Planning commission endorses creation of SOLA allocation area to enable $300 million mixed-use solar project

The Michigan City Planning Commission voted Tuesday to approve Resolution 3-2025, recommending creation of the SOLA allocation area that would allow developer-backed bonds to be repaid with tax-increment revenues if a proposed mixed-use solar project advances. The vote sends the allocation-area measure to the Michigan City Common Council with a favorable recommendation.

The allocation area is a legal step, not a bond issuance. Alan Sernak, attorney for the Redevelopment Commission, told the commission the body must first find the proposed allocation area "comports with a development plan of the city" before the council can consider tax-increment tools and developer-backed financing. "If you had asked us a year ago, six months ago, even three months ago whether this project was ever gonna become a reality, I think my pessimistic nature would have said, I don't think so. I was wrong," Sernak said. "This thing has a chance of becoming... a very dynamic reality for all of Michigan City." Attorney Hale confirmed the resolution, as revised, "comports with the legal requirements."

If approved by council…