Extending sewers along U.S. 12 is the top priority under a proposed transit development district to serve Beverly Shores and Pines.

The Regional Development Authority unveiled the proposed boundaries of the district Wednesday night during a meeting in Beverly Shores.

The 320-acre district would extend east from the Beverly Shores train station and south along Indiana 520 with a tiny spur to a defunct pizza place near the lakefront in Beverly Shores.

The TDD is designed to encourage development in the two towns, functioning like a tax-increment financing district on steroids. Additional tax revenue raised within the district would help support future projects.

Without sewers, though, those developments wouldn’t be feasible.

“When we spoke to Beverly Shores they told us they were very interested in seeing more business activity, but they were hamstrung by the lack of sewers,” RDA Communications Director Dave Wellman said. “Connecting to Michigan City sewers is an absolute prerequisite to any kind of development in both communities. On top of that, there’s an environmental issue. This close to the lake, we really shouldn’t be on septic. I don’t think I need to go into detail as to why.”

Beverly Shores once had the Red Lantern Inn on the shoreline, but it closed when erosion destroyed its septic system.

Michigan City’s sanitary district operates the treatment plant and sewer lines that would extend to the transit development district for Beverly Shores and Pines. While the RDA won’t help fund sewers for areas outside that district, the pipes would be large enough to serve other areas if the towns arrange their own financing for them.

Consultant David Phelps, of Policy Analytics, said with the Indiana State Prison closing, the treatment plant will have more than enough capacity to serve the two small towns.

Beverly Shores Councilman Geof Benson said the Indiana Department of Transportation plans to redo U.S. 12 in a few years, so it makes sense to do the sewer work first so new pavement doesn’t have to be torn up for it.

Turning U.S. 12 into a scenic byway is another likely goal for the transit development district, promoting tourism along the way. TDD money could pay for wayfinding signs and help fund new amenities for tourists, Wellman said.

As with other RDA projects, money from the RDA is considered a source of last resort for projects. Traditional grants, loans and other sources are to be cobbled together before the RDA gives a final nudge to get a project in play, Wellman said.

Each transit development district may be expanded once. For this district, that could include adding the site of the former Pine Elementary School or other areas. The districts expire in 2047.

Public comments on the proposed district’s boundaries are being accepted through Jan. 29, Wellman said. Go to www.nwitdd .com/contact for details.

The two town councils and the RDA have to formally approve the proposed transit development district before the plan goes to the State Budget Committee for another public hearing. That could happen as soon as this summer but is more likely to occur in the fall, Wellman said.

Doug Ross is a freelance reporter for the Post-Tribune.