Indiana’s rising inmate population is throwing cold water on Michigan City officials’ eagerness to redevelop the Indiana State Prison once the new prison in Westville opens.
When ground was broken for the new $1.2 billion prison in 2023, it was designed to hold up to 4,200 prisoners. Indiana Department of Correction plans at the time called for closing the Michigan City prison and moving inmates there and at Westville Correctional Facility to the new 1.4 million-square-foot prison, the Northwest Indiana Correctional Facility, now under construction.
In September 2023, the Westville inmate count was about 2,300, with another 2,282 at Michigan City. There were 58 available beds in Michigan City and another 548 in Westville.
Fast forward to July 2025, the most current inmate count available, and there were 2,436 inmates at Michigan City, representing a 6.7% increase, and 2,858 at Westville, up 24%.
Simply put, there just isn’t enough capacity to close both of the existing prisons and house everyone at the new one when it opens in 2027.
“DOC’s population has been growing for the last several months, and we are focused on utilizing our current space efficiently, which includes the space at Indiana State Prison,” Chief Communications Officer Annie Goeller said Friday.
The existing Westville prison adjacent to the new one will still close as scheduled, she said.
“We have been collaborating with state and local officials on the future of the Indiana State Prison, which we intend to keep open for some time after the opening of the new facility,” Goeller said. “At this time, we have not yet determined how long that will be.”
Michigan City officials aren’t happy about the news but are adjusting.
The area around the prison, on the city’s northeast side, is a prime target for redevelopment.
Mayor Angie Nelson Deuitch put the best face on it in a social media post.
“The state of Indiana has informed our administration that the December 2024 Letter of Intent to transfer the Indiana State Prison property to the City of Michigan City has been rescinded due to changing circumstances at the state level. While this is not the direction we had been anticipating, our team is working to process and pivot based on this latest development,” she said.
“We are continuing conversations with the state today and tomorrow as the future of this property reaches a crossroads. No final path has been determined, and our city remains committed to advocating for outcomes that benefit our residents,” Nelson Deuitch said.
“It is important to emphasize that this update has not altered our original vision or ambition to reimagine the site for future development. We see this as a bump in the road, not an obstruction. The reimagination study we launched in early 2025 will continue, ensuring that Michigan City has a thoughtful, research-based strategy ready when decisions about the property move forward.”
“Our leadership team remains focused on maintaining the momentum we are building across Michigan City. We are moving forward with optimism, planning and determination,” she said.
Clarence Hulse, executive director of Michigan City’s Economic Development Corp., has long voiced his hope that the city will be able to redevelop the prison site. Many of the homes surrounding the prison house low-income people who want to be near family members incarcerated at the prison, he has said.
The city’s overall poverty rate is high, at 19.3% in 2023, according to the U.S. Census Bureau. That compares to the state average of 12.3%. Median household income was $52,979, well below the state average of $69,477.
Michigan City Economic Development Corp. has been working on redevelopment plans since 2023, including a study that examined redevelopment of the old Joliet, Illinois, prison and ones in Virginia, Utah, Michigan and Ohio.
The Vibrant Michigan City effort began with two important partners, the Brookings Institution and LISC (Local Initiatives Support Corp.)
The Vibrant Michigan City website offers an overview of the city’s West Side area, where the prison is located.
“The West Side has experienced a population decline of 25% and suffers from a lack of essential quality-of-life assets such as banking institutions, grocery stores, public parks and coffee shops. These challenges highlight the need for targeted efforts to uplift the West Side community and address its specific needs.”
In January, the Indiana State Prison re-imagination process began in earnest with a public input session.
“We heard several people say to ‘go all in,’ ‘be bold,’ ‘burn rubber’ on our design suggestions. Attendees felt like this was a great opportunity that shouldn’t be wasted,” the EDCMC report on that meeting said.
“We heard questions about what would happen to things like ‘Old Sparky,’ the barracks, the chapel and other relics of the prison,” the report said. Attendees wanted to archive the past but not dwell on it.
They wanted a walkable area and noted its proximity to Indiana Dunes National Park’s Mount Baldy site, which was once a city park. They spoke in favor of a “friendly, safe, interesting and inviting connection through a redeveloped site (that) would encourage visitors to see the downtown area.”
Michigan City’s economic development is booming as a result of the Double Track NWI project to speed travel on the South Shore Line. Express trains can now reach Millennium Station in downtown Chicago in just over an hour.
Redeveloping the state prison site could be another boon to economic development.
“The state’s rescinding of the letter of intent is a disappointing detour in the trajectory of the Indiana State Prison’s direction toward redevelopment and revitalization,” Hulse said. “While the certainty of the prison’s purpose and pathway is uncertain at this time, our city and community leaders remain steadfast to staying on track with where we want the West Side of Michigan City to soar.”
“The reimagination of the prison is vital to the synergy and energy of development that we envision for our community members within the prison’s shadow and beyond. Our mission to bolster the neighborhoods on the West, East and Midtown areas of our city persists even in the veil of vagueness that now surrounds the prison’s future. The community deserves and demands it!,” he continued.
“Our team has seen a strong sense of community spirit and unification since we launched the reimagination study, and we will not stymie this passion and sentiment with a pessimistic perspective on the prospects of the prison’s future status,” Hulse said.
“Today, the reimagination study has a place of even stronger importance to our vision of the city’s future. The change in course has solidified our stance on exploring what the site can be: a place for prosperity with community offerings and development, a spot for small business growth and most importantly, a beacon for promise, optimism and aspirations.”
