12/17/1979 Board of Public Works Minutes

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r': 5 M01 REGULAR MEETING CETA AGREEMENT APPROVED - CHAMBER OF COMMERCE DECEMBER 17,1979 Elroy J. Kelzenberg, Director of the Bureau of Manpower and Training, submitted to the Board a subgrant agreement between Ceta and the Chamber of Commerce in the amount of $2,387.00 for the period 11/1/79 through 12/31/79. The purpose of the agreement is to increase the budget. Upon motion made by Mr. McMahon, seconded by Mr. Mullen and carried the agreement was approved. An agreement between CETA and Indiana University in the amount of $134,657 was reviewed and action was tabled. The Board directed that Mr. Kelzenberg be asked to attend the next meeting of the Board to discuss the agreement. LEASE AMENDMENT FOR CETA OFFICE SPACE REFERRED Elroy J. Kelzenberg, Director of the Bureau of Manpower and Training submitted to the Board an amendment to extend the lease between the Bureau and James and Joan Nafe for the premises at 320 W. Jefferson. Upon motion made by Mr. McMahon, seconded by Mr. Brunner and carried, the amendment was referred to the Legal Department for review and recommendation. REQUEST TO PURCHASE CITY -OWNED LOT FILED Wilbur Lacy, 529 E. Ohio Street, requested information on the possible purchase of city -owned lots at 1013 and 1015 S. Carroll and at 1011 S. Rush Street. Upon motion made by Mr. McMahon, seconded by Mr. Brunner and carried, the request was filed and referred to the Engineering Department, Mayor's Office, Community Development Department, Redevelopment Department and Park Department for review and a determination as to whether the lots should be retained for any purpose. LEASE AGREEMENT APPROVED - PROPERTY AT MICHIGAN AND MARION STREETS Patrick M. McMahon, Director of Public Works, submitted to the Board a proposed lease agreement between the City of South Bend and Michigan - Marion Joint Venture for a parcel of land located at the southwest corner of Michigan and Marion Streets. Mr. McMahon noted that the Board had advertised this parcel of land for sale on two occasions with no bids received. An offer was received from James Conboy, Jr. on behalf of Michigan - Marion Street Joint Venture to purchase the parcel at less than the appraised price. The offer was submitted to the Common Council for approval and the Council did not approve the sale but -requested that a lease agreement be negotiated. The lease has been prepared and submitted to Mr. Conboy for his approval. The terms of the lease provide for a payment of $800 per year, equivalent to the property tax for the parcel. Mr. Conboy was present and took exception to the language of the cancellation clause, which provides that the City can terminate the lease for any reason upon written notification. Mr. Conboy noted he would have no objection if the City needed the property for any municipal use but would not want to have any investment he makes in improvements to the property lost if the City were to negotiate sale or lease of the property to another party. Mr. Conboy suggested that the wording be changed to give him the first right of refusal if the City should decide to terminate the lease. Mr. Conboy summarized the history of this property and the events which lead up to his offer to purchase. He noted he would make improvements to the property and be solely responsible for maintenance. The property would become an asset to the downtown. Terry Crone noted that the lease as written had an annual renewal provision and there would be no payback for any improvements if the lease ran for more