Merrillville creates TIF district for former Star Plaza property
Merrillville officials took the first two steps toward providing the town’s portion of the public financing sought by White Lodging to help pay for its proposed $350 million mixed use project at the former Radisson complex site.
The Redevelopment Commission and the Plan Commission on March 19 approved creating a new tax increment financing district for the 40-acre parcel at Interstate 65 and U.S. Route 30. Councilwoman Roxanne LaMarca, D-7th, who sits on both commissions, abstained while all other members voted in favor of the proposal, which still needs Town Council approval.
Councilman Shawn Pettit, D-6th, spoke in favor of the TIF.
“We know what (owner) Mr. (Bruce) White asked for, a private-public partnership. I’m tired of losing development to other communities,” Pettit said.
Pettit said a financial adviser for the town estimated a TIF district in that location would create about $6 million to $7 million a year if White Lodging’s proposed project, The Farm at Crossroad Commons, is fully built. That money could be used for the White Lodging project, or any other development there if that project doesn’t go through and the property is sold, he said.
Under a TIF district, property taxes collected in the designated area are frozen at a certain point and all further revenue increases are strictly used within that district, typically for infrastructure and other community improvement projects.
Pettit said the Merrillville money could be used to pay for the proposed underground parking lot in the project, which also calls for hotels, a bed and breakfast, restaurants, offices, a greenhouse and equestrian trails.
Pettit said the TIF wouldn’t affect the other property holders in the proposed district, which include CVS, Gino’s restaurant and the Residence Inn.
Merrillville-based White Lodging has said it would pay 67 percent of the cost of its project, but hoped to secure funding from the state, town of Merrillville and Lake County Council, in the form of the food and beverage tax, for the remainder.
If the public funding doesn’t come through, company officials said a scaleddown version of the project would be built. It’s unknown what funding the state would provide, but Lake County officials have said they would not pass a food and beverage tax.
Planning director Bill Laird, speaking in favor of the new TIF, said it’s important to have tools in place for future economic development.
“This is a prime piece of property. Someone will develop it,” Laird said.
Councilwoman Marge Uzelac, D-4th, said she thought the TIF was a good idea.
“We’re talking a lot of union jobs, a lot of devel- opment,” Uzelac said. “This is basically a tool to put Merrillville on the map for development. The town of Merrillville wants to prosper.”
White Lodging has said the new development would create more than 600 construction jobs and 1,000 direct and indirect jobs.
Uzelac asked if Bruce White still wants to build The Farm at Crossroad Commons and if anyone else had approached Laird about developing the property. White Lodging wasn’t immediately available for comment.
Laird said there has been no new interest, but the understanding is that White Lodging will redevelop the property.
Pettit said he talked to a White Lodging official who indicated the town and company officials should meet.
“They still own the property and are now demolishing the Twin Towers’ basements,” Pettit said.
The Radisson Hotel and the Star Plaza Theatre already have been demolished.
Karen Caffarini is a freelance reporter for the Post-Tribune.