The Indiana Senate wants to make it easier for Gary to sell the approximately 7,000 largely vacant and abandoned residential and commercial properties owned by the city.
Indiana municipalities typically must obtain two independent appraisals for each parcel of real property set for disposal.
Senate Bill 232 instead would allow only Gary to hire a single appraiser to calculate each year through 2029 the value of 10 residential properties, as well as 10 commercial properties, located throughout the Steel City.
Gary could then use the average value of each type of property to set an annual minimum offering price for all of the residential and commercial properties the city wants to sell, without incurring the cost of additional appraisals for each parcel, according to the legislation.
"Hopefully, in three years, we can make a significant dent in offering these 7,000 properties and getting heads in beds in our neighborhoods," said Corrie Sharp, Gary zoning director.
Gary Mayor Eddie Melton, a Democrat who served in the Indiana Senate from 2016 to 2023, told the Senate Local Government Committee Jan. 15 that Gary's population is growing for the first time in a long time, and making it easier for the city to sell unused properties for new homes and businesses will help bring even more new residents to Gary.
"It's extremely expensive for us, for every single parcel, to pay for the appraisals to try to get these properties back on the tax rolls," Melton said.
State Sen. Rick Niemeyer, R-Lowell, agreed. He said with very few comparable property sales in Gary, this process is likely to speed up the disposal of city-owned parcels without sacrificing potential revenue.
"Gary is a unique area. There's not a lot of comps in that area," Niemeyer said. "I think in this case one appraisal will work in Gary."
A provision added to the legislation by state Sen. Dan Dernulc, R-Highland, prohibits Gary officials or employees from purchasing a property included among those selected for the appraisal baseline.
State Sen. Mark Spencer, D-Gary, the sponsor of the plan, said he had no problem with that addition and believes it strengthens the proposal.
"We want a process that will be clear to the public, be efficient for the city and defensible in its method," Spencer said. "It will allow Gary to continue its upward trajectory."
The legislation was approved 44-0 Monday and next goes to the House.
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