Concerned residents crowded into the Centier Bank building to hear firsthand the redevelopment plans for the historic but dilapidated Palace Theater, once a massively popular cornerstone of Gary’s downtown corridor. The project promises to rejuvenate the property situated on the corner of Eighth Avenue and Broadway with an $85 million investment.
News of the Palace Theater’s sale sparked both concern and excitement among Gary residents, leading to an overflow crowd at Wednesday’s Redevelopment Commission meeting, where a presentation by the potential developer was added to the agenda.
During a 15-minute presentation, Gary Hobbs, president of Black and White Investments LLC, a minority-owned, Indianapolis-based company that purchased the Palace Theater for $2,500 this month, emphasized the importance of transparency for the theater project. He reflected on past projects that lacked community input and expressed hope for greater engagement this time. He agreed to hold community meetings this summer, allowing residents to provide feedback before the project begins.
But before Hobbs could present, tensions rose as attendees demanded the opportunity to respond after the presentation. Under normal circumstances, residents are allowed to comment prior to the start of business, not after. That was a nonstarter for residents like Jackie Lee, who wanted an opportunity to view the presentation before speaking.
“It’s like you want us to give our opinion on a book before we’ve read it,” Lee told the commission. “We’re tired of the secrets. Is the presentation a secret? We ask that you respect the community. I’m a part of the community. I demand respect.”
Several residents expressed concern about the workforce that will ultimately build the project and were adamant about the city employing Gary residents for the project.
Other residents, like James Allen, were concerned with the budget of the project.
“An $85 million project when our budget is near $60 million is a stretch?” Allen asked.
While the city of Gary funded an assessment of the property’s value with an EPA grant, the city will not have to pay for the renovation costs. BWI will handle those expenses.
Earlier this month, the Gary Redevelopment Commission unanimously voted to enter contract negotiations with Black and White Investments for an $85 million, union-constructed investment, which will include up to 250 mixed-income units surrounding the site. None of the units will be Section 8 housing. The ground level will feature retail and entertainment spaces reminiscent of the site’s historic use. It is the city’s hope that the building’s facade will be maintained with the incorporation of feedback from residents.
According to the city of Gary, selective demolition of the movie house section of the theater is slated to begin at the end of 2024 while the structure visible from Eighth Avenue and Broadway will be adapted for reuse. Construction on the new redevelopment is scheduled to begin in the second quarter of 2025.
Chris Harris, the city’s executive director for redevelopment, explained that the theater’s plan is an updated version of the 2009 American Planning Association’s Planning and the Black Community Division (PBCD) Technical Assistance Program, which outlined a vision for the structure and the entire Broadway corridor.
“I can tell you spending time with the mayor in spaces like the governor’s office down in Indianapolis, everyone wants to help support the city,” Harris told Capital B Gary.
“That’s rare for the city’s history. For years, we’ve had a tumultuous relationship with Indianapolis. So to be able to have people — even from across the aisle politically — see the common ground and value of Gary is tremendous, so we have to take advantage of it.”
The Palace Theater’s historical significance dates back to 1925, when it opened as one of the booming steel town’s major attractions. For decades, it hosted live stage shows, vaudeville acts, and eventually motion pictures. The theater fell into decline and ultimately closed its doors in 1972.
“When residents lived in Gary, they take the bus to downtown, they would either end at the Palace or start at the Palace, and that would be their downtown experience,” Harris said.
Clarification: Only a portion of The Palace Theater will be demolished as part of the renovation project. The structure visible from Eighth Avenue and Broadway will adapted for reuse.