The Gary City Council will hold its own investigation into the failed sales of the Genesis Convention Center and Ivanhoe Gardens property to a tech company that promised to manufacture smart devices.
The council voted 9-0 Friday evening for its investigations committee to examine the deals, which have been criticized by council president William Godwin, D-1st, for a lack of scrutiny by the Prince administration and the city’s Redevelopment Commission, dominated by Prince appointments.
“Our calls for due diligence fell on deaf ears,” Godwin said.
The council’s investigation committee, led by Councilwoman Linda Barnes-Caldwell, D-5th, will meet in closed-door meetings and can subpoena reluctant witnesses, if necessary, Godwin said. No meeting date was set.
Godwin said council attorney Rinzer Williams will prepare a report on its findings and “take whatever steps we should take.”
In response to the council’s action, corporation counsel Rodney Pol said Sunday the council has exercised its legal authority for an investigation on the sales, but he said because of the pending litigation the city and the Redevelopment Commission wouldn’t comment further.
The Redevelopment Commission sued Akyumen Industries July 28 in Lake Superior Court after the Wyoming firm reneged on two contracts to pay $2.5 million for the Genesis Center and $50,000 for the former 27-acre Ivanhoe Gardens property.
The city hopes to regain the properties and is seeking $27,500 in fees for the Ivanhoe default. The city said in its suit the Genesis Center default also exposed the company to a $100,000 damages fee.
Last fall, the company promised to transform the underused Genesis Center into its worldwide corporate headquarters and turn the Ivanhoe Gardens site into its first U.S.-based manufacturing site for all components of smart device technology.
Carole Carlson is a freelance reporter for the Post-Tribune.
