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Chicago Tribune
11-04-2025
- Business
- Chicago Tribune
East Chicago mayor raises concerns about potential Gary convention center
The East Chicago mayor and council are split on their support of the Lake County Convention Center potentially being built in Gary. At the council's biweekly meeting Wednesday, they overrode a veto by Mayor Anthony Copeland addressing a council resolution from two weeks prior. The council's original resolution expressed support for the Lake County Convention Center to be built in Gary. Councilwoman Vanessa Hernandez Orange, D-At large, said at the East Chicago Common Council's March 26 meeting that if the convention center is built in Gary, it could be positive for East Chicago. If people are visiting Gary, they could also bring business to East Chicago, Hernandez Orange said. 'We understand that there's a casino in Gary, but we also have one here,' she added. 'We also have hotels here, and there's food venues. … It was no-brainer for me to support because we want to make sure that our cities are being looked on when things are happening.' In 2023, as a state senator, Gary Mayor Eddie 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 where the project will be depending on proposals, which came from Gary and Hobart. The city of Gary submitted its proposal with Hard Rock Casino Northern Indiana, which 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 more hotels, including one REVERB by Hard Rock Hotel that will be co-developed and managed by Hard Rock. The center would also include two restaurants and retail spaces. Copeland believes a Gary convention center would not benefit East Chicago, telling the Post-Tribune that East Chicago has lost tens of millions of dollars to Gary each year since Hard Rock Casino was built. 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 said he was 'blindsided' by the resolution and feels the council didn't know how much Hard Rock had impacted East Chicago. 'When they voted on it, they didn't know all these things,' Copeland said. 'They didn't know that we've lost $10 million to Hard Rock. They didn't know that we're trying to recover $6.5 million from Gary.' Copeland believes if the convention center is built in Gary, it will continue to put Ameristar Casino in East Chicago at a disadvantage. He supports a Lake County Convention Center, Copeland said, but he'd like it to go to Hobart instead because the city doesn't have a casino to compete with East Chicago. 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 transitioning 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. East Chicago Councilman Terence Hill, D-3rd, was the lone council member to vote against overriding Copeland's veto. Hill was absent from the March 26 meeting where the original resolution unanimously passed. At Wednesday's meeting, Hill said he's concerned East Chicago will lose business to Gary if the convention center is built. 'Everybody is talking about the future, but if we don't get this money coming into our city and it's going somewhere else, we're not going to be able to do that,' Hill said. Councilman Robert Garcia, D-5th, said he sees the potential convention center as a positive for East Chicago. Before voting to override the veto, Hernandez Orange said she respects Copeland's stance but believes East Chicago needs to do more to make sure the city thrives. 'Is there a possibility that this might help?' Hernandez Orange said of the potential convention center. 'I say that because we can't just be small-minded. We have to think big, and we have to think that there are other possibilities.' Hard Rock Casino declined to comment. The city of Gary could not immediately comment on Copeland's concerns. The casino has showcased its support for the potential convention center, most recently in an initial investment of $50,000 into television and digital advertisements. 'Our focus is to educate people about the project and build excitement for the new local jobs and economic opportunities this will create,' Pat Kremer, spokesperson for Hard Rock, previously told the Post-Tribune in an email. 'No tax dollars were used for these ads and no new tax dollars will be needed for the project if the Gary location is selected.' The 30-second commercial did not mention that Hobart has also submitted a proposal or that other Lake County communities had the opportunity to submit a proposal. 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. Hard Rock and Gary have collected supporters for the potential project, including residents and prominent community leaders. On its Facebook page, the Gary Common Council has encouraged residents to call commissioners to show support for the project. According to a state statute, Lake County commissioners have until May 31 to make a decision.
Chicago Tribune
12-02-2025
- Business
- Chicago Tribune
Committee postpones vote on Gary repayment bill after proposed amendment
The Indiana House of Representatives Ways and Means Committee has postponed the vote on a bill that would require Gary to pay approximately $12.3 million to East Chicago and Michigan City. Indiana House Bill 1448, authored by Rep. Hal Slager, R-Schererville, addresses issues with supplemental payments that were added into state law during the 2019 session. The bill would require the funds to be paid back within three years. Rep. Earl Harris, D-East Chicago, proposed an amendment to give Gary 10 years to pay the funds. 'While I appreciate the plan that Rep. Slager has put together, it puts Gary in a position of now finding out those funds are owed to other cities when they've already planned out multiple years of their finances,' Harris said during the committee's meeting Wednesday. Slager said he's 'sympathetic to the situation' but doesn't know how extending the time would be beneficial. He repeatedly told Harris that he thinks a 10-year time period is too long. A mistake by the Indiana State Comptroller sent funds to Gary that should've been distributed to East Chicago and Michigan City to ease the financial burden following the move of the Majestic Star casinos to Hard Rock Casino Northern Indiana, located along Interstate 80/94, according to Post-Tribune archives. Harris said he proposed the amendment in case Hammond is affected once 2025 numbers are released. Jennifer Thuma, general counsel for the comptroller's office, previously said Hammond was part of the original 2019 bill but wasn't included on House Bill 1448 because the city didn't see a wager tax revenue. Thuma also said Gary won't receive additional distributions in 2025, according to Post-Tribune archives. As of Wednesday afternoon, House Bill 1448 would require Gary to pay the two cities over the course of three years. Starting in fiscal year 2026, approximately $2.9 million should be paid to East Chicago and approximately $2.2 million should be paid to Michigan City for funds not paid in fiscal year 2022, according to the bill. For fiscal year 2027, approximately $3.6 million should be paid to East Chicago and approximately $2.2 million to Michigan City for funds not paid in fiscal year 2023, according to the bill. 'We're coming up with a solution that works for everyone in repayment and payment to the cities that are owed without causing Gary deep financial harm,' Harris said. '(Gary) will make adjustments over 10 years, which are smaller adjustments in terms of paying the loan off, versus over a small number of years having to pay off large chunks of money.' Rep. Gregory Porter, D-Indianapolis, said on Wednesday that he agrees with the amendment because the comptroller is at fault, not the city of Gary. Porter believes it's important to give the city some leeway. The state representative also said it's not an issue of the city not wanting to pay the money. 'It wasn't their fault,' Porter said. 'How do we do it in a palatable way that's not distributive to the city of Gary and other surrounding areas?' Rep. Ed DeLaney, D-Indianapolis, agreed that an extended time for the money to be repaid would be best for Gary. 'We've been working diligently here for the last few years to help Gary,' he said. 'They've got a plan to move forward, and all of a sudden, we're going to say, 'Whoops, you got $12 million you're not supposed to have.' I think stretching it out over time makes sense.' By the end of the discussion, Slager still said a 10-year repayment period is still too long, but he believes they could negotiate and compromise. The committee is expected to vote on the bill Thursday. Gary Mayor Eddie Melton, City Controller Celita Green, and Common Council Vice President Lori Latham, D-1st, spoke at a Ways and Means Committee meeting on Jan. 22 about how the bill would impact Gary's finances. State Comptroller Elise Niseshalla called the issue a difficult situation. Latham told committee members that House Bill 1448 will set Gary back and unravel the city's success. 'It was never really about gaming,' she told committee members on Jan. 22. 'Instead, it was an opportunity to optimize our casino license, one of the many economic development tools created by this body through legislation, and allowed us to use every asset at our disposal to catalyze our city's economic development, progress and upward mobility.'
