The Portage City Council narrowly approved annexation of 47 acres for a new subdivision, adding to the residential boom south of U.S. 6.

The council voted 4-3 Tuesday for the annexation, with council members Penny Ambler, Melissa Weidenbach and Ferdinand Alvarez voting against it.

Olthof Homes plans to develop Sweetwater subdivision east of Bauer Farms, south of County Road 700 North and west of 625 West.

Plans call for 104 single-family homes and 44 paired cottages – 22 buildings – with 25.8% open space, attorney Todd Leeth said.

In January, the council approved a fiscal plan that estimated the subdivision’s 148 homes would generate $151,000 more in taxes than it would cost the city to provide services.

On Tuesday, Councilwoman Penny Ambler questioned whether that calculation took Senate Enrolled Act 1, which reduces property tax revenue for local government, into account. “I have great confidence that it does,” Leeth said.

Ambler questioned whether the city’s utility capacity can keep up with the rapid rate of development south of U.S. 6, which she calculates at nearly 1,400 new homes, and whether the developer would be willing to split the bill for any necessary infrastructure upgrades.

The utility rate increase approved by the council in 2024 included an impact fee so subdivisions pay for their own infrastructure costs, Mayor Austin Bonta said.

“The city is doing millions of dollars to repair our storm and sanitary drainage infrastructure,” he said. “It’s really the last 20 years of growth and not keeping up with it.”

Utilities Superintendent Traci Marshall said the wastewater treatment plant has sufficient capacity. With favorable financing terms, the city was able to get six new clarifiers at the plant instead of the four originally planned and did other projects within the plant.

And even with NIPSCO’s rate increases, the city is starting to see lower electric bills at the plant because of a solar project there.

Bonta addressed questions about drainage. The city requires subdivisions to address stormwater on-site, not adversely affecting neighboring properties.

There are some issues with properties that residents who moved to Portage in the last 15 years or so assumed always flooded, but many of those problems were caused by the city using slag sand when salt supplies were low to address ice on streets.

“It wasn’t popular with residents, it wasn’t effective,” and slag gets harder as it gets wetter. The city is finding that slag is clogging drains, making it the culprit for a lot of drainage issues in the city.

Ambler also voiced concerns about additional traffic south of U.S. 6. “I live right there, so this is really dear to me because traffic is already bad in this area.”

Streets and Sanitation Superintendent Randy Reeder said his department is already planning to increase the number of zones for city services like plowing. Eventually, the department will need more drivers, Bonta said.

In some areas, Councilman Collin Czilli noted, there are stretches of road that belong to the county. When it comes to plowing, Reeder said, the city and county cooperate, with whoever gets there first plowing the road.

Leeth pointed out that Tuesday’s vote was about annexation and what zoning would be attached to the property once annexed. “We’re not done with the design and development of this property,” he said. The Plan Commission and city staffers will ensure concerns are addressed before the primary plat is approved, and the developer pays all these costs.

“Our hardest, most difficult audience at the next step is your staff,” Leeth said. Without staff approvals, the project won’t even get to the public comment stage at a Plan Commission meeting, he said.

Alvarez noted the benefit to residents of having city services. “Do we want a couple of dozen septic tanks in the ground? Probably not.”

However, he’s concerned about the effect of the new subdivision on the quality of life for residents south of U.S. 6, as well as people who live in South Haven and other unincorporated areas nearby. “I will be voting no, and I urge my council colleagues to do so,” he said.

Bonta noted that before he became mayor, he voiced concerns about new residential developments. That’s been addressed, he said.

Some developers go away when they look at city standards and rules, while others push through, Bonta said.

“We’re not perfect, but a lot of progress has been made in this city,” thanks to the utilities, streets and sanitation teams, he said. “We’re showing that we can have sustainable growth in our city.”

Czilli noted that with annexations and new subdivisions, some council districts are gaining more residents than others. He asked city attorney Dan Bortnicki to research what redistricting options are available.

Doug Ross is a freelance reporter for the Post-Tribune.

https://www.chicagotribune.com/2026/02/06/portage-annexes-land-for-new-subdivison-on-split-vote/