Money that is part of Gary's proceeds from the Majestic Star casino will be used to cover part of the cost of developing a plan for the improvement of the neighborhood east of the Indiana University Northwest campus.
The Common Council on Tuesday voted unanimously to approve a transfer of funds from casino proceeds to the Choice Neighborhoods Initiative.
The program is a grant from the federal Housing and Urban Development agency meant to help communities improve the neighborhoods surrounding public housing complexes.
In Gary's case, they intend to use the money to create a plan for redevelopment of the University Park East neighborhood just south of Interstate 80/94 and east of Broadway near IUN.
Under the terms of the federal grant, the city must come up with $200,000 of its own money to match the $500,000 grant by year's end.
Last year when the grant was announced, the city came up with $10,000. Now, they will transfer just under $150,000 from casino funds, and additional money will be found later in the year to compete the local match of funds, officials said.
Other entities also must provide a match, and nearly $1 million will be available by year's end to provide for creation of a development plan.
A good share of the money will go to EJP, a Philadelphia-based consulting firm that is working to develop a strategy for revamping the University Park East community, which now consists of many vacant homes.
During Tuesday's session, Gary resident Jim Nowacki said he did not understand why a locally based consultant couldn't have been hired. City officials previously said EJP was hired because they offer special skills related to this type of development plan.
Under terms of the agreement, the plan developed by EJP officials will have to be presented to Housing and Urban Development officials by January.