Gary Inks Settlement Over Failed Akyumen Project
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The city of Gary has reached a settlement in its lawsuit against California-based Akyumen Industries Corp. Our partners at The Times of Northwest Indiana report the city’s redevelopment commission will regain control of the Genesis Convention Center and Ivanhoe Gardens properties, where Akyumen had planned to establish its new headquarters and 5G smartphone manufacturing facility.
In October 2020, Akyumen said it would invest $100 million in the project and create up to 2,000 jobs in Gary over five years. Those plans were confirmed the following January after the company had inked a purchase agreement for the properties.
Last year, the city said Akyumen failed to pay $2.5 million it owed on the Genesis Center by a July 27 deadline, putting the company in breach of contract. The lawsuit also alleged Akyumen failed to provide a development agreement for the Ivanhoe property.
According to the publication, the RDC approved the settlement, in which Akyumen will transfer the properties back to the city and the RDC will pay Akyumen $35,000, which is a partial refund for the closing costs associated with the properties.
“The Redevelopment Commission hoped that these transfers would result in the successful redevelopment of these two properties. Unfortunately, this did not happen through no fault of either party,” the agreement says. “It was simply a business deal that did not work out for either side.”
Gary Mayor Jerome Prince has previously said the city will explore other options for the sites, though an update on those efforts has not been provided.