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Council accepts petition to form economic improvement district for proposed solar project; bonds and TIF readings move forward
Summary
The Michigan City Common Council accepted a petition to form an economic improvement district (EID) for a proposed solar project and heard first-reading ordinances to allow bonds and a project-specific tax-increment finance (TIF) mechanism; public hearing and further readings are scheduled for Aug. 4.
The Michigan City Common Council on July 15 acknowledged receipt of a petition to create an economic improvement district for a proposed solar project and set a public hearing for Aug. 4 as part of a multi-step financing and approval process.
Skyler York, director of redevelopment, told the council the landowners currently include the city and two developer LLCs and that ownership would transfer to private developers once financing is in place. Alan Schockman of Sola Development Partners, the project developer, said the EID and tax-increment revenues are critical pieces that “allow us to sell bonds” and that without those revenue mechanisms the project would be “very, very difficult to finance.”
An attorney for bond counsel, Tom Everett of Barnes & Thornburg, explained that under Indiana law the petition starts a process: the council must hold a public hearing (set for Aug. 4), and if the council adopts an ordinance after the hearing the EID would be formally established. Everett summarized that the EID would permit owners within the district to levy assessments on property in the district only and said the petition has been filed consistent with the statute’s notice timeline.
Why it matters: The council’s action begins a legal and public-review process that, if completed, will allow project-specific revenue bonds and a TIF to fund construction. Council members said they expect additional presentations and technical materials at a formal Aug. 4 meeting and noted the July 7 workshop where developers answered questions.
Council action and next steps: The council passed a resolution acknowledging the petition and authorizing notices and a public hearing (motion by Councilman Fitz Belinski; second by Councilman Nelson; vote 6–0). Several associated ordinances were introduced on first reading — authorizing economic development revenue bonds and authorizing economic development tax-increment revenue bonds — and were held for second reading; the council and staff said the items will return on Aug. 4 with a formal presentation and public hearing.
What council members asked: Questions focused on mechanics and safeguards. Councilman Kryzgielinski asked where similar EIDs exist; redevelopment staff and counsel cited Hammond and Fort Wayne as examples and noted two other vertical EIDs in Indiana. Council members also clarified that the EID and the project-specific TIF are separate financing mechanisms and that revenues pledged to repay any bonds would be generated by the project itself, not by other city property.
No final approvals of bonds or tax incentives were taken July 15; the council will hold a public hearing and second readings on Aug. 4.
