Hammond moving forward with food & beverage tax
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The revenue generated by the tax will support the expansion of the Hammond Sportsplex. (rendering provided)
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The revenue generated by the tax will support the construction of the new Downtown South Shore Train Station in Hammond. (rendering provided)
Hammond Mayor Tom McDermott said Thursday that the city is moving forward with plans to implement a 1% food and beverage tax.
If approved by the city council, the mayor said the tax will generate revenue to support an expansion of the Hammond Sportsplex and the construction of a new Downtown South Shore Train Station.
An ordinance proposing the tax will be introduced to the Hammond City Council during its meeting on Monday. McDermott previously told our partners at The Times of Northwest Indiana that the tax could generate up to $2 million in new revenue annually.
The city was given the ability to implement the tax by the Indiana General Assembly during the 2024 legislative session.
The $18 million, 135,000-square-foot Hammond Sportsplex opened in 2018 at 6630 Indianapolis Boulevard. The planned expansion has a cost of $9 million and would add more than 25,000 square feet to the existing building.
“It would be short-sighted of us not to expand our Sportsplex,” McDermott said in a news release. “The Sportsplex is a top destination for people all over the Midwest and we are bursting at the seams. This expansion will secure its success and bring even more people to our city. When they eat at our restaurants, they are helping to pay for this expansion too.”
Design work on the sportsplex has begun, and a spokesperson for the city told Inside INdiana Business construction could begin in the fourth quarter of 2024 or first quarter of 2025.
The Downtown Train Station is an effort to take advantage of the West Lake Corridor Extension of the South Shore Line, which is currently under construction. The $945 million project will bring the rail line from Hammond south about eight miles to Dyer.
McDermott said the station will be a signature station along the new rail line, complementing the work the city has done to make its downtown walkable and accessible.
“Although this wasn’t part of the original West Lake expansion plans, we recognize how important this station is for Hammond and so we are building it on our own,” he said. “Connecting new residents in downtown Hammond to Chicago, Michigan City, and South Bend is a huge step forward.”
The train station project is expected to cost about $10 million and could begin as soon as the West Lake Corridor project is complete, which is currently slated for May 2025.
The council is currently slated to conduct its first and second reading of the ordinance on Monday, with a public hearing and final reading expected at the council’s June 24 meeting.