Council approves EID and bond ordinances for $300M SOLA mixed-use project including Renaissance hotel

The Michigan City Common Council approved multiple ordinances on Monday to enable financing for the SOLA mixed‑use redevelopment on a longtime vacant industrial site.The measures included creation of an Economic Improvement District (EID), authorization for developer-backed economic development revenue bonds, and approval of a tax-increment financing (TIF) allocation area; council votes were unanimously in favor.

Why it matters: The SOLA project combines a branded hotel with residential units, retail, and public amenities on a riverfront-adjacent property the city has marketed for redevelopment for years. The council’s EID and revenue-bond approvals are designed to allow project-level financing secured by project-generated revenue—hotel room tax and assessments on short-term rentals and on-site parking—without pledging the city’s general credit.

Project and public-benefit summary - Developer presentation: Representatives for Farpoint/NWI and Phoenix Investors described a plan for a Renaissance-branded Marriott hotel of about 240 rooms, approximately 188 residential units including townhomes, 21,000 square feet of retail, and a parking garage with roughly 386 spaces. The development team estimated roughly 1,000 union construction jobs during build-out and about 350 permanent jobs after opening; they estimated annual payroll for those jobs could total roughly $25 million. - Financial structure: The ordinances authorize EID bonds payable from EID revenues (assessments and hotel/short-term rental fees) and permit the use of project-specific TIF revenues as another potential source of repayment if the parties elect to combine financings. Counsel clarified the bonds would be developer‑backed and "there's no financial liability on the city." - Community commitments: The developers said they will donate $450,000 to the city’s affordable-housing efforts and anticipated paying roughly $750,000 in permits and fees; the team said much of the construction workforce will be union trades.

Council discussion and vote Council members discussed timing and the need to get enabling tools in place so the developer could market the bonds and reach financial closing this year. The council adopted the EID ordinance and the related bond authorizations unanimously and adopted a confirming resolution creating the separate allocation area for project TIF revenues. The mayor and several council members said the approvals will help the city attract the requisite investor financing to begin construction.

Next steps and conditions The statutes and the ordinances require public hearings (which were held) and post-approval filings; city staff said the redevelopment commission would finalize the special allocation area for the project at an upcoming meeting. Project closings and bond sales will occur only when the developer secures capital-market commitments and all statutory steps are complete.

Notable quote - Developer representative: "There is no city liability for any of these bonds. These bonds are payable solely from the EID revenues." (bond counsel/attorneys and developer presenters in meeting remarks)

Ending note The council’s approvals clear key legal and financing steps for a high-profile downtown redevelopment that the city and developers described as a long-sought catalyst for new hotel, residential and retail activity.