04/28/1980 Board of Public Works Minutes

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421 REGULAR MEETING STREET LIGHT OUTAGE REPORT APRIL 28, 1980 The report indicated a total of 10 outages during the period of April 17, 1980, through April 22, 1980. The report was filed upon a motion made by Mr. McMahon, seconded by Mr. Kernan and carried. APPROVAL OF CLAIMS Chief Deputy Controller Michael L. Vance submitted to the Board Claim Docket No. 7490 through No. 7982 and recommended approval. Upon a motion made by Mr. McMahon, seconded by Mr. Hill and carried, the claims were approved and the report filed. PRIVILEGE OF THE FLOOR Mr. T. Brooks Brademas, Developer of the 100 Center Complex, Mishawaka, stated that he wished to bring to the attention of the Board certain irregularities concerning the Odd Fellows Building and the Redevelopment Commission. Mr. McMahon reminded Mr. Brademas that the Department of Redevelopment was a separate entity under the law and was governed by its Redevelopment Commission. Mr. Brademas stated that he was aware of that; however, he stated that the department was still a department of the city and he was concerned about the manner in which the Odd Fellows Building was being handled. He stated that HUD required public disclosures and a form was to be completed by each developer who proposed plans for the project which also required a preliminary rehabilitation plan which indicated costs, the proposed plans, letter of credit, etc. He further stated that it was required that a public disclosure be made by all persons having a 10% or more interest in the proposed development. He stated that that had not been done. He said that no final statements have been submitted; likewise, no cost estimates or plans. He indicated.that the Redevelopment Commission is required to consider all this information and it has not even been submitted. He alleged that the Redevelopment Commission had entered into an agreement for the sale of the Odd Fellows Building without complying with any of the requirements of the law.' He presented a letter to the Board which he had received from the Redevelopment Commission indicating that the four bids received for the project had been rejected. He stated that negotiations were supposed to take place shortly after he received the letter and nothing was done. He indicated that the only contact he had with the department was a call that the building was going to be demolished. He stated that he checked with the other developers and no contact had been made to any of them either. He felt it appeared that he and the other developers had been merely used to submit proposals so they could be rejected, thereby giving the commission the authority to enter into negotiations with any developer it desired. He felt this was not good faith. He stated that the developer chosen by the commission had not complied with the requirements of the law. He stated that there were no plans, specifications, costs, etc. He pointed out that the city was using public money and had spent approximately $4,500 to have a local architectural firm evaluate the proposals, only to find out that there was one difference in his proposal and the others: the stairs have been moved in a north -south direction. He stated that, when the proposals were submitted, the interest rate was 12% and has since risen to 19 %. He felt this was a classic example of government waste, and he hoped these actions were based on misjudgment and were not intentional. He asked that the Board of Public Works request an explanation from the Redevelopment Commission. Upon a motion made by Mr. McMahon, seconded by Mr. Kernan and carried, a copy of the minutes concerning Mr. Brademas' remarks will be referred to the Redevelopment Department as a courtesy so it would be aware of the remarks and comments made by Mr. Brademas.