Burns Harbor delays deciding on land offer because of wetlands issue

Chicago Tribune

10-07-2025

The Burns Harbor Redevelopment Commission is delaying a decision on whether to accept a $25,000 offer from a Michigan developer for 25 acres off Ind. 149 and Haglund Road until they learn more about how wetlands on the property could impact construction.
The commission voted Wednesday to contact the U.S. Army Corps of Engineers, which would determine what wetlands are under federal jurisdiction on the property. It is believed that at least 12 acres on the northwest side of the property are under federal jurisdiction and unsuitable for construction.
The Sloane Avenue Group and Redstone Group joint venture of Grand Rapids, Michigan, last month was the only one to respond to a Request for Offer from the town of Burns Harbor.
John Kavchak, a partner in the Sloane Avenue Group, asked the commission to accept their offer for the land, contingent on what the U.S. Army Corps of Engineers finds.
But commission members stated they wanted more time. Commission member Brad Enslen noted that they learned only three or four days before Wednesday's meeting about how the wetlands issue could affect potential construction on the property.
Commission member Jack McGraw said how the wetlands issue affects potential construction is the big concern.
'We are on the same page. We are equally concerned,' Kavchak said.
Kavchak told the Redevelopment Commission that they are still excited about their mixed-use proposal that would build 54 houses and retail space. He noted that the town would benefit from increased revenue from property and sales taxes on what is now vacant property.
Houses would be mostly built south of the Marquette Greenway Trail that proceeds from the southwest to the northeast portion of the property.
Soil Solutions of Valparaiso, retained by the developers, has found in their analysis that the acreage on the northwest side is under federal wetlands jurisdiction, which is why the U.S. Army Corps of Engineers must be consulted. There are isolated wetlands on the south end, which are under the state's jurisdiction, where construction could occur with mitigation.
Kavchak said that he was even willing to let the town keep the 12 acres of wetlands property and still pay the same $25,000 price for the remaining property.
Despite the challenges, Kavchak said that they have the 'willingness' to absorb the infrastructure costs and work through all of the wetland mitigation issues, which he said could exceed $200,000 alone, and in the end still provide value to the town.
One resident questioned whether the town was getting paid enough money for the land.
Jim Meeks asked commission members what the appraised value of the land was.
Commission members said they didn't have the appraisal available.
Meeks said that every developer normally has to absorb infrastructure costs, so that part of the offer is not unusual. Meeks said he believed that the appraisal would show the land is worth more than $1,000 per acre and he felt the developer's offer amounted to 'stealing' and was 'ridiculous.'
'That's a slap in the face to every resident in this town and taxpayer,' Meeks said.
Donna Meeks asked the town to share the appraisal of the land at its next meeting.
The town in 2018 paid $250,000 to the Duneland School Corporation for 28 acres at Haglund Road and Ind. 149.
Gayle Van Loon asked the commission who was going to pay for the U.S. Army Corps of Engineers study.
Commission members said that hasn't been determined yet because their vote was only to contact the agency. Tina Rongers, the economic development consultant, said that the developer has paid for Soil Solutions of Valparaiso to do its evaluation of wetlands on the property.
After the meeting, Kavchak told The Post-Tribune that he believes that because of the wetlands issue, the infrastructure costs could end up being higher than normal and run close to $2 million.