The Michigan City Common Council on Sept. 16 approved a seven-year real property tax abatement for Ameriplex Marquette JB LLC (Holiday Properties) to construct a 54,000-square-foot speculative flex-industrial building east of the existing Haskell building. The resolution passed 7–1.

Councilman Beatri moved approval and Councilman Dabney seconded. The clerk recorded seven votes in favor and one opposed; President Belinski cast the lone dissent. Developer representatives said Holiday Properties will invest about $5.5 million to build the “Aldridge” building and that Holiday has a record of using union labor in the region. Clarence Hulse, director of the Economic Development Corporation of Michigan City (EDCMC), and Mike O'Connor of Holiday Properties attended and answered council questions.

Public commenters expressed mixed views. Scott Mellon said he supports development but urged the council to reconsider 100% abatements and called for smaller abatements in light of municipal budget pressures. Councilman Dabney explained how abatements work, saying that tax savings are phased and that full tax receipts return to the city at the end of the abatement period.

Why it matters: The abatement is intended to encourage new industrial space that the city’s economic development supporters say will attract tenants and jobs; the measure also reduces immediate tax receipts to the city for the abatement term.

What’s next: The developer may proceed with site work and construction; future property tax receipts will return to the city as the abatement percentage reduces or expires.