Updated: June 1, 2014 6:43AM
GARY — A project that city officials hope will jump-start downtown redevelopment cleared its final hurdle Tuesday.
The redevelopment commission approved a $2.87 million economic development bond issue for demolition and renovation work at the former Gary State Bank building, 504 Broadway.
The bonds will be paid off from tax revenue generated by a special taxing district along Broadway. The city council approved the bond sale last week.
Gateway Partners LLC purchased the 10-story building from EFN Gary Property LLC earlier this year. Vance Kenney, Gateway’s lead partner, said Centier Bank has agreed to lease the lobby space in the century-old building.
The city also agreed to donate property from 520 to 540 Broadway that will be demolished to make room for parking and a drive-up window for the bank.
John Anderson, a Gateway partner, said city officials will be allowed to monitor bond disbursements and financial statements.
“We have agreed above and beyond what other developers would,” Anderson said. “We believe in this project.”