Lost Barrios of Indiana: “Block and Pennsy” of Indiana Harbor, Part II

June 4, 2025

Part two of this blog series examines the aftereffects of Urban Renewal Project No. 1 from 1964-1969.  The previous blog in this series examines the planning and start of this project from 1957-1963.

A new mayoral administration in 1964 noted that Urban Renewal Project No.1 had built no residential buildings. Instead, it parcelled away the Block and Pennsy neighborhood through demolition, forcing those displaced to live in temporary mobile homes or to move out of the Harbor entirely. Because of this, remaining residents of the neighborhood were anxious and distrustful of the local government, the reasoning for the lack of residential building was attributed to land negotiation with the B&O (Baltimore and Ohio) railroad, which owned land adjacent to the border of Block and Pennsy.

Top: 3429 Block Avenue, circa 1960, Indiana Historical Society; Bottom: 3429 Block Avenue, July 2024, Google Maps

1964: First Building Project Started

Finally, that same year, ground was broken for the first residential project – Cal-View Apartments (presently known as St. Luke Housing & Development Corporation). The apartments would provide housing for 225 families, with rents ranging from $94 to $139 a month (presently about $ 976 and $1,443). They would be located on Guthrie Street in clusters between Elm and Lincoln Streets. Positive and visible momentum of the project eased some of the residents’ tensions, However, this was short-lived. In 1965 federal funding for the renewal project was significantly reduced, citing the lack of progress. The Cal-View Apartments, totaling fifteen residential structures, would not be completed until 1967.

Residential Reduction and Failed Retention

The years 1966-1968 were turbulent with public accusations and admittance of kickbacks and unethical dealings by the Jeorse and Nicosia mayoral administrations. The Purdue Calumet Foundation reported in 1968 that a total of 1,528 individuals had been displaced since the start of the urban renewal program but that only 1,175 had been successfully relocated. Less than two-thirds of the residents of Block and Pennsy at the start of the project in 1960 remained in the neighborhood. This report and the accusations of impropriety left Urban Renewal Project No. 1 marred by its failure to rehabilitate residences and retain Indiana Harbor residents.

Top: 3507 Pennsylvania Ave, circa 1960, Indiana Historical Society; Bottom: 3504 Pennsylvania Ave, July 2024, Google Maps

City officials of East Chicago in 1969 would publicly seek to end the city’s contract with the Purdue-Calumet Development Foundation. Residential redevelopment of Indiana Harbor and East Chicago, however, would continue.

Block and Pennsy, an ethnically and racially diverse neighborhood with a high population density and mixed-use buildings (residential and commercial combination) would cease to exist as it once did in the first half of the 20^th century.

You can view old photos of this neighborhood and more in the Indiana Cities and Towns digital collection, searchable by street name. 

(This is an edited excerpt from the book, Hoosier Latinos: A Century of Struggle Service and Success)

Nicole Martinez-LeGrand is a curator in the Library and Archives division at the Indiana Historical Society. She is an adrenaline seeker of the unique kind; she enjoys the thrill of connecting people to their past

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