The Northern Indiana Commuter Transportation District failed Friday to adopt a policy to guide future South Shore transit-oriented development, temporarily blocking a feasibility study for a hotel near the Dune Park commuter station.

Porter County Commissioner John Evans’ motion to adopt the TOD policy died for lack of a second. A subsequent motion to table the matter passed 5-2 with Evans and St. Joseph County Councilman Mark Catanzarite voting no. Four members were absent.

The NICTD board next meets Sept. 25.

According to William Sheldrake of Policy Analytics, LLC, who briefly addressed the board, TOD would allow NICTD, the private sector and local communities to open up new areas for development or to assist in redeveloping older, underutilized areas; access to the South Shore would be a key component of either project.

Office, retail, and residential uses that would create jobs and bring added value to South Shore patrons would be emphasized. TOD typically increases property values around it, said Sheldrake.

NICTD general manager Gerald Hanas said the public agency was approached by developers last year about a gateway railroad station with commercial potential and a parking garage near Interstate 65 in Gary; a proposed corridor expansion for South Shore trains in Michigan City is creating TOD opportunities there also.

Hanas later said NICTD’s also aware of the Town of Porter’s pending $19 million request from the Northwest Indiana Regional Development Authority to study, then develop an iconic gateway near U.S. 20 and Indiana 49 to the Indiana Dunes State Park.

“We’re aware of that study and would like to coordinate our efforts with the town,” said Hanas, noting Dune Park’s proximity on U.S. 12 to both the state and federal parks makes a hotel a logical project to consider.

He recommended NICTD adopt broad policy guidelines for financial and development criteria to review and pursue TOD proposals. However, some board members felt the two-page resolution was too specific.

LaPorte County Commissioner Barbara Huston questioned why the policy said there may need to be a charge for parking in the future; currently South Shore passengers are not charged for parking in NICTD lots.

Hanas said the cost of a parking garage is significant and someone would need a revenue stream to help finance it. A question developers would ask is what kind of revenue split NICTD might want.

A controversial West Lake commuter rail extension in Lake County to Lowell is proposed, but a drawback is the lack of a local funding source. Hanas said NICTD could nail down if a TOD project could help the railroad generate more revenue to pay bills and defray costs.

St. Joseph County Commissioner Robert Kovach said while he strongly supports public/private partnerships and TOD in general, he questioned what dollars the policy language would commit NICTD to.

Hanas said none. The TOD guidelines would allow NICTD to help identify properties and encourage developers to look at those sites. After the meeting Hanas said while NICTD itself owns little developable land, it could help acquire parcels if necessary.

Other board members were uneasy about saying NICTD is willing to make requests for grant funding from federal and regional agencies for suitable TOD projects as long as such requests don’t jeopardize funding for West Lake, NICTD’s first expansion priority.

LaPorte County Councilman Mark Yagelski cited what some believe is a disparity between South Shore station improvements made elsewhere and in LaPorte County. While he said he isn’t against a TOD policy, he doesn’t agree with everything in the draft proposed.

Porter County Council member Sylvia Graham questioned what kind of bureaucracy TOD would create. Hanas said it is non-governmental and doesn’t create a new agency. Graham suggested the matter be tabled for more discussion.

After the meeting, Evans said, “There’s nothing wrong with (the policy) the way it is written. These people in Michigan City are talking about a TOD. We can’t even get one resolution out of this board.”

Evans also said NICTD isn’t going to be applying for grants without the board authorizing such applications first.

Posted 8/3/2009