The once sturdy alliance between the Democratic communities in Hobart Township fractured Thursday as the Hobart Township Board voted to pull out of a New Chicago town complex project at 122 Huber Blvd.
Hobart Township Trustee Fred Williams cited high costs for recommending the board pull out of an interlocal agreement with New Chicago. Hobart Mayor Josh Huddleston agreed, and voiced opposition saying it wasn’t equitable to Hobart taxpayers. Lake Station Mayor Bill Carroll listened in the audience, but didn’t voice an opinion.
The township includes Hobart, Lake Station, New Chicago and unincorporated areas along with three school districts.
The three-member board includes one New Chicago resident, town manager Sue Pelfrey who envisioned the project. The other two members, Joe Clemmons and Mike Ellis, are from Hobart.
Ellis’ motion to rescind the interlocal agreement that bound the board to the project passed 2-1, with Pelfrey dissenting. Ellis complained about what he viewed as the slow pace of the project and its cost.
“We thought it would cost a couple million dollars…. Neither Joe Clemmons or I were aware the cost exceeded what we were told. We weren’t privy to information and kept in the dark. It’s absolutely ridiculous and I won’t go forward with it.”
Pelfrey defended the project saying “everyone knew what was going on…. They were aware and it was in the packet in December; nothing was kept secret.” She said Williams was supposed to keep board members updated.
Merrillville attorney Ray Szarmach said the interlocal agreement was signed and approved by New Chicago and the township board.
“What’s in the interlocal agreement is what’s on the books now. You want something that’s more flexible, then you’ll amend it.”
Williams signed the interlocal agreement to share construction costs that would be financed through a bond, and he planned to relocate his office there. Township assessor Lino Maggio agreed to lease space at the new complex, which would also contain a community room for group events.
“I just have a hard time putting any more responsibility on taxpayers,” Williams said. “Believe me, I would like to have a new building. Our building is falling apart.”
The trustee’s office and hall are in an aging brick building at 1421 W. 37th Ave.
Williams complained the project was behind schedule and its costs swelled from about $4 million to $6.5 million. “Maybe we should look at something a little more affordable, like a pole barn,” he said.
Financial consultant Karl Cender said the project’s impact on the tax rate would be 2.5 cents per $100 assessed valuation. Taxpayers in New Chicago, Hobart, Lake Station and unincorporated Hobart Township could be impacted by the bond issue. However, most taxpayers are already at the 1% tax cap, so it would fall to the municipalities and school districts to cover the cost from their budgets.
Huddleston said after the meeting the project wasn’t fair to Hobart residents and argued New Chicago should pay rent to offset costs. He said New Chicago received $800,000 in American Rescue Plan funding from Lake County and was using $400,000 of its own ARPA funding, but the township taxpayers would still be responsible for paying off $4 million.
Huddleston said he would be more amenable to tearing down the trustee’s aging building and building a new complex on that site to improve the U.S. 6 corridor.
Pelfrey said she wasn’t sure if the town would file a lawsuit against the township board for backing out of the deal. “We’re going to regroup and we’ve got to build a building. We’re tearing ours down.”
She said it still needs to be determined how bills would be paid to architects, an attorney and the financial advisor.
Construction bids haven’t gone out for the project but bids were expected to be opened Friday for the demolition of the New Chicago Town Hall at 122 Huber Blvd.
Carole Carlson is a freelance reporter for the Post-Tribune.
