Redevelopment panel pledges $2 million TIF for Tailwinds Business Park; development agreement approved in principle

The Michigan City Redevelopment Commission on Jan. 12 approved a resolution pledging $2,000,000 of existing consolidated tax-increment financing (TIF) funds as a forgivable loan to the Tailwinds Business Park project and also approved the form of a development agreement that contemplates a later developer‑backed bond for additional infrastructure funding.

Developers David Duran of Game Plan Solutions and Matt Rossman of Rossman Partners told the commission the project would create a business park of roughly 11 lots with 10,000–12,000‑square‑foot buildings, include a retention pond and new public roadway connections, and is expected to spur about $30 million in private investment and create both construction and permanent jobs. "This is a public improvement project," Duran said, describing the new roadway that will serve the lots.

Heather James, counsel for the project team, described the two resolutions before the commission: the TIF pledge of $2,000,000 to support a forgivable loan and a separate resolution approving the form of a development agreement that covers the forgivable loan and a contemplated developer‑backed bond. James told commissioners the commission’s pledge is the commission’s step in a multi‑body approval process: the Economic Development Commission will review the loan, and final approval of the loan agreement will come at city council.

Commission members pressed for clarity on authority and timing. Commission attorney Trammell Rags questioned whether approving the loan agreement itself was within the commission’s legal authority, noting "the approval of the loan agreement is... the responsibility of the Michigan City Council." James responded that the draft loan agreement was available and the commission’s approval would be a substantive recommendation but that council action remained necessary.

The loan instrument includes milestone payouts tied to project benchmarks: an initial $800,000 at commencement, $800,000 after a midpoint inspection and sign‑off, and a final $400,000 upon dedication of the roadway to the city. Commissioners and the project team said the project also depends on establishing a project‑specific TIF allocation area and on approvals by the Economic Development Commission and the Michigan City Council; the transcript notes an EDC consideration scheduled for Jan. 22.

The commission voted to adopt the TIF pledge resolution and then approved the resolution on the development agreement in amended form pending final legal review. Both resolutions passed by voice vote; the transcript records the motions carried.

Next steps: the project team will present to the Economic Development Commission as required by statute, the draft loan agreement and development agreement will undergo final legal review, and the city council will consider formal loan approval and bond authorization.