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Gary Businesses Face Increased Stormwater Fees

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  Published in Business and Finance on Thursday, February 26th 2026 at 1:04 GMT by Capital B Gary
      Locale: Indiana, UNITED STATES

Gary, Indiana - February 26, 2026 - Gary businesses are preparing for a significant financial adjustment following the City Council's approval of increased stormwater fees. The resolution, passed late Thursday night, marks a pivotal moment in the city's ongoing efforts to address chronic flooding issues and decaying infrastructure, but has simultaneously sparked concerns among local entrepreneurs who fear the additional costs will stifle growth and potentially force closures.

The approved fee structure will be implemented incrementally over the next three years, beginning with a 10% increase in the first year, followed by further rises in years two and three. While city officials defend the hikes as essential for long-term sustainability and vital infrastructure repair, many business owners argue that the timing is particularly burdensome, adding to existing economic pressures.

Gary's stormwater management system has long been plagued by neglect, leading to frequent and damaging flooding, particularly in low-lying areas. Decades of deferred maintenance have left pipes corroded, drains clogged, and retention ponds inadequate to handle heavy rainfall events. The recent increase in severe weather patterns linked to climate change has only exacerbated the problem, resulting in increased property damage and disruptions to commerce.

The city estimates the funds generated by the new fees will be earmarked specifically for critical infrastructure projects, including pipe replacements, drainage improvements, and the construction of new stormwater retention facilities. City planners emphasize that addressing these issues isn't merely about preventing property damage; it's also about protecting public health and safety, preventing environmental contamination, and attracting new investment.

"We recognize the financial strain this places on our business community, but inaction would be far more costly in the long run," explained Councilwoman Maria Rodriguez during the council meeting. "The current system is failing. We are seeing businesses flooded, residents displaced, and a decline in property values. This isn't about punishing businesses; it's about ensuring the future viability of our city."

However, the assurances haven't quelled the anxieties of many business owners. Sarah Chen, owner of a small auto repair shop in the downtown core, expressed her frustration: "We're already struggling with rising insurance costs, supply chain issues, and workforce shortages. This feels like another nail in the coffin. How are we supposed to absorb another expense, especially when we're not directly benefiting from these infrastructure improvements?"

The debate also highlights a broader tension between the need for municipal investment and the challenges faced by small and medium-sized businesses. Critics argue the city should explore alternative funding sources, such as state and federal grants, or implement a tiered fee structure that takes into account the size and type of business.

"A flat increase disproportionately impacts smaller businesses with tighter margins," argued local economist Dr. James O'Connell. "A progressive system, where larger properties and businesses with greater impervious surfaces contribute more, would be more equitable and sustainable."

Furthermore, some residents question the transparency of the decision-making process and the city's track record of effectively managing infrastructure projects. Concerns have been raised about potential cost overruns and delays, and a lack of clear accountability for how the funds will be allocated. The city council has promised to establish a public oversight committee to monitor the implementation of the new fee structure and ensure that funds are used responsibly.

The situation in Gary mirrors a growing trend across the nation, as municipalities grapple with aging infrastructure and the increasing costs of adapting to climate change. While stormwater fees are becoming increasingly common, the key lies in balancing the need for funding with the economic realities faced by local businesses. The next few years will be crucial in determining whether Gary's gamble on infrastructure investment will pay off, or whether the increased fees will further exacerbate the economic challenges facing the city's business community.