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The City of Gary Department of Redevelopment is a public body that supports innovative solutions for rebuilding and strengthening communities in Gary, Indiana. The department works to make Gary safe, livable, and clean for its residents by encouraging progressive land use decisions, improving city processes, and spearheading development plans. The department also collaborates with partners to study, analyze and implement solutions to improve the city’s physical environment.
The Palace Theater was developed in 1925 as the city's premier movie house by early Gary pioneer and entrepreneur V.U. Young. For many who have called Gary home, The Palace Theater was the center of life and entertainment. Many Garyites viewed it as the highlight of a night out, and frequently took bus rides from their homes to a bustling downtown Gary for lunch, dinner or to catch a movie.
In the iconic 1983 music video for his mega-hit song “Thriller,” Michael Jackson subtly paid homage to the Palace Theater in Gary. This nod occurred during the scene where he and his date exit The Palace Theatre (which was actually filmed in Los Angeles) just before encountering a horde of dancing zombies.
For younger generations of Garyites, The Palace Theater has been a symbol of downtown Gary's tumultuous decline. By the time the Palace Theater formally closed its doors in January 1972, the downtown had become largely obsolete. Today, the structure has been closed for over 50 years and yet remains a popular subject for social media influencers and ruin explorers.
To rebuild Gary’s downtown, the City of Gary will need a mix of residential and commercial properties. The Palace Theater offers opportunities for both. There is a pre-existing history of City of Gary officials working on plans to redevelop the structure and Gary's Broadway Corridor. Notably, In 2009, Gary participated in the American Planning Association Planning and the Black Community Division (PBCD) Technical Assistance Program to create its Vision for Broadway Report. The Melton Administration is taking these pre-existing plans and reports and updating them for our community's needs today.
In compliance with Indiana Code 36-7-14 Gary Redevelopment Commission has worked on the evaluation and selection of a developer for this work. After reviewing proposals following a publicly issued RFP, the Commission selected BWI LLC, an Indianapolis-based developer who proposed a project for the construction of residential housing units on this historic site. On June 5th, the Gary Redevelopment Commission unanimously passed a resolution to enter contract negotiations. The goal of the negotiations with BWI LLC are to ensure the project will bring positive impacts to Downtown Gary and the city’s workforce. Once negotiations are settled, the property may be transferred to BWI LLC for redevelopment.
The City of Gary is committed to ensuring that this project is crafted thoughtfully and implemented with respect for the community’s needs. The proposed timeline includes a phased, $85 million-dollar, union-constructed investment with up to 250 mixed income units within and surrounding the site. The timeline proposes engineering and selective demolition slated for the end of 2024 and construction poised to kick-off in Q2 of 2025. Project completion is anticipated in 2027.
In October 2023, the City of Gary was awarded a grant from the EPA , with the support of IDEM, to conduct Phase I and Phase II assessments as well as the cleanup of key structures for redevelopment opportunities to ease the burden of key structures in Gary’s Downtown Corridor.
The Palace Theater has sat vacant for over 50 years, saddled with the need for environmental remediation and coupled with a lack of comparable sales after decades of disinvestment. It reached a grim milestone in 2017, when the structure became officially vacant longer than it's been occupied. Due to years of neglect and the expensive work which is required to bring it up to code, when the Redevelopment Commission appraised it in compliance with IC 36-7-14-22, it appraised at a value of only $1,000. Ultimately, the developer has committed to a phased, $85 million-dollar investment in this property. Redeveloping this landmark will be an exciting step towards transforming our Broadway corridor into a walkable, livable destination for residents and visitors alike.
The City of Gary has listened to its residents and understands that citizens of all generations desire walkable communities. The Melton Administration is following Downtown Cleveland's playbook of encouraging density in a concentrated area to trigger both commercial and residential redevelopment in the center of our city. Without residential rooftops present, it's challenging to attract business activity in downtown Gary. Investing in landmarks such as the Palace Theater provide opportunities for the City of Gary to create synergy and reestablish a sense of place for the community.
Significant engineering is required to prepare for the demolition of the movie house structure and preservation of the historic street wall, which is visible from Broadway & 8th Avenue. The plan presented by BWI LLC proposes that the lower level of the structure be dedicated to amenities and arts. This lower level would be implemented with the intention to acknowledge Gary’s history and incorporate the feedback of its residents.
No, this project will offer mixed income housing. There will be opportunities for residents across a large range of incomes to afford a residence in Downtown Gary. The development will offer ground level retail and an entertainment space to honor the historic use of the site.
Engineers will evaluate whether exterior artifacts, i.e. the historic marquee, can be salvaged for future development. Unfortunately, many interior artifacts have been damaged or lost to decades of scrapping and natural deterioration.
The goal for this project is to salvage the historic façade, visible from Broadway & 8th Avenue. The rapidly deteriorating movie house portion of the structure is slated for demolition.
If you have more questions on the proposed project, send an email to redevelopment@gary.gov.
For media inquiries, please contact eblackwell@gary.gov.