MICHIGAN CITY — Michigan City has approved all of its share of the funding for the proposed $290 million upgrades to the South Shore commuter line.
The City Council by a 6-3 vote Tuesday night approved borrowing $5.39 million from the south side tax increment financing district.
The decision came after the city's Redevelopment Commission on Thursday authorized paying all of the remaining $6.7 million up front out of the same fund.
NICTD wants to add a second track from Michigan City to Gary, which they claim would reduce travel times to Chicago by more than 30 minutes.
Among the opponents was councilman Don Pryzbylinski, who felt Michigan City's share of the $18.25 million cost from LaPorte County was too much.
He also felt it was not fair to take dollars from the TIF on the south end to be invested on the line running on the north end of the city.
Resident Tom Smith said he would lose his house to make way for a double track if the project goes through and also expressed concern about the cost.
Megan Applegate, an accountant from Michigan City, urged focusing on the big picture of Chicago area people coming to the city to live because of quicker commutes and using their expertise to open businesses here and employing people.
'It's going to make Michigan City officially a suburb of Chicago. This is a once in a lifetime opportunity,' she said.
Bill Hanna, president of the Northwest Indiana Regional Development Authority, said the potential for Michigan City with its lakefront, zoo, revitalzing downtown and culture for tapping into the Chicago market is unlike no other and reason lawmakers from the state and federal levels are on board with the project.
'You show me a suburb with the assets you have. This is a winner all day long,' Hanna said.
Funds captured from annual growth within the TIF will be used to pay back the amount over a 21-year period.
Don Babcock, president of the city's redevelopment Commission, said the TIF fund will have about a $7 million balance once the lump sump payment is made.
The decision not to pay all of the city's share up front was to have enough dollars in the fund to pay for improvements now planned for Franklin and Ohio streets, Marquette Mall and other major projects in the coming years on the south side.
'This is a historic opportunity for us to invest in the future of this great city,' Babcock said.
The project hinges on federal dollars paying half the entire expense.
An application for federal dollars is expected to be submitted in August with a decision anticipated in February, officials said.
St. Joseph commitment in limbo
The St. Joseph County Board of Commissioners is currently considering providing that county's $18.25 million share of the double-tracking project, but a vote scheduled for Tuesday was deferred in the absence of one commissioner and with the two in attendance split on the issue. The next meeting is scheduled for June 20.
The commissioners are considering a Memorandum of Understanding between the county and the South Bend Redevelopment Commission that would commit the county to funding a share of the double-tracking project and commit the Redevelopment Commission to financing a $25 million project to reroute the South Shore into the South Bend International Airport.
The two projects together would be expected to reduce travel time from South Bend to Chicago from from about 2 hours and 20 minutes to 90 minutes.