Amendment tweaks funding mechanism for proposed center
Bill would route expected $18 million in taxes to a development fund to kick-start financing
Indiana Republican lawmakers put their own stamp on a bill aimed at creating a convention center and economic development district in Gary via amendment before moving the measure out of committee.
Senate Bill 434, sponsored by Sen. Eddie Melton, D-Gary, had a hearing Thursday before the Senate Appropriations Committee where Sen. Ryan Mishler, R-Mishawaka, said he does not want the bill to focus on Gary so much.
“We really want to help Gary. It’s also a Lake County tax. I’d like to be a little more conscious to the whole county,” Mishler said.
Melton’s bill hinges on $18 million in state wagering taxes generated by Hard Rock Northern Indiana. The state wagering tax was based on two licenses for the city’s two riverboats. The two licenses expire in 2025, which will free up money for several projects.
The bill would route the expected $18 million in taxes to a convention and economic development fund to kick-start financing on a $120 million convention center and for construction of a new $90 million downtown Gary transit hub. Some of the funds also would be routed to a demolition fund to address the city’s blighted properties.
Melton’s proposal also allows the Lake County Council to adopt a 5% increase in the county innkeeper’s tax. If approved, it’s estimated to generate $2 to $2.5 million a year.
Mishler’s amendment tweaks that funding.
Currently, Hard Rock Northern Indiana puts a minimum of $6.5 million in a development fund benefiting the city. Mishler called for the state to match the revenues in that fund dollar for dollar up to $10 million instead of placing the estimated $18 million expected in tax revenue to be generated by the casino beginning in 2025 entirely
in the convention center economic development district fund.
Mishler said that means the fund would have a minimum of $13 million a year to use for the convention center development. If the casino contribution in the fund rises, the amount the state would match also rises up to the $10 million cap.
The amendment also prevents the funds to be used for operations, which was a permitted use in the original bill.
Melton said the amendment appeared OK and would support it to keep the conversations on the overall bill moving forward.
“I’m grateful we are still keeping the conversation going on this thing,” Melton said.
State Sen. Ed Charbonneau, R-Valparaiso, said he supports the bill. He asked whether other Northwest Indiana senators including Sen. Rick Niemeyer, R-Lowell, and freshman Sen. Dan Dernulc, R-Highland, had weighed in on the measure.
“I am all in favor of this bill,” Charbonneau said.
Melton said he had not reached out to the senators, but had spoken to Niemeyer when he first presented the legislation last year. The measure at the time was financed by a county-wide food and beverage tax, which failed to gain support. Melton said he pulled the bill to tighten up the language to address early concerns and make it better.
“This is just a beginning process. I’m happy to work with anyone who has any suggestions or recommendation on how to make this bill better. My sole objective is to make a positive impact in Northwest Indiana,” Melton said.
The bill was unanimously adopted 14-0 and will make its way before the full Senate.