Dunes pavilion plan draws criticism

Construction crews are already at work turning an 85-year-old pavilion serving as a beachfront snack shack and shower house on Indiana Dunes State Park into a restaurant and, eventually, a two-floor banquet and conference hall.

Parks officials tout the project on the state's second-most-visited park as a way to raise funds and provide more amenities for parkgoers who have been clamoring for them.

"We want folks to come and see us," said Dan Bortner, director of the Indiana Department of Natural Resources' Division of State Parks and Reservoirs. "One of the things we hear a lot is people are very interested in having weddings in the area and things like that."

But the plan, which includes a minimum 35-year lease with a private company, has outraged local opponents. They say they're deeply troubled by an agreement the state quietly finalized this winter with a group of local developers.

They say it lines their pockets at the expense of the environment and the public, and could open the door to a future marina or a hotel at one of Indiana's most fragile natural landscapes. State officials say there's no other development plans in the works.

Local opponents, who urge the state to put the project on hold for further review, got a boost Friday when an array of statewide environmental and consumer-advocacy groups joined their cause.

The Hoosier Environmental Council, the Sierra Club's Indiana chapter and the Citizens Action Coalition announced that they, too, opposed the new development. The groups say it's the latest in a disturbing trend of state officials selling off forests and public parks to profiteers to make up for underfunded budgets.

"We fear the line is being crossed with this project in the dunes," said Tim Maloney, senior policy director for the Hoosier Environmental Council.

Maloney and others say they're worried the hall will mar Indiana's pristine Lake Michigan views and create a parking nightmare for beachgoers. They say the ecological risks also are profound.

"They want to take advantage of that beautiful view," said Jim Sweeney, president of the Porter County chapter of the Izaak Walton League. "Which means big windows, which means ... it's going to be devastating for migrating birds."

But Bortner, the state parks director, said the project poses minimal ecological risks. The new purpose also isn't far removed from the structure's old use, he said: It was once a fine-dining restaurant that fell into disrepair.

"There's not a square inch of this project that is going to go on undisturbed land," he said. "This will all be built basically on concrete that already exists."

That includes parking. Bortner said no new spaces will be built to accommodate pavilion visitors, who also will have to pay park gate fees.

Bortner said discussions are underway to determine what the two-floor, 17,000-square-foot banquet hall addition next to the renovated pavilion will look like.

The agreement with the company, Pavilion Partners LLC, was finalized in February. Bortner said the state will receive $18,000 per year in rent and 2 percent of gross sales.

He said the company also will pay the $6 million to $8 million in renovation and construction costs. The 35-year lease has two 15-year renewal options, so the company could potentially hold onto the site for up to 65 years.

"Whenever we create this public private partnership, we always want make sure the people who are bringing the money to the table have time to recoup their investment," Bortner said.

He said state also has plenty of experience with such partnerships. He likened the pavilion project to a much-smaller version of the resorts and marinas the state leases on Brookville and Monroe reservoirs.

Pavilion Partners and a spokeswoman didn't return emailed messages on Friday.

Though the DNR announced plans to rehab the old pavilion as early as 2011, opponents allege the state downplayed or omitted details about new construction, a charge the state denies. They say it wasn't until after the lease was finalized that parks officials hosted public meetings.

State officials say they gave plenty of notice, including the park's property manager mentioning this development in every public presentation.

Construction, meanwhile, is underway on the casual dining restaurant, ice cream shop, rooftop eatery and new shower area and restrooms. That's all planned to open later this year.

The adjacent conference center and banquet hall is expected to open in 2016 for wedding receptions, meetings and other events.

The DNR says the finished project also will include a welcome center and education gallery that will depict the history of the dunes.

Call Star reporter Ryan Sabalow at (317) 444-6179. Follow him on Twitter: @RyanSabalow.

To learn more

For more information on the project, including copies of lease agreements and other documents, visit http://www.in.gov/dnr/parklake/8462.htm. The Department of Natural Resources also is still seeking public input on the project. Comments and suggestions for design possibilities can be emailed to pavilionpartners@gmail.com.\\