by Ken Davidson
At last night’s meeting of the Gary Redevelopment Commission, the Board approved a contract for environmental monitoring of the Sheraton Hotel project. The contract was awarded to Shrewsberry and Associates, LLC of Indianapolis. Shrewsberry and Associates has strong ties to State democrats, including former Chairman of the Indiana House Ways and Means Committee William Crawford. Crawford came under fire for not disclosing his financial interests with the Firm when he was appointed to Ways and Means. Shrewsberry no longer lists its Board of Directors on its website or in public filings that are readily available.
The original Request for Proposals for the demolition called for the contractor to include asbestos remediation and monitoring within the proposal. This additional cost was calculated into the bids submitted by others who were not aware that the Board would later hire another firm and pay that firm separately.
All of this is not unusual for Gary. Although the above is questionable, at best, the Gazette receives reports of such irregularities on a semi-consistent basis. What makes this proposal astounding is how the City apparently plans to pay for the additional cost. The Gazette has learned that the City has included the Sheraton Property in the 2014 Neighborhood Stabilization Plan.
The Neighborhood Stabilization Program (NSP) was established by the Department of Housing and Urban Development (HUD) for the purpose of stabilizing communities that have suffered from foreclosures and abandonment. Through the purchase and redevelopment of foreclosed, abandoned and short-sale homes, the program’s goals is being realized.
The grant information provided by the City appears to reference this purpose:
[NSP] appropriates $2,717,859 for the purpose of assisting in the redevelopment of abandoned and foreclosed homes.The grant program is commonly referred to as the Neighborhood Stabilization Program (NSP).
The Times of Northwest Indiana Legal Notice 12-19-2013
The Notice goes on, however, to list the “neighborhood surrounding the old Sheraton Hotel and its adjoining garage located at 465 Broadway” as an area of additional need. The Sheraton is not only a commercial property, it lies in the major commercial zone of the City. Sitting between City Hall and a Township owned office building, the structure is blocks from any residential structure. The neighborhoods that SHOULD receive relief under the program will not receive the funding intended for them. In fact, it seems likely that Gary will end up repaying another very large grant to the Federal Government.
With 10,000 abandoned homes, one would think that every cent of the NSP funds would go toward rehabilitation of residences.
Tags: Chairman, Chicago metropolitan area, City Hall, contractor, Department of Housing and Urban Development, Economics, Federal Government, Foreclosure, Freeman-Wilson, Gary Indiana, Gary Redevelopment Commission, Geography of Indiana, Geography of the United States, Hotel chains, indiana, indianapolis, ITT Corporation, Land law, Mayor, Mortgage, northwest indiana, Politics, Real Estate, Real property law, Redevelopment, Sheraton Hotel, Sheraton Hotels and Resorts, Shrewsberry and Associates LLC, TEMPER OF THE TIMES INVESTOR SERVICES INC., the Gazette, Township, United States Department of Housing and Urban Development, United States housing bubble, USD, Ways and Means Committee
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