DO CHECK OUT THE RUDY CLAY GRAPHIC CONTRIBUTED BY A DAVE'S DEN USER — RUDY GRAPHIC

Well, here we go with the 2010 Rudy Report (Part II-July through December).  In typical Gary fashion, the second half of the year starts off with money problems.  Remember, you may access earlier year reports from the links appearing above, and at the bottom of this page.

Impact of Property Tax Caps
Compiled From a Post-Trib Report by Chelsea Schneider Kirk
[31 Dec 2010]

- Tax collections plunge at 4 Gary taxing units

Chief Issues Appeal/Warning about New Year's Guns
Compiled From a Post-Trib Staff Report
[30 Dec 2010]

GARY -- Police Chief Gary O. Carter said Wednesday he wants residents of the city to enjoy their New Year's Eve celebrations safely, but warned them not to be firing weapons when the clock strikes 12.  "It's against the law to fire weapons into the air.  People who do it will be arrested, charged with criminal recklessness," he said.

Gary City Court Judge Deidre Monroe increased bail for anyone arrested for criminal recklessness earlier this month.  Persons charged with discharging a weapon must post $1,500 cash to get out of jail, she said.

Gary Gives Pink Slips to 34 Firefighters
Compiled From a NWI.com Report by Diane Poulton
[27 Dec 2010]

GARY | Messages filled with anything but holiday cheer were being delivered to nearly three dozen Gary firefighters starting Sunday.

Union President, Raynard Robinson said as his fellow firefighters are laid off in the next 48 hours, Gary residents will find their safety jeopardized.  Robinson said a shortage of manpower will force the Fire Department to close down some fire stations.  "Everyone will be at risk," Robinson said.

Robinson said at full force the city staffs 13 fire engines and three firetrucks.  The department is down to six engines and two trucks, and the layoffs will reduce manpower to a critical level, Robinson said.

Robinson said the layoffs are based on seniority and will reduce staffing by 20 percent.  The resulting effect is -- as younger, less experienced firefighters are laid off -- the average age of those left will be 45 to 50, Robinson said.

Robinson said the money Gary spent to train the younger firefighters now will benefit other departments that hire them.

The Times was not able to reach Gary Mayor Rudy Clay Sunday on night for a comment.
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[COMMENT -GDY]:   This seems to me to be a fitting commentary on the state of things in Gary at the close of the year! 

Judge Rules GSD Trash Fee Legal

Compiled From a Pst-Trib Report by Jon Seidel
[17 Dec 2010]

GARY -- A special Lake County judge says the Gary City Council legally adopted a controversial trash collection fee in 2009 that many residents have refused to pay.  Judge Thomas Webber's ruling was entered Thursday, more than a year after the council voted 5-4 to adopt the $12 monthly fee funding a trash collection contract between GSD and Allied Waste.

Now the director of the Gary Sanitary District says his agency is obligated to collect on those customers' past-due bills.  It could try to reach back nearly two years on a fee with a collection rate that has averaged about 35 percent.  "For us now to just write off that debt to those people who didn't pay would be disenfranchising those people who did pay," Rinzer Williams III said.

Miller Citizens Corp. has maintained the council fumbled procedure, never actually voting to pass the fee.  The council first voted it down in July 2009.  As a result, GSD stopped garbage collection for 10 days, creating a crisis that prompted the council to vote again at its next meeting.  During the second meeting, council member Roy Pratt, D-at large, made two motions to "reconsider" the fee, and both passed.  Pratt did not use the word "pass," though, and the MCC has argued the fee was never approved.  Douglas Grimes, who was president of the MCC at the time of the lawsuit and is still an attorney of record in the case, said Thursday the council should have taken three votes to properly pass the fee, not two.  He said a decision to appeal Webber's ruling will be up to the 29 plaintiffs listed in the lawsuit.

But in his ruling, Webber said it was "clear" that the trash fee passed.  "The City of Gary properly followed its rules and procedures in the adoption of the trash fee," Webber wrote.

Williams and Gary Mayor Rudy Clay, who is also GSD's special administrator, said they hope residents will voluntarily pay the fee now that Webber has issued his ruling.  "Our intent is not to sue the citizens of Gary," Williams said.  "The garbage was picked up," Clay said.  "And if the garbage was picked up, it seems to me the people who had the garbage picked up should pay.  That's really what the judge ruled."

Council took its vote in July 2009.  The ordinance was retroactive to January 2009.  That means GSD might try to collect on almost two years of unpaid trash fees.  Williams has said collection of the fee averages 35 percent or 40 percent, but has been as low some months as 25 percent.  One option to secure payment of the fee would be to ask the Indiana General Assembly for permission to shut off customers' water if they don't pay the fee.  "That is the greatest motivation to pay the bill," Williams said.

Carter could not cite a recent incident when Hightower was summoned to an emergency during nonworking hours.  Roberts said. Hightower's duties include supervising the reserve officers' towing detail and "legwork" for various events in the city.
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[COMMENT -GDY]:   Sound fiscal management here?  Evidently it is who you know that counts?  And to add insult to injury, they guy lives in Merrillville!

Rudy Plans to Seek Re-election
Compiled From a NWI.com Report by Pete Nickeas
[30 Nov 2010]

GARY | Mayor Rudy Clay will seek a second term during next year's election.  Clay confirmed his candidacy Tuesday at a meeting sponsored by 4th District Councilwoman Carolyn Rogers, who invited Clay and city department heads to address residents' concerns.

"I've been introduced as the man with the most difficult job in America as the mayor of Gary," Clay said.  "You don't have a mayor in the United States that has the experience that I have as mayor of Gary."

Clay touted the city's "aggressive" demolition program, funded with federal money, aimed at wiping out some of the thousands of vacant housing units that litter the city.  The city has more than 10,000 vacant housing units, about 25 percent of its housing stock, according to U.S. Census data.

"We've got experience, motivation and passion for the people," Clay said.  "This is no time to change powers now."

Clay will run against a handful of other Democrats in the May primary.  Other contenders in the upcoming Democratic primary include former Indiana Attorney General Karen Freeman-Wilson, Gary City Councilwoman Ragen Hatcher and Gary businessman Jack Lieske.

Clay said he will make a formal announcement in a couple of weeks.  He was elected to his post in 2007.

An adviser to Carol Ann Seaton says he now has enough money to recount every vote in Lake County if the official tally doesn't put her ahead.  Losing candidate Carol Ann Seaton stayed mum on the issue Thursday, but Tony Walker, a local lawyer and adviser to Seaton's campaign, said he had raised enough money to fund a countywide recount of Tuesday's votes.

"My phone's been ringing off the hook all day," Walker said.  He also said he understands the margin separating Seaton and Adams is closer to 300 votes, about half of the official 668 reported by Lake County.  "That's what we've heard," Walker said.

When reached by the Post-Tribune, Seaton said she had no comment on a possible recount.  Seaton also didn't wish to comment on the election, where Republican Hank Adams won the countywide office.  "I haven't even seen the final numbers," Seaton said.  "I understand they won't be ready until (Friday.)  That's what I was told ... I don't comment on something unless I have the facts."

Lake County elections staff haven't been contacted about a recount.

For those following the travails of Carol Ann Seaton, I want to report she lost her bid for Lake Co. Assessor.  The Republican, Hank Adams won, by a margin of 668 votes!  It is the first time a Republican has captured a county office in who knows how many score of years.

Now the Lake County prosecutor says he will ask for a state police investigation into the matter.

Auditor Peggy Katona said last week anonymous tips prompted her office to check on two tax exemptions applied to the house.  One is for property owners 65 years or older.  The other is for owner-occupied homes.  Carol Ann Seaton is 62, according to court records.

No one responded to a letter Katona sent to the address last week seeking information to prove the exemptions are legitimate.  Therefore, the exemptions will be removed, and William C. Seaton will be billed for three years’ worth of back taxes.  "Everything was put back on," Katona said.

The 2009-pay-2010 tax bill will rise from $110.53 to $1,112.35, Katona said.  The property owner will also be billed:

Removing the exemptions ultimately added $6,330.24 to the tax bill.

Carol Ann Seaton couldn’t immediately be reached by the Post-Trib for comment Thursday.  She ignored several earlier calls for comment, also.  She did talk to the NWI Times.  Bill Dolan reports:  Seaton said Thursday, "As far as the exemptions are concerned, I never signed those.  How they got on there is something I am asking too and investigating. I was one of five children and ... that was not my job to do."

William Seaton is rumored to be the father of the candidate and her siblings.

Although Seaton declined to clear up the mystery surrounding the exemptions, she said she sent information explaining her position to the county auditor's office.  However, Holinga Katona said late Thursday the deadline to authenticate the exemptions passed at 4:30 p.m. without anyone, including the candidate or William Seaton, responding to her inquiry.

[14 Oct 2010]

GARY -- Gary residents gave up long ago on Mayor Rudy Clay's 2007 campaign promise to rehab the former Sheraton Hotel and spark a downtown revival.  But it wasn't until this summer that City Hall officially gave up on New Gary Development Group LLC, the Chicago-based team of investors who promised to deliver Clay's "done deal."

New Gary deeded the Sheraton back to the city and its taxpayers July 16.  It did so after racking up a property tax bill of $167,000, records show, of which $131,000 is overdue.

It also isn't clear how, or if, New Gary will pay the remaining $728,000 balance on a related loan granted by the U.S. Environmental Protection Agency.

Members of the Clay administration insist Gary benefited from their first major experiment with economic development, one ventured into just before the global economy spiraled into recession.  "It's in better shape for the city now than it was before," Clay said of the Sheraton.

Rudy's Campaign Promise —

Clay introduced Kupritz to his constituents in February 2007, as the city's election season was heating up and Clay faced his first popular vote as mayor.  The men said they would turn the Sheraton into a senior-citizen high-rise.  They promised condominiums for the top floor, and they said they'd heat the building with geothermal energy and power it with corn.

A sales trailer opened outside the Sheraton in November 2007, where investors could purchase their share of the real estate.  "The world can now stop doubting what we're going to do here," Clay said then.  [The sales trailer was son shuttered by New Gary LLC, signaling the giving up on condominium sales.  The trailer was eventually hauled away.]

About the same time, Gary turned ownership of the Sheraton over to the New Gary Development Group via the not-for-profit Genesis Pathway Foundation of Harvey, Ill.  The agreement gave New Gary three years to finish its work.  That clock would have expired on Thanksgiving weekend.

A key obstacle to any progress at the Sheraton, whether it be development or demolition, was the asbestos found throughout it years ago.  New Gary set out to clear the toxin using a $735,000 federal loan from Gary's Brownfield Cleanup Revolving Loan Fund.  The EPA gave its blessing to the loan in January 2008, and New Gary used that money to hire J&K Environmental Inc. of East Chicago.

Eleven months later, the Indiana Department of Environmental Management confirmed New Gary and J&K successfully cleared 98 percent of the asbestos from the building.  But clean-up of the final 2 percent stalled as money trouble at New Gary became apparent.  Kupritz took back a 20 percent cash collateral he had deposited with the Gary-East Chicago-Hammond Empowerment Zone, the loan's administrator.  Without it, New Gary couldn't access the loan.

In February 2009, EPA officials said a deal was reached to turn the remaining loan money over to New Gary without Kupritz's collateral.  An EPA project manager said Gary would be responsible for collecting on the loan, and the city said it was comfortable using the hotel as collateral.  "We're still standing," Kupritz said at the time.

Although Kupritz never backed down from his promises, they ultimately went unfulfilled.

The Sheraton's Future —

Now that the Sheraton is back in the city's hands, Clay's staff says Gary is still interested in development there.  And unlike in 2007, it can now offer a "clean," asbestos-free hotel building.  "From our perspective, it's a win that the asbestos removal is done, and now we can open it up and see what other opportunities there are out there," Corporation Counsel Susan Severtson said.

Clay, who said the senior-citizen high-rise idea is "off the table," said he learned from the Sheraton project that he "can't get ahead of the red tape."  "You get it done and then announce it, you know?" Clay said.  "So, we're going to stop talking about things and just get them done."

Meanwhile, Empowerment Zone Director Scott Upshaw said New Gary owes a balance of $728,000 on its federal loan.  The other $7,000 was never disbursed, he said.  Severtson said Gary is asking the EPA for a five-year extension on the deal so the city can figure out what comes next for the Sheraton and "to determine who is going to pay back those dollars."

She also complained that she's been treated poorly by the media.  "The Post has been extremely unfair to me," Seaton said..
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[COMMENT -GDY]:  Let's see, she claims an "owner occupied" exemption even though the owner does not live there, she claims an exemption for people over age 65, but she is age 62, and she calls the Post-Tribune the Post?  Ms. Seaton most definitely exhibits all the traits/qualities to be elected!

BMV Rules Seaton Still Not Allowed to Drive
Compiled From a Post-Trib Report by Chelsea Schneider Kirk
[8 Oct 2010]

In the newest chapter of Carol Ann Seaton's driver's license woes, the Indiana Bureau of Motor Vehicles announced its decision Thursday to uphold the state's original ruling finding Seaton hadn't proved her Indiana residency.  The BMV's ruling means Seaton's driving record is still marked as fraudulent, which will impact the hardship driver's license Seaton was awarded Tuesday by a Lake County Circuit Court magistrate.  BMV spokesman Dennis Rosebrough said a hardship license can't be issued to Seaton if her record is marked as fraudulent.

Seaton Hardship License OK'd
Compiled from a Post-Trib Report by Chelsea Schneider Kirk
[6 Oct 2010]

The annual spending study once again questioned Gary's ability to survive under Indiana's property tax caps.  They've yet to be fully enforced in Gary, but could be in effect by 2012.  For the second year in a row, state auditors have expressed doubts about Gary's ability to avoid bankruptcy due to the effects of property tax caps on the city's budget.  In its annual audit of the Steel City, the State Board of Accounts noted that "the amount of budget reductions that would be required for the city to fully implement the current tax legislation raises substantial doubt about the city's ability to continue as a going concern."

In 2009, Gary overdrew its general fund account by more than $9.7 million and used nearly $27 million in interfund transfers to stay in business, according to the audit released Monday.  At the same time, the city typically took up to seven months to pay vendors, and the Northwest Indiana Regional Development Authority still is waiting on $3.1 million in back payments owed by Gary, the audit said.

Adding to the city's plight is the loss of $6 million withheld by Majestic Star Casino, a property tax collection rate of 74% and a five-month delay in property tax distributions.

The state also hit City Hall for signing a deal to pay the the Gary SouthShore RailCats baseball team to maintain the city-owned baseball stadium.  It noted Gary agreed in its original lease of the stadium to perform maintenance.  Because the RailCats took over that work and sought expense reimbursement from the city, auditors noted, Gary ended up covering the cost of the sales tax paid by the team.  It also said $124,115 was paid to the RailCats without proper documentation.

Mayor Rudy Clay signed a $1,500 vending contract for the sale of shirts at the 2009 Michael Jackson memorial, the report says, but that contract wasn't approved by Gary's Board of Public Works and Safety.  Auditors also said the City Council didn't approve salaries paid from the Gary Sanitary District to certain City Hall employees, including the mayor.  Gary has already taken steps to correct that with its 2011 budget, which acknowledges those salaries.

To bring city services in line with lower city revenue, Gary has eliminated more than 400 jobs, consolidated departments, outsourced trash collection and raised fees.  However, should Hoosiers vote Nov. 2 to add the property tax caps to the Indiana Constitution, Gary no longer would be able to seek relief from their effects, which would require still further reductions in city services to balance the budget.

Calls Monday to Mayor Rudy Clay and City Controller Celita Green for comment on the audit were not returned.

-- Compiled by Post-Tribune reporter Jon Seidel
-- By Dan Carden dan.carden@nwi.com

Pacurar took the helm after a jury convicted former Mayor George Pabey of federal corruption charges Friday.  As city controller during Pabey's administration, Pacurar was first in the line of succession.  Pabey was found guilty of stealing money from the city to revamp a home he owned in Gary's Miller Beach neighborhood.  The conviction stripped him of his office as soon as the jury announced the verdict.

Letters spelling "George Pabey" still were on the city administrative building that houses the mayor's office Monday afternoon.  The waiting room, with its maroon carpet and blue leather-like chairs, was empty.

Two things Pacurar did not do Monday:  move into the mayor's office or return multiple calls from the Times.  His secretary, Roselyn Sakevicius, said he had meetings all day and would talk today.  She said she did not know if, or when, Pacurar would move from City Hall on Indianapolis Blvd. to the mayor's office next door.

But Pacurar is looking beyond these next few weeks as temporary mayor to the Oct. 16 caucus, when the city's 36 Democratic precinct committeemen will elect someone to serve the remainder of Pabey's term, which runs through 2011.  Pacurar will be one of the caucus candidates, according to several sources.

City spokesman Damian Rico described life Monday at City Hall as "a little different, but it's OK."  "Mr. Pacurar is a steadfast leader, and the city will run efficiently, that's for sure," Rico said.

Rico declined to comment on a morning meeting Monday of city department heads at which Pacurar asked them to resign, while noting the potential for them to be rehired.  Frank Rosado, head of the city's Human Resources Department, also declined to talk about restructuring, and multiple department heads did not return calls for comment.
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[COMMENT -GDY]:  Youse gotta love da' Region!  Where else could "real life" read like a chapter or script from The Untouchables; "Tuna" the mayor, city spokesman 'Rico," secretary "Sak-a-vicious" and H.R. head "Rosie" Rosado?  

Seaton Registered Voter -- in Michigan
Compiled From a Post-Trib Report by Jon Seidel
[25 Sep 2010]

A Michigan voter registration record has surfaced for Lake County assessor candidate Carol Ann Seaton, but officials there say she never cast a ballot.  One also said it's "very likely" the registration was created automatically when Seaton sought her driver's license there.  "It's the same form," Kelly Chesney, a Michigan Department of State spokeswoman, said.

The record shows Seaton registered as a voter in Union Pier, Mich., in March 1990.  It lists her address there as 16327 4th St., the same address listed on her canceled Michigan driver's license.  The voter identification number also matches her Michigan driver's license number.

Kathie Butler, deputy clerk for Michigan's New Buffalo Township, said there is no record of Seaton ever voting there.  Seaton's voter status is listed as "verify," because an address confirmation card sent to Seaton's Union Pier address was returned undelivered, she said.  Meanwhile, Seaton has been a registered voter in Lake County since 1970 and has voted in more than 50 local elections, records show.

Neither candidate Seaton, nor her attorney, responded by press time to calls seeking comment.

Seaton Admits Holding IN/MI Llicenses

Compiled From a Post-Trib Report by Jon Seidel and Chelsea Schneider Kirk

[23 Sep 2010]

Lake County assessor candidate Carol Ann Seaton broke her months-long media silence Wednesday, acknowledging she held driver's licenses in two states but claiming it reaped her no benefit.  "Right now there are some serious unbenefits," Seaton said.

The Democrat made her comments during a radio interview simulcast on WJOB 1230 AM and WLTH 1370 AM.  She insisted to hosts Dave Kusiak and Matt Reardon she is an Indiana resident.  "I'm even a resident of the city of Gary," Seaton said.  "Proud of it."

At first she resisted questions about her licenses in Indiana and Michigan, explaining it is "something right now that is being discussed in court."  When pressed, though, Seaton said she held driver's licenses in both states.  She said it's legal in four states to hold more than one license, including parts of Michigan.  But she said it's not legal in Indiana.

"This is considered as a Class D misdemeanor," Seaton said.  "Class D misdemeanors are more or less like a traffic ticket, so we're not talking about anyone who has taken money, or this is not considered a felony.  It's not considered as anything major."

When asked why she pursued the Michigan driver's license despite her residency in Indiana, Seaton started talking about retirement.  "At some point you make decisions on, do you want to retire and go somewhere else to live?" Seaton said.  "At some point you make decisions on what do you want to do with the rest of your life."
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[COMMENT -GDY]:  If Michigan is where her heart and future are, then let's let her go there.  She has no business being the Lake Co. Assessor! 

Mayor Mum on Sanitary District Salary

Compiled From a Post-Trib Report by Jon Seidel

[23 Sep 2010]

GARY -- Elected city officials are beginning to commit to ongoing pay cuts in 2011, but Mayor Rudy Clay chose to "be silent" Wednesday when it came to the monies he receives from the Gary Sanitary District.

Clay also deflected criticism about the potential layoff of more than 30 firefighters, saying far more paychecks could have been stopped at the Gary Fire Department had it not been for the work of his staff.  "This mayor is responsible for saving 26 jobs, and we're trying to save some more," Clay said.

Public Financial Management Inc. recommended in a report last year that Gary lay off as many as 57 firefighters.  A draft of the 2011 budget proposes the elimination of 37 firefighter jobs, but Controller Celita Green has said the city brought that number down to 31.

Clay said that number could go even lower if "everybody chips in."  That, he said, means he wants the Fire Department to continue working on a restructuring plan and for the airport to agree to firefighter staffing changes.  He also said he needs Clerk Suzette Raggs, City Judge Deidre Monroe and their employees to continue pay cuts taken this year.  "You absolutely shouldn't have a budget where you're giving raises out," Clay said.

The original draft of Gary's 2011 budget would return City Council members, the clerk and the judge to the pay they received before each took cuts this year.  Council President Ronier Scott said the council already submitted a revised budget that restores their lowered 2010 pay.  He said it did so before controversy over the firefighter layoffs erupted.

Raggs said she also committed to "the same kind of cuts as we've taken this year."  Monroe couldn't be reached for comment, but she's said pay cuts are likely to return in the final draft of the budget.

Slight pay cuts have already been proposed for Clay and his staff.  Clay's cut comes in addition to an annual cut of nearly $7,000 taken in 2010.  However, the additional $54,075 he receives from the Gary Sanitary District means his pay next year will be set at $134,310.

The mayor's staff said cutting his pay won't save firefighters' jobs, and they pointed out he's already taken pay cuts.  "We have cut to the bone," Deputy Mayor Geraldine Tousant said. 

INDIANAPOLIS | The Indiana Bureau of Motor Vehicles will decide next week what to do about Carol Ann Seaton's appeal of the agency's ruling she is not an Indiana resident.  Seaton's appeal, which arrived Friday, was postmarked Sept. 13. BMV rules required her appeal to be mailed no later than Sept. 11.

Spokesman Graig Lubsen said the BMV's attorney could throw out her appeal because of the late postmark or may still consider her challenge despite the timing of her filing.

Seaton has also requested a Lake County judge to issue her a hardship driver's license.  A hearing on that request is set for Oct. 5.
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[COMMENT -GDY]:  If the woman cannot timely file an appeal which affects her personally, how in the world is she going to get the tax bills out on time, one wonders?

Majestic Star Stays Afloat but May Get New Captain
Compiled From a Post-Trib Report by Jon Seidel
[17 Sep 2010 ]

INDIANAPOLIS -- Majestic Star Casino said it could soon be under new ownership and end its years-long dispute with Gary City Hall as it convinced the Indiana Gaming Commission to renew its gambling licenses Thursday.  The Gaming Commission's members voted unanimously in favor of Majestic Star after hearing criticism of the casino from Gary City Council members, but no objections from Mayor Rudy Clay.

Meanwhile Don Barden, Majestic Star's Detroit-based owner, sounded like his years in the Hoosier casino business are nearing an end.  He told the commission, "I've appreciated my time in Gary."  But he said his council critics might not enjoy working with Majestic Star's bond holders.  "They're going to be tougher than I am," Barden said.

Majestic Star attorney Peter J. Rusthoven and city of Gary attorney Mike Hile said their clients could soon settle a lawsuit filed by Majestic Star in 2008.  Their deal could mean the city will finish building an access road from Cline Avenue to Majestic's Buffington Harbor property, as it once promised.  It also might mean the casino will release millions of dollars owed to Gary under the terms of a local development agreement.  The money has been withheld since the court battle began.

It isn't clear how much the cash-strapped city would get, though.  Hile and Rusthoven said the amount owed to Gary under the terms of a 2005 agreement would be about $10 million.  But Gary's attorneys have said that deal isn't valid because it wasn't approved by Gary's Board of Public Works and Safety.  Hile and Gary Corporation Counsel Susan Severtson said Majestic Star would owe about $17 million, if an earlier 1996 deal is enforced.

Clay said he didn't oppose Majestic's license renewal Thursday because he would rather bring the lawsuit to an end.  "We think resolving it would be better than turning the lights off at Majestic," Clay said.

But City Council members Roy Pratt, D-at large, and Mary Brown, D-3rd District, asked the commission not to renew Majestic's licenses.  Brown said Gary is in "dire need," and its citizens are hurting because Barden hasn't paid money he owes the city.  "He's driven the whole economic development plan into a ditch," Pratt said.  "So we're here asking that you take the keys away."  City attorney MacArthur Drake also said Majestic Star is behind on its property taxes.  "Simply put, the city needs a change," Drake said.

Barden himself responded to Pratt and Brown.  He said his company's bankruptcy filing last year could have been prevented if Gary kept its promise to build the Cline Avenue access road.  He also said he's forgiven Pratt's "personal vendetta."  "I used to harbor some ill feelings toward him," Barden said of Pratt, "But I don't anymore.  I totally forgive him. "

But Barden said Pratt's wish for a "clean slate" might be granted.  "There's going to be new owners," Barden said.

The Gaming Commission didn't put any conditions on Majestic's license renewal.  But before its vote, Chairman Tim Murphy pointed out to his fellow members they can initiate a suitability study of the casino at any time.  "We always have that option open to us," Murphy said.
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[COMMENT -GDY]:  When the time came to "stand up and be counted," where was Rudy?  Not on the side of Gary.  How he could do it I don't know, but he sided with Barden!  Time will tell whether or not Rudy made the right decision here? 

Barden Bias Blooms in Bid for Tax Dollars
Compiled From a Post-Trib Report by Michelle L. Quinn
and a nwiTimes.com Report
[14 Sept 2010]

Gary Rents Unneeded Parking Lot
Compiled From a Post-Trib Report by Jon Seidel
[29 Aug 2010]

The city of Gary has paid $1 million since 2004 for access to a private downtown parking lot it doesn't use, records show, and taxpayers are on the hook for nearly $700,000 more.

Mayor Rudy Clay said he didn't even know the deal existed until the Post-Tribune asked about it this week.  "You must be kidding me," Clay said.  "That doesn't make sense."

Yet in 2002, former Mayor Scott King agreed to pay a $169,800 annual user fee for 10 years to Broad Ridge LLC of South Bend for its Frank L. O'Bannon Center parking lot in the 600 block of Broadway.  In all, Gary would pay $1.698 million.

The O'Bannon Center and its parking lot are found in one of Gary's many tax increment financing districts.  Gary used TIF cash generated by the building to pay Broad Ridge until 2009.  But Broad Ridge is no longer paying taxes on the property.  It won an exemption in 2008 because it leases office space there to the state.  That means there's no TIF money to pay the fee.

Gary created the one-block "6th and Broadway" TIF district, where the O'Bannon building is found, in September 1995.  Its borders are Broadway to the west, Massachusetts Street to the east, East 6th Avenue to the north and East 7th Avenue to the south.

TIF districts are used by communities across Indiana to kick-start economic development in defined areas.  After a TIF district is created, taxes generated by an increase in property values there are sent into a separate account and earmarked for further redevelopment within the district.

When Broad Ridge LLC offered to build an office building in the "6th and Broadway" TIF district, officials expected the increase in property value would generate at least $1.4 million in TIF money over 10 years.  A sister building Broad Ridge offered to build in the 100 block of West Ridge Road was expected to create $844,221 in TIF money, but no TIF was ever formed there.

The developer promised to acquire the Broadway and Ridge Road properties and spend about $13 million building the two office buildings so they could be leased to the state.  The one on Broadway would eventually be named after late Indiana Gov. Frank O'Bannon.  Broad Ridge then leased the office space to the Indiana Family and Social Services Administration.

Among Gary's commitments in the Broad Ridge deal was the parking lot user fee paid in installments of $84,900 twice a year for 10 years.  In return for the fee, Gary would be allowed to use the parking lot at the O'Bannon building for 99 years "in connection with downtown events and activities during evening, weekend and holiday hours."  The deal sports the signatures of King, former City Controller Husain Mahmoud and former Gary corporation counsel Hamilton Carmouche.

Deputy Mayor Geraldine Tousant was familiar with the arrangement.  Even though documents identify the fee as a "use payment," Tousant said Gary offered Broad Ridge the money as an incentive to build out the lot.  She said it helped Gary meet a requirement to provide 3,000 parking spots for visitors to the U.S. Steel Yard four blocks away.

King pointed out the former Sears building was also being repaired nearby.  "I think we wanted access to that parking lot for city purposes should the need arise," King said.

Records show Gary fell behind on its payments immediately.  It used money from its cumulative capital improvement fund to make the first payment on April 16, 2004. It started using TIF money in 2007.

But Broad Ridge applied for a tax exemption on its Gary office buildings in 2006, citing an Indiana law that gives a break to the owners of buildings leased to public agencies.  The Lake County Property Tax Board of Appeals granted the exemption in February 2008, according to the county assessor's office.

Dan Botich of Cender & Co., a financial adviser for the Gary Redevelopment Commission, said Broad Ridge's tax exemption effectively shut off the stream of revenue Gary used to pay the user fee.  As a result, Gary hasn't paid its user fee since July 21, 2009, leaving $169,800 past due.  Another $84,900 will be due in December.

"There's nothing to make the payment from," Botich said.  Gary had just $26,932 in its "6th and Broadway" TIF in June, records show.  Clay said the city will ask the state for help making the remaining payments because state employees actually use the lot.  "We should not be paying any money for a parking lot that we're not using," Clay said.
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[COMMENT -GDY]:  Yet another snafu of monumental proportions!  $1.68 Million for a parking lot it does not need, or use?  What was Mayor King thinking?  How could Rudy not know about this deal?  Did not any one notice the $169,800 annual payments?  What makes Rudy think the state is going to bail it out of this mess?  One also has to wonder why the audtior appointed by the DUAB did not discover this fiasco?

Gary Demolition Moves Forward
Compiled From Post-Trib Report by Michelle L. Quinn, and
nwiTimes.com Report by Jeff Burton
[27 Aug 2010]

GARY -- Neighborhoods all over the city either have or are set to receive a bit of a facelift.  Grants are responsible for the good fortune.

35 of 152 homes slated for demolition have already fallen to the wrecking ball, Mayor Rudy Clay said Thursday.  The building demolition was made possible through a $2.2 million U.S. Housing and Urban Development Stabilization grant.

HUD walked the city through choosing the structures for demolition, said Redevelopment Director Vaness Dabney.  Some concentrations of decrepit buildings are near the The Steel Yard baseball stadium, Lew Wallace High School, Ivy Tech Community College and Indiana University Northwest, along Grant Street and Broadway and in the Horace Mann district.

Instead of tearing down blocks at a time, HUD instructed the department to go after the "best of the worst," or blocks that have one or two dilapidated structures.  "That way, we stop the bleeding; those blocks with more than 10 abandoned buildings, they're already gone," Dabney said.  "We can come back and get them later."

Clay said he saw the wisdom in that strategy firsthand last weekend, when neighbors on 43rd and Massachusetts came out to clean up around a demolished house.  "It's like they were inspired," Clay said.  "God knows we need demolition in Gary, Indiana," Clay said.  "You can't have a great city with the abandoned houses all around.
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[COMMENT -GDY]:  Before one can begin anew, I guess it is imperative to tear down the old, dilapidated and deteriorating?

Gary Schools 'Allergic to Change' Study Says
Compiled From a Post-Trib Report by Chelsea Schneider Kirk and Christin Nance Lazerus
[25 Aug 2010]

Gary is among the worst cities for school reform in the nation, ranked above only Detroit, in a new study released this week by a national education research institute.  The study states that the Gary Community School Corp. is "allergic to change," and names the school district's "old-timer" mentality as the city's most serious barrier to school reform.  The city received a D grade in the Thomas B. Fordham Institute study which sought to rank America's best and worst cities for school change.

Conclusions are mostly based on two separate surveys -- the first sent to senior leaders of 16 national education organizations and the second sent to responders with first-hand knowledge of local conditions.

Gary Superintendent Myrtle Campbell challenged the notion that the district hasn't been aggressive in turning its schools around.  She highlighted the move to turn the district's high schools into career academies.  "This (survey) happened around the time we were putting into place our reform efforts," Campbell said.  "We do have a clearly defined mission.  The academy concept is a proven national model of reform, by improving college and career readiness."  The study also doesn't include the reform model Gary schools picked for Roosevelt Career and Technical Academy, which has failed to meet state and federal standards, at the urging of the Indiana Department of Education.

Campbell was critical of the methodology.  Researchers said that their analysis of Gary was limited by a low response rate on the national survey.  Because of the low response, the city didn't receive a ranking on one of six indicators involving the municipal and political environment.  "I have some concerns about this report," Campbell said.  "They themselves said, in one big caveat, that the methods they have to grade cities are fragile."  Campbell said the district has worked with Teach for America as well as the New Teacher Project through Indiana University.

Researchers examined the nation's 25 largest cities and hand-picked five smaller communities, which is how Gary was included in the report.  Cities were graded on how easy or hard it would be for charter schools or any other educational foundation looking to create an out-of-the-box approach to traditional education to set up shop.

Gary is home to seven charter schools, the most of any city in Northwest Indiana, according to Ball State University's charter school office.

"We tried to evaluate the degree they're creating hospitable environments for new problem solvers," said Rick Hess, director of education policy studies for the American Enterprise Institute for Public Policy Research.  "We are not grading school districts ... It doesn't all rise and fall on the superintendents or principals.  They have to be part of a municipal effort to really drive student achievement."

The Fordham Institute is a proponent of charter schools and its sister not-for-profit the Fordham Foundation authorizes charter schools in Ohio.

The Gary Community School Corp. is heavily referenced in the city's portion of the study.  Survey results found that the school district doesn't reward so-called "smart problem-solvers" and that constant turnover is an issue.  Researchers concluded that the local teachers' union is "united in its opposition to reform."  Gary's local talent pool is practically nonexistent and recruiting fresh talent is "nearly impossible," according to the study.  While Gary does host a small Teach For America contingent, it's relatively devoid of other alternative certification programs.  According to the study, the school district also doesn't spend its dollars, "looking forward to reform."

Study not based on testing

Meanwhile, poor Gov. Daniels labors on behalf of all the citizens of the Hooseir state for a paltry $95K per year.

Maybe Rudy can see his way to floating Mitch a few bucks now and then, just to tide him over the rough spots he undoubtedly encounters on a less than 6 figure income?

Seaton Challenges Opponent's Candidacy
Compiled From a Post-Trib Report by Chelsea Schneider Kirk
[20 Aug 2010]

Democratic assessor candidate Carol Ann Seaton has filed a challenge against her GOP opponent, Hank Adams, contending the county Republican chairwoman lacked authority to fill the party's ballot with the long-time St. John Township assessor.

Adams originally ran unopposed in the primary for his township position but was elevated to the party's nomination for county assessor for the Nov. 2 election.  No Republican candidate ran for county assessor in the May 4 primary.

da' Mayor Speaks:  Gary Showing Signs of Progress
A nwiTimes.com Commentary By Rudy Clay
[11 Aug 2010]

When viewed objectively and comprehensively, ample evidence suggests that progress is occurring in Gary.

The financial distress in Gary has been more acute in comparison to many communities because of previous decades of divestment.  Consequently, in the last few years, we have been tackling repercussions from the economic decline and simultaneously working to break free of the financial quicksand the city was drowning in when I became mayor.

While much is known about Gary's plans to create jobs and development with the Jackson Family Foundation, less focus has been directed to the city's success in the reducing our property tax levy by 33 percent.  Even more impressive is our projected tax levy reduction of 58 percent scheduled for 2012.  These tax savings are in addition to other cost-cutting measures carried out.

Gary is not always swinging for the fences with its economic strategies.  But our city is scoring runs daily in property tax restoration, fiscal belt tightening, crime reduction, elimination of illegal dumping and a host of other areas.

Gary city workers should be commended for sustaining the city despite robust spending and labor cuts.  Our city controller and city finance team should be commended for safely navigating Gary's rapid transition to a modern fiscal reality altered by tax caps, massive spending reductions and a national economic recession.

As we look at the city's challenges, let's promote how Gary took responsibility for its future and avoided mass layoffs by being innovative.  For example, Gary was among the first cities in the nation to carry out furlough days and to recommend pay concessions to preserve jobs and benefits during the current slowdown.  In fact, as mayor, I have at times volunteered my services and am taking a 5% cut in pay, along with other department heads.  This includes 10 furlough days without pay.

As observers of Gary, or any urban center, it is easy to discover challenges that spread negative perceptions, but the complete story should be told if a more accurate and hopeful picture is to emerge.  Gary is a uniquely situated waterfront suburb of Chicago that successfully has weathered a lingering financial storm and is now poised for explosive economic growth.  Progress is being made.

Consider that during a Washington, D.C., meeting arranged by U.S. Sen. Evan Bayh with Housing and Urban Development Secretary Shaun Donovan, our request to restructure existing funding was granted.  Consequently, Gary is beginning to demolish some of its estimated 3,000 abandoned structures.  A great majority of these buildings were abandoned prior to my becoming mayor.  Nevertheless, this demolition will create and preserve jobs and will lay the foundation for development on freshly cleaned parcels.

Many communities are laying off police and, in some cases, developing lists of crimes they will not respond to.  Gary is hiring police officers and has just bought nearly 100 new cars with stimulus money to increase police presence and provide better city services and safety.

Gary is now transitioning from a phase of simply trying to survive to an era in which its citizens will enjoy an improved quality of life.

One area of the city being improved is historical Marquette Park and the adjoining lakefront. The area is set to undergo a $28 million restoration made possible by our active collaboration with the Northwest Indiana Regional Development Authority. Not only has networking occurred inside Gary and throughout Northwest Indiana, but our outreach has expanded into Chicago, Washington, D.C., and even to China as we have worked to promote Gary's economic interests.

Gary is innovative, as demonstrated by our survival thus far.  Gary also has brilliant people as exemplified by our universities, churches, families and individuals like Notre Dame's most recent valedictorian -- Gary's own Katie Washington.

Gary also has shown it is progressive as it has developed Gary/Chicago International Airport from a regional perspective and in the way the city has collaborated with the South Shore Convention and Visitors Authority to host annual air shows.  This year's air show served 350,000 people.  More than 2 million people have attended the air show in the last six years with no arrests.

In the final analysis, since perceptions influence reality, when it comes to Gary and our region, let's base our perceptions on demonstrable and encouraging facts to build vibrant realities we can all enjoy.

Rudy Clay is the mayor of Gary. The opinion expressed in this column is the writer's and not necessarily that of The Times.
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[COMMENT -GDY]:  The above is presented in the spirit of offering equal time to opposing points of view.   I suppose taking steps to tear down 3,000 abandoned homes may be viewed as progress, but I fail to appreciate how this preserves jobs?  Reaching out to China has reaped large rewards, hasn't it.  But hey, Rudy is right, it is a start.  Gary does not need to save taxes, it needs to generate tax revenues!  What part of this does Rudy not understand?  Rudy has the chutzpa to tout the Gary, International Airport?  Some (many) may see it as at best a pipe dream, and at worst an albatross around the neck of the "Steel City".

Airport Leader Jets Off to Florida
Compiled From Post-Trib (Chelsea Schneider Kirk) and NWI.com Reports
[18 Aug 2010]

GARY -- Gary/Chicago International Airport Director Chris Curry will leave the position he's held since 2006 to head three general aviation airports in the Naples, Fla., area.  Curry accepted the position as executive airport director for the Collier County Airport Authority on Tuesday.

"Airports are not meant for a person to spend a lifetime," Curry said.  "You do as much as you can in that time frame to try to move it forward on whatever the agenda is of the appointing authority.  I felt that I had done and accomplished a lot in six years in getting us there, and it was time to move on to another opportunity."

Before Curry was the airport director, he served as deputy airport director under Paul Karas.

The Collier County Board of Commissioners appointed Curry to the position in late July, and he expects to start his new job around mid-September.  "My last day will probably be sometime around Sept. 8 or at a time that me and the chairman and board discuss," Curry said.  "It's my intention to make the transition as seamless as possible to help with bringing on the program manager for the runway expansion project and to facilitate other items as necessary."

Curry's departure comes at a crucial time for the Gary airport.  The Gary/Chicago International Airport Authority plans to interview two candidates to lead the long-planned railroad relocation and runway extension projects later this month.

Gary Mayor Rudy Clay said the hiring of the project manager will help fill the void Curry's absence will leave at the airport.  "He has to do what's best for him," Clay said.  "He's a good man, very knowledgeable and Naples, Fla. will benefit here.  With the new project manager coming in, it will fill the gap that Chris is leaving.  I'm not worried about it because of the fact that the airport is getting ready to take off and soar like an eagle."

The Gary/Chicago International Airport Authority has to choose from two finalists for the job of managing its $90 million runway expansion.  It also has to get moving fast.  The Federal Aviation Administration has set a deadline of the end of 2013 for completing the project.  That deadline might seem distant, but it's zooming up fast.

Put this project in perspective.  It began in January 2006, when the FAA awarded the airport $57.8 million to relocate railroad tracks and add 2,000 feet to the northwest end of the airport's main runway.  Here's an excerpt from our Jan. 17, 2006, story on the occasion:

"Work on moving the tracks could begin late this year and could be completed by early 2008, according to airport director Paul Karas.  Runway expansion work then could begin and would take about two more years."

This entire project should have been completed by now, according to the prediction made by the man who was airport director at the time.  Yet four and a half years later, the airport authority now is faced with hiring a project manager.  In the interim, those railroad tracks haven't budged.
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[COMMENT -GDY]:  What is a mere half-decade in the cosmos of things?  How long has GYY been a white elephant, sucking up millions, if not billions, of dollars without producing income?

U.S. Steel has received a permit from a state environmental regulator to build carbon alloy synthesis plants at its Gary Works complex.  The Indiana Department of Environmental Management issued a significant source modification permit Aug. 4 to U.S. Steel Corp. for its integrated steel mill in Gary.  Receipt of the permit paves the way for construction on the modules to begin.

However, the U.S. Environmental Protection Agency is still considering IDEM's proposed significant permit modification, or "operating permit" for the facility.  IDEM is expecting the federal agency to respond by Aug 19.  Also, any challenges to IDEM permits can be sent to the Office of Environmental Adjudication by Aug. 22.

The Pittsburgh-based steelmaker is seeking to build modules that would generate up to 1 million tons of a semi-crystalline carbon material that can be used for metallurgical coke in the steelmaking process.  U.S. Steel is working with Carbonyx Inc. of Plano, Texas, to implement the proprietary coke substitute production process in Gary.

The four, 250,000-ton-capacity production modules are expected to be built in phases.  Construction is expected to start on the project's first phase – two modules – on or before Sept. 30.  The first two modules are expected to supply about 20 percent of Gary Works' annual coke requirements, Boone said earlier this year.

The project is expected to cost more than $220 million and create about 500 temporary construction jobs, Boone said.  The modules will be housed inside buildings that would sit east of the sinter plant and in the coal-handling area of the complex.

U.S. Steel is undertaking the development because it is attempting to reduce its raw material costs and exposure to purchasing coke on the spot market.  Officials also believe that there will be environmental benefits to operating the plants, allowing the company to either shut down or keep offline certain coke batteries.

Facade Needs Repair after Falling onto Broadway
Compiled From a Post-Trib Report by Jon Seidel
[10 Aug 2010]

GARY -- Mayor Rudy Clay says a fallen piece of facade from a Broadway building should be fixed in the next few days, more than a week after it fell onto a downtown sidewalk.  "We were blessed because nobody got hurt," Clay said.

The sidewalk around the facade in the 600 block of Broadway is closed, cordoned off with orange barrels and caution tape.  The facade was among several fake fronts installed last year to cover up Broadway's crumbling buildings.

Clay convinced area businesses to put them up for free under his "Adopt-A-Facade program," which was meant to be a first step toward eliminating the blight defining much of Gary's downtown corridor.  It also gave local contractors a chance to claim a tax credit for doing pro bono work for the city.  Participating businesses signed a hold-harmless agreement, Clay said Monday.  That means Gary wouldn't have been held responsible if a passer-by had been hurt by the facade when it fell.

The mayor said he thought the facade was installed by 1st American Construction, and he said the city couldn't convince the company to return and put it back up.  Roy Delrio of 1st American said the Gary-based company "put a couple" of facades up on Broadway, and he said employees recently learned one had fallen.  Delrio said the company hasn't returned to reinstall the fallen facade because the building it was attached to appears to be falling down.  "It's kind of dangerous," Delrio said.

Clay said an employee of Gary's redevelopment department will soon reinstall the facade.  He said it will be cut into three pieces and supported by wooden 2x4s to keep it from falling again.  "The wall was too heavy for the nails that were put into it," Clay said.

Gary city workers weren't available to reinstall the facade Monday because they had been placed on furlough. "It will go back up ASAP," Clay said.
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[COMMENT -GDY]:  Well, this story sure presents plenty for comment!  Where to begin?  When you put lipstick on a pig, you still have a pig ... .  The emporer wore no clothes ... .  The building being covered up is not capable of supporting its fake front.  No one is available to reclothe the now naked lady because city employees are off on furlough.  It almost reads like a (tragic) comedy.  

— Manager at Dots told applicant they 'don't hire white people'

A Merrillville clothing store wouldn't hire a woman because she was white, according to a federal lawsuit filed by the U.S. Equal Employment Opportunity Commission.  Misti Hatchett had applied for a job at the store at 1662 E. 80th Ave., but a manager told her the store doesn't hire white people, Nancy Edmonds, attorney for the EEOC, said.

The woman filed a complaint with the EEOC, which then investigated the matter.  "The EEOC found reasonable cause that Dots had engaged in discrimination," she said.

The EEOC tried to reach an agreement with Dots through mediation, she said, but no answer was reached.  That's when the EEOC decided to file a lawsuit in the U.S. District Court in Hammond.
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[COMMENT -GDY]:  You have to love this one?  "No whites need apply!"  Are we harking back to the early 20th century here?  The one good thing is, this story reflects the reality that NWI caucasians are a minority entitled to equal protection under the laws of the United States!

GARY -- The City Council is considering whether to pledge millions in soon-to-be available casino dollars toward an $8.5 million bank loan.  An ordinance authorizing the city to secure the loan was introduced to the council Tuesday.  According to a draft, Gary would also create a "reserve account" to make sure it doesn't default on its payments.

Controller Celita Green has said the loan is needed after the Indiana auditor's office inadvertently sent $8 million to Gary City Hall this winter, where it was spent.  To make up for the error, $8 million was subtracted from Gary's tax distribution in June, a hit Green said the city couldn't afford.  Gary was already struggling to survive this year under the confines of Indiana's new property tax caps, which have been lifted partially but still drain its budget, and low tax collection rates.

Meanwhile, according to a draft of the loan legislation, Gary will pay off $17.3 million in debt from the renovation of the public safety building and construction of its baseball stadium in March using casino money.  Another $2.3 million in principal is still due.  Two more bonds totaling $6.6 million, including money for Gary's Sears Building Project, will be paid off in August 2012, according to the legislation.  Another $3.1 million in principal is still owed on that debt, which also ties up casino funds.

The ordinance being considered by the council would let Green and Mayor Rudy Clay seek an $8.5 million loan to pay bills through the rest of the year, promising to pay the loan back over five years with casino money.  The loan would be awarded to the bank offering the lowest net interest cost to Gary, and the rate of interest couldn't exceed 9%.  Gary would also be required to keep $2 million in a "reserve account" to use in case it doesn't have enough money to make a payment on the loan.  If money is taken from that account, Gary would be required to immediately replenish it.

The council will publicly consider the loan ordinance during a meeting of its finance committee at 5:30 p.m. Tuesday at City Hall.
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[COMMENT -GDY]:  More of robbing Peter to pay Paul.  In fact, this is worse.  At least when robbing Peter one is taking real money from someone/somewhere.  This is a shell game.  What Gary is doing is spending money it does not even have yet, and may never receive!   

The existence of Gary, Indiana, with its 84% black population, is a psychological barrier to the integration of northwest Indiana into the Chicago economic region:  too many whites there feel that such economic integration would imply an embrace of Gary.

It's a fact that the departure of heavy industry from the Midwest has created an archipelago of black inner city ghettos in old manufacturing towns from Iowa to Ohio, impoverished by populations whose ancestors came north to work in the factories of the day, but who were stranded when those factories went away.  The Midwest's true disaster areas -- Detroit, Cleveland, Gary, Benton Harbor, East St. Louis -- are all majority black.  The same decline, of course, has hurt millions of white workers, too, but these black ghettos are particularly poor and isolated.  Globalization simply has passed them by.

GARY -- The Police Department's fleet of new flex fuel squad cars is supposed to help the region's air quality.  But that only happens when they burn the cleaner E-85 fuel.

Less than half of the new squads are on the road.  More are being prepared for service every week.  Still, ethanol fuel isn't available.  And no one can say for sure when the city will have it.

The city has not advertised for bids to buy a tank, pump and bulk fuel, and can't until the state provides them with the "contract form" approved by all the governmental agencies involved.  Christopher Meyers, Gary's director of planning, said he couldn't guess when that process will begin, or when the use of the cleaner fuel will start.  Until then, the new cars will use regular unleaded gasoline, Meyer said.

That could create problems for the city as the grant's overseer starts monitoring the various grant recipients.  "The expectation is they will use ethanol from the time the units arrive and are put into service.  The $10 million federal grant obtained by the Indiana Department of Transportation to buy vehicles for cities across the state will be reviewed locally by NIRPC to determine if Gary and other Northwest Indiana municipalities are abiding by the grant guidelines.  "The general requirement in receiving the equipment is to use the ethanol in the equipment.  Most communities are already using the E-85," Evers said, adding, "Gary is the exception."
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[COMMENT -GDY]:  My very limited experience with federal grants is that a finding of "non-compliance" results in having to pay the money back.  Is Gary setting itself up to incur yet another debt that it will not be able to pay, by running these cop cars on plain ol' unleaded fuel?

GARY -- The Genesis Center's downtown parking garage is closed until further notice.  John Key of Key West Enterprises, the private firm managing the convention center, called the closure "temporary."  He said Friday he was waiting for a professional to determine if the garage is structurally sound.  "The reason we're doing it is we desire for our patrons to be safe," Key said.

The garage's ground-floor gates were lowered Friday, and signs hanging near the entrances let drivers know about the closure.  Key told the Genesis Center's board of managers Wednesday the garage could be an "imminent threat" because of crumbling he discovered on the top floor.  "I don't think any of us would stand under it," Key said.  However, the decision to shut it down wasn't made until Thursday afternoon.

The Genesis Center charges drivers $3 to park in the garage, Key said.  On days when Lake County court is in session next door, he said, it sees an average of 100 cars.

Another garage nearby, connected to the former Sheraton Hotel, has been closed for nearly 12 years.
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[COMMENT -GDY]:  While Nero fiddles, Rome burns.   First the parking garage, next the center itself shall physically collapse.  Both have already economically collapsed.  Ah, but there is money in the the infrasturcture rehab fund to make the necessary repairs.  Oh wait, I forgot, that money was used already, to make the city payroll this month!

Maybe Gary shall have a museuem complex downtown after all?  They have all the necessary artifacts in place to open the Museum of Urban Decay!  Its premiere exhibits could be the Genesis Center Garage, The Sheraton Hotel, City Methodist Church and Memorial Auditorium.

GARY -- Members of the city's historical society spent part of their week pulling furniture and files from Gary's oldest building, where the ceiling has collapsed, the floor is buckling and mold has begun to grow.  Dolly Millender, founder and CEO of the Gary Historical and Cultural Society, said she's still trying to work with the city to find money to restore the Gary Land Co. building.

Used as a museum, it stands on the north side of East 4th Avenue across the street from City Hall.  Members of the community helped fix up the building and restore its roof in 2006.  "It's on the national register," Millender said.

However, the building is generally only open during the warmer months of the year, Millender said, and the damage was discovered when she opened the doors in May.  "We were appalled," Millender said.

Several exhibits were immediately removed and taken to the Calumet Regional Archives at Indiana University Northwest.  Volunteers helped move other items Friday, though, including glass cabinets and other pieces of furniture.

Naomi Millender, director of development and programs for the historical society, said she had trouble opening some doors in the building because of the buckled floor.  "The basement is really bad," Naomi Millender said.

The historic Gary Land Co. building sits on city-owned property, and building commissioner Benjamin Robinson has visited.  He said he hopes volunteers will help fix it up.  "I couldn't say what's going to take place there," Robinson said.
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[COMMENT -GDY]:  For those not aware, the Gary Land Co. building was the first structure put up in Gary.  It was constructed by an appendage of U.S. Steel to sell land and rent housing.

United States Steel Corp. has plans for a massive investment in Gary Ind., where the steel giant hopes to develop four carbon alloy synthesis plants that will allow for environmentally safer production of traditional coke in the steelmaking process.  The new alloy, Cokonyx, will act as a substitute for 20 percent of the firm’s coke requirements.  The methods of production of Cokonyx are designed to significantly cut down on harmful emissions that take place in the traditional production of coke.

By increasing the production of Cokonyx, U.S. Steel can shut down a portion of its coke manufacturing, reducing outputs of 3,000 tons of carbon monoxide and 907 tons of nitrogen oxides annually.

The price tag for the first phase of development is $220 million.  The project is projected to create hundreds of temporary construction jobs.  It still must meet approval from the Indiana Department of Environmental Management.  Company spokesperson Courtney Boone says that phase one of the project would take 24-30 months to complete.  After it is complete, the facility would be subject to testing before an additional two phases would be approved.

"The $220 million new coke project at U.S. Steel bodes well for the region," says Don Babcock, director of economic development at NIPSCO.  "It shows a long-term commitment to NW Indiana.  This new technology can help assure the viability of the company (U.S. Steel) and meet high quality emission standards."

One of Dozier Allen Jr.'s co-defendants had to report to jail Tuesday after she and the former Calumet Township trustee lost an appeal to stay out of jail, according to court records.

The 7th U.S. Circuit Court of Appeals ruled against Wanda Joshua, 61, and Allen, saying that they still had to report to prison despite their pending appeals against convictions for taking more than $142,000 from the public office.  The court did not discuss its reasoning in the ruling, which was filed in the U.S. District Court in Hammond.

The ruling means Allen, 79, must still report to prison Aug. 27 for his 18-month sentence.

The aim of the museum will be to promote and sustain the public's awareness of the civil rights movement.
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[COMMENT -GDY]:  Yet another "pipe dream" in the works?  An Imax theatre in Gary, give me a break!  The school board drove a hard bargain in this deal, giving away a $500 Thousand building for $50K in in-kind donations!

GARY | An updated Little Calumet River closing structure on 35th Avenue just east of Chase Street is ready to go up during a flood emergency, but it still remains unclear exactly who will be responsible for setting it up.

Officials from the Little Calumet River Basin Development Commission, Indiana Department of Transportation, U.S. Army Corps of Engineers and the city of Gary were all on hand as a team from Hasse Construction assembled the floodgate in a Tuesday morning demonstration.  A team of five men assembled the wall in a little more than an hour, using only basic hand tools and a cordless drill.

While the demonstration had five people assisting, Navarro said in an actual emergency, more might be needed.  "The more you have the quicker it will go up," he said.

The city of Gary currently has no specific point person responsible for assembling the wall during a flood emergency.  Little Cal Commission Director Dan Repay said it is the city's responsibility to put the wall up when needed, though assistance from INDOT will be available.

"Without this, all of this area would flood," Repay said, pointing to a residential area along 35th Avenue east of Chase Street.

The floodgate structure will be stored at a nearby Gary Fire Department training facility, Martin Navarro, a project supervisor with INDOT said.
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[COMMENT -GDY]:  The wall should work well, if only we can find someone to put it up when needed.  The probablilty of that is nil, since that "someone" must be City of Gary employees.  "For Want of a Nail ... ."

GARY | The city has to stop wasting its human capital if it is to thrive, Gary Chamber of Commerce Executive Director Chuck Hughes told a crowd at a meeting Monday.  "We're not gang-bangers shooting each other but we're killing the spirit of each other," he said.  Hughes said the city has to show a collective togetherness and show general affection for one another.

A panel addressing ways the city can more effectively meet the needs of the underserved and underrepresented in the community with effective programs and partnerships was moderated by Black Entertainment Television host and producer Jeff Johnson.  It included Gary Mayor Rudy Clay, Gary Councilwoman Carolyn Rogers and Ivy Tech Community College Northwest Chancellor J. Guadalupe Valtierra in addition to Hughes.

Clay said it was important, first of all, to believe the city can be made better.  "If you do not believe that we can make it a better city than of course we can't make it a better city," he said.  "Not only do I think it can be a better city, it's going to be a better city.  "We're in the red zone now; we're not in the end zone yet.  I think if we work together we will get there."
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[COMMENT -GDY]:  But yet another example of Rudy talking out of both sides of his mouth!

1960 — Gary Municipal Airport will begin an aggressive marketing campaign to ensure the survival of its Gary-to-Detroit flights..
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[COMMENT -GDY]:  How did that "campaign" work out? 

Listen up, Rudy.  We've got to talk.

I spent the last week writing about your city, your beloved Gary.  Some of what was said wasn't very kind.  People from all over NWI were doing the talking.  Many of them Garyites.  All are concerned about the future of the city.  Same goes for me.

I know you may be Gary's greatest fan, Rudy, but you've got to take off the cheerleading outfit for a moment and look around.  There aren't many folks left in the stands, and the teams are about to leave the field.  It's nice to look at Gary through rose-colored glasses.  Nice, but not realistic.  Little gets accomplished when the tinted glass obscures the problems.

A Jackson family museum would be nice, but it isn't going to save Gary any more than Michael did when he was still alive.  Every year or so, Rudy, you trot out some grand plan that turns out to be a white elephant.  It's getting to feel like this is all about politics.  One of the first ones was to revitalize Broadway and Washington Street from City Hall south for several blocks.  Housing, retail shops and whatnot were all part of the plans.  But, alas, nothing.  And if I had a nickel for every plan I've heard for developing the area around Indiana University Northwest, I'd be a rich man.

Now we have the talk about a casino at the intersection of Interstates 94 and 65 or maybe even adjacent to the museum.  Build it and they will come is the thinking.  Yeah, just like the Genesis Center, the U.S. Steel Yard, the Sheraton Hotel and the casinos at Buffington Harbor have been the city's salvation.

Now you, Rudy, are caught in the middle of a Jackson family feud that runs from here to Las Vegas.  Not long ago a fellow who owned land over by the Village Shopping Center was all set to build a Jackson museum.  You told the guy to take a hike, mayor.  You wanted the thing built downtown.  Less than six months later, we're looking at the property at Gilroy Stadium, just north of Indiana University Northwest (and just east of the Village Shopping Center -GDY) for the Jackson thing.  Enough with the dog and pony shows!

You and I go back a long way, Rudy.  I want Gary to be a great city again, too, Rudy.  But you're going about it from the wrong direction.

Let's talk about this crime thing.  Gary is known across the country as the nation's murder capital.  That's heavy.  That's tough to fight through even when things get better.  While there have been fewer murders of late, there have been 28 homicides in Gary this year.  Not good.  I know, Rudy, you've said those murders pretty much involve gang and drug activity or a scorned wife out to get her husband's lover.  In other words, you and I have nothing to fear.  And just the other day you told me, Rudy, that there hasn't been a homicide in or around a Gary public school in the last three years.  I guess what you are saying, Rudy, is that if you come to Gary, you might want to hang out around one of the schools.

Then you said, "The perception of crime in Gary is not the reality."  If that's the case, Rudy, why is it that you still have a driver/body guard to accompany you around town?  I know the crime rate is down, but it only makes you look silly to say Gary is a safe city.  Just say it is getting safer, which it is.

Let's go back to this thing about cleaning up the city, Rudy.  Remember back in April of twenty-aught-six when you took over and proclaimed that your first priority would be to clean up Gary?  Let me tell you, Rudy, I was saying amens from here to Sunday.  You even named a cleanup czar.  But nine months later you moved the czar to a new job.  Despite your best intentions, Rudy, the city is still a mess. It kind of looks like nobody cares.  Kind of like a dirty, wet puppy.

The heck of it all, Rudy, is that I know you are passionate about Gary.  Unfortunately for all, the city doesn't show it.
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[COMMENT -GDY]:  Mr. James echoes my remarks from over the years; "Rudy is clearly able to talk the talk, and just as clearly not able to walk the walk!"  Gary needs help, and it needs it now!  Rudy cannot save Gary, let alone do it alone.  He does not have either the acumen needed to do so, or the requisite political clout.  I fully realize it is difficult to have pride in a "hell hole,"  but the fact is, the residents of Gary have to become engaged in the saving of their city.  If they do not, why should anyone else jump to take up the task?  Friends, we have inability in the "Steel City" to see or solve problems!"  I say problems.  That starts with a "P," and stands for politicos!    

Excerpts —

In terms of development, Gary always seems to be swinging for the fences, overlooking the realization that a series of singles can lead to runs as well.

Gary today is a poster child for the rust belt.

The city's population has plummeted from a high of 178,320 in 1960 to a 2008 estimate of 95,920.

"Gary has got to cease the them-versus-us mentality.  We sometimes play the victim and that gives off an aura of weakness."  Those outside the city need to appreciate that, "A lot of the offers to help are condescending and patronizing.  We give talk to Gary being important, but we don't always walk the walk."

There is an attitude, particularly in Porter County, that if Gary fails, someone can build a wall and keep the people from coming to Porter County and elsewhere.  "Building a wall is not going to work.  We need to rebuild the middle class over there."

Clay should be saying: "Ladies and gentlemen, I have asked the three former mayors to form a committee to see what we can do to turn Gary around." Clay responded, "I think it is a good suggestion. It cannot hurt anything. I think I am going to try and initiate that."

Blacks contributed to the independence of the 13 colonies during the American Revolution, but the Declaration of Independence meant nothing for them.  America reneged on the words "all men are created equal" by continuing slavery after the revolution.  Any black man or woman who celebrates Independence Day is a pathetic fool.

The Independence Day parade in Gary is indicative of the ignorance and stupidity among black people.  Why would black people celebrate a concocted holiday that represents a continuation of racism and mental enslavement of black people despite our contributions to the American Revolution?  Enslaved blacks fought against the British because they believed in the Declaration of Independence and the American Constitution.

—- Dwight Taylor
Gary

GARY -- The city now has two extra months before it may hand five parcels of land over to a developer who wants to build a tribute to the family of the late pop star Michael Jackson in Glen Park.  Gary's Board of Public Works and Safety approved the time extension Wednesday.  It offers 60 additional days until the close of escrow on the land transfer from the city to the Jackson Family Foundation.

Las Vegas promoter Simon Sahouri's signature appears on the document, listing him as president of the foundation and the Jackson Development and Marketing Corp.  Absent were signatures from Joseph and Katherine Jackson, Michael Jackson's parents, who signed the original agreement approved June 2 by the Board of Works.

Sahouri, who signed it July 5, said he was authorized to approve the new document on behalf of the two entities.  A spokeswoman for Katherine Jackson confirmed the family matriarch's participation in the project.  It would be built on land where South Gleason Golf Course and Gilroy Stadium are now found.

Though the Jacksons claim in their deal at City Hall to have the rights to use the name and image of Michael Jackson, an attorney for the singer's estate said it has that right exclusively.  He said the estate hasn't given its blessing to the Gary project.  Randy Jackson, Michael Jackson's brother, publicly questioned the legitimacy of the Jackson Family Foundation last month.

Sahouri said his goal of breaking ground on the project in 2011 remains.  "When you do a project like this you want to make sure everything's in place," Sahouri said.

The original deal created a 30-day window for close of escrow on the land transfer.  That deadline passed earlier this month, but the agreement also allowed for extra time if agreed to by all parties.  Gary attorneys have said they are waiting until the Jackson Family Foundation establishes itself as a not-for-profit entity with the state and the Internal Revenue Service to transfer the land.
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[COMMENT -GDY]:  A delay?  Shocking, not!  After all, Rudy and Gary government are involved!

GARY -- Roosevelt Career and Technical Academy did not receive a $6 million school improvement grant from the state Department of Education.  This was the second round of funding for the schools across the state.  Roosevelt is one of 22 schools statewide that are in the fourth year of academic probation under the state's public accountability law.

Superintendent Myrtle Campbell said the result was disappointing, but the district plans to reapply for funds in the fall.  "By no means does this result put off our plans to transform Roosevelt," Campbell said.

"The state is looking for bold, robust initiatives to hold teachers accountable for student performance."  Roosevelt is embracing the transformational model, which requires the replacement of the administration and focuses on improving teacher effectiveness.  Roosevelt's grant application outlined a teacher accountability program, which awards money for improvements in student grades and for lowering disciplinary offenses.

Campbell said the state had concerns that the accountability section wasn't strong enough.  Since the district was turned down for the grant, Campbell said that the district will look at reappropriating some funds -- possibly stimulus dollars -- to go toward teacher development and support.

Board member Barbara Leek said concern about Roosevelt will produce results in the upcoming school year.  "We are equally determined to be where we need to be next spring when the state Department of Education says you have made documented progress," Leek said.  "That is our goal and we intend to meet our goal."  In 2009, the school graduated only 44.4 percent of its students within four years, compared to 81.5 percent statewide.
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[COMMENT -GDY]:  Either Indianapolis cares not what happens in NWI in terms of educational reform, or it does not trust the Gary School Board to be able to do what is needed?  It matters not which, as in either case Gary and the students lose.

The U.S. Steel Gary Works had an accident last week which has resulted in the idling of two of the companies four operating furnaces at the facility.  According to U.S. Steel spokesperson Erin DiPietro, an accident occurred on the "high line" – the rail line upon which raw materials are transported to the blast furnaces via a transfer car.  At 12:30 AM last Wednesday a steel girder supporting a bridge collapsed sending a transfer car and its load to the ground 25 feet below.  One worker has been hospitalized with fractures.

According to an article in today’s Post-Tribune blast furnaces 4 and 8 have been shut down since the accident.  The number 4 furnace production capacity daily rate is 4,200 short tons per day while the Number 8 furnace is 3,300 tons per day. At peak production the potential loss is approximately 7,500 tons per day or around 52,500 tons since last Wednesday.

The Post-Tribune article quotes a union representative, "On the No. 4 furnace, they did a pretty extensive inspection with three different engineering firms.  I've never seen anything like this before.  The more they looked, the more problems they found.  The problems they found, they had to correct them before the transfer cars could run on that road," he said.  "It's a shame it takes someone almost losing their life for the company to say, 'We're making these repairs,' especially when they say safety is a core value."

OSHA (Occupational Health and Safety Administration) is investigating the accident.  It is not known how long that investigation will continue.

After eight years managing other people's property, Samantha Banks decided it was time she had some property of her own, to create an income stream.  "But I didn't have very good credit," says Banks, who at the time lived in Chicago.  Banks saw Gary as the perfect place to invest time and sweat equity, so she bought a house near Indiana University Northwest that needed a lot of work.  Her husband, Jerry Banks, a contractor, fixed up the house, and the couple moved in.  "We chose Gary because it isn't too far from Chicago, and Gary is an opportunity for a lot of people to own their home," says Banks, whose next step was to start buying other homes to fix up and rent out.

She turned to Roger Hayward, founder of Gary's Time, a company that helps arrange short-term loans for people with less-than-perfect credit.  "We fixed (our secondary house) up and have people living in it," Banks says.  "I have one more payment for our primary home, and I'll be done in August, and my secondary home I'll be done paying for in January."

Banks and Hayward are part of a growing group of people who are either from Gary or who have adopted the city as a place to live and work, where they see great potential for investing, attaining a good quality of life.  They also see untapped possibilities to create art and a cultural scene unique to the region.

When Hayward first saw an abandoned and burned-out building on Vermont Street in Gary, he describes his heart as breaking.  A real estate developer who had moved his family from Pennsylvania's Lehigh Valley, Hayward had been buying bankrupt properties in Gary online with a group of investors.  "I wondered what type of property you could buy for a thousand dollars," Hayward says.  "It's just walls and the mechanics of it, like windows.  "When they didn't sell, I thought, what am I going to say to my investors.  And then I thought, how about becoming the banker for these homes."  So he started offering short-term loans to prospective buyers.

"I never met more energizing people than those that I've helped getting into homes over the last year and a half," Hayward says.  "I've been on the streets starting at 13, so I can relate to these people.  You can't enable people; they have to take the initiative, too.  It's a matter of folks knowing what they can and can't do, and these people are willing to put the sweat equity into it."

But it was the house on Vermont that changed the idea of doing business into a personal mission.  "I had a sf-nosed cry," Hayward says.  "And then I realized that I had been asking God for a purpose, and this was it."

Hayward's purpose?  To help bring Gary back, through affordable housing.  Creating Gary's Time, he put the battered house on his website, www.garystime.com, and he started organizing groups such as the West Side High School Cougars football team, which is working on fixing up some of the homes.
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[COMMENT -GDY]:  Finally, something positive coming out of Gary.  One has to wonder what would motivate anyone to move from PA to da' Region?  Roger contacted me before the move, telling me of his plans.  I was able to offer some advice and coments; which I have no idea proved to be useful to him in any way.  My point is, here is someone who is making a difference, and helping others make a difference.  Interesting that it is private individuals having a modicum of success in doing so, not Rudy or the government.  I say, "More power to them!"  They deserve all the support/help they can get!

GARY -- The Deborah Movement, brought its message to Gary Tuesday, one that advocates the saying that action speaks louder than words.  During a meeting of the Gary Commission on the Social Status of Black Males, members of the organization along with their Chicago sponsor, The Black Star Project, supported the commission's launch of a Gary chapter of the Deborah Movement.

The movement is an organization of women coming together to "re-establish order and regain control in their communities through prayer and active duties."  The organization gets its name from the Old Testament, which is based on Deborah the prophetess in Judges 4:8-9.

GARY | Call most Gary City Hall offices and while on hold you'll be treated to the soulful city tribute, "2300 Jackson Street."  But the Jackson family's hometown, in an attempt to honor its ties with the famous musical troupe, may be doing so without legally paying to play the tune.

Gary Mayor Rudy Clay has echoed the refrain of The Jacksons song since Michael Jackson's death last June and the return of his parents to the famous address.  In preparing for last year's tribute to the fallen King of Pop, Clay said:  "Michael Jackson and his family had a record that said '2300 Jackson Street, always home.'  So this is home."

But in terms of the telephone hold music, The Times contacted several music associations and publishers listed with the 1989 Jacksons composition.  None reached by The Times reported having any agreement permitting Gary to use the song.  The Jacksons tune is among Broadcast Music Inc.'s 6.5 million-work repertoire, which it licenses out to thousands of businesses and other entities.  BMI spokesman Jerry Bailey said Gary does not have a license to use BMI's repertoire, including "2300 Jackson Street."

Clay referred questions about the legal use of the song to city attorney Susan Severtson, who did not immediately respond with answers about the song last week.  Should Gary be asked to start paying, Clay said he did not expect the city would continue using the song.  I'm not saying 'no,'" Clay said. But, he added, "I doubt it."

The DUAB helped Gary in 2009, along with three other local taxing units.  The state auditor miscalculated the DUAB credits when preparing a tax distribution this winter, though.  That mistake directed about $8 million to the units already getting DUAB help when it should have gone to other units in Gary, like the schools, library and Calumet Township.  To make up for it, the county auditor's office withheld $8.2 million this month from the DUAB units and redistributed it among the shorted units.

The City of Gary's money manager said Gary will seek a loan to cover a $7.5 million hit taken when the county adjusted for the overpayment earlier this year.  Green said the city's loan would be collateralized with casino funds.  Much of Gary's casino money is tied up paying down the debt from construction of the U.S. Steel Yard and the renovation of the public safety building.  That debt will be paid in March, Green said, freeing up money that could be used to pay back the loan.

Controller Celita Green said Gary's budget can't be cut enough to make up for the lost money.  At least $29.3 million of the city's $52.8 million budget pays for public safety and $12.9 million of that is budgeted for the police department.  Green said the city could be forced to repay spent money from a federal grant used to hire new officers if it cuts into the police department.

Meanwhile, the city already secured $20.2 million in budget relief from the Indiana Distressed Unit Appeals Board, funded by higher property tax caps for Gary property owners.

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