Issue Post 3: First National Bank Building

When the loss is greater than its parts.

The tear-down of the Historic First Nation Bank Building to make way for Walgreens is not a strategy any economic developer would be proud of. This was not a strategy to attract new business to East Chicago. It was only a relocation of an existing business - Walgreens from the adjacent corner. This strategy creates the additional problem of leaving the old building empty. Thus the incremental economic benefits are rather meager when compared to opportunity costs to the city, e.g., housing a new Technology incubator in a Landmark building. A great place - at city center - to anchor development for a knowledge base economy. Think of the cluster of small businesses that could have supported this infusion of young professionals, right here in our central business district, and think of this economic opportunity, and National Landmark forever lost to a Walgreens. Where are the professionals?

A times Article by Susan Brown "Time marches on, you can bank on it - EAST CHICAGO: Historic building being razed"

The following quote is referenced in the above article. I felt it appropriate to let the whole reference to the Bank building speak for its self.

"...On Friday, February 11, 2005 our developer met with the City of East Chicago Economic Development Council, comprised of the City Attorney, City Controller, Director of Economic Development, City Engineer, and other key department heads. This group represented the new administration of Mayor Pabey. The final consensus of the group was that the economic benefit to the city of the planned development greatly outweighed the loss of the existing National City Bank Building, and therefore they indicated their support for the project. While decisions to tear down old buildings are never easy for anyone, we do feel that local municipalities are best equipped to evaluate the pros and cons of new development."

Dave Bernauer, Chairman and CEO of Walgreens, February 15, 2005

And we have been told that it was the past administration that negotiated away the Bank Building, when in fact, it was the members of this Mayor's Economic Development Council that finalized the deal. We also now know that a Historic Landmark ordinance was still in play and could have prevented this. In their zeal to get something done at any cost they forgot the value of what was already here. Let me say this LOUDLY: WE DO NOT LIVE IN AN ENVIRONMENT OF SCARCE OPPORTUNITIES. We need to behave how we want to be, and we will become that. We just need to prove that we are economically rational, that we understand the value of what we have, and that we treat what we have with value. Finally, we need to prove that redevelopment projects can be successful in East Chicago. We do not need to become what we are fighting against - the past administration. Do not get me wrong, I don't doubt that the Mayor is quite upset with this outcome and his Economic Development Council. I just don't think we need these kinds of success stories. WE ARE BETTER THAN THAT. So what is the next step? What are the lessons learned? And what is the Mayor's Economic Development Council developing now?

Mayor, we support you. We just can not afford to support this vision of our City. Let's get it right without all the carnage.

Link to the Historic Landmarks Foundation of Indiana's list of the First National Bank as Endangered