The city of Gary is moving forward with its Lake County Convention Center work, with the council poised to vote on an ordinance related to the facility’s financing.
At the council’s Tuesday night meeting, they introduced an ordinance that sets a financing plan for the Lake County Convention Center in place. Mayor Eddie Melton and Controller Celita Green sponsored the ordinance.
The council did not debate the ordinance at Tuesday’s meeting, and it was moved to the finance committee for further review. The finance committee’s next meeting will be Feb. 24.
If they approve, the council would allow the city to create multiple agreements before the convention center’s construction begins. Those include a governance agreement with the Indiana Finance Authority, Northwest Indiana Regional Development Authority and the city; a revenue deposit agreement with those agencies; a master lease agreement with the RDA; and an underlying lease agreement with the RDA.
The ordinance would also allow the city to “approve and execute” a land lease agreement with Hard Rock and an operating agreement with the “relevant parties.”
Gary will use wagering tax revenues and not pay more than $5 million per year for the convention center, according to the ordinance. The RDA will issue bonds to finance the convention center, which will then be paid back by the city and other entities.
Melton, City Clerk Suzette Raggs and council members will be authorized to approve and execute certificates, documents, security agreements and transaction documents for the convention center, according to the ordinance.
Melton was unable to immediately comment on the ordinance Wednesday afternoon.
At a January Gary Chamber of Commerce meeting, the Lake County Board of Commissioners gave an update on the convention center progress. Jerry Tippy, R-2nd, said it was taking “a little bit longer than what they originally wanted, and at the time, they were close to finishing a development agreement and financial plan.
In May, the county commissioners selected Gary and Hard Rock Northern Indiana as the winning bidder for the convention center, according to Post-Tribune archives. The city of Hobart, partnered with Garfield Public/Private LLC, also submitted a convention center proposal, and commissioners could have chosen not to accept either proposal.
As the selected bid, Gary and Hard Rock plan to build a 145,000-square-foot convention center and Hard Rock hotel near the casino, and the property will have space for two additional hotels, including one REVERB by Hard Rock Hotel, and two restaurants and retail spaces.
State, county or local income taxes from other Northwest Indiana communities will not be used for the convention center, but Gary has the option to use their local taxes.
The city plans to put money from gaming taxes toward the development, and Hard Rock plans to give $1.5 million per year for 20 years, according to Post-Tribune archives. State matching grants of $100 million will be made as well, which Indiana will pay over the course of 20 years.
In 2023, as an Indiana state senator, Melton drafted Senate Bill 434, which established the Lake County Convention Center fund, the blighted property demolition fund and new train station funding in downtown Gary.
mwilkins@chicagotribune.com
