South Shore expansion bill gets RDA escape clause

BY PATRICK GUINANE, Times of Northwest Indiana
pguinane@nwitimes.com

INDIANAPOLIS | Seeking to stabilize bond funding for the South Shore expansion, state lawmakers moved Monday to batten the escape hatch on the Northwest Indiana Regional Development Authority.

Cities or counties still could exit the economic development co-op under provisions state Rep. Chet Dobis, D-Merrillville, added to House Bill 1220. But they'd only get the chance to leave once a decade, and defectors would continue to be billed for any ongoing infrastructure project that began while they were part of the RDA.

Dobis attached the strict escape clause to legislation that would divert $350 million in state sale tax money toward a $1 billion plan to extend South Shore lines to Lowell and Valparaiso. He said the pairing is needed to curry favor with the bond houses that would help finance the rail expansion.

"(It) will guarantee a better (interest) rate," Dobis said. "We'll be easily accepted, and they'll know that the RDA is solid in its function."

Dobis and other South Shore supporters expect the RDA to put up $150 million for the $1 billion project.

East Chicago, Gary, Hammond and Lake County each allocate $3.5 million a year in casino revenue to the RDA, while Porter County steers $3.5 million in local income tax proceeds.

Rep. Ed Soliday, R-Valparaiso, spoke in favor of Dobis' amendment to the rail funding bill, which the House adopted by a voice vote.

"We need the stability to leverage (the RDA), and we need to know that entity is going to continue to exist," Soliday said. "The one thing we can't have is that every time someone feels that they have one little issue that they don't like, that they're going to withdraw."