Name brands would bring attention to city, CEO says
New Gary casino could spur regional commercial economic development
Northwest Indiana’s economic development and tourism gurus view the new $400 million Hard Rock Casino project as an economic driver not just for Gary, but the Calumet Region as a whole, spurring new development, growing local mom and pop operations and possibly even making the vision of a convention center a reality.
“The name brands of Hard Rock and Spectacle Entertainment carry weight initially. If Hard Rock wants to go there, what else wants to be there? It brings attention to Gary,” said Karen Lauerman, president and CEO of the Lake County IN Economic Alliance.
“I think we’ll see an economic impact running the whole (Interstate 80/94) corridor, into Illinois and Porter County,” added Don Koliboski, vice president of economic development for the alliance.
Koliboski said the alliance has received calls from several companies interested in the corridor since Spectacle Entertainment and Hard Rock International announced they would be building the 225,000-square-foot casino, several restaurants and bars, a Hard Rock Cafe and Hard Rock Live, the company’s namesake concert venue, on a 45-acre site off I-94 southwest of the Burr Street exit.
Speros Batistatos, president and CEO of the South Shore Convention & Visitors Authority, believes the new development could also finally make the convention center he’s been advocating for years
a reality.
“Clearly, there is potential for additional infrastructure on the site itself. I believe the site has everything needed for a convention center,” Batistatos said.
If not at the Gary site, he said having the Hard Rock brand nearby also makes the Oxbow location off the interstate in Highland more attractive for the center.
“If we’re able to put a convention center anywhere in Lake County, it will help the region,” Batistatos said.
Building on the Hard Rock brand
When announcing the joint venture with Hard Rock International earlier this year, Rod Ratcliff, chairman and CEO of Spectacle Entertainment, said it will not only create more than 1,000 construction jobs and 1,800 permanent jobs, but would serve as a “significant catalyst for the continued economic revitalization of Northwest Indiana and the City of Gary.” The director of redevelopment for Gary couldn’t be reached for comment Friday, but economic development officials for the region agree.
Heather Ennis, president and CEO of the Northwest Indiana Forum, said having Hard Rock Cafe, which has national and international recognition as a premier destination location, adds to the region’s profile as a place to do business.
“Companies look at the total picture of the surrounding economy. Those types of amenities continue to make us more attractive,” she said.
She said there is plenty of vacant space in the region prime for development and she’s had a few inquiries, but added she deals more on the industrial side.
Lauerman said both the Hard Rock brand and the amount of its investment in Gary are creating a buzz.
“This will impact all of Northwest Indiana,” she said of the project. She said many developers get their first impression of a site by touring or visiting the area.
Lauerman said she has already started seeing interest from companies in logistics, cold storage, food and beverage distribution and other areas. “More importantly, we’re finding that all these can develop around a core. Maybe that core becomes the Spectacle-Hard Rock component,” Lauerman said. She said another upside of the casino development is how it could help local small businesses.
“If these businesses provide a product that the Hard Rock casino enjoys, maybe Hard Rock can sell that product throughout the corporation or at other casinos. In that case, the mom and pops would become a midsize business, turning one investment into something greater for Lake County,” Lauerman said.
Lauerman said she believes the combined work of the economic alliance, local leaders and private investment can bring about a more diversified economy for the region.
Winners and losers expected
Hammond Mayor Thomas McDermott Jr., said there’s one new development he would like to see come out of the new casino project — a hotel at Horseshoe Hammond Casino.
“I think it would be a good idea for Horseshoe to build a hotel. It could be a good byproduct of this new casino,” McDermott said.
But on the whole, McDermott said he’s not as confident the Hard Rock casino will bring a lot of new development to the region.
“It will be a good project for the region, providing good-paying jobs for building tradesmen and contractors,” McDermott said. “But as far as more restaurants and other businesses opening close to casinos, that’s hard because casinos give their food away. Their business motto is to get you into the casino and keep you there,” McDermott said.
He pointed out that Phil Smidt’s, a once popular restaurant located a half block away from Horseshoe Hammond, couldn’t survive after the casino opened.
As for a convention center, McDermott said it would be great if one was built in the Oxbow section on the south side of I-80/94, but added, like with any other location, it would need some form of funding assistance. He said there was some talk of using a portion of sales tax revenue for the convention center, but it would require a change in state law.
He said it was too late to get it on the Legislature’s agenda this year.
Batistatos agreed that the casinos’ priority is to maximize their own business, but said they should be judged by whether they’ve lived up to their local development agreements with the home communities.
“The way to get other development around a casino is under an LDA, It’s up to the city administration to prioritize the LDA,” Batistatos said.
As for a convention center, Batistatos said Hard Rock International has access to capital and investment. “Hopefully, with some creative financing, it can be done,” he said.
While he’s given up on convincing the Lake County Council to impose a 1% food and beverage tax to help pay for a convention center, he said he’s looking at a funding mechanism through the state that he’s been working on with McDermott.
In neighboring Highland, Redevelopment director Kathy DeGuilio-Fox said she’s seen an uptick in interest in the town overall from potential developers, but she can’t say that it’s due to the casino.
“I don’t know enough about that industry to say if it would bring more tourists,” she said.
If it does spur interest, Fox said she’s willing to work with developers to make their project happen.
“I would look forward to anything this brings to our doorsteps,” she said.
One area in town that could be ripe for development is the site off Kennedy Avenue that houses the Highland town garage. Some town officials are hoping that new development there could include a hospital or medical facility
“I’ve long believed the town garage is not the best use of the property along the Little Calumet (River). It’s prime property, but it has to be the right development that will benefit Highland residents for years to come. I’d love to see a medical facility on that property,” Councilman Dan Vassar, D-3rd, said.
Highland Town Council President Steve Wagner, D-4th, said the town has received inquiries from developers concerning property on the north side.
“Once the word gets out that it’s more ready, we’ll get more,” Wagner said.