City of Gary Makes First Full Mortgage Payment on Vance Kenney’s Building

Two payments totalling $613,240.00 are due and payable this year according to DLGF records. Elzie Higginbottom’s East Lake Management took over day to day management of the building in 2017

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March 17, 2018-Payments for the $3.875M bond floated to finance Vance Kenney’s 504 Broadway Building became due and payable this year. The project was financed in 2014 but payments under the terms of the bond provided for interest only in the years 2015, 2016 and 2017. That means the first full payment, $308,960.00, was due and payable on January 15, 2018. Generous Gary taxpayers will make another $309,600 mortgage payment on behalf of Vance Kenney in July, 2018. Under the terms of the financing agreement, Vance Kenney and 504 Redevelopment, LLC are not required to pay back one cent of the $3.5M they were given. In addition to providing Vance Kenney and crew with $3.5M cash toward a building that cost a mere $250,000, the City paid for demolition of two adjacent buildings and paved a parking lot next to the building. There has never been an accounting of the $3.5M provided to 504 Redevelopment and there does not appear to have been anywhere near $3.5M in repairs done to the building.

The Gary Sanitary District and the City of Gary Department of Redevelopment now pay rent to 504 Redevelopment, LLC. In a July, 2017 resolution, which you can see above, 504 Redevelopment notified the Gary Sanitary District that future rent payments were to be remitted to East Lake Management-a company controlled by Daley insider Elzie Higginbotton.

As East Lake takes over, the City is beginning to push phase II of the 504 Redevelopment project. According to documents obtained exclusively by the Gazette, that project is expected to cost taxpayers over $40M.

If all of this seems confusing, it is designed that way. The City of Gary is now poised to “sell” the Genesis Center to political insider and Aruba travelling companion Rinzer Williams. The City of Gary Department of Redevelopment is also preparing to sell the building located at 839 Broadway. Should residents expect more creative financing in those transactions?

Please tell us what you think in the commments.

2 Comments

  1. Selling off the assets that could if done right bought Gary financial stability. Mayor Rudy Clay put Gary on the hit list of the State (Distressed Unit) this allowed the vultures to come and like King Hezikia he showed the wealth that if used correctly would allow this city to prosper. The destruction of Gary is a gloved hand operation (white hands using black people to desecrate this city of color). I question how long after Gary threw its’ self on the veiled sword of help from the State and others that Regional Redevelopment Planning (RDA) commission came into action was enacted and positioned in this area. Anyone know the timeline of these actions? RDA here (their actions past and now speak the truth) to ensure Gary’s destruction and the Judases are in place in City Hall to work with them to sell a lie and hope people will drink the kool-aid. People wake up and stop letting this administration here and anywhere from put us on the hook for monies and projects that do not profit us the people and City of Gary. The City attornies need to all be fired starting with the one front and center looking to buy the Genesis Center. Nothing is being done to enrich our City and the hard-working people. We are a people under siege by our local, state, and many in the regional government to drive us out of our community and if not kill us by continual toxic waste and imported criminals.

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