Redevelopment commission approves $9,000 addendum to Cellar Door facade grant to replace lateral

The Michigan City Redevelopment Commission on July 14 approved a $9,000 addendum to an earlier facade grant for the Cellar Door restaurant at 1901 Franklin Street to cover an unanticipated sanitary lateral excavation and replacement.

Owner Kyle Hutch told the commission the restaurant had nearly completed interior and exterior work when heavy cleaning and plumbing revealed the sanitary lateral in the crawl space “was not functioning, basically, at all.” Contractors dug up the sidewalk and replaced the sewer lateral from the building to the public main and also identified a failing water supply line that was replaced while crews were onsite.

Redevelopment staff reported the commission worked with Woodruff & Sons to perform the exterior excavation and lateral replacement; the Woodruff invoice for the work was $9,000 for excavation, replacement of the sewer cleanout and restoration of the asphalt and sidewalk. Commissioners discussed whether to treat the payment as an addendum to the existing facade grant or as a separate grant; legal counsel and staff recommended an addendum for this unforeseen infrastructure expense so it would be consistent with program rules.

Commissioner discussion noted previous precedent: staff recalled at least one prior project where sewer connections required additional work after initial scope. The commission approved the $9,000 addendum by voice vote and specified it as an infrastructure addendum to the previously awarded facade grant. The approval directs staff to process the addendum through the redevelopment office’s grant administration procedures.

The commission emphasized that facade funding is typically for visible improvements but that older buildings sometimes surface functional infrastructure problems during rehabilitation; staff said the redevelopment office will consider clarifying future applications to address similar lateral or underground issues.