Porter County officials have said they plan to withdraw from the Northwest Indiana Regional Development Authority, a move that could impact a proposed $1 billion commuter rail expansion and development at the Gary/Chicago International Airport.
The county is one of five members of the three-year-old agency. The Porter County Council voted last week to leave the RDA. Some RDA proponents said the move was illegal, and state Attorney General Greg Zoeller is expected to weigh in on its legality, according to local reports.
The RDA was created in 2005 to help Lake and Porter counties fund major regional development projects. Each member contributes $3.5 million a year, and the state has promised $10 million annually for 10 years.
Porter County makes its payments from its local income tax, and the other four members — Lake County, East Chicago, Gary, and Hammond — make their payments from lakefront casino revenue.
Porter’s withdrawal could threaten one of the RDA’s chief projects, the proposed expansion of the busy South Shore Line that runs between the northwest corner of the state and downtown Chicago.
Under the current plan, the RDA would issue up to $150 million in bonds to help finance the $1 billion expansion. It would be the first bond sale for the authority. The Indiana Finance Authority would authorize another $500 million under the proposal, and federal money would pay for much of the remaining costs.
Gov. Mitch Daniels said he would not try to prevent the county from withdrawing because it was a local issue.
