Mayor Karen Freeman-Wilson and Mike Renhold of MaiaCo
More MaiaCo updates to come says Gary mayor
Contributed By:The 411 News
Looking to company to bring in development and investors
MaiaCo: The business that many people in Gary love to hate. They associate that name with bad practices by the city and government overreach. MaiaCo was the center of attention in a meeting called by Mayor Karen Freeman-Wilson to update residents on the city’s 2-year-old partnership with the company.
Outside of a few starts of small manufacturing in recent years, her land-rich and cash-poor city hasn’t had “wholly private development since the 1970s except on the lakefront,” the mayor said. “There, a new home is under construction with a value close to $1 million.”
Development and investment are what the city needs to prop up a tax base that is feeling the impacts of a high rate of residential poverty, an aging population, falling property values, and the State of Indiana’s property tax caps.
MaiaCo’s partnership with the city is the only one of its kind in the nation, the mayor said.
The agreement calls for MaiaCo to help return thousands of Gary’s properties back to the tax rolls. Many are delinquent because of nonpayment of property taxes. A high number of properties are abandoned. Some are in the hands of land speculators who’ve purchased large numbers of properties from Lake County’s tax sales, but won’t pay their taxes.
Several of those speculators attended the meeting.
“In total, 40% of the properties in Gary are not generating taxes,” said Mike Reinhold, MaiaCo’s representative. His job is to identify parcels that can be assembled and packaged, then presented to developers and investors. Development that brings jobs is a priority.
The company will also do the leg work and pay for title searches and clearing liens. The cost can be up to $2,000 for one property, the mayor said. “An entire block with 48 parcels could cost $100,000.”
That’s money the city doesn’t have said Mayor Freeman-Wilson. “We haven’t paid MaiaCo a penny.” Understandably so; the city recently made known it didn’t have the funds to bring on a new class of fire department recruits.
Mayor Freeman-Wilson acknowledged the meeting was held to erase some of the negative opinions of the partnership. Opponents call it a land grab that will favor the mayor’s friends and close associates of her administration. Public meetings, like the one held Friday at Roosevelt Pavilion will be more frequent.
The mayor said a lawsuit challenging the MaiaCo partnership is nearing an end and will be favorable to the city. “Investors can be hesitant when there are lawsuits.”
Audience members asked questions about using eminent domain to acquire properties, the possibility of working with entities other than MaiaCo, the kind of businesses that want to come here, and citizens working together to help redevelopment.
“Can MaiaCo do something to protect the city from developers, like Walgreens, who open businesses in Gary then leave,” asked LaBrada Dunham.
Dwayne Hunter said he has maintained vacant lands near his home for the last 15 years and has tried to purchase those parcels without any success. The last answer he got from city hall was “MaiaCo has locked up that property.” He asked, “Am I talking to the right people?”
Mayor Freeman-Wilson announced that in 45 days, former New York City mayor and philanthropist Michael Bloomberg will host a roundtable with potential developers in Gary.
Story Posted:06/18/2018
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