Portage has become a visible gem

PORTAGE | Sprouting from the sands along the lake shore, Portage approaches its 45th anniversary as the third-largest city in Northwest Indiana.

"We didn't exist before 1960, and we became a city in 1968," said Mayor James Snyder, who took office Jan.1. "We're now the largest city in Porter County and the third-largest between Chicago and South Bend after Gary and Hammond."

With a population of about 38,000 residents and an annual household income of $49,979, Portage has taken advantage of its location on Interstate 94, its access to rail, its deep–water port and its large local workforce.

"Nothing happens without location," said John Shepherd, the city's economic development adviser. "But location alone isn't enough."

Mayor Snyder agrees, and says his administration plans to take whatever steps necessary to guarantee the maturing city continues to flourish.

"We have done several things already," he said, just week after taking office. "We're getting the city budget under control and making sure we run the city as efficiently as possible."

The city's budget was on the verge of running a multi–million dollar deficit, but going in the red isn't an option, Snyder said.

"A sound fiscal budget helps with economic development," he said.

Thermostats in city buildings are being set lower, city cars are being driven less, and a workforce wellness program will be instituted to reign in mounting health care costs.

"They're small steps, but they add up," Snyder said.

The city also is becoming friendlier to potential and current businesses, he said.

To that end, Snyder said one of his first mayoral acts was to have a signs at City Hall reserving parking spots for city officials removed and replaced with signs reserving them for visitors.

"When a business comes to see us here, they'll find parking space available," he said. "I plan to present a plan to present on being more business-friendly.

Shepherd, who has been with the community since it was "a sand dune," said the city's leadership always has been instrumental in the community's development.

In the past, the city has played a major role in bringing electric and natural gas utilities to the area north of U.S. 20 and under I–94. It also has helped to bring wastewater treatment to the Port of Indiana and to the 385–acre parcel that has become AmeriPlex, as well as helping to develop the city downtown and residential areas, he said.

"It's wouldn't have happened without grants obtained by the city," Shepherd said.

Promoting a business-friendly environment

Former Mayor Olga Velazquez, who left office at the end of 2011, said she and the city worked closely with the Northwest Indiana Forum to promote the city's business–friendly environment to potential businesses.

"In the past four years, I had a great working relationship with the council and Portage Redevelopment Commission to promote incentives, tax abatements and financial incentives through our TIF (Tax Increment Financing) district," Velazquez said. "I worked closely with Indiana Economic Development Corp., the state agency that can offer incentives."

As an example of the benefits of mutual cooperation and TIF districts, she points to Fronius USA's decision to move its U.S. headquarters to the city. One of the factors in the Austrian corporation's decision was the City Council's approval of the expansion of the Southport Tax Increment Financing District to include personal property taxes in the district solely for the Fronius property.

The solar inverter producer's move from Michigan to Portage is expected to create 512 jobs by 2016. One of Velazquez other major initiatives, the revitalization of the city's downtown, currently remains under way.

When it opens this spring, the $6 million, 32,000–square–foot building housing college–level classes offered by Ivy Tech, Purdue University North Central, Indiana University Northwest and Valparaiso University will a major tenant of the area. The building also may house Workforce One offices, bringing together students and potential employers. Additionally, Velazquez said her administration concentrated on infrastructure improvements during her tenure, including enhancing operations at its wastewater treatment plant, thus increasing its capacity in order to handle additional service to potential businesses.

"There's been lots of growth, commercial as well as residential growth," she said. "In '08 we slow downed as you've seen across the country. From 2000 there were about an average of 250 housing starts. It started falling in 2007, so in '08 my administration started to concentrate on infrastructure and roads for when the economy rebounds."

Areas of development

The city has three distinct areas of development: the downtown, the I–94 corridor on the city's north side, and the south side.

Mayor Snyder says the city's three development areas should be marketed separately and currently is developing a plan with that focus.

Much of its city's large retail businesses are located in the U.S. 6 corridor, including the Super Kmart being shuttered by its parent, Sears Holding Corp.

Kmart's closing, however, is creating space that will be occupied by a new Meijer store. The big–box retailer is expected to increase the site's number of workers to more than 200 from 80.

On the north side, AmeriPlex at the Port stands out as one of the city's outstanding developments.

The 12–year–old park, which is easily seen by those driving along I–94, is a mixed–use development that is home to 20 buildings totaling 2,479,424 square feet representing $148.5 million in new construction, according to its owner, Holladay Corp.

Currently, 43 companies and more than 2,000 employees work at a variety of business there including Bass Pro Shops, Quaker Steak & Lube, Country Inn & Suites, Texas Longhorn Steakhouse, Egg on Your Face, Deli in Your Belly, Family Express and others.

"We felt this was the best location for a business park," said Tim Healy, AmeriPlex's general manager since its inception. "It's very visible and had low tax rates, proximity to Port of Indiana, a large work force. We looked for available sites with the best characteristics. It has a lot of advantages from a developer's standpoint, and good soil and good cooperation with local government."

And AmeriPlex still is growing.

"We still aren't fully developed," Healy said. "We have 50 acres of industrial property left to develop and 60 acres of retail/commercial space. We are looking to do another spec, multi–tenant flex industrial building. ... We believe there is some pent–up demand for an additional 60,000 to 150,000 square foot of space."

A natural advantage

Portage has another advantage: the Indiana Dunes National Lakeshore.

"We plan to market our beaches," said A.J. Monroe, the city's Director of Public Works. "It's been named as one of the top five in the country. We want people to understand that Portage offers that wonderful amenity."

The Portage Lakefront and Riverwalk at the Indiana Dunes National Lakeshore opened in October 2008 to become the newest area of the national lakeshore available for visitors. Formerly used by a steel corporation as settling ponds for industrial byproduct and a sewage treatment facility, the project has been called "a successful model of brownfield reclamation between public and private groups."

The land, buildings, and facilities at the site are owned by the National Park Service and operated in partnership with the city of Portage.

"There are plans to add amenities," Monroe said. "We're working closely with the Northwest Indiana Regional Development Authority and our new application will produce a lot of economic development return on investment."

Snyder, Shepherd and Monroe all agreed there's going to be much more development coming to their city.

"When we talk about this you realize there's so much that's going on," Monroe said. "Population growth has slowed in the past few years. ... But we expect our growth will continue in relationship to the economy."