Train Line Pulls Chicago Developers to Michigan City, Indiana

Michigan City, Indiana, once defined by smokestacks and factories, is rewriting its story as a beachside escape — and a Chicago suburb in all but name.

Officials and developers in the city are leaning on luxury projects, improved rail access and the pull of Lake Michigan beaches to shift the northwest Indiana town’s blue-collar identity.

The 33,000-resident city, about 60 miles from downtown Chicago, has attracted several major developments, including Farpoint Development’s SoLa, a $300 million hotel and townhouse project marketed to second-home buyers and short-term renters. The 188 planned residences start in the $400,000s, with completion expected in 2027 or 2028, the Chicago Tribune reported. Indianapolis-based Flaherty & Collins is building The Franklin, a $100 million mixed-use tower near the new train station that’s set to open in 2026.

The momentum follows last year’s completion of a second Metra South Shore Line track and new station, which cut the train ride to Chicago to about an hour. The improved commute has made Michigan City viable for professionals priced out of the city but unwilling to give up its amenities — a zoo, a lighthouse, outlet shopping and a casino — or its proximity to the Indiana Dunes National Park, which draws about 3 million visitors annually.

Developers are taking note. Deron Kintner of Flaherty & Collins told the outlet that Michigan City has character.

“With the speed to get to Chicago and back, we think it’s going to be very desirable to live in,” Kintner said.

Farpoint Development’s Scott Goodman said the town’s mix of affordability and access makes it “almost a suburb.”

Michigan City’s renaissance does have hurdles. The coal plant and cooling tower looming over its lakefront is derided locally as “the monstrosity.” Operator NIPSCO plans to close the facility by 2028 but may instead convert it to gas power.

The state prison nearby, also slated for closure, could eventually open prime redevelopment land. Mayor Angie Nelson Deuitch said the goal is to attract newcomers without pushing out residents.

“We want industry, but tourism is a big part of who we are now,” she said. — Eric Weilbacher