Northwest Indiana Regional Development Authority CEO Bill Hanna told business and community leaders Friday that sidetracking his agency into the state's proposed Regional Cities Initiative could effectively derail the South Shore commuter rail expansion.
"From a fiscal direction and making its decision, the area has already spoken," Hanna said of the $571 million plan to expand the South Shore commuter railroad. "What we don't need is another layer of government to slow things down."
The RDA has already pledged $8 million per year to the expansion project and another $4 million to its operating costs for the life of the project. In addition, 16 communities and Lake County have pledged $4.2 million annually to the project from the proceeds of the county economic development income tax.
Expanding the South Shore would result in new riders hauling $147 million per year in paychecks from high-paying jobs in Chicago back to Northwest Indiana, according to a study by URS Corp.
However, the state's $10 million in annual funding to the RDA, now at risk, will be critical to making that economic boon a reality, Hanna said.
Hanna spoke during the monthly meeting of the Lake County Advancement Committee at Teibel's Restaurant, in Schererville, staking out the RDA's position less than a week before bills will be introduced in the Indiana General Assembly that should determine the fate of the RDA's state funding.
A bill that would basically renew almost its entire $10 million in annual state funding will be carried in the Indiana House by state Reps. Hal Slager, R-Schererville, and Ed Soliday, R-Valparaiso, Hanna said. However, the Indiana Economic Development Corp. will not support that bill.
Instead, the IEDC is pushing for the RDA to apply for funds that will be available to eight Indiana regions on a competitive basis through its proposed Regional Cities Initiative, with the goal of ending Indiana's population stagnation. Gov. Mike Pence has proposed $42 million per year in state funding for the initiative.
The initiative seeks to complete at least $1 billion of transformational projects in each region during the next eight years, IEDC President Eric Doden told the Northwest Indiana Forum in November. Funding would come from both the state and localities.
Hanna said the Regional Cities Initiative is a great one for the state. However, the RDA with its proven track record needs to focus on the South Shore expansion and transportation-oriented development along the existing rail line to move this region forward.
"We are the gateway to Chicago," Hanna said. "Taking advantage of that, that's our mission."
His comments were seconded by Gary Mayor Karen Freeman-Wilson immediately after the meeting, who said the RDA has proven itself during the past nine years with numerous projects throughout Northwest Indiana.
"This is something that has worked," Freeman-Wilson said. "You can't ignore the fact we are adjacent to the third largest city in the United States. The RDA understands that unique relationship."
Hanna also argued the South Shore extension and other projects will work to the benefit of the state. A recent study performed by Policy Analytics, of Indianapolis, showed with the South Shore extension underway RDA projects will add another $308.7 million to those same tax coffers in the next 10 years.
"We are not asking for money, we are giving them an investment proposal," Hanna said.