INDIANAPOLIS — State lawmakers are refining a plan to encourage transit-oriented development along the existing South Shore Line and proposed West Lake extension using tax revenues that would be generated over time near the commuter rail stations.
In coming days, the House Ways and Means Committee is expected to vote on a revised version of House Bill 1144, sponsored by state Rep. Hal Slager, R-Schererville, that deploys common financing tools in a manner unique for Indiana.
His plan calls for the creation of at least eight Transit Development Districts — TDDs for short — of less than 1 square mile centered on the rail stations in Hammond, East Chicago, Gary, Miller and Portage, along with the proposed stops in Hammond, Munster and Dyer.
The Northwest Indiana Regional Development Authority would manage development of the TDDs, subject to local planning and zoning ordinances, and sell bonds to encourage speedy construction of rail-adjacent residential, retail and commercial properties.
Growth in local property and income tax revenues within the TDDs would be used to repay the transit-oriented development debt.
The RDA's planning consultant, Indianapolis-based Policy Analytics Inc., estimates the local tax revenue growth would total $456.2 million over a 20-year period.
Growth in state sales and income tax revenue within the TDDs — estimated to total $179.8 million over 20 years — also would be captured.
That money would go toward repaying the expected $12 million a year the state will finance on behalf of the RDA to double-track the existing South Shore line between Gary and Michigan City, and for its share of West Lake extension costs.
Region cities and counties separately are contributing about $18 million a year, mostly in local income tax revenue, for those projects.
"It is a rather complicated funding mechanism," Slager admitted. "The goal ... is to ensure that we get some uniform and appropriate development along all of these lines, east-west as well as north-south, and provide the anticipated increment that the strategic plan suggests."
His revised proposal also opens the door for LaPorte County to join the RDA, without payment of past dues, to continue the transit-oriented development into Michigan City.
"This project is hands-down the largest economic development project that's going to happen in the state in the near future," Slager said. "It's critical to our region, to our connectivity to Chicago: not to export jobs, but to import residents."
Ways and Means committee members seemed to respond favorably to Slager's proposal. Several indicated to him after his presentation that they are likely to support it when it comes up for a vote.
"We're not just building a train station in a parking lot," Pearman said.
"What we're looking at is an investment that will grow the economy in very significant ways through very substantial commercial and residential development."
Should Slager's proposal win committee approval, it still must pass the full House and Senate to advance to the governor's desk.