White Lodging pitches tax for development
Some on Lake County Council oppose request
White Lodging says that its proposed $350 million development will only proceed if the Lake County Council passes a food and beverage tax to subsidize the project.
Deno Yiankes, president and CEO of investments and development division for White Lodging, met with the council Thursday to ask it to pass a food and beverage tax to support its proposed 40-acre development. Without a food and beverage tax, Yiankes said White Lodging will still redevelop the property just not with what it’s proposed.
“We’re making it clear we’re not doing a development of this scale,” Yiankes said.
Yiankes said White Lodging has worked on the project for two years and must decide on how it will proceed. Yiankes said he’d like the council to put the food and beverage tax on either the November or December agenda.
The majority of the Lake County Council has already voiced opposition to a food and beverage tax.
Councilwoman Christine Cid, D-East Chicago, said White Lodging has had time to do a study, and the council is now being rushed to come up with a tax to support a development.
“I do not want to rush this process,” Cid said.
White Lodging plans a more than $350 million development, dubbed The Farm at Crossroad Com- mons, at the site formerly occupied by the Radisson and Star Plaza Theatre. The proposed 40-acre development is a “mixed use” project that will combine hotels, event spaces, office space and restaurants, according to a White Lodging presentation.
Cid said she’s not against a convention center, but doesn’t think she’s heard enough about what size facility Lake County would need.
“I do not care for the design,” Cid said.
Councilman Ted Bilski, D-Hobart, said the council hasn’t had a conversation about if it even wants to see a convention center in Lake County.
“As of right now, there is no consensus,” Bilski said. “I’ve tried. I’ve asked.”
Bilski said he thinks that type of project would change the face of Lake County, bring new jobs to the area and create new economic development opportunities.
Bilski said he was once opposed to a local option income tax but once the distribution formula was worked out, he changed his mind. He said he thinks the distribution of a food and beverage tax would need to benefit all municipalities.
“I do support a food and beverage tax,” Bilski said.
A food and beverage tax was included in The Northwest Indiana Regional Development Authority’s study on the potential to build a new convention center in the Region.
The study said an estimate from the Indiana Legislative Services Agency showed that a 1 percent food and beverage tax could yield $9.4 million in revenue during 2019 and $9.8 million in 2020. The study said those estimates predict that the tax revenue would cover a $3.37 million annual bond payment for a $50 million project and leave $6.47 million for the county or other local municipalities.
“I’m not in favor of that,” said Councilman Dan Dernulc, R-Highland.
White Lodging, the White family and other groups plan to privately fund 67 percent of the project’s cost, according to the company, and will seek public financing for the remaining 33 percent.
“I won’t support a food and beverage tax,” Franklin said. “I cannot in good conscience do that.”
The 40-acre development will include hotels, a bed and breakfast, restaurants, townhomes, meeting and event space, office space, a riding area and greenhouse, according to the company. The development as a whole will be more than 1.1 million gross square feet.
White Lodging says the new development will create more than 600 construction jobs, and 1,000 direct and indirect jobs.
“All of us take any tax very seriously,” Yiankes said.
Councilman Jamal Washington said he’d like to find a way to support the project but not affect the taxpayers. He said the Regional Development Authority may be an option.
“I think this idea is great,” Washington said.