Executive Summary

Development Pipeline

Industrial & Flex Projects

Entitlement Risk

Approval Patterns

• Preference for Flex-Industrial: The Commission shows strong enthusiasm for "flex space" incubators that cater to CrossFit, showrooms, and startups, viewing them as unique assets for the region.
• High-End Aesthetics: Approvals are increasingly tied to "upscale" appearances and strict tenant control to prevent "junk" uses like fireworks or tobacco shops.

Denial Patterns

• Unfunded Infrastructure Mandates: The council is resisting bearing the full $500,000 cost for the Kennedy Avenue realignment necessitated by Schererville's bridge project, signaling a refusal to subsidize neighboring municipal growth.
• Termination of Non-Conforming Use: Logistics uses remain at risk if prior "conforming" activity (e.g., government contracts) can be proven to have interrupted grandfathered rights.

Zoning Risk

• PUD Preference: Officials recommend Planned Unit Developments (PUDs) for complex corridor sites to bypass standard parking/use rigidities and establish long-term site-specific controls.
• Rental Restrictions: A proposed ordinance requires residential leases to be at least 180 days to curb short-term/transient rentals in R1-R3 zones.
• Grant Revisions: The town is considering increasing commercial improvement grants to $60,000 and expanding eligibility to the 45th Street and Boulevard corridors.

Political Risk

• New Revenue Mandates: To maintain eligibility for state road grants, the council is advancing a mandatory Wheel Tax ($25 for cars).
• Taxation Shifts: Active pursuit of a 1% Food and Beverage tax indicates a move to tax consumers rather than residents to fill budget gaps.

Community Risk

• Digital Divide: Proposals to move town communications (The Gazebo) to digital-only formats face pushback regarding the exclusion of senior citizens.
• Code Enforcement Fatigue: Residents are increasingly vocal about "overzealous" code enforcement notices that lack identifying officer information.

Procedural Risk

• Consent Agenda Shift: The council is exploring "Consent Agendas" to group routine approvals (minutes, claims) into a single vote to streamline meetings.
• Legal Fee Restructuring: A move toward flat-fee billing ($8,100/mo) for the town attorney is intended to simplify departmental cost allocation.

Key Stakeholders

Council Voting Patterns

• Unanimous on Reorganization: The council re-elected George F. as President and Doug Turich as Vice President for 2026.
• Bipartisan Infrastructure Support: Generally unanimous on equipment holds for sidewalk and tree services to lock in lower prices.

Key Officials & Positions

• George F. (Council President): Real estate broker who re-elected himself to the Redevelopment Commission; driving discussions on bank investment returns.
• Mark Kniesik (Public Works Director): Aggressively seeking equipment upgrades (new leaf vacs) and cross-training staff to resolve 2025 service failures.
• John Reed (Town Attorney): Influential in eminent domain proceedings and proposing flat-fee billing models to improve administrative efficiency.

Active Developers & Consultants

• Feldman Companies: Proposing upscale flex-industrial at the former Coach USA site.
• Meese Engineering: Primary engineering firm for the Redevelopment Commission and Plan Commission.
• American StructurePoint: Finalizing the Comprehensive Plan Update with a focus on "vulnerable areas" and corridor infill.

Analysis & Strategic Insights

Industrial Pipeline Momentum vs. Entitlement Friction

Highland is transitioning from defensive preservation of entitlements to active redevelopment. The emergence of the "flex space" concept signals a pivot toward high-intensity, small-footprint industrial uses that generate higher assessed value than traditional bulk warehousing. Momentum is strong for developers who offer "lifestyle" industrial (CrossFit, boutique manufacturing) rather than heavy logistics.

Probability of Approval

• Flex Industrial/Start-up Incubators: High. The town is seeking "unique" winners to fill vacant corridor lots and is willing to use PUDs to facilitate them.
• Bulk Logistics/Truck Storage: Low. Continued friction regarding non-conforming uses and a desire for "upscale" redevelopment makes new truck-heavy permits unlikely.

Strategic Recommendations

• Leverage the PUD Path: For sites along Indianapolis Blvd or Kennedy Ave, lead with a PUD proposal. Officials have explicitly stated this is the preferred method to manage mixed-use and parking ratios.
• Monitor the 45th Street Corridor: Revisions to the Commercial Improvement Grant suggest the town is preparing to offer financial offsets for stormwater retention costs on vacant 45th Street parcels.
• Engage on Blight Elimination: Developers capable of partnering with the town on "gateway" sites (like the Ultra property) will find a council willing to use eminent domain to clear titles and facilitate assembly.

Near-Term Watch Items

• Wheel Tax Ordinance Adoption (Q2 2026): Critical for determining long-term road funding.
• Comprehensive Plan Adoption (Spring 2026): Will formalize "vulnerable area" designations and redevelopment priorities for the next decade.
• 8436 Kennedy Demolition: Public input phase for the site's future use will signal the town's openness to private e-bike or recreational rentals.