08-13-73 Council Meeting Minutes

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REGULAR MEETING AUGUST 13 1973 COMMITTEE OF THE WHOLE MEETING (CONTINUED) of Human Resources and Economic Development, made the presentation for the ordinance on behalf of the Safety Director, Mr. Patrick Gallagher. He indicated that the funds would be used for demoli- tion of 30 structures that are beyond any possibility for rehabilitation. He stated that the majority of the houses suffer from burn out. He stated that a breakdown regarding the demolition had been furnished the Council members by the Safety Director. He explained that 56 residential buildings were scheduled for demolition and 3 commercial buildings. He indicated that $51,000 had been used for contracting of the demolition. Dr. Kromkowski indicated that, in addition to the projected buildings to be demolished, a grant in the amount of $70,000 had been received for the Model Cities area which would bring the city to between $96,000 and $97,000 worth of demolition activities during 1973 with a total of 230 to 240 homes being demolished. He felt the appropriati was well warranted as the demolition of the substandard buildings would end the blight in many are Mrs. Frederick Mutzl, President of the St. Joseph County Fair Tax Association, asked about the amount of money coming back into the fund. She asked if the residents of the buildings paid to hall their homes demolished. Dr. Kromkowski indicated that approximately 200 buildings have been demolished and 59 of those have been torn down by the city. He stated that most of the demolish- ment is private, and he explained that recouping the money is a very gradual process until the developers utilize the areas. Mrs. Mutzl asked if those persons responsible for setting the buildings on fire and making them substandard were ever apprehended. She indicated that there is a pattern for the fires, and she felt it was very alarming. Mr. Ralph Muszynski of the Western Avenue Business Council, stated that the council recommended the appropriation ordinance be passed He indicated that he has received complete cooperation with demolition in the area, and he stated that the area was a blighted one. He mentioned that one particular building had been requested to be demolished, and the Board of Public Safety had indicated that funds were not available for the demolition. He stated that he had requested another building in the 3800 block of Western Avenue also be demolished as there have been four or five alarms in that area. He concluded that the buildings were an eyesore to the surrounding area. Miss Fanny Grunwald, 227 South Frances Street, asked about the money received back on the insurance when the homes were burned. Dr. Kromkowski indicated that the property owners would receive the insurance money. He explained the process of the buildings being burned and the city being responsible for tearing them down. He indicated that, when that is the case, a mechanic's lien is placed on the property and, if there is a trans- fer of ownership, then the mechanic's lien must be paid off. City Attorney Roemer indicated that most of the houses that are burned out are vacant and the insurance has lapsed on those homes. Miss Virginia Guthrie, Executive Secretary of the Civic Planning Association, stated that the original budget for demolition was $50,000 for 1973. Dr. Kromkowski indicated that she was correct and, out of those funds, $34,000 was actually used because the fund was "overdrawn" from the previous years. Miss Guthrie questioned this. She stated that $25,000 had been received in additional funds from the revenue sharing funds and now another $25,000 was being requested. This was in addition to the $70,000 received in the Model Cities area. She felt the homes should be taken care of, but she felt the city should be receiving some money back. She asked how much had been received by the city in mechanics' liens. Mr. Walter Lantz, Chief Deputy Controller, indi- cated that $7,500 had been received by the city. Miss Guthrie indicated that she did not under- stand why more money was needed. She wondered how much more money would be received by the city. Dr. Kromkowski indicated that the forces of renewal for a particular area must be consolidated. Until this is done, the money would not be received back by the city and nothing would be done about the safety problems. Miss Guthrie indicated that she was not suggesting that; however, she was questioning the amount of money being spent on demolition. Mr. Lantz indicated that the demolition fund was not in the red in 1972, but that $17,000 of the 1973 budget had to be used for demolition for last year. Councilman Parent indicated that only $7,500 has come back to the city which signified the attitude of certain persons. He felt that, if those citizens would take care of their properties, this would not be the case. He felt by the appropriation of these funds, the local government was doing its job. Councilman Taylor asked if the $25,000 would be earmarked on Western Avenue, and Dr. Kromkowski indicated that the money would be used in the Southeast area. He explained that Model Cities funds are taking care of that area and there is a code enforcement project in the Northwest area. Councilman Kopczynski asked if there were two sites on Western Avenue scheduled for demolition, and Dr. Kromkowski indicated that there were at least two sites scheduled. Councilman Kopczynski felt that, by demolition of these properties, the land would com back quickly because it would be more desirable. He felt the appropriation would be an investment to the city in order to preserve and maintain the areas for good commercial property. He stated that, when buildings have served a useful purpose and the owners do not take care of the property, something must be done. He indicated that there is a good plan for Western Avenue in the making and he felt the Council should act favorably on the ordinance. Dr. Kromkowski indicated that the economic development strategy simply becomes another tool for revitalization. Councilman Szymkowi l felt the tearing down of these buildings was badly needed. He stated that, once the buildings are torn down, the land can be put to a good use. He indicated that there was a great need for parkin on Western Avenue, and he recommended that the Council act favorably on the ordinance. Chairman Newburn indicated that the demolition crews were becoming careless when cleaning up after demolish ment. He asked that this be taken care of. Councilman Kopczynski requested that Mr. DeFreeuw bring the Council up to date on the proposed development of Western Avenue at some future date. Mr. Muszynski indicated that the Business Council would be very happy to do that. Council Preside 1 Nemeth indicated that he would appreciate receiving a list of revenue sharing funds available to the city. Councilman Kopczynski indicated that he had requested that information as chairman of the Council Finance Committee; however, he had never received it. Mr. Lantz indicated that the councilmen should have received the information the past week, and he stated that he would check into the matter. Councilman Miller made a motion that the ordinance go to the Council as favorable, seconded by Councilman Taylor. The motion carried. ORDINANCE AN ORDINANCE APPROPRIATING THE SUM OF $32,195.00 FROM THE CUMULATIVE SEWER BUILDING AND SINKING FUND (RETENTION BASIN CONSTRUCTION). This being the time heretofore set for public hearing on the above ordinance, proponents and opponents were given an opportunity to be heard. Mr. David Wells, Manager of the Bureau of Administration and Design, made the presentation for the ordinance. He'explained that, in 1969, several studies were made of various sections of the city regarding storm sewers. Subsequent to these reports, several storm sewers and lagoons were constructed. He stated that, at present, McKinley Terrace is under construction. He further stated that a private developer had approached the city at that time with plans to construct an apartment complex in one of the areas that was planned to.become a retention basin. This had been explained to the developer and he was willing