In Michigan City, the rails would be moved out of the street, and 19 of 33 grade crossings would be closed. Tracks have been running down 10th Street for the life of the railroad.

"It's neat, it's historical, it's interesting, but it's no way to run a modern railroad," Noland said.

'Hundred year investments'

Proponents argue the projects will have a transformational impact on Northwest Indiana, increasing population and income, prompting property development and raising tax revenue. And planning for so-called Transit Oriented Development in Hammond, Munster and Dyer has taken on more urgency as work on the projects progresses.

Architectural and planning firm Farr Associates has been working with local officials and residents to bring conceptual focus to the type of development the communities would like to see, and the consulting firm KPMG also is working on TOD planning.

The firms were hired by the Regional Development Authority, which is participating in the financing of West Lake as well as planning for development. The RDA's new Comprehensive Strategic Plan includes detailed economic projections and suggests an extensive opportunity for growth.