After delays and setbacks, one of the most ambitious mixed-used developments ever planned for Northwest Indiana is slated to break ground this year.
The 14-story SoLa development overlooking Lake Michigan near the Michigan City lakefront should break ground by this summer at the latest, Mayor Angie Nelson Deuitch said. The city recently reached a new agreement with the Chicago-based Farpoint Development group, which includes Scott Goodman, a prominent Chicago developer whose previous Sterling Bay firm developed Fulton Market and the Tyson Food Headquarters in Chicago.
"They're putting up fencing and getting ready to start the fencing for that site," she said.
The estimated cost has risen from $240 million to $311 million since the project was first announced in 2022. It was delayed due to a number of factors such as the pandemic, high interest rates, inflation and rising construction costs, which led to one of the financiers falling through. New investors have been lined up, said Clarence Hulse, the executive director of the Economic Development Corp. of Michigan City and a member of Michigan City Redevelopment Commission.
"We've approved new timeframes. They've submitted new financials and are ready to move forward. They have until the end of June. We're excited about the reset. The new financials and timeframe are exciting for us," he said. "It's now $311 million because the cost of labor and cost of materials have gone up. It will have the same footprint and some minor changes like one pool instead of two."
SoLa, short for South of the Lake, will have boutique hotels, condos, townhomes, upscale restaurants, retail, bars and a rooftop pool overlooking Lake Michigan. The 628,000-square-foot project will be one of the tallest buildings in Michigan City, feature dramatic modern architecture that looks like it would be built in Chicago's Loop and is likely to end up splashed on the covers of local tourism magazines, brochures, websites and other marketing materials.
"It's a large mega-luxury project," Hulse said. "They were supposed to start by the end of June last year but had to come back to the drawing board. The financial costs have gone up. One of the funders left. The market had changed. But they got new funders and are confident at this point about going forward. These are developers who have done billions in projects in Chicago but this is a first for Michigan City and the Region, so it's taking a risk. That was one of the issues. It's a huge undertaking for this area of the country, which has never had anything like this before. It's on the cutting edge. Now half the investors are institutional investors and they have more confidence."
SoLa will be designed by Chicago architect Jackie Koo, who designed the Sable Hotel at Navy Pier and other high-profile projects in the city, including the Wit Hotel and the dual-branded Hyatt Place and Hyatt House Chicago Medical/University District at the former John H. Stroger Hospital of Cook County site.
"It's more than transformative," Hulse said. "It's going to set the tone for Northwest Indiana in the future. It will have a huge effect on the whole Region. It will shape what can happen in Chesterton, Valparaiso, Gary and Hammond. It will set the tone. It's a mixed-used facility with hotels, condos, high-end restaurants and a pool. It's going to set the trend for what's possible in Northwest Indiana in the future."
The project on a 2.8-acre site on Highway 12 is expected to give Michigan City one of the most dramatic skylines in Northwest Indiana. It will tentatively include a TRYP by Wyndham hotel and the SoLa Hotel, a Trademark Collection by Wyndham. The two hotels will have 239 rooms, developer Alan Schachtman told the Michigan City Redevelopment Commission. It will include a 387-space public parking garage and 188 condos, 18 of which will be townhouses.
"In total, it will have a resort feel. It will face the lake," he said. "Obviously, it's going to be a block from the marina, beach and zoo. It will be a great location."
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