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Hobart grants extension to troubled Silverstone development

Updated: April 8, 2013 7:47AM



HOBART — The Board of Public Works and City Council agreed Wednesday to extend a development agreement for a portion of the Silverstone project by three years.

Under the original agreement with the city signed on March 17, 2007, former owners Diamond Veil Development and B-3 Properties LLC were to have developed 30 percent of the area known as Pod E within six years, which would be in 10 days.

The area in question encompasses a large portion of the 200-acre planned unit development that was to be built at Mississippi Street, north of U.S. 30.

“We all know what happened in 2008. Plus the infrastructure wasn’t finished until 2010. For all these reasons, the city should extend the deadline three years until 2016,” City Attorney Anthony DeBonis said.

DeBonis said there would be no extension for the remainder of the property, which was to be developed within 15 years.

Board of Works member Rich Lain asked why they chose to extend the agreement for three years instead of one or two years.

Mayor Brian Snedecor said he didn’t want to resurrect the project every year for a vote.

“We know how long it takes to identify and develop properties. Three years is not a long time given the magnitude of the development,” Snedecor said.

Councilman John Brezik, D-5th, moved to approve the extension at the council level.

“I think this action is appropriate. This is a very solid plan,” Brezik said.

Developers laid out an ambitious plan for the area, which would have included a hotel, convention center, sports complex, retail and some residential. Since then, B-3 Properties filed for bankruptcy in U.S. Bankruptcy Court Northern District of Indiana and the property was put up for auction.

Snedecor said no development has taken place.

The city’s Redevelopment Commission still needs to approve the extension.

In other action, the Board of Works agreed to an indemnification agreement with the Little Calumet River Basin Development Commission to remove a log jam and debris from Deep River near the 200 block of North Michigan Avenue.

Snedecor said the city will provide the equipment to remove the logs. He said there is no cost to the city.



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