GHA votes to take building despite support for restaurant
Just one building stands in the way of a downtown Gary block-long renovation project.
Its owners plan to fight the Gary Housing Authority’s move to seek an eminent domain order to secure 624 Broadway, an aging structure that’s in the middle of a group of buildings already acquired by the GHA.
Despite strong public support for the business group renovating 624 Broadway for a restaurant, the GHA voted Thursday to begin eminent domain proceedings on the building so it can demolish it and develop the entire block for affordable housing and commercial use.
John Allen, one of the businessmen involved in renovating the restaurant owned by 624 LLC, vowed after the meeting to take the GHA’s action to court.
Allen told the GHA board he had 427 signatures on a petition supporting his Nations Restaurant. He also runs Foody’s Restaurant at 621 W. 25th Ave. across from Roosevelt High School.
“I like the work the housing authority does. I could be used as a tool, instead of set aside. I’ve done over 150 real estate transactions in Gary. I could have much to learn from you Mr. Marsh if we’re not adversaries,” Allen said to Julian Marsh, GHA executive director.
Allen said 624 Broadway LLC was established in January to start the restaurant that will feature a different ethnic cuisine each week. The business received a setback in July when the city council rejected a special use permit that would have allowed Nations to sell alcohol.
GHA attorney Trammel Raggs said Allen doesn’t own the business. “We attempted to negotiate with the owners. That’s not Mr. Allen,” he said.
Afterward, Allen disputed Raggs’ claim saying he is part of the business ownership group.
Raggs said the GHA launched its project to acquire property on the block in 2017 when the board gave its authorization and it received some abandoned buildings from the city and acquired all the rest, except 624 Broadway. The lot to the north of it has already been demolished.
He said the GHA entered negotiations with an attorney for 624 Broadway LLC, but the talks were not successful.
Under the eminent domain action, Raggs said the property owner is entitled to compensation for the property at market value.
Raggs said GHA officials had been dealing with the former property owner HTO Investments LLC and didn’t know the property had changed hands earlier this year.
“It was never purchased, it was given,” Raggs said. “We pulled the deed. It said sale disclosure not needed, so we surmise property was given and not sold.”
About 18 people spoke at the hearing in favor of the restaurant owners.
Sherry Gore said the outcome was preordained. “Is this a moot issue, us being up here speaking on his behalf ? Is this all for naught? Gary needs someone like him. They need a warrior like him. Please don’t do this to this man,” she said of Allen.
“We should be coming together and make sure when he’s open we’re there,” said the Rev. Dena Neal. “I recognize that Gary Housing wants property to do things but Gary Housing has to recognize there’s property available all around Gary.”
Martin Mendoza said he lives downtown. “I don’t understand how the Gary Housing Authority became a monopoly. I want to be able to walk somewhere and eat.”
Brian Watkins, an adviser to Mayor Karen FreemanWilson, said the mayor supported the GHA project, saying it’s part of a larger vision for the block.
“We want what’s best for the residents of the city of Gary,” he said.
Jereon M. Brown, general deputy assistant secretary for the U.S. Department of Housing and Urban Development, said in a statement the acquisition and development of the Broadway block is a “key component” of GHA’s strategy to replace affordable housing in Gary.
“It’s also intended to remove the blight adjacent to two existing public housing developments, thus helping to stabilize Gary’s downtown area.”
Brown called the GHA’s development plan a major step for Gary to break the cycle of disinvestment and depopulation. “We believe this is the path forward.”
The GHA sought an eminent domain order earlier this year in Lake Superior Court, but the GHA moved to dismiss the motion July 26.
Raggs said he couldn’t divulge the reasons for the dismissal because of client confidentiality.