Last year was big for Gary, said Mayor Eddie Melton, but he isn’t planning to stop the work in 2026.
“Everything that we’ve done in these first two years (of the Melton administration) has built confidence in our partnerships with the state and local government, which is allowing us to execute these projects,” Melton said. “That’s important, and it’s instilled confidence in developers and investors looking to Indiana from other states.”
As he looked forward to 2026, Melton reminisced on some of Gary’s biggest accomplishments in 2025, and detailed how those would shape his goals for 2026. Melton also spoke about some of the city’s challenges, including legislation that will impact the city financially.
In 2025, Melton was most proud of the city’s work to stabilize its finances and to figure out how to improve the delivery of services and resources it already has. Gary worked to be more fiscally responsible, and the city started its own rainy day fund.
“I’m always looking at pending and existing legislation that could impact the city of Gary, financially or not,” Melton said. “I’m trying to put us in a more solid financial position to weather storms when they arise. So, I think for me, that’s a huge success because Gary has historically faced a lot of fiscal challenges with our low collection rate of property taxes and a shrinking population.”
Melton believes financial stability will help as the city braces for challenges from Senate Enrolled Act 1, which was passed during Indiana’s 2025 legislative session and will lead to cuts in property tax revenues for cities, schools and other taxing districts.
Financial stability will also help as Gary feels the effects of House Enrolled Act 1448, which requires the city to pay more than $12 million to East Chicago and Michigan City after a mistake by the state comptroller that was supposed to address the financial impact after the move of Majestic Star casinos.
Gary owes more than $6.4 million to East Chicago and more than $5.7 million to Michigan City, and payments will start this year. Money will be deducted from state comptroller funds and money appropriated by the Indiana General Assembly, and funds will be withheld for 10 years.
Melton’s administration worked well with the Gary Common Council, he said, and the mayor plans to continue that strong relationship in 2026.
“Traditionally, the city is used to seeing the executive and legislative branch in opposition, and that’s something we wanted to make sure we can change,” Melton said.
In 2025, Gary closed multiple deals that made Melton excited for the future, he said, including the Lake County Convention Center. In May, the Lake County Board of Commissioners selected a proposal from Gary and Hard Rock Northern Indiana for the county convention center.
As the selected bid, Gary and Hard Rock plan to build a 145,000-square-food convention center and Hard Rock Hotel near the casino, according to Post-Tribune archives. The plan is for the property also includes two additional hotels, including one REVERB by Hard Rock Hotel, and two restaurants and retail spaces.
In 2023, as an Indiana state senator, Melton created Senate Bill 434, which established a fund for the Lake County Convention Center, the blighted property demolition fund and new train station funding in downtown Gary.
“In the process, we’re now putting together agreements and locking in all of the necessary steps that the legislation called for,” Melton said. “That’s going to be great for the city, and it’s going to lead to more property owners, developers, restaurants and jobs.”
Another 2025 highlight for Melton was the groundbreaking of a $60 million FedEx facility, which Gov. Mike Braun praised in an October ceremony.
“The region often gets overlooked,” Braun said. “But this is going to inspire a lot of people to invest here, and it’s going to give a lot of confidence to our state government to make sure it’s a comeback, and it’s a renaissance. … We’re just getting started.”
The facility, located in Buffington Harbor, is expected to create about 600 jobs in Gary. Melton called the city “a logistics gold mine,” adding that the city has access to ports, rail lines and the Gary/Chicago International Airport.
“FedEx is going to be huge for Gary,” Melton said. “It shows how we can collaborate with the state and federal government to make the city a true economic engine in the Midwest.”
Another major win for the city in 2025, Melton said, was Nippon Steel’s $14.1 billion investment in U.S. Steel, which would include a large investment in the company’s Gary Works facility. President Donald Trump approved the investment in February after former President Joe Biden blocked an acquisition after a review by the Committee on Foreign Investment in the United States cited national security concerns.
According to a U.S. Securities and Exchange Commission filing when the transaction was finalized, Nippon plans to invest $3.1 billion in the Gary Works facility from 2025 to 2028. In 2025, Nippon plans to invest $400 million, followed by $900 million in 2026, $800 million in 2027 and $1.1 billion in 2028.
In 2026, Melton is dedicated to working more with private sector partners to ensure Gary sees more business throughout the city. Gary officials have been dedicated to growing the city’s tax base, Melton said, especially as they prepare for the effects of SEA 1 and HEA 1448.
Melton is also prepared to invest in housing citywide, and he’s working alongside the Gary Common Council to do so. In November 2025, the council unanimously approved changes to the down payment assistance program, which was created from the use of American Rescue Plan Act funds in December 2024. The program, at first, was limited to first responders, who would receive up to $30,000, and city employees, including those at the Gary Sanitary District and Gary/Chicago International Airport, would receive up to $18,000.
The expanded program would also provide up to $30,000 to teachers and health care workers who plan to buy a home and live within Gary city limits. City employees will also receive up to $30,000 through the expanded program.
“We’re working to connect them with local banks that can layer that with their other products to help get folks to be homeowners, which then creates generational wealth,” Melton said.
This year, Melton hopes to communicate the city’s worth with corporate partners, including Hard Rock and U.S. Steel, he said. City leadership plan to rely on corporate partners to identify ways that they can further invest in Gary.
Melton wants to bring people to Gary through events and initiatives, including the Gary Air Show, which had nearly 250,000 people at its 2025 show.
Melton is also dedicated to paving city streets to make travel safer. City leadership is relying on a previously made financial plan to figure out how to finance that and other projects.
“Sustainability is what 2026 is going to be all about,” Melton said. “We’re going to work towards continuous growth and growing in a way that’s sustainable and investing in our people and in more quality of life initiatives.”
