A possible cargo and freight hub could be a development boom, for Gary but a casino at Buffington Harbor is now in the way.
Gary officials Monday met with a legislative study committee to present its plan for an intermodal shipping and transportation facility in Buffington Harbor that would require the Majestic Star Casino to relocate elsewhere in the city. Consultants told the committee that relocating the casino could generate more revenue and other economic development opportunities.
“I think we have a unique and positive opportunity here to do something that is transformational,” said John Vickerman, president of Vickerman and Associates, which is helping study the feasibility of an intermodal facility in Gary.
Sen. Eddie Melton, D-Merrillville, said the economic development potential at Buffington Harbor is great.
“I see this as a great opportunity not just for Gary but the entire state,” Melton said.
The possible Buffington Harbor development would have the potential for a port and intermodal rail facility, Vickerman said.
Vickerman said roughly 600 million tons of cargo moves through Chicago, and, in 2013, 33 percent of all rail freight moved through the area. He said there is significant opportunity in creating a facility to serve the cargo needs in Gary.
“We believe that it could intercept cargo and transfer cargo at faster rates and lower cost,” Vickerman said.
Congestion and delays getting cargo shipments into Chicago could be improved by a facility in Gary, Vickerman said.
Rep. Jim Pressel, R-Rolling Prairie, said rail traffic congestion is a concern in the Chicagoland area.
“Is the congestion a real concern?” Pressel asked specific to the proposal.
“The simple answer is yes,” Vickerman said.
Rep. Earl Harris Jr., D-East Chicago, asked what job creation potential is associated with the facility.
Vickerman said the greatest job gains would be at the facility but from indirect businesses like logistics centers and warehouses.
“There is no small economic benefit,” Vickerman said.
Pressel said he would see the biggest hurdle for the plan is moving the casino.
Bill Alsup, director of Union Gaming Analytics, said moving the Majestic Star could bolster revenues by 10 to 30 percent. Alsup said that increases revenue would not just come from the casino proper but hotels, restaurants, entertainment and retail.
“Casinos are no longer just about the gaming supply,” Alsup said.
The closer a casino is to the Illinois border, the higher the revenue, Alsup said.
Moving to the I-80/94 corridor would put the Majestic Star within a 30-minute drive of 325,000 residents.
“I think that would be the greatest benefit,” Freeman-Wilson said.
Alsup said there is historic precedent for casinos moving to land. Alsup said that happened in Iowa and many of the casinos moved not far from the original locations, and all saw higher revenue.
Alsup said the move isn’t just about going onto land but making the casino more accessible to customers.
“That location is a great place for Gary to relocate there,” Niemeyer said. With White Lodging’s planned $350 million development at I-65 and U.S. 30, Niemeyer said it would create a lot of opportunity in that area.
Freeman-Wilson said she hopes Gary could work with East Chicago and Hammond ahead of the casino moving to another location.
“It is not our objective to cannibalize those other casinos,” Freeman-Wilson said.