Hammond commission agrees to reclaim 496 Fayette Street, reviews interest in other downtown parcels

The Hammond Redevelopment Commission voted unanimously June 17 to accept conveyance of the parcel commonly known as 496 Fayette Street back to redevelopment control.

Redevelopment staff told commissioners the grassy, vacant parcel at Fayette and Russell had been sold in 2020 to Eighteenth Street Distillery under a forgivable mortgage to support the business’ expansion into a “fermentorium,” but the parcel is now underused. Redevelopment staff said the owner, Drew Fox of Eighteenth Street Distillery, has signed the conveyance back to the commission.

The decision came on a motion to approve “the agreement to sell real estate for property commonly known as 496 Fayette Street,” which passed on a 5-0 roll call. Commissioner Kabaki moved the motion and Commissioner Shelton seconded. Redevelopment staff said, “They’re gonna convey the parcel back to redevelopment,” referring to Eighteenth Street Distillery.

Commissioners were also notified of several letters received for other downtown properties. Staff reported a letter of interest for 6208 Kennedy Avenue (the former Coach’s Corner), currently leased to Windy City Pizza; that lease runs through the end of the year and the city will consider whether to offer the property for sale when the lease expires. Staff also presented a letter of interest for 435 Fayette Street, a redevelopment-owned building currently leased to South Shore Arts; that lease runs out in early 2026 and the commission may pursue an RFP for that property.

Staff asked commissioners to refer the communications to staff for further review; no additional board action was taken on the letters at the June 17 meeting.

Next steps identified by staff include processing the signed conveyance paperwork for 496 Fayette Street and preparing RFP or disposition options for the other parcels for future commission consideration.