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Council pauses plan to spend data-center payments on utility assistance, public safety and rainy-day reserve after heated public comment

Michigan City Common Council · July 22, 2026
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Summary

A resolution to allocate initial Project Maze payments to police, fire, a rainy-day deposit and a $500,000 utility-assistance fund drew lengthy public objection over transparency and accounting; council members voted to table the item for further review.

Council members and dozens of residents debated a resolution that would establish how the city will use the initial economic-incentive payment tied to the Project Maze data-center permit (variously described in meeting materials as part of a $5.5 million to $6.5 million set of permit and development receipts). The resolution proposed directing dollars to the police and fire departments, deposit of $2.5 million to the rainy-day fund and creation of a $500,000 utility-assistance fund to help residents with disconnect notices.

Council members and residents repeatedly questioned the arithmetic in the published materials — attendees cited conflicting totals ($5.5M vs. $6.5M and a line item they said shows $6.5M broken into $2.5M police, $1.5M fire, $2.5M rainy-day plus a separately negotiated $1M to EDCMC) — and several speakers urged the council to treat the measure as an ordinance rather than a single-evening resolution so the public would have fuller participation and transparency.

Public comments included direct, pointed criticism. Rodney McCormick said, "I have a problem with this board delegating funds to the economic development" and argued that public oversight would be reduced if money is handed to an outside development corporation. Amy Lisonbee asked why the resolution was being used and urged the council to "slow down and take a minute to at least do this part right." Several residents asked that the portion earmarked for utility assistance be larger or better explained.

Council members emphasized the resolution's purpose as establishing the fund rather than authorizing immediate spending, and several said an ordinance will follow to set up program specifics and oversight. After discussion and motions, the council voted to table the resolution (vote recorded as 7 in favor to hold). The item will return for further review and possible ordinance language.