Land sale for BP redevelopment project in Whiting could come soon
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The city of Whiting is looking to complete the sale of more than 40 parcels of land to BP for a proposed redevelopment project.
BP, which operates a massive oil refinery in the northwest Indiana city, plans to transform the properties into a new office complex in the city’s Stadium District.
The city previously said BP plans to invest $18 million to acquire the properties along Front Street and 119th Street near Oil City Stadium. Our partners at The Times of Northwest Indiana report that number could increase to about $20.4 million.
The proposal has been approved by the city’s redevelopment commission, and negotiations continue on a purchase agreement. Whiting City Attorney Denise Sejna said a deal could be coming soon.
“I asked BP if we could have final documents for the Nov. 6 commission meeting, but they did not know if they could complete internal review of our proposed revisions by then,” Sejna told The Times.
Sejna said if the documents are not ready by the Nov. 6 meeting, the commission would have to schedule a special meeting to vote on the agreement.
Specific plans for the project have still not been revealed. The Whiting Refinery could potentially move its offices to the new complex, which would bring about 1,000 employees to the area, according to The Times.
Whiting Mayor Steve Spebar told Inside INdiana Business in July that the project could take six to eight years to complete.
One of the properties set to be acquired is the former Mascot Hall of Fame building, which closed in September as a result of the proposed land sale.
Spebar said the hall of fame had been operating at a deficit since it opened in 2019, costing the city about $500,000 in taxpayer dollars each year. He said moving forward with the closure was a business decision.
With the land purchase, the city will be able to pay back $11 million in bonds it still owes for the Mascot Hall of Fame, as well as $3.8 million in bonds on other parcels included in the deal.
“This transaction will also make us basically debt free as a city,” Spebar said. “And eventually, we’ll put many, many people on the cusp of our business district, which will be nothing but a boon for our downtown business district.”