The Portage Redevelopment Commission approved an $11.2 million budget for 2026, setting aside $3.6 million for a surplus in case it’s needed for anything special that pops up.
Redevelopment Director Dan Botich told the RDC Thursday to anticipate receiving $5 million from the sale of property on the city’s north side. A company relocating to the city is requesting around $25,000 for help with employee training, he said.
While economic development officials are restricted by nondisclosure agreements from public statements about which companies are considering relocating or expanding in the city, Mayor Austin Bonta said after his election but before taking office that World’s Finest Chocolate was planning to build a plant in Portage.
The city plans a major transit-oriented development project on the city’s north side, including extending Burns Parkway and the Marquette Greenway as well as attracting some $360 million in private investment for residential, commercial and office use as well as an inn.
That’s all within a transit development district that has all the features of a tax increment financing district with the added sweetener of capturing the increase in income tax revenues to help fund needs like public infrastructure.
Some $7.4 million next year will go toward for road and trail resurfacing projects. The city is eligible to apply for matching grants through the Indiana Department of Transportation.
Another $1.4 million will be earmarked for improvements at Founders Square, including work on the beer garden, resurfacing the splash pad and streetlight repairs and replacement.
About $3.9 million will be set aside for repayment of debts incurred to pay for previous projects, including the fire and police stations.
Money will also be held for public safety needs as well as grants to Portage Township Schools. A TIF district captures the increase in property tax revenue for the RDC’s use, so schools wouldn’t get a share of that money without the grants being awarded.
In other business, real estate consultant Bill Rathjen updated the RDC on work being done at Portage Mall to turn the parking lot into the beginnings of a downtown streetscape.
All 11 property owners signed a letter of intent, an important first step, and 10 of 11 title reports have been completed. Then conversations with lien holders will begin.
“Everything right now is moving very well,” Rathjen said.
“It has pushed that first domino over” for an appropriate downtown with pedestrian access, and the start of a downtown street grid, Botich said.
“This board consistently works on anything deemed impossible,” Bonta said, calling it a strong testament to the confidence people have in the city.
Bonta is excited about moving toward a true downtown in the city. A project pursued by past mayoral administrations is now coming to fruition.
“The tough part was step one. The rest of it now is just a process” for the Portage Mall project, Rathjen said.
A full purchase agreement will come after engineering work is done. Once all the parcel owners agree with the design, the city will purchase the property so work can begin.
No action by the commission was needed Thursday, but Bonta called the report an appropriate step for transparency. “I will say it’s a true redevelopment project,” taking land that has been complicated by issues with land ownership and stormwater management, among others.
That will allow development on the east side of the mall, too. “It opens up acreage that will be multimillions of dollars for us,” Botich said.
Doug Ross is a freelance reporter for the Post-Tribune.
https://www.chicagotribune.com/2025/12/22/portage-rdc-plans-to-spend-11-2-million-in-2026/
