State directs $100M to park hotel project as nearby communities prepare for boost

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After years of talk, state officials are poised to move forward with new lodging at Potato Creek State Park.

The Indiana State Budget Committee voted unanimously last week to release $100 million to build a new facility at the park, about a dozen miles southwest of South Bend.

It’s an idea that has been proposed several times over the last two decades that, although close once before, never saw funding come to fruition.

But this spring, with repeatedly rosy state budget forecasts boosted by billions in federal pandemic relief funds, state lawmakers built support for the oft-proposed project into the state’s biennial budget.

Long referred to as an inn, local officials say they’re now calling the project— which calls for 120 guest rooms, a 9,000-square-foot indoor aquatic facility and a conference center—a lodge.

An Indiana Department of Natural Resources spokesperson said officials expect to break ground next month at the parks’ Whispering Winds Picnic Area, overlooking the 327-acre Worster Lake.

In addition to overnight stay and aquatics, the lodge will feature a gift shop, activity rooms, a lake observation deck and boardwalk, a playground, 12 courtesy dock boat-slips and 250 parking spaces, according to State Budget Committee documents.

The guest rooms alone serve as a big boost for nearby communities like Lakeville to the east and North Liberty to the west.

Lakeville raised funds in 2019 to renovate its Wetland Barn into a new community center, now a popular destination for weddings, said Carol McDougal with the Lakeville Redevelopment Committee. The lodge will fill a much-needed gap, McDougal said, as she often directs out-of-town visitors to the nearest hotel on Kern Road in South Bend.

“We’re excited,” McDougal said. “We’ve been waiting on this, what, for 10 years.”

Local officials say knowing that funding for the lodge is secured and a groundbreaking is set comes as welcome relief after a rollercoaster few years of waiting.

The state’s dedicated $100 million is quadruple what proposals suggested be spent on the project eight years ago—an increase North Liberty Clerk-Treasurer Vicki Kitchen said is worth the wait.

North Liberty wrote the Potato Creek project into its 2022 comprehensive plan, saying the project has potential to bring 28,000 more visitors annually to the area. For a town of just under 2,000, that brings potential for growth of North Liberty’s Main Street. Small businesses, such as Over The Top Bakery Cafe and Tangles Salon already line the town’s main stretch.

“We have a restaurant that’s been closed that is working on reopening,” Kitchen said. “We have a bowling alley and restaurant combo that could use the business. So, we’re excited.”

North Liberty is responsible for running utilities out to the Potato Creek site. Kitchen said the town plans to open bids in October with forthcoming work dependent on weather conditions throughout the winter.

Kitchen says North Liberty and Lakeville have been working with the Michiana Area Council of Governments to explore expanding trail systems between the two towns and Potato Creek State Park.

Kitchen speaks about other recent investments in North Liberty as the town anticipates new growth.

North Liberty officials would also like to bring broadband internet out to the park. They have met with providers but not yet secured a deal. If the town were able to bring broadband to the area, local residents would likely also benefit—an important step for a town that’s already growing.

Kitchen said the town issued 13 building permits for new homes last year and expects that number to grow as amenities in the area increase and the DNR hires more support at the state park.

“They’re gonna need chefs,” Kitchen said. “They’re gonna need housekeepers. They’re gonna need bartenders. They’re gonna need maintenance people. So, it’s very exciting for jobs plus the tourism to the town.”

DNR officials say they expect the new lodge to open in 2026 or 2027 and plan to share more information, including project renderings, at their Oct. 20 groundbreaking.

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One thought on “State directs $100M to park hotel project as nearby communities prepare for boost

  1. It would’ve been much more impactful to allocate $100M towards starting the cleanup of the Michigan City NIPSCO power plany before it closes and planning a conversion back into lakeshore.

    We could have nearly 20 miles of uninterrupted lakeshore from Burns Harbor all the way to the Michigan State line, which would serve to really maximize the national park and make open the western portion of NWI up to tourism.

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