Study: Lake County convention center could bring big impact to region
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A new study commissioned by the Northwest Indiana Regional Development Authority shows a new convention center in Lake County could generate nearly $60 million for the local economy each year.
The study, conducted by Chicago-based Johnson Consulting, is an update to a previous analysis done in 2018 and examines 14 potential locations across that region that could facilitate a convention center.
“There’s a market demand for it,” said Northwest Indiana RDA CEO Sherri Ziller.
Ziller told Inside INdiana Business nothing came out of the original study, but the updated version was created due to state support and interest.
“In 2023, [the Indiana General Assembly] asked us to update our feasibility study; they gave us a legislative assignment through Senate Enrolled Act 434,” Ziller said. “We just wanted to see if the same results still held up. Market conditions had changed; the economic landscape in northwest Indiana has changed drastically over even the past seven, eight years.”
The study found that a new convention center could generate about 1,300 full-time, part-time and temporary construction jobs, boosting state and local tax revenues by more than $3.5 million per year.
Northwest Indiana has been without significant convention and meeting space since the closure and demolition of the Radisson at Star Plaza in Merrillville in 2016, which cost the county about $6 million in annual event revenue.
Johnson Consulting CEO Charles Johnson said the venue’s closure left a gap that has yet to be filled.
“With the meetings and hospitality industry continuing to recover from the COVID-19 pandemic, and little competition for larger spaces south of downtown Chicago outside of Tinley Park, the time is right for Indiana’s second most populous county to invest in its tourism infrastructure and take greater advantage of the activity occurring in the Chicagoland region as well as in the state of Indiana,” Johnson said in a news release. “This project could catalyze Lake County’s destination development while also providing an amenity for locals.”
The updated study recommends a 145,000-square-foot convention center with 73,000 square feet of meeting and exhibition space, including an 18,000-square-foot ballroom. By comparison, the Radisson at Star Plaza only had less than 25,000 total square feet of meeting and ballroom space.
Johnson Consulting evaluated 14 potential sites in Lake County where the convention center could be located, each of which received a score.
The No. 1 location was Patriot Park in Hobart, which Ziller said did not come as a shock to her.
“They have the infrastructure already there, so that would cut costs a lot. There’s nothing to demo there. Mayor Josh Huddlestun has huge plans for that site, and it is somewhat privately owned, too,” she said. “There’s light industrial and retail and even a sports complex type of situation. They want to attract someone like a Topgolf, and in there, there is room for a convention center. It’s close to retail. It’s close to restaurants. It’s close to Chicago. It’s close to transit. It’s close to a major expressway.”
The Hard Rock Casino Northern Indiana in Gary was the No. 2 recommended site in the study, followed by Century Mall in Merrillville, the former Raddison at Star Plaza site, and Kennedy Avenue and I-94 in Hammond.
Regardless of where a convention center would be located, Ziller said the project would be complemented by major development currently taking place in northwest Indiana, namely the double tracking of the South Shore rail line set for completion this spring, as well as the Westlake Corridor extension of the rail line.
She added residential and commercial projects, such as the $101 million Franklin at 11th Street Station project in Michigan City, and federal investment coming as a result of the Midwest Hydrogen Hub will fuel the need for more convention and meeting space.
“There’s a lot of momentum built around all the development happening in northwest Indiana that a state-of-the-art convention center would really fit in nicely and cement the region as the place to be,” said Ziller.
The study also outlines potential funding sources for a convention center project, including American Rescue Plan Act funding, the establishment of a Tourism Improvement District, or a Tax Increment Financing district.
“In terms of economic development, a Lake County convention center is low-hanging fruit,” Randy Palmateer, vice chairman of the RDA Board said in the release. “Not only would it provide an immediate boost to the local economy during construction, and a long-term boost through its operation, but the State of Indiana is offering up to $100 million in matching funds to build it. Any way you look at it, it’s a winning opportunity for Lake County.”
The study was presented last week to the Lake County Commissioners, who will review the recommendations and have until the end of the year to seek proposals for a convention center project. They will then have until July of 2025 to select a proposal.
You can view the full study results by clicking here.