Chesterton's Storm Water Management Board voted Monday to fine the developer behind the Easton Park project $7,250 for stormwater violations, even as the stop-work order halting construction on the site stays firmly in place. Adjacent property owners say sediment-laden runoff repeatedly affected their properties since December, including a flooded pool, roads and basements. Town officials cited the developer, Olsen Farm LLC, for violations of town code.
According to the Chicago Tribune, Monday's meeting addressed fines against Olsen Farm LLC. Easton Park is a subdivision in Chesterton. Town officials first issued a stop-work order on the project on July 30, and the newly approved penalties add to a mounting list of compliance failures the town says the developer has not addressed.
What Went Wrong on the Ground
Chesterton officials say Olsen Farm has failed to achieve 70% soil stabilization across the site, and grass seed meant to hold the soil in place failed to take root in much of the property, per the Tribune's reporting. The site was mass excavated in early June, the paper reported. At a hearing held August 17, the Storm Water Management Board laid out corrective actions the developer needed to meet.
Those corrective actions include a failure to install a berm meant to help prevent flooding, a missing pond skimmer at one location, and an existing pond skimmer elsewhere that the town found inadequate. The developer has described planned engineered work for undeveloped phases five and six, and the board required an engineered pipe solution, according to the Tribune. Earlier proceedings before the board, detailed by Citizen Portal, show site excavation began in early June, with grass seed applied July 9 and straw laid down July 20 — neither of which met the town's stabilization standards.
Dueling Accounts of Who's to Blame
At the August hearing, Eric Gastvich testified that Olsen Farm had spent approximately $500,000 on required erosion control measures at the site, per Citizen Portal's account of that meeting. Gastvich stated during the hearing that he believed the town was at fault for the flooding.
The culvert was tied to Keer Ditch 23, and the Tribune reported that the town and the developer addressed the drainage problem. Separately, Norfolk Southern removed a beaver dam that contributed to flooding in the area. Citizen Portal's coverage of the earlier hearing similarly noted that a plugged drainage outlet tied to Keer Ditch 23 prompted Norfolk Southern to remove a nearby beaver dam to ease systemic water backup in the area — underscoring how tangled the off-site drainage picture has become, even as town officials maintain the on-site failures remain the developer's responsibility.
Residents Still Waiting
Chesterton Town Engineer Mark O'Dell and Assistant Town Engineer Matt Gavelek are among the town officials involved in the matter. Hearing participants at the August 17 session included Olsen Farm representatives, residents, and town officials, with residents and town officials testifying about flooding and runoff problems tied to the construction site, according to Citizen Portal. Homeowners near the site have reported a swimming pool flooded twice — once in December 2025 and again in June 2026 — along with street flooding on Tanglewood and Eastwood lanes and multiple flooded basements, Citizen Portal reported.
What the Fines Mean Going Forward
The town imposed a $7,250 penalty. Olsen Farm had previously paid $1,600 in municipal fines tied to the project, Citizen Portal reported.
Indiana's Construction Stormwater General Permit was issued Dec. 9, 2021, and took effect Dec. 18, 2021. The permit sets out a statewide framework for construction stormwater management.
Chesterton, a Porter County town of about 13,000 residents, operates a stormwater oversight program. The scale of the Easton Park project, and the scrutiny it has drawn, reflects the pressure that rapid housing growth can place on a town's stormwater infrastructure. For now, the stop-work order remains in effect, and construction on the development stays frozen until Olsen Farm addresses the town's outstanding conditions.
