A developer has come to Hammond with a proposal for a $100 million-plus development at the site of the former Franciscan Health hospital in downtown Hammond.
Mayor Thomas McDermott Jr. said a developer approached the city about the nine-figure project.
"We're working on a project that's spectacular," McDermott said. "We're engaged with developers on the site. It would be a great project the city would be very proud of. It would be very beneficial for the city."
Hammond gained control last week of the former St. Margaret Hospital site, which stretches for nearly an entire city block.
"The deed was received from Franciscan last week and we promptly recorded it so that the city can move on to the next exciting chapter on this site,” McDermott said.
Generations were born and died at the St. Margaret Hospital that Catholic nuns founded in 1898 and that expanded multiple times over the years. After more than 120 years, Mishawaka-based Franciscan Health opted to close the 800,000-square-foot, 226-bed hospital at the end of 2022.
“Losing the hospital was a shock, and we fought it, but we’ve moved on — and now my economic development team is focused on redevelopment of this large parcel of land that will continue to add to our downtown renaissance anchored along Hohman Avenue,” McDermott said.
The city negotiated a deal in which it would take control of the site after Franciscan Health demolished the longstanding hospital.
“We’re grateful to Franciscan for transferring the land at no cost and for completing the demolition work in a timely manner,” Hammond Department of Redevelopment Executive Director Anne Taylor said.
McDermott said the proposed development would complement Purdue University Northwest's plans to develop the Roberts Impact Lab for Quantum Commercialization in a 44,000-square-foot medical office building that was left standing on the northeast corner of the site. The university landed grants and donations to develop the new technology hub at 5454 Hohman Ave. that's expected to open next year.
“This is a very important site to our downtown plan and is within walking distance of our new downtown South Shore station — we already are fielding calls from interested developers,” Taylor said.
The parking garage was also spared, so the next user can use it.
"Parking garages have gotten extremely expensive to build," McDermott said. "Look at the one they're building in downtown Valpo. This garage was built in the 1980s and is still in good condition. It would be ridiculously expensive to build a new one, which is why it wasn't demolished.
Hammond will open up the site for a request for proposals early next year, allowing developers to make pitches for residential, commercial, mixed-use or institutional development.
We’ve seen how popular downtown Hammond parcels are for developers and we expect big demand for this site as well,” Director of Economic Development Juan Moreno said.
Hammond is required by state law to open the property up to the request for proposal process, but is hopeful about the project that a developer has already proposed.
"People are going to be patting me on the back if this does happen," McDermott. "This development came to us. It's totally viable and makes a lot of sense for the site. But I've been at it long enough to know it's not a reality until you have a signed contract. If it doesn't happen, we have the RFP. We're now in control of the property and looking to make something exciting happen."
© Copyright 2025, nwitimes.com, Munster, IN