The Michigan City Redevelopment Commission on Dec. 17 voted unanimously to give Executive Director Skyler York authority to notify the developers and conclude the exclusive redevelopment agreement for the waterfront "solo/solar" site on Dec. 31, 2025.

Legal counsel summarized a multi-year history of the development deal, saying the commission has operated under successive amendments and that the most recent amendment — the first amendment to the second amended and restated development agreement executed June 9, 2025 — set an outside closing date of Dec. 31, 2025 and made clear the commission could terminate the agreement if the developer could not show required funding. Counsel told commissioners the developer requested a phased approach (hotel first, condominiums second) and said the change from a single-project closing to a phased implementation would constitute a material change that likely requires a new agreement.

"If the developer is unable to submit evidence of available equity necessary in the reasonable judgment of the commission to complete the project, either the commission or the developer may terminate this agreement by written notice to the other parties," counsel read into the record in summarizing the agreement's closing-date clauses.

Public commenters urged caution and argued the city should consider market changes. Scott Mellon, of Kenwood Place, told the commission the parcel "is considerably more" valuable now than when initial terms were set and asked whether the city should reissue a request for proposals rather than extend exclusive rights. Tommy Kolovic, of Ohio Street, said the proposal felt "too much for Michigan City" and suggested a smaller-scale approach modeled on developments in nearby communities.

Chair (unnamed) asked for a motion to extend the closing beyond Dec. 31; hearing none, the commission addressed whether to formally terminate the agreement. The commission then moved, seconded and approved a resolution authorizing Director Skyler York to notify the developers and conclude the agreement on Dec. 31, 2025, consistent with the contract's terms. The chair said after the vote: "The decision is unanimous."

Legal counsel and commissioners noted that the developer had exclusive rights to the parcel for approximately six years and that the city had kept the property off the market during that period; commissioners said that while the exclusivity was a substantive city concession, the developer had not produced the financing necessary to close under existing terms.

The commission did not take action to extend the agreement or to set a new closing date; counsel advised that if the commission later decides to pursue a phased implementation, the city should negotiate a new agreement to reflect those changes or revisit the parcel through a new solicitation. No timetable for a new solicitation was set during the meeting.

The commission's action will allow the city to terminate the current exclusive arrangement on Dec. 31, after which the parcel could be put back on the market or renegotiated under new terms.

Next procedural steps: Director Skyler York has authority to send the required termination notice and to conclude the agreement consistent with the contract language; the commission indicated it will consider future options — including a new developer selection or a reworked agreement — if the developer does not close by the end of the year.