La PORTE — Developers are making plans for one and possible two 80-room hotels, a national-chain restaurant and perhaps a car dealership on the southwest corner of U.S. 421 and Interstate 94 — but they say they need utilities to make it happen.
Jim Lyons, a developer from Beverly Shores, and Tony Vendramini, a contractor based in Chesterton, said they are scheduled to close in about three weeks on 54 acres on the north side of CR-400N west of U.S. 421.
They told members of the La Porte County Redevelopment Commission the area is “ripe for development,” especially with construction of Franciscan Health Michigan City hospital on the north side of I-94.
About 10 acres could be used for a medical office building or some kind of light manufacturing, they said, although no specific tenants had been identified. No plans have been made for the wooded area and pond on the north half of the property, they said.
In any case, one key piece of the puzzle was missing.
“Without water and sewer utilities, we won’t get any traction at all on this project,” Lyons said.
The developers said they were not making a formal request but wanted to keep the county informed of their plans.
Lyons estimated the amount of investment in the property would be between $10 million and $26 million over the next five or 10 years.
“Nothing would make us happier than to see more development in that area,” Redevelopment Commission President Joe Coar said.
Michigan City already extended utilities along Cleveland Avenue as far south as I-94. Any further extension would require a lift station and a boring under the interstate, Coar said.
A previous study put the cost of extending utilities to the area at $1.2 million. Coar said a proposal to the county sewer district and Michigan City utilities was awaiting formal plans from a developer.
The county Redevelopment Commission could use tax-increment financing funds to support a utility extension to the area.
Coar and the developers who pitched their plans Wednesday said the existing Harley-Davidson Shop and Honda of Michigan City, as well as the Speedway gas station and convenience store, all on the south side of CR-300N, would benefit from such an extension.
Redevelopment officials recently won approval from the County Council and Board of Commissioners to restructure an agreement related to repaying tax-increment financing expenditures at both this interchange and the Kingsbury Industrial Park district.
The restructuring was designed to provide additional funds that would encourage new development in those TIF districts before any past debts had to be repaid.
At its meeting Wednesday, the commission authorized its financial consultant and legal counsel to examine possible expansions at both TIF districts. Any expansions would require approval of the council Plan Commission as well as the council and commissioners.