Tensions are rising across Northwest Indiana as the Lake County Board of Commissioners nears a decision in the coming weeks between Gary and Hobart to host a new multimillion-dollar convention center. The proposal has surfaced a regional divide, with officials in nearby cities that host competing casinos taking public stances on the possibility of the center being built in Gary.
Hammond, home to Horseshoe Casino, and East Chicago, where AmeriStar Casino operates, have had differing responses to Gary’s bid.
In Hammond, the Common Council passed a resolution last week opposing Gary’s bid for the convention center. The resolution states in part:
“The Common Council of the City of Hammond hereby strongly requests that the Lake County Commissioners do not select a location for a Lake County Convention Center at this time as it does not make economic sense, potentially subsidizes one casino at the expense of other casinos, including Horseshoe Hammond, and it is not in the best interests of taxpayers and residents of the City of Hammond.”
Discussion about placing the Lake County Convention Center in Gary sparked a spirited exchange, with Hammond Mayor Tom McDermott being vocal in his opposition.
“Hard Rock Casino is the most profitable casino in the state of Indiana,” McDermott said during an April 14 Common Council meeting. “And they’re on the cusp of getting a couple hundred million dollars in tax incentives to build an addition to their casino. It’s outrageous.”
He added, “Why do the citizens of Lake County have to fund Hard Rock’s expansion? We’ve already lost $13 million a year to Hard Rock … and it’s not stopping.”
As the discussion continued, McDermott grew frustrated when Councilman Barry Tyler Jr. asked to postpone the vote until next month so he could gather more information.
“Gary doesn’t want to be our partner, Councilman Barry,” McDermott said. … “Hard Rock doesn’t want to be our partner. They want to kill our casino. I don’t know who you’re talking to or why you think Gary loves us so much.”
Gary Mayor Eddie Melton pushed back on McDermott’s comments afterward, saying that the project would be funded by increased wagering tax revenue generated by Hard Rock Casino, not local tax dollars.
Melton also said that he spoke with McDermott early in the process.
“When drafting Senate Bill 434 in 2023 as a state senator, I discussed this concept with Mayor McDermott,” Melton said, referencing the legislation he authored that made a Lake County convention center possible. “I even identified opportunities for Hammond to benefit from Gary’s proposal by developing a strategy to invest in the corridor from Grant Street to Calumet Avenue and transform it into an entertainment corridor.”
Melton continued, “Mayor McDermott blames Gary for Hammond’s lost revenue but conveniently ignores that two other casinos have opened in Chicago. You can’t attribute all these losses to Gary alone.”
Melton pointed to Gary’s long history of not having a casino.
“For 20 years, Gary had to compete while sandwiched between two other casino municipalities. Throughout those two decades, Gary never received subsidies from neighboring cities, nor was any … language established to protect our city’s economic viability.”
In East Chicago, the Common Council and Mayor Anthony Copeland landed on opposite sides of the issue. In late March, the council passed a resolution in support of Gary’s bid for the convention center, highlighting the potential economic benefit for the entire region.
The resolution states: “This project leverages the success and appeal of Northwest Indiana’s top tourist attraction, Hard Rock Casino Northern Indiana, which has drawn more than 8 million visitors in less than four years.
“The Lake County Convention Center in Gary, Indiana, will capitalize on that success to further stimulate tourism, create jobs, and expand opportunities for local businesses and vendors, thereby contributing to long-term economic growth in Gary but also in surrounding communities such as East Chicago.”
The resolution, however, was vetoed by Copeland. According to City Controller, Valeriano Gomez, who spoke on behalf of the mayor at the April 9 council meeting, Copeland’s primary concern was the potential negative impact on East Chicago’s local gaming industry, particularly AmeriStar Casino, which has already seen revenue decline since the arrival of the Hard Rock Casino in Gary.
Copeland’s veto was overridden on an 8-1 vote, as most council members maintained the Gary convention center would be beneficial to both Gary and East Chicago.
“As a city, we need to come together,” Councilwoman Monica Gonzalez said.
“We know this is going to happen, and most likely, it’s going to be in Gary. So let’s plan and let’s get together with them and see how we can help them and ensure that they are here for the long run.”
Councilwoman Gilda Orange, who also supported the resolution, highlighted the commonalities between Gary and East Chicago while recognizing the potential benefit for East Chicago’s workforce.
“I don’t always agree with Councilwoman Gonzalez, but on this, I do agree,” she said.
“I’m looking at Gary as a sister city to East Chicago. When you look at who has been ostracized in the state, it’s usually Gary, East Chicago, and Hammond. We are usually left out for everything. If that convention center comes here, people from East Chicago can get on the bus and go to work.”
The proposed development is a 145,000-square-foot, state-of-the-art convention center designed to meet the specifications outlined in the Northwest Indiana Regional Development Authority’s study.
The final cost of the project has yet to be revealed. It will feature 73,000 square feet of dedicated meeting and exhibition space, including a 40,000-square-foot exhibit hall, an 18,000-square-foot ballroom, and 15,000 square feet of breakout meeting rooms. The project will also include a Hard Rock Hotel with approximately 300 guest rooms, two full-service restaurants, retail space, and additional amenities to support tourism and business travel.