Hammond urges commissioners to not select convention center proposal

Chicago Tribune

16-04-2025

Another Lake County mayor has expressed concerns with a potential convention center — this time backed by council members, urging commissioners to not select either proposal.
At Monday's Hammond Common Council meeting, members approved a resolution opposing the selection of a location for the Lake County Convention Center.
'… the Common Council of the City of Hammond hereby strongly requests that the Lake County Commissioners do not select a location for a Lake County Convention Center at this time as it does not make economic sense, potentially subsidizes one casino at the expense of other casinos, including Horseshoe Hammond, and it is not in the best interests of taxpayers and residents of the City of Hammond,' read the resolution, sponsored by Councilman Scott Rakos, D-6th.
Councilman Barry Tyler, Jr., D-3rd, was the lone opposing vote. He asked the council to table the resolution until its May 12 meeting, but the motion failed in a 3-6 vote.
Tyler told Hammond Mayor Tom McDermott he didn't have all of the necessary information to vote in favor of the resolution, and he encouraged McDermott to sit down with the mayors of Gary and Hobart about his concerns.
The councilman said he'd talked with Gary Mayor Eddie Melton about the convention center and felt the convention center might also benefit Hammond.
'This could be an opportunity to provide additional revenue to our city with some type of partnership agreement,' Tyler said. 'I know the city of Gary is interested in having that conversation. I don't know if Hobart would be, but potentially we could try to schedule time to have that conversation with them, too.'
The four-page resolution mentioned Hard Rock Casino Northern Indiana has put Horseshoe at an economic disadvantage, with revenues 'steadily (decreasing)' in the last several years.
Hard Rock has submitted a bid for the convention center with the city of Gary. The city of Hobart also submitted a proposal.
In 2023, as a state senator, Melton crafted Senate Bill 434, creating the Lake County Convention and Economic Development Fund. The fund was designated for convention center creation, the Blighted Property Demolition Fund, and revitalization of the Gary Metro Station to complement the South Shore Double Tracking project.
Melton intended for the convention center to go to Gary, but legislation was shifted to give decision-making power over where the convention center would be located to Lake County. Commissioners will decide by May 31 where the project will be depending on proposals.
Lake County commissioners can choose to select neither location.
Gary's proposal envisions a 145,000-square-foot convention center and Hard Rock Hotel near the casino, according to Post-Tribune archives. The property would also have space for two additional hotels, including one REVERB by Hard Rock Hotel, and two restaurants and retail spaces.
The city of Hobart and Garfield Public/Private LLC submitted a proposal for a 149,000-square-foot facility at Patriot Park. The developer plans for the space surrounding the convention center to include an existing 70-unit veterans transition housing along with three other residential buildings that would contain 680 market-rate units; two 100-unit hotels; a 55-acre youth sports complex; mixed retail/office buildings; five multi-tenant, retail and restaurant buildings and five flex office warehouse buildings, among other amenities, according to Post-Tribune archives.
Council President Dave Woerpel, D-5th, said he thinks the past has shown that a convention center wouldn't benefit Lake County. He also thinks it's dangerous to build a facility when people haven't yet felt the effects of Senate Bill 1, which Gov. Mike Braun signed into law Tuesday.
'How do you explain that in three to four years from now that the state says we're going to be $8 million short towards our city budget? And the state says we can impose a city income tax,' Woerpel said. 'It's not where it's going. I don't think we need a convention center, period.'
The Hammond resolution claims that the former Star Plaza site in Merrillville is proof a convention center can't work in Lake County, saying there is not a 'market for a viable and profitable convention center that is not significantly subsidized by public dollars.'
McDermott showed his support for the resolution at Monday's meeting, saying Hammond's main casino industry competitor will only continue to get bigger.
'Hard Rock Casino is the most profitable casino in the state of Indiana,' McDermott said. 'And they're on the cusp of getting a couple hundred million dollars in tax incentives to build an addition to their casino. Let that sink in.'
Since Hard Rock's opening, Horseshoe has lost about $13 million each year, McDermott said Monday. He previously told the Post-Tribune that the Hammond casino lost between $15-20 million each year.
The city of Gary did not immediately send a comment Wednesday.
Melton previously told the Post-Tribune that the convention center was originally meant for Gary, which he believes makes the city the best option.
Although his main concerns surround Hard Rock and Gary, McDermott said he doesn't support a convention center in Hobart as well, saying he thinks it will fail like Star Plaza.
'This is a no brainer, guys,' McDermott told the council.
Hobart Mayor Josh Huddlestun addressed Hammond's concerns to the Post-Tribune Wednesday, saying he understands that McDermott is trying to do what's best for his city. However, Huddlestun believes the commissioners should still select the best site for the county, which he said is Hobart.
'This is a Lake County Convention Center for the benefit of Lake County residents,' Huddlestun said. 'This is not a Hobart convention center … Our entire proposal is wrapped around benefits for Lake County.'
McDermott has historically not supported the Lake County Convention Center, saying in September that the facility will become a burden for the host community and it will negatively impact other county resources.
Last week, East Chicago Mayor Anthony Copeland announced his opposition to the convention center being built in Gary. The East Chicago Common Council overrode a veto from Copeland addressing a council resolution in support of the convention center in Gary.
Copeland previously told the Post-Tribune that he was 'blindsided' by the resolution and feels the council didn't know how much Hard Rock had impacted East Chicago.
In three years, East Chicago has lost $10 million in revenue, Copeland said. He also mentioned that the city of Gary owes East Chicago $6.5 million after money was mistakenly given to the city by the Indiana State Comptroller.
Indiana House Bill 1448 — authored by Rep. Hal Slager, R-Schererville — ensures East Chicago will receive those funds. The bill passed both the state House and Senate.
Copeland told the Post-Tribune he'd prefer for the convention center to be in Hobart because the city doesn't have a casino to compete with East Chicago.
Though the legislation allows the Lake County Council to increase its innkeeper's tax by up to 5% for a revenue stream, Gary's plan does not include a request for the county to increase the tax.
Gary and Hard Rock have campaigned to be selected by commissioners, most notably with the casino's $50,000 initial investment into television and digital advertisements. The commercial does not mention Hobart has also submitted a proposal or that other Lake County communities had the opportunity to submit a proposal.
Taxpayer dollars were not used to create the commercial, Hard Rock officials confirmed.