The Michigan City Common Council on Nov. 4 amended the municipal revolving‑loan fund to provide operating support to the local Economic Development Corporation (EDC) and to seed a proposed destination, all‑inclusive playground, while preserving a portion of the fund for future loans.

Councilman Chris Belinski, sponsor and liaison to the revolving‑loan committee, said the ordinance makes available $400,000 for the EDC (two years at $200,000 per year), $300,000 for a grant program focused on a destination playground and other capital beautification projects, and retains $300,000 for future loan activity. "We have approximately a million dollars in the balance," Belinski said, describing the plan as a way to make the fund "relevant for today's needs."

The proposal drew public support from Clarence Holt, executive director of the Economic Development Corporation of Michigan City. Holt described multiple active leads and projects and characterized the EDC as a conduit that manages confidential recruitment work and grant administration. "Whatever deals we do ultimately comes before you," Holt said, adding the EDC manages grants and provides technical assistance to community projects.

Supporters at the meeting and on the revolving‑loan committee said the funds would help leverage private investment and support a large, inclusive playground project at Washington Park's Feeder's Alley. Committee member Scott Malin described the proposed playground as a $5 million, all‑abilities development intended to increase park usage and tourism.

Opponents criticized repurposing a loan fund for operating and grant uses. Councilwoman Moldenhauer and resident Rodney McCormick said the fund's original mission was to provide loans to local businesses and argued the city should consider dissolving and replacing the revolving‑loan mechanism if it would no longer serve that purpose. Moldenhauer said the council should "phase out" the current model and design a new structure targeted at small business needs.

The council approved the ordinance 5‑2. Councilwoman Moldenhauer and Councilman Nelson voted against the change. Supporters said the allocation is intended to leverage additional investment while preserving some capital for direct lending.

The ordinance requires administrative steps to transfer funds and tasks the EDC and city staff with managing grant processes and reporting back to the council; the revolving‑loan committee will remain engaged in oversight roles.