A massive mixed-use development in Dyer, Indiana, has become the first project to receive funding through Northwest Indiana’s transit development district financing mechanism, marking a milestone for the region’s economic development strategy.

The Northwest Indiana Regional Development Authority approved a memorandum of agreement on Wednesday to support the town’s $23 million commitment to the Central Park Commons development, a project expected to cost more than $200 million. The development includes a grocery store, fitness club, Hilton brand hotel, shops, restaurants, 363 townhomes, and 199 units of senior housing.

The transit development district surrounds the South Shore Line’s Munster/Dyer station. The district was formed in 2022 to provide incentives for economic development projects near transit stations, but Central Park Commons is the first to actually draw on the financing mechanism.

‘This is nearly a decade-plus work’ to bring a project like this to the current stage, said RDA Economic Development Director AJ Bytnar. ‘This is the first of many we’ll see.’

RDA President and CEO Sherri Ziller said the development agreement was approved by the town last month. An existing senior living building at the site will remain, while the new construction will add housing and commercial space designed to leverage the proximity to the South Shore commuter rail line.

The RDA also approved a $5.3 million contract with Homrich Wrecking of Detroit to demolish the former City Methodist Church and St. Mary’s Hospital buildings in Gary, part of a broader effort to clear blighted properties for redevelopment. RDA member Randy Palmateer asked staff to verify that Homrich will follow Gary ordinances, including a project labor agreement ensuring prevailing wages for union workers.

The new Northwest Indiana Local Development Entity, created this year, plans to hire an inaugural director by fall to identify and help remediate challenging brownfield properties for redevelopment. Additionally, a technical study is underway for designating a stretch of U.S. 12 as a scenic byway to boost small businesses and tourism.

Sources: Chicago Tribune