The Lake County Convention Center is another step closer to being built after the Gary Common Council unanimously approved an ordinance outlining the city’s involvement in the project’s financing.
The ordinance previously passed council’s finance committee on Feb. 24 as well. The council had no discussion on the ordinance Tuesday night, but at the Feb. 24 committee meeting, they asked questions of Brandon Comer, who’s a financial advisor for the convention center project.
The net commitment for the city will be $3.5 million, Comer told council members. Gary has pledged $5 million to the convention center, but $1.5 million will be reimbursed by Hard Rock Northern Indiana.
“The project is approximately $140 million,” Comer said. “It’ll obviously have a large economic impact on the city as a catalytic driver along that corridor.”
With the council’s approval, Gary can now create multiple agreements before the convention center’s construction begins, including 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.
Through the ordinance, the city will also “approve and execute” a land lease agreement with Hard Rock and an operating agreement with the “relevant parties.”
Comer previously told the finance committee that Gary receives about $12 million from wagering taxes, which the city will use to pay for the convention center. The RDA will issue bonds to finance the convention center, which will then be paid back by Gary and other entities.
Gary Mayor Eddie 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.
Councilman Myles Tolliver, D-at large, previously asked who would be responsible for any additional costs if construction goes over budget. The convention center fund has a cushion in case that happens.
“We’d have to scale it down,” Comer said. “We’re not expecting costs beyond the cushion that we’re putting in place.”
Tolliver also asked what oversight the council would have on the convention center once the financing agreement is finalized. Comer told him that the city of Gary will direct the construction phase with help from other agencies, but once the project is complete, the Lake County Convention Center Authority will partner with the city to operate the convention center.
“At all phases, the city is either in control or in partnership with the authority,” Comer said. “After the bonds are paid off, we’re finalizing what that looks like, but the authority should go away, and the property should revert to the city.”
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. 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.
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.
In addition to the city’s money from gaming taxes, Hard Rock plans to give $1.5 million per year for 20 years, according to Post-Tribune archives. State matching grants will be made as well, which Indiana will pay over the course of 20 years.
At its Feb. 17 meeting, the RDA approved a resolution to allow the issuing of up to $150 million in bonds for the project, according to Post-Tribune archives.
mwilkins@chicagotribune.com
