Gary council members say state law requires ending Gary–Chicago airport compact; council to seek legal guidance

5442344 · June 4, 2025

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Summary

Council members discussed an Indiana legislative change that they said will require the city to end the Gary–Chicago airport compact within five years and asked staff and legal counsel to study the compact's benefits, liabilities and the interests of Gary residents.

Councilman Roosevelt Washington told the Gary Common Council on June 3 that the Indiana Legislature passed a law during its most recent session that mandates the Gary Common Council end the compact governing the Gary–Chicago airport within five years.

The councilman said the compact has been controversial in Gary for years and that residents question whether the agreement benefits the city. “There are questions about the validity of the compact,” Councilman Washington said, noting past commercial uses and repeated ownership and management changes at the airport.

Why it matters: Council members said the compact affects federally funded programs tied to the airport and that large sums have been invested locally. A council member who spoke after Washington said residents and the city have contributed about $75 million to the airport, and that local officials should be consulted about any state actions affecting the compact.

Discussion and next steps: Council members said they currently sit on the compact board and will consult legal counsel and the airport board and administration to evaluate options before the five-year deadline. Council President Latham and other members urged the council to educate itself on the compact’s benefits and liabilities and to weigh any state direction against the city’s financial interests.

No formal motion to change the compact or to initiate litigation was made during the meeting. Council members repeatedly framed the item as a matter for legal review and further discussion rather than an immediate policy change. Council members also said they will work with the airport board to identify the “best use” for Gary Airport once the compact ends.

Public comment touched on the airport’s role in the community and on tax-increment financing (TIF) funding that includes airport property, but the council did not take binding action on funding or property transfer at the June 3 meeting.

What remains unresolved: The statute the council referenced was described in the meeting as a recent state legislative mandate; the meeting record did not supply a statute number or text. Council members instructed staff to bring legal analysis and options back to the body before final decisions are made.