Holcomb approves laws for South Shore development, Gary schools takeover

House Bill 1144 authorizes the establishment of transit development districts, or TDDs, near stations along the current South Shore Line and its proposed West Lake extension.

Within each district, the Northwest Indiana Regional Development Authority will lead the effort to attract transit-oriented projects that bring new residents and businesses to Lake, Porter, LaPorte and St. Joseph counties.

The RDA will be permitted to sell bonds to speed construction of TDD property improvements. The borrowed funds will be paid back using the captured growth of local income and property tax revenues in each TDD.

A related measure approved by Holcomb, Senate Bill 128, requires the state treasurer to intercept local funds if a county or municipality that has contracted with the RDA to support the South Shore Line fails to make its required payments.

The governor also gave his assent to Senate Bill 567 putting a state-appointed emergency manager in charge of the Gary Community School Corp.

The emergency manager will supplant the elected school board and exclusively exercise all financial and academic authority over Gary schools, with a goal of balancing the district's budget and reducing its debt of more than $100 million.