Council approves $25 million amendment to community impact agreement with Dennial Group LLC

The Hammond City Council on June 8 approved resolution 26R-13, amending the redevelopment agreement between the city, the Hammond Redevelopment Commission and Dennial Group LLC to add a $25 million community impact payment. Sponsors described the change as an amendment to an earlier package that included $4 million per year over 20 years (a figure sponsors equated to $80 million) for a combined total of $105 million if all payments occur as scheduled.

Councilman Kellwinsky (Kowinski/Kellwinsky) introduced the resolution and Councilman Spatali seconded it; the clerk recorded a roll-call result of nine votes in favor and zero opposed. During discussion sponsors said the amendment also outlines the schedule of payments.

Mayor (Mayor) reiterated that the $25 million upfront payment is not part of the city's development agreement unless council approves it, and warned the entire arrangement could be at risk if the developer fails to meet contractual deadlines at month-end. “This whole thing could fall apart at the end of the month if they don't meet their deadlines,” the mayor said.

Sponsors and staff described the amendment as an update to a prior agreement; the council recorded the passage without recorded dissent. The resolution does not on its face alter other terms of the 20-year payment schedule described in council discussion, and council members said staff will incorporate the amendment into the redevelopment agreement documentation.

The developer and state negotiators were discussed repeatedly during the mayor's report and during the resolution debate; the council did not receive on-the-record statements from Dennial Group LLC during this meeting.