Gary will receive $15 million to help revitalize neighborhoods that have suffered from decades of disinvestment. The funding is part of a statewide initiative by the Indiana Economic Development Corp. to support 17 projects with $131 million from Lilly Endowment Inc.
The $15 million for Gary is part of a broader $250 million effort aimed at unlocking more than $1.6 billion in statewide investment. For Gary, city officials say the support could provide momentum to rebuild infrastructure and restore trust in the community’s future.
“The READI investment in the Gary Blight Elimination Initiative marks a turning point for our city. This effort tackles long-standing challenges while opening the door to new opportunities for revitalization and economic growth,” Mayor Eddie Melton said, referencing the Regional Economic Acceleration and Development Initiative. “It reflects our shared regional commitment to not only strengthen Gary, but to build a safer, stronger, and more vibrant Northwest Indiana. We’re grateful for this partnership and excited about the lasting impact it will bring to our community.”
This funding comes just days after the city’s Planning Commission unanimously approved the city’s comprehensive plan, which will now head to the Common Council for approval.
“This strategic plan targets key development gaps, enhances city placemaking, and aggressively tackles blight, all aimed at fostering sustainable economic growth and bringing renewed vibrancy to the heart of Gary,” said David Adams, Indiana’s secretary of commerce. “The project has completed preliminary Master Plans and involved community engagement during the Comprehensive Plan and Downtown Vision and Action Plan processes.”
Gary’s new comprehensive plan sets the long-term vision for growth, while the READI 2.0 funding provides the dollars to possibly start turning that vision into reality.
At the heart of the initiative is the Downtown Transit Development District, which has been a critical area that city leaders believe can jumpstart economic growth. Three key projects make up the first wave:
- $5 million for renovations at the Hudson & Campbell Center adjacent to Gary City Hall.
- $5 million for blight elimination and redevelopment near the Cathedral of the Holy Angels on the 600 block of Tyler Street
- $5 million for redevelopment within the Transit Development District.
Both the plan and the funding emphasize demolition of unsafe, vacant structures as a first step toward neighborhood stabilization. READI 2.0 will pay to tear down as many as 1,300 blighted properties, clearing land for future housing, businesses and parks.
The plan coincides with the work Notre Dame University’s School of Architecture performed last year.
“Leadership at both the state and local levels are signaling to the private sector that it is time to take notice,” said AJ Bytnar, director of economic development for the Northwest Indiana Regional Development Authority. “This infusion of capital, coupled with the investments in the South Shore Line, blight elimination, and Metro Center redevelopment are foundational catalysts towards the revitalization of downtown Gary.”
While the current plan focuses on demolition and site cleanup, city leaders describe it as “setting the stage” for future housing opportunities. By removing unsafe and abandoned properties, the city hopes to create safer, more welcoming neighborhoods that can support new residential development over time.
Melton said beyond bricks and mortar, the initiative is about improving quality of life.
“Revitalization isn’t just about buildings — it’s about people,” he said. “We want residents to feel safer, see opportunity in their neighborhoods, and know Gary’s best days are ahead.”
The overall project is expected to begin in October 2025 and conclude by Dec. 31, 2028, with READI-funded projects starting in January 2026.