Some Northwest Indiana communities with transit development districts are already looking to expand boundaries to generate additional transit-oriented development opportunities.
“This is a conversation we’re starting with many communities,” Councilor Aaron Kowalksi, of MKSK, told the Northwest Indiana Regional Development Authority’s Transportation Development District Steering Committee on Wednesday.
Under state law, boundaries are established for each half-mile area surrounding a South Shore Line station. Each area can expand to double its original size, but only once. The boycotts expire in 2045.
TDD works like a tax increment financing district, except that TDD adds the advantage of capturing the increase in income taxes as well as property taxes generated in the district to fund things like infrastructure.
“There is a significant amount of activity occurring within the boundaries of TDD,” he said. Eleven restaurants have been established, including one serving Beverly Shores and The Pines, which was created just this year.
South Bend Airport and downtown Valparaiso are still eligible, although Valparaiso does not have a train station. All other areas are created around South Shore Line stations.
“We established these boundaries, and we gradually worked with communities to provide support” on behalf of the RDA, Kowalski said.
Some communities are taking proactive measures and reviewing various plans to update them, including comprehensive planning as well as zoning, to be more prepared to receive developers.
“We want to continue working with communities that haven’t completed those steps,” Kowalski said, to accomplish this step toward development.
Having these plans will not only make it easier to apply for grants, but will also lead to conversations with developers and investors. He said the RDA is available to help.
Kowalski gave Portage a shout-out for recently announcing it would begin updating its comprehensive plan after the first of the year. The city’s Redevelopment Commission has been active in planning economic development surrounding the Portage/Ogden Dunes train station.
Hammond has two transit development areas for the new Gateway Station connecting the historic east-west route with the new West Lake Corridor expected to become operational next year. Kowalski said the RDA is working closely with the city to help attract the development the city wants within the TDDs.
The Banc, a recently completed residential project in the former Calumet Bank building downtown, is a success story for Hammond TDD.
Munster has two zones, one for the new station at Ridge Road and one at the station serving both Munster and Dyer at the end of the new West Lake Corridor. Among the considerations is the use of “whole street” principles to make Sheffield Street friendly for pedestrian and cycle use as well as vehicles.
RDA is working with East Chicago to expand TDD, Kowalski said.
“There’s a lot of work happening in Gary,” said Kowalski, which has TDDs for the downtown Gary and Miller Metro stations.
Porter’s Dune Park Station TDD is focused on designating a portion of US 12 as a scenic bypass, diverting truck traffic onto US 20. This bypass designation will extend east to Michigan City.
The Beverly Shores/Pines TDD is in its early stages. Beverly Shores Councilman Geoff Benson said the cities are working with the Indiana Department of Transportation and the Indiana Department of Environmental Management as well as the RDA to figure out what the next steps should be.
“The backbone in getting transit-oriented development here is the sewer from Michigan City,” Kowalski said. Developers prefer to use sewers rather than septic systems.
Michigan City is the perfect model for TDDs, as the new 11th Street station is linked to a massive mixed-use development covering an entire city block, as well as other large projects that have sprung up due to the Double Track NWI project that has reduced travel times between Michigan City and Chicago.
RDA’s Director of Economic Development, AJ Bytnar, gave the TDD Steering Committee an idea of what to expect from the new nonprofit local development entity created by the RDA.
“We know that along both the West Lake and dual-track corridors, each community has a different flavor” of redevelopment and infill development, Petnar said.
The local development entity will help identify obstacles to development, what tools communities have in their economic development toolbox and how to overcome these obstacles. “We will not leave any stone unturned,” he said.
The new nonprofit should be established in the first quarter of 2026 to begin addressing properties that present challenges to developers, perhaps due to ownership issues or environmental concerns, Beitnar said.
“We know some of the land speculation that happens here in Lake County and how it can be a stumbling block to development,” he said.
“Some communities may only have two properties. Some communities may have copious amounts of land that have accumulated over the years,” he said.
Instead of creating a model, the new entity will examine these matters on a case-by-case basis, he said.
Doug Ross is a freelance reporter for the Post-Tribune.