Pomp and circumstance were aplenty during the June 2 announcement for a Jackson Family Center mixed-use development in the city of Gary.
But now it's down to business. Project coordinator Simon Sahouri is up against an eight-month deadline to complete a feasibility study, which he calls "the No. 1 priority in helping move the development forward."
The study, which is under way, is the key to unlocking the city's commitment to transfer more than 300 acres near the Borman Expressway to the project. And the report will determine what amenities will be featured at the proposed Michael Jackson-themed entertainment complex.
Renderings of the center shown June 2 showcased a museum and cultural center, hotel, and performing arts center and concert hall. Earlier estimates of the construction's first phase were placed at $300 million.
But Sahouri, president of Jackson Family Foundation LLC and the Jackson Development & Marketing Corp., deferred comment about what specifically would be on the site until after the study is completed.
"Our main objective is to work with the city and have the city work with us," Sahouri said. He added that Katherine and Joe Jackson, Michael's parents, and residents of the city are supporting the effort.
City spokeswoman LaLosa Burns offered a comment June 11 on behalf of Mayor Rudy Clay that "we're inspired that the feasibility study is moving forward."
Sahouri said he wanted the project to be a "first-class destination in the world."
The land title is expected to be placed in escrow by July 2. The close of escrow starts the clock for obligations to be completed as a condition of the property transfer from the city to the developer.
Sahouri's group has eight months to complete the study, but it has the option to extend the deadline if needed. He said the best-case scenario calls for a groundbreaking event early next year. The agreement doesn't call for the city to receive any direct payment for the land transfer.
Sahouri and consultants for companies such as Aucopia Global LLC hold the key to developing about 316 acres of land that includes Gleason Park golf course, Gilroy Stadium and areas south of the Borman Expressway and west of Broadway.
San Jose, Calif.-based Aucopia lists services including feasibility analysis and due diligence for projects. The firm's website also lists property investment opportunities on projects in Costa Rica, Aruba, Mexico and the United States, but doesn't list locations of fully completed projects.
Sahouri reiterated that there are a variety of funding sources available to provide the capital for the project. But those sources won't be tapped until the study is completed. The agreement calls for public or private funds to be used for the project.
"We aren't going to seek any funding until all the ingredients are complete so we know how much funding we need," Sahouri said. "It will give us a much more precise amount and also (describe the) potential of other projects to do."
Gary Corporation Counsel Susan Severtson said Sahouri's foundation would have to be established as an Indiana tax-exempt, charitable organization for the project to continue. Severtson said she believes Sahouri is pursuing the status with the Internal Revenue Service, but, she added, the process could take several months.
"This is still city land ... until we have the feasibility study and some idea of funding sources," Severtson said.
Severtson said the group must present a commercially reasonable financing plan for the development, but she said it's too early to speculate whether economic development dollars would be sought from public sources.
She said the city's focus is on constructing a performing arts center and museum.
The Indiana Office of Management and Budget and the office of Gov. Mitch Daniels declined to comment on the proposed development.
Earlier discussions of the Jackson-themed developments included the possibility of siting them on land across the street from City Hall. But that effort was ultimately shelved because Sahouri said the current site would be much more profitable for the city.
As a result, the agreement allows Sahouri's group to have the right of first refusal to buy 12 acres of land, which includes the Genesis Convention Center, if the city decided to sell it.
Severtson said discussions have not happened on a possible sale of the center to the development group.
Sahouri, who said he's looking for a residence in the area, plans to travel regularly between Las Vegas and Gary as the feasibility study continues.
"You can't do something like this and be away from it," Sahouri said.