The Town of Dyer received backing from the Northwest Indiana Regional Development Authority for the $243 million Central Park Commons development.
The RDA will help repay bonds for the project from transit development district tax increment financing funds, said David Hein, Dyer town manager, in a press release. The town is investing $23 million into the project.
“This represents the true spirit of the creation of the transit development district,” Hein said.
The mixed-use project will span 70 acres close to a park and the new Munster/Dyer South Shore Line station. It will include 363 townhomes and 199 senior housing units. Developers plan to attract a grocery store, fitness center, hotel, retail stores and restaurants to the project.
“The Central Park Commons Project in Dyer promises to add more than 1.2 million square feet of new residential and commercial space, including housing for families, seniors and professionals looking for convenient access to commuter rail,” said RDA President and CEO Sherri Ziller. “We’re thrilled to support Dyer with TDD funds to help make their vision a reality.”
The Dyer Redevelopment Commission contracted with developer CP Dyer to construct Central Park Commons. The agreement was approved during its Aug. 12 meeting.
TDDs were created by the state of Indiana to create economic development opportunities around a train station. Funds collected by the state will be used in the district. Dyer and Munster are part of the same TDD around the Main Street Station on the West Lake Line.
The board also approved a $10 million Credit Enhancement Fund for TDD support in Lake and Porter counties.
RDA Director of Economic Development AJ Bytnar cited changing economic factors that hinder economic development.
“Market dynamics have shifted considerably since 2020, when interest rates were near historic lows and cost of materials were steady,” Bytnar said. “What we have seen in the last couple years is volatility in labor and materials, coupled with the rising cost of capital. Even though we are seeing growth in demand for mixed-use development, these national headwinds are making project development finance difficult.”
The fund was created to address national challenges that hinder development.
The board also approved a $5.3 million blight elimination contract with Homrich Wrecking. They will demolish the City Methodist Church and the former St. Mary’s hospital in Gary.
