Michigan City poised for a renaissance

Michigan City, Indiana, is ready for its closeup.

The closure of the Indiana State Prison, standing since 1860, marks a significant milestone for Clarence Hulse, director of Michigan City’s economic development corporation, Crain’s Chicago reported.

“That’s 100 acres that’s a few minutes by bike from the Mt. Baldy parking lot” in Indiana Dunes National Park, Hulse told the outlet. “That’s going to be prime land for development.”

The town’s rejuvenation is a multi-faceted process, with substantial investments and projects set to redefine its landscape. Hulse anticipates the addition of 10,000 residents, along with upscale rentals, restaurants, and short-term accommodations, transforming Michigan City into a thriving Lake Michigan shoreline community. Recent groundbreaking events in October, such as the $280 million Sola development and the $80 million 11th Street Central project, signal the town’s pivot from its industrial past to a potential hub for lakeside living.

Several factors contribute to Michigan City’s opportune moment for revitalization. The closure of the coal-burning electricity plant, General Motors and Samsung SDI’s $3 billion electric vehicle battery cell plant in New Carlisle, and the elevation of the Indiana Dunes to a national park all play pivotal roles. Additionally, the $649 million double-tracking of the South Shore rail line, aimed at reducing the commute time to Chicago by 20 minutes, is expected to make Michigan City more accessible.

The town’s strategic reliance on tax-increment financing districts is helping attract major projects. However, potential challenges remain, with the economy’s uncertainties and organized opposition to downtown redevelopment. Developers like Farpoint are optimistic about a vibrant downtown community, emphasizing increased walking, biking, and an active lakeside bar and restaurant scene.

The faster rail service, expected to start in mid-2024, is anticipated to draw both short-term visitors and new long-term residents. The prospect of a shorter train ride, coupled with Michigan City’s affordability and proximity to Chicago, is expected to attract remote workers and second-home buyers. Factors such as lower taxes in Indiana compared to Illinois also contribute to the town’s appeal.

Concerns about gentrification and potential displacement have surfaced, given the town’s diverse demographics and history of unrest. Hulse emphasizes the importance of inclusive planning to prevent displacement and attract residents across income brackets. The Vibrant Michigan City initiative, developed in collaboration with the Brookings Institution, focuses on creating housing options for all and eliminating barriers to employment.

As the town navigates this transformative journey, Hulse emphasizes the need for careful planning to ensure that the changes benefit all residents, both current and future. 

“If we’re going to make all this change, we have to do it for all, not for some,” Hulse told the outlet.

— Ted Glanzer