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Chicago Tribune
30-04-2025
- Business
- Chicago Tribune
Building ‘a greater Gary' highlights Melton's State of the City address
When Gary Mayor Eddie Melton came into office, he created a mission, vision and values for his team. More than one year later, he credits that strategy to successes the city has seen. 'It was extremely important for us, on a day-to-day basis, that we had a guiding star that helps us figure out how we improve the services that we provide to citizens,' Melton said. '…Integrity, service, excellence, responsive, vision and empathy — these are the values, every single day, are encouraged in our administration.' On Tuesday, Melton gave Gary's annual State of the City address, which highlighted how he plans to build a 'greater Gary' through stabilization, growth, quality of life and planning for the future. Melton highlighted efforts his administration has taken to pay off the city's long-term debt, specifically through interfund loans. In Melton's first year, the city paid off a debt to the Gary Sanitary District from 2005 and 2006, when the agency loaned the city $16 million. His administration also paid off a $2 million loan from 2021 that supplied 20 police cars. Melton plans to pay off $2.25 million in debt by 2028, he said Tuesday. Melton's administration is preparing for how recently passed state legislation is going to affect Gary. 'We know that (Senate Enrolled Act 1) is going to have a dramatic effect on local governments across the state of Indiana,' Melton said. 'We don't know what that's going to look like for the city, but we're preparing. We're going to work with the council to make sure we adequately prepare a budget to address those issues.' Melton also highlighted concerns with House Enrolled Act 1448, which has yet to be signed by Gov. Mike Braun, but will require Gary to pay $12 million to East Chicago and Michigan City after a state comptroller mistake that was supposed to address the financial burden following the move of Majestic Star casinos to Hard Rock Northern Indiana casino along Interstate 80/94. Money will be dedicated from state comptroller funds and money appropriated by the Indiana General Assembly, according to bill documents, and money will be withheld for 10 years. Melton said the House Enrolled Act 1448 is 'obviously not ideal,' but his administration is taking the necessary steps to prepare for the fiscal impact. 'Guess what? We're going to be OK,' Melton said. Melton also talked about House Bill 1142, which has an amendment that requires the Gary Common Council to terminate a compact for the Gary/Chicago International Airport. Legislation has also targeted the number of appointees Melton or any other Gary mayor can pick for the airport's executive board. Melton believes Gary is being unfairly targeted through the legislation. 'We're proving that we're being fiscally responsible,' he added. 'We're proving that we're bringing in business to grow in that region and that area.' The Gary airport had 649 total arrivals in 2024, Melton highlighted Tuesday. The airport averaged about 15 international arrivals per month last year. The Gary airport has also received about $39.3 million for capital upgrades, including a passenger terminal renovation, jet fuel pipeline and hangar upgrade. On Tuesday, Melton announced that FedEx is coming to Gary after buying 78 acres of land at 6200 Industrial Blvd. The purchase will help create about 600 jobs in the city, Melton said. He also talked about the potential acquisition of U.S. Steel by Nippon Steel, which President Donald Trump ordered a new review of by the Committee on Foreign Investment in the United States. Nippon Steel would invest $1 billion into the Gary Works facility if the deal is approved, which Melton said would benefit steelworkers and the city as a whole. 'We're talking about a global project that will have significant impact,' Melton said, adding that plant closures might follow if the deal falls through. 'As mayor, I didn't want to sit on the sidelines and just watch. … We've been very engaged in this, you see the commitment that's been put forward, and we're watching this deal closely.' Melton also highlighted a 2024 Alliance Steel expansion, which has added 60 new jobs to the 500,000 square-foot campus and hires Gary residents. The potential Lake County Convention Center was another talking point for Melton, of which Gary is one of two applicants. The city of Hobart also submitted a proposal. 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 and has been outspoken that Gary should receive the Lake County commissioners' bid. Commissioners have until May 31 to decide which bid — if any — is accepted. Gary's proposal, created with Hard Rock Northern Indiana, 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 state funding that's going toward this project is generated by the tax dollars that Hard Rock pays the state of Indiana — think about that,' Melton said. 'If we don't get the convention center, if it goes to another community, it's going to be funded by tax dollars generated by Gary.' Other key points Melton highlighted included blight elimination, which the city has started the first phase of in downtown Gary. Targeted areas include Gary City Methodist Church, Lovell's barbership, Gordon department store and the Mecca building. Demolition should be complete by the end of 2025. Melton also highlighted the city's partnership with the University of Notre Dame, which is helping with blight elimination and the redesign of the city's Adam Benjamin Jr. Metro Center. Permits issued increased in 2024, Melton said, which helped generate more than $1.27 million in city revenue. He believes that — coupled with other economic development effects, such as home prices rising — is a good sign for Gary's future. 'It took Gary 50 to 60 years to get to this point,' Melton said. 'It's not going to happen overnight, but you have a mayor that believes in God … and we're not going to let others dictate our destiny.'
Chicago Tribune
07-04-2025
- Business
- Chicago Tribune
Indiana Senate unanimously passes multi-million dollar Gary repayment bill
An Indiana House Bill requiring the city of Gary to pay more than $12 million to East Chicago and Michigan City will move to Gov. Mike Braun's desk for approval. The Indiana Senate, on Monday, unanimously passed the bill on its third reading. House Bill 1448 — authored by state Rep. Hal Slager, R-Schererville — addresses a state comptroller mistake with supplemental payments that were signed into law in 2019. Following the move of Majestic Star casinos to Hard Rock Casino Northern Indiana, East Chicago and Michigan City were to receive funds to ease the financial burden, but Gary mistakenly received the funds. State sens. Travis Holdman, R-Markle; Ryan Mishler, R-Mishawaka; Lonnie Randolph, D-East Chicago; and Mark Spencer, D-Gary, sponsored House Bill 1448. Holdman gave an overview of the bill before its vote Monday. Gary will start payments next year, Holdman said. 'This won't take effect until next year because budgets have already been passed,' he said. 'Revenues are dependent on passage of those budgets.' Money from supplemental payments will come from deducted state comptroller funds and money appropriated by the Indiana General Assembly, according to bill documents. Money will be withheld for 10 years, Holdman said Monday. If payments were withheld from the city this year, Mayor Eddie Melton previously said Gary would lose about $6 million, which would directly affect police, fire and other necessary resources. House Bill 1448 originally had Gary begin payments this year, but Melton asked to have the timeline delayed due to fiscal constraints. Michigan City Mayor Angie Nelson Deuitch asked for Gary to repay the cities 'in a timely manner,' adding that last year, Michigan City had a shortfall of about $2 million. Last year, the city's budget was cut by about $6 million from the prior year, according to Post-Tribune archives. 'What I don't want to see is a six, seven, eight-year payback,' Nelson Deuitch previously told senators. 'The original was four years, and I would like it to stay at four years.' Gary owes more than $6.4 million to East Chicago and more than $5.7 million to Michigan City, according to bill documents. Gary might also owe Hammond, which was also included on the 2019 supplemental payment bill, if the city is missing funds during the 2025 fiscal year. Hammond Mayor Tom McDermott previously told the Post-Tribune that Horseshoe Casino has lost about $15 million to $20 million each year since Hard Rock opened. State. Sen. Rodney Pol Jr., D-Chesterton, praised the cities' mayors for their work with state legislators about House Bill 1448. 'This is not an easy issue to resolve,' Pol said before Monday's vote. 'Obviously, people are concerned about revenues, and I think (the bill) does a good job of ensuring that everybody's voices are heard.' State Sen. Rick Niemeyer, R-Lowell, said he appreciates that the bill was made to be a bipartisan effort. Leaders from Lake and Porter counties met to discuss the bill, Niemeyer said. 'It was a good fix,' Niemeyer said before the vote. 'It was an agreement between all three cities, so it's a good bill.'
Chicago Tribune
27-03-2025
- Business
- Chicago Tribune
Gary repayment bill to East Chicago, Michigan City passes Indiana Senate committee
An Indiana House bill requiring the city of Gary to pay more than $12 million to East Chicago and Michigan City is one step closer to reaching Gov. Mike Braun's desk. The Indiana Senate appropriations committee unanimously passed and approved amendments to House Bill 1448. The bill, authored by Rep. Hal Slager, R-Schererville, addresses a state comptroller's mistake with supplemental payments that were added into state law during the 2019 session. Gary received funds that were supposed to be 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. Sens. Travis Holdman, R-Markle, and Lonnie Randolph, D-East Chicago, sponsored the bill. House Bill 1448 originally had Gary begin payments during fiscal year 2025, but the Senate appropriations committee approved an amendment that would start repayments one year later. Gary Mayor Eddie Melton had previously said in a statement that it's 'totally unrealistic' for the city to begin payments this year. Melton spoke at the Senate committee meeting Thursday. 'I wanted to be clear that we support making sure that those communities are whole,' Melton said. 'This is not an effort for us to withhold any dollars from them. We want to stay true to what the legislation says, however, it would be a fiscal constraint for us if we were to pay this year.' Since Gary already has its 2025 budget completed, Melton said, making payments would take away from funds that have already been allocated, such as those for police, fire and other necessary resources. Money for supplemental payments will come from deducted state comptroller funds and money appropriated by the Indiana General Assembly, according to bill documents. If the payments were to be withheld this year, Gary would lose about $6 million, Melton said Thursday. Randolph asked Melton if he thinks the distribution is fair, especially when taking into consideration what East Chicago and Michigan City have lost over the last few years. Melton told Randolph that's a difficult question to answer. 'Our gaming revenue is a significant portion of our budget,' Melton said. 'Any fluctuation in that is going to impact how we deliver services to the citizens of Gary.' Gary owes more than $6.4 million to East Chicago and more than $5.7 million to Michigan City, according to bill documents. Michigan City Mayor Angie Nelson Deuitch testified during the Senate appropriations committee meeting. Deuitch wants the payments from Gary in a 'timely manner,' she said Thursday. Last year, Deuitch said she had to convene five financial workshops with Michigan City's council to talk about the city's financial outlook. For several years before Deuitch's first term, Michigan City had not met the projected wagering tax revenues in its proposed budgets. Michigan City had a shortfall of about $2 million last year, Deuitch told the committee. In 2024, the city passed a budget that cut about $6 million from the year before. 'I understand if it has to be delayed a year, but I don't want this to drag on for a decade,' she said. 'We just want to see some assurances that we're going to receive it within a certain time frame, whether that's four or five years, versus seeing that drag on.' Randolph asked Deuitch if receiving monthly payments would ease her concern in terms of regularity. Deuitch said it wouldn't make a difference because the city budgets annually. 'What I don't want to see is that this is a six, seven, eight-year payback,' she said. 'The original was four years, and I would like it to stay at four years.' The Senate is expected to vote on House Bill 1448 at a later date.
Chicago Tribune
14-02-2025
- Business
- Chicago Tribune
House committee passes Gary repayment bill for East Chicago, Michigan City
After postponing the vote, the Indiana House of Representatives Ways and Means Committee has passed a bill that would require Gary to pay approximately $12.3 million to East Chicago and Michigan City. Indiana House Bill 1448 passed the committee in a 15-8 vote Thursday afternoon. The bill, authored by Rep. Hal Slager, R-Schererville, addresses issues with supplemental payments that were added into state law during the 2019 session. 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. Rep. Earl Harris, D-East Chicago, explained his vote before voting against the bill. 'We're in a situation here where the party that is responsible for the mistake is not really playing a role in resolving it,' Harris said. 'Three cities that are not responsible are being negatively impacted. House Bill 1448 has Gary repay the cities in three years. Harris proposed an amendment on Wednesday to give Gary 10 years to pay the funds. On Thursday, Harris changed his amendment, proposing the creation of a loan from the state that Gary could pay back over eight years. The loan would allow East Chicago and Michigan City to receive their missing funds up front, and Gary would not have to pay interest on the loan. 'This is a solution that is a win for all three cities,' Harris said during committee Thursday. 'Again, it's no fault of theirs that we are here, but we have to deal with this issue.' Multiple committee members agreed with Harris' amendment, saying that it's the best solution for all three cities, especially because East Chicago and Michigan City would not have to wait multiple years before receiving all the missing funds. Rep. Gregory Porter, D-Indianapolis, said he's disappointed that representatives were in this position because of a comptroller mistake. 'These are real people's lives,' Porter said. 'It's not just numbers on a chalkboard … I just can't believe that we're sitting here at this point.' On Thursday, the Ways and Means Committee denied the amendment in an 8-15 vote. Slager proposed an amendment Thursday that would limit the withholding to $3 million a year. Through the amendment, Slager said it would take Gary about six years to pay the cities back and would have to pay about $18 million. Harris said Slager's amendment would be more detrimental to all three cities because East Chicago and Michigan City wouldn't receive their full funds until 2030, and $3 million per year is still a substantial amount for Gary. Slager withdrew the amendment before the committee could vote. On Wednesday, Harris said he proposed his 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 in House Bill 1448 because the city didn't see a decrease in wagering tax revenue. Thuma also said Gary won't receive additional distributions in 2025, according to Post-Tribune archives. Before amendments were proposed, House Bill 1448 laid out a three-year plan for Gary's payments to East Chicago and Michigan City. For the fiscal year beginning July 1, 2025, approximately $1.4 million should be paid to Michigan City for the funds not paid in fiscal year 2021, according to the bill. 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. 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. Latham told committee members that House Bill 1448 would 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.' The House of Representatives will vote on House Bill 1448 at a later date.
