Planning commission briefed on $2 million EDC incentive for south‑side retail project
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Summary
Planning commissioners heard an informational presentation about a proposed south-side retail development (Trailwinds) that would use a $2,000,000 EDC/RDC forgivable loan (TIF) to build a public road and enable roughly 12 lots with small-format retail; commissioners were asked to consider providing a nonbinding letter of support—no formal action was taken.
The Michigan City Planning Commission on Feb. 24 was briefed on a proposed south‑side retail and connectivity project—referred to in staff materials as Trailwinds—that the Economic Development Commission and Redevelopment Commission have notified the commission about and for which the RDC/EDC has pledged a $2,000,000 incentive structured as a forgivable loan.
“We used a code that allowed the redevelopment commission to pledge a $2,000,000 incentive,” the Presenter said, describing the incentive as part of a public–private partnership to construct a new public road and open about 30 acres for development behind the AMC Theatre between Loews, Menards and Cleveland Avenue.
Why it matters: staff and the presenter said the project is intended to create class‑A, auto‑oriented retail that fills a gap in the city’s retail market and leverages existing infrastructure. The presenter said the project would create roughly 12 lots and about 11 buildings, mostly in the 10,000–15,000 square‑foot range, and that the road itself could cost an estimated $4–6 million to construct. Staff emphasized the incentive supports infrastructure to unlock private investment, while final approval of any city spending rests with the City Council.
Chair (the meeting’s presiding commissioner) asked staff to define what the commission would be asked to do; staff and counsel clarified the commission is being notified and may provide an advisory letter of support, but “we are not approving the money that the city will spend,” a Staff member said. The presenter reiterated that entitlements (site review and plat approvals) will return to the planning commission for formal review before any final plat dedication or bonding occurs.
Public comment included a local resident’s endorsement: Scott Mellon of Kenwood Place called the project “a brilliant public–private partnership” and said leveraging $2,000,000 in TIF to secure a new road and development represented good value for the city.
What’s next: staff said the developer will provide a formal presentation to the commission in coming months (staff suggested March–May timing) and that the City Council will consider any formal EDC/RDC financial actions. The planning commission may choose to send a letter of support, defer action to a later meeting for a crafted motion, or take no action; commissioners on the dais recommended carefully worded motions if taken at all.
Details from the meeting: the Presenter said the EDC used its bonding and incentive authority to structure a forgivable loan; staff confirmed required notifications (including to the Michigan City Area School Corporation) have been made. The project remains subject to site review, primary plat and other entitlements before construction.
The commission took no formal financial action on the incentive at this meeting.

