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Once heralded sports resort project headed back to starting line: ‘We’re plowing forward on foreclosure’

The land in Portage once targeted for an almost fantastical plan for a domed structure that included sports fields, a drive-in movie theater and a lake for wakeboarding, among other amenities, may soon hold the promise of future development again.

The Catalyst Lifestyles Sport Resort was announced in 2015, for 170 acres north of Interstate 94 and west of Indiana 249, off of Stagecoach Road. The centerpiece of the $75 million proposal was indoor and outdoor sports fields, as well as a hotel.

Developer and Catalyst Lifestyles managing partner Tony Czapla purchased the land from the Portage Redevelopment Commission in May 2015 for $6 million. The city had acquired the land over the years for $1.8 million and Catalyst was to make $600,000 payments over the course of 10 years.

“We know the history,” said Dan Whitten, Portage’s city attorney.

The project was mired in delays from the outset and officials for the project said a few years ago that they had run into unforeseen complications, including a NIPSCO right of way with utility towers and plans for an overpass from U.S. 12 to Indiana 249.

Things never got any better and the project stalled when the partners took each other to court and then filed for bankruptcy. When the bankruptcy filing was denied in August 2018, they pledged to appeal. A second bankruptcy attempt, Whitten said, also was dismissed.

At that point, Catalyst Lifestyles had only made two payments totaling $1.2 million toward purchasing the land and already was behind in its payments.

The RDC moved to foreclose on the loan, Whitten said, and the state appointed a receiver early last year. The receiver is trying to market the property, unsuccessfully, Whitten said.

“We’re plowing forward on foreclosure,” he said, adding the RDC ordered the foreclosure last month and is working on the title with plans for the land to go up for bid in a sheriff’s sale. “Absent that, the city will probably get it back.”

The foreclosure took a little bit longer than planned because the COVID-19 pandemic canceled court hearings in the matter, Whitten said, adding that along the way, Catalyst didn’t pay taxes on the property.

The property was purchased at a tax sale by an investment group out of Florida, which triggers a one-year time period for Catalyst to redeem the property. In the meantime, Whitten said, the RDC agreed to pay $63,000 in back taxes and interest on the property to stop the interest from accruing.

The property could still go up for purchase at a sheriff’s sale, Whitten said, “if someone wanted to, they could purchase it for north of $6.3 million.”

“If it comes back to us, we have to have a plan for developing it,” he added.

The city would revisit past plans that were done in that area, including a 2005 master plan for the city’s north side and a revised plan issued in 2016 that included plans for the sports complex, said A.J. Monroe, the city’s director of planning and community development.

“Whether we look at the 2005 plan or the 2016 update, the part of the conversation that’s really accelerated in recent years is the double track project” for the South Shore Line, including RDC discussion about a transit development district. “Those are new things that should be considered.”

About 120 acres of the property north of Burns Waterway is zoned marina waterway district, Monroe said, which allows for a variety of permitted uses, including a marina and housing. The remaining acreage, across from AmeriPlex at the Port, was zoned as a planned unit development.

Whitten said the PUD zoning has expired.

“If someone wanted to purchase the property, they would start from scratch,” he said.

Amy Lavalley is a freelance reporter for the Post-Tribune.