in a public-private partnership. Michigan City’s station, estimated to cost more than $100 million, includes a parking garage, residential units and commercial space. That building will take up almost an entire city block.
In other business, the board met two new employees, Controller Courtney Kvachkoff and Director of Economic Development AJ Bytnar.
Bytnar will be responsible for guiding the TDDs to create vibrant, connected communities that attract investment and improve the quality of life for Northwest Indiana residents. As Controller, Kvachkoff will oversee RDA finances, including the financial and accounting details for the TDDs.
Bytnar has more than 15 years of experience in economic development, urban planning, zoning, and redevelopment. While Gary’s executive director of redevelopment, he worked on the creation of TDD districts, among other projects.
Kvachkoff has nearly a decade’s worth of experience in accounting, tax preparation and financial analysis.
Doug Ross is a freelance reporter for the Post-Tribune.
