October 20, 2026
MICHIGAN CITY, Ind. – Franciscan Health, in partnership with Tonn and Blank Construction, is planning a medical office building on a portion of the former Marquette Mall property.
Franciscan Health plans to operate a 120,000-square-foot medical office building through the renovation of the former J.C. Penney store at the northwest corner of U.S. 421 and U.S. 20. The land is just 2.5 miles north of Franciscan Health Michigan City, which sits at U.S. 421 and Interstate 94.
The building will house more than 45 physicians, cost-effective imaging, an urgent care and multi-specialty physician offices, including multiple physicians each specializing in internal medicine, orthopedics, family medicine, pediatrics, ENT/audiology and endocrinology/rheumatology. The space will also support resident ambulatory rotations.
The plans represent increased provider capacity and room for future growth across multiple specialties. The multi-service medical office building supports Franciscan’s regional approach to cost-effective healthcare and aligns with two other similar Ambulatory Care Centers with multiple healthcare services currently under construction in St. John and Valparaiso. All of the projects are designed for the population Franciscan serves and aligned with the nonprofit Catholic healthcare ministry’s mission.
“We are excited to bring this project to Michigan City for the benefit of the residents and those of the surrounding counties,” said Stacey Leva, DO, president and CEO of Franciscan Health Michigan City. “Meeting the needs of the patients we serve by locating services under one roof and making care more easily accessible supports our Franciscan values in action.”
Tonn and Blank Construction purchased the former Marquette Mall property in mid-2025. Representatives from Tonn and Blank plan to present the project to city officials and request building permits later this month.
If approved, the project will be scheduled for completion by the end of 2027. Final plans for office relocations will be determined and shared with patients and staff closer to the opening of the building.
###
CUTLINE: A rendering of the Franciscan Health medical office building proposed for the site of the former J.C. Penney store in the former Marquette Mall at U.S. 421 and U.S. 20 is shown.
About Franciscan Alliance: The Franciscan Alliance healthcare ministry began in Lafayette, Ind. in 1875. Today, Franciscan Alliance is a large Catholic health care system in the Midwest with 11 hospital campuses, more than 16,000 employees and a number of nationally recognized Centers of Health Care Excellence. Hospitals include Franciscan Health Carmel; Franciscan Health Crawfordsville; Franciscan Health Crown Point; Franciscan Health Dyer; Franciscan Health Indianapolis; Franciscan Health Lafayette; Franciscan Health Michigan City; Franciscan Health Mooresville; Franciscan Health Munster; Franciscan Health Indianapolis Orthopedic Hospital and Franciscan Health Rensselaer.
About Tonn and Blank Construction: Founded in 1922, Tonn and Blank Construction is an owner’s builder experienced in delivering construction management and design-build projects across the Midwest. From self-performing key trades to prefabricating work in their Off-Site Construction facility and bringing design and engineering expertise in-house, they build with greater control, accountability and value for their clients.