Gary approves symbolic gesture against funding South Shore expansion funding agreement

An agreement Gary officials approved in 2015 requires an annual contribution of 7.5 percent of the city's County Economic Development Income Tax funds – about $347,000 in 2017.

City officials argue their municipal finances are so meager they can't spare the money.

As a resolution it has no standing – particularly since the Indiana General Assembly this year approved a measure giving county officials the authority to take money from a municipality if they try to get out of fulfilling their financial obligation toward the project. The project will extend the South Shore commuter rail line south from Hammond into Munster and Dyer.

Common Council President Ronald Brewer said he thinks a symbolic gesture by Gary opposing the payment still serves a worthwhile purpose.

Of the $347,000 total, Brewer said, "that may not mean a lot to people downstate (the Legislature), but it means a lot to us here. We need to send a message to downstate."

The resolution evolved from a measure created by Councilwoman LaVetta Sparks-Wade, D-6th, who originally wanted the 7.5 percent CEDIT payment reduced to 5 percent. She said she likes the idea of a "zero payment" and was pleased to see so many of her Common Council colleagues siding with her on this issue.

Gary government "faces a (potential) $100 million loss in assessed (property) value and has a $9 million structural deficit," Sparks-Wade said, citing figures previously offered by the city Controller's office.

"We don't have the money to make any kind of payment," she said.

The resolution received overwhelming support. Councilman Michael Protho, D-2nd, was not present for the vote, while Councilwoman Rebecca Wyatt, D-1st, was the lone vote against it.

Wyatt said that Gary Common Council members approved a legally binding agreement to make CEDIT payments to support the South Shore project and that a resolution not only would be a futile gesture, but also could be used by state officials as reason to reject state support for future projects in Gary.

"The state would be able to say we were in breach of contract and turn us down," she said.

Gary is not the only municipality in Lake County expressing a desire to reduce its contributions to the South Shore Line expansion project. Merrillville passed an ordinance last month reducing its 22 percent pledge to 8 percent. Griffith, earlier this week, voted to not sign an agreement to contribute to the expansion.

Gary officials have long suggested they should not be making payments to support a project for an expansion that would not go through Gary city limits, and also question whether Gary would benefit from encouraging further transit by local residents into Chicago instead of into Gary.