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11:
SOUTH BEND REDEVELOPMENT COMMISSION
REGULAR MEETING
dust 1962 Redevelopment Commission Office
) A.M. 129 West Colfax Avenue
This meeting was called to order by Mr. James G. Louis, President.
Conurissioners present and answering to roll call:
Mr. James G. Louis, President
Mr. Clyde E. Williams, Vice - President
Mr. Frank G. Koczan
Mr. Virgil A. Place
Absdnt:
Also
Staf
Mr. Fred J. Helmen, Secretary
present:
Mr. Edgar Seybold, Civic Planning Association
Mr. Joseph Fragomeni, Charles W. Cole & Son
Mr. Rowland A. Hummel, Charles W. Cole & Son
Mr. Louis Haines, Haines & Haines
Mr. Jack Moulder, Haines & Haines
Mr. Victor W. Terhune, Reith -Riley Construction Co.
Mr. Buryl Daugherty, Marion M. Hamilton & Sons
f:
Mr. Henry Sucher, Executive Director
Mr. Edward Bielicki, Relocation Supervisor
Mr. Frederick K. Baer, LPA- Attorney
I. APPROVAL OF MINUTES
On motion made by Mr. Place, seconded by Mr. Koczan and unanimously
car ied, the minutes of July 19, 1962 meeting were approved as read
and the following business was discussed:
-1-
II. I APPROVAL OF OPTIONS
The Commission reviewed the Option Agreement signed by property
owner. in the Sample Street Redevelopment Area - Project No.
Indiana R -7. Upon motion by Mr. Place, seconded by Mr. Williams
and ananimously carried, the following option was approved:
Parcel 12 -63.
III. APPROVAL OF CLAIMS
PROJECT EXPENDITURES,ACCOUNT FUND:
1440.,01
Options - Parcel 12 -63
10.00
1440.01
Acquisition - Parcel 9 -2
7,400.00
1440.06
St. Joseph Cty., Clerk - Parcel 9 -2
Court Cost
25.16
1440.06
St. Joseph Cty., Clerk - (Cause No. B -5937)
4.25
1440.06
Appraisals - Condemnation
Michael J. Barany,- Realtor.
50.00
Harold C. Beck
50.00
Donald K. Fewell
50.00
Alex S. Langel
50.00
Phillip M. Oestreicher
50.00
Eugene J. Pajakowski
100.00
1440.05
Joan E. Elias - Reimburse Petty Cash Fund
48.60
1440.04
Abstract Company of St. Joseph County., Inc.
20.00
1410.19
Misc. Expense - Relocation Office
Rent, Gas
56.38
1410.05
Freeman - Spicer Leasing& Ins. Corp.
68.08
1410.19
The Bond Buyer
37.34 .
1410.19
South Bend Tribune
23.20
1445.03
The Record
26.78
1455.03
The Record
14.76
1455
03
South Bend Tribune.
13.61
Total
$8,098.16
REDEVELOPMENT
REVOLVING FUND:
Payroll - August 1 to August 15, 1962
2,496.65
1410.19
& 211
Indiana Bell Telephone Co.
66.03
141019
& 22L
Indiana & Michigan Electric Co.
29.92
Total
$2,592.60
GRAND TOTAL
$10,690.76
III.
APPROVAL OF CLAIMS - Continued
Reimbursement to Redevelopment Revolving Fund
for Expenditures for Month of July, 1962
From Project Expenditures Account Fund 4,794.01
From Urban Redevelopment'Fund 1,583.97
$6,377.98
On m tion made by Mr. Williams, seconded by Mr. Koczan and unani-
mous y carried, claims for payment totaling $10,690.76 were endor-
sed v the Commission.
IV. RESOLUTION NO. 49
Resolution authorizing the sale, issuance,`and delivery of Pre-
liminary Loan Notes in the aggregate principal amount of $1,375,000,
the execution of Requisition Agreement No. 2, and the execution and
delivery of Project Temporary Loan Note No. 3, in connection with
Project No. Indiana R -7 was approved by the Commission, upon motion
made by Mr. Williams, seconded by Mr. Koczan and unanimously carried.
Resolution No. 49 covering this authorization is hereby attached
and made a part of these minutes.
V. REQUISITION FOR ADVANCE PAYMENT (FEASIBILITY STUDY)
Upon motion made by Mr. Koczan,.seconded -by Mr. Place and unani-
mously carried, the Commission approved HHFA Form H -6123 Requisi-
tion for Advance Payment for submittal to Housing & Home Finance
Agency requesting partial advance towards the Feasibility Study
of t e South Bend Central Area.
VI. REPORT OF RELOCATION PROGRESS
The Commission, on motion- made -by Mr Place, seconded by Mt :
Williams and unanimously carried, approved the submission of
Form H -666 Report of Relocation Progress for submittal to the
Housing and Home Finance Agency, Chicago, Illinois.
VII. BID OPENING ON CONTRACT "B" OF THE CONTRACT FOR IMPROVEMENTS,
INDIANA kw-!-
Bids on Contract "B" for Site Improvements in the Sample Street
Project Area, Indiana R -7, being duly advertised were opened at
-3-
VII.
11:
on
Bid
Mary
iss
Sta
Bid
Stan
Bid
Insu:
that
The
BID OPENING ON_ CONTRACT . "B "_OF THE CONTRACT FOR IMPROVE-
MENTS, INDIANA R -7 -,Continued
0 A.M_ at the Commission; offi.ces four- bids , were received
he Contract. They were as follows -:
Haines and Haines $6,373.54
2620 S. Main Street
Elkhart, Indiana
bond of 5 %; Non - Collusion Affidavit enclosed; bond by
land Casualty Co.
Marion Hamilton Plumbing & Heating Co. $6,472.40
60689 U.S. 31 South
South Bend, Indiana
Collusion Affidavit ;.;,Bank- .Money,Order..,.in the sum of $325
ed by the First Bank & Trust Co. of South Bends Financial
ement included.
Rleth -Riley Construction Co.., Inc... $13,034.24
P.O. Box 775
South, Bend,, Indiana
bond of 5 %; Non - Collusion Affidavit enclosed; bond by
lard Accident Insurance,Co.
O. J. Shoemaker, Inc. $14,583.54
1008 Lincolnway East
South Bend 24, Indiana
bond of 5 %; executed Non - Collusion Affidavit; insurance by
rance Company of North America., Specific statement in bid
it does not include.pavement.repairs.
mission took the bids under advisement.
mm
VIII. PROGRESS REPORT
Mr.ISucher reported that there were 15 remaining property RELOCATEES
owners
(17 parcels) with whom no agreement
has been
IND. R -7
reached
on acquisition in the Indiana R -7
Sample Street
Commission authorized
Area.
Mr,
Joward Bellinger,
Acting
Acquisition
of the George Sands Parcel No.
12 -63 for
PARCEL NO.
$2770
was approved with the Redevelopment
Commission
12-63
to assume
payment of the 1961 taxes due in
1962 and
IND- R -7
all axes thereafter, on motion made by Mr. Williams,
seco ded by Mr. Kor_zan and unanimously approved.
On m
tion made by Mr.
Koczan,
seconded by Mr. Place
ACTING
and
inanimously carried, the
Commission authorized
DIRECTOR
Mr,
Joward Bellinger,
Acting
Director, to sign all
SIGNATURE
pape
s in the absence
of the
Executive Director,
AUTHORIZA-
Mr.
Henry Sucher, who
will attend
the Conference of
tion
Inte national Federation for Housing and Planning
imme iately following his annual leave.
The
Commission decided that the Leon Kalka family,
NOTICE TO
parcel
#12 -35, be served a 30 -day notice of termina-
VACATE
tion
in view of the family's refusing a large number
PARCEL
of referrals
to off -site housing from the Relocation
12 -35
Office.
The
commission approved submitting the proposed
ECONOMIC
contract
for Economic Feasibility Survey under the
FEASIBILITY
Feasibility
Survey Contract to the Regional Office
SURVEY
of the
Urban Renewal Administration for their con-
currence.
Mr.
Sucher reported to the Commission on the meeting
CITIZENS
of the
Citizens Advisory Committee on Community
ADVISORY
Improvement
which was held July 31 at the Council
COMMITTEE
Ch
ers of the City Hall.
IV;
G. L President FreQY J H, Dmen, Secretary
11
-5-
T
f RESOLUTION #49 AUTHORIZING THE SALE, ISSUANCE, AND DELIVERY
OF PRELIMINARY LOAN NOTES JX,THE AGGREGATE PRINCIPAL AMOUNT
OF 1,,375,000.00, THE EXECUTION OF REQUISITION AGREEMENT NO.
2, ANb THE EXECUTION AND DELi7'ERYF PROJECT TEMPORARY LOAN
NOT NO. 3, IN CONNECTION WITH P ECT NO. IND. R -7.
WHEREAS, the City of South Bend, Department of Redevelop-
men (herein called the "Local Public Agency ") has entered into
a contract dated as of the 17th day of August, 1960, numbered
Contract No. Ind. R- 7(LG), (which, together with any supple-
ments thereto or amendments, modifications, or waivers of any
provisions thereof, is herein called the "Loan and Grant
Contract"), with the United States of America (herein called
the "Government ") acting by and through the Housing and Home
Fin nce Administrator, providing, in part, for a Project Temporary
Loai by the Government to the Local Public Agency under Title I
of he Housing Act of 1949 (Public Law 171 - 81st Congress,
app oved July 15, 1949), as amended, in an amount outstanding at
any one time not to exceed $2,527,500.00 to aid the Local Public
Agency in its undertaking and carrying out of a certain slum
clearance and urban redevelopment project (herein called the
"Project") designated Project No. Ind. R -7, which is more fully
identified in the Loan and Grant Contract; and
WHEREAS, the Government has agreed, pursuant to Requisition
Agreement No. 1 with the Local Public Agency dated as of the 20th
day of February, 1962 (herein called the "Outstanding Requisition
Agr ement "), to make a payment on account of said Project Tempor-
ary Loan on the 24th day of August, 1962, which Project Tempor-
ary Loan payment has been pledged for the payment of the principal
of and interest upon Preliminary Loan Notes (First Series A) of
the Local Public Agency which mature on the 24th day of August,
196:1, and are herein called the "Outstanding Preliminary Loan
Not s "; and
WHEREAS, pursuant to advertisement for the receipt of pro-
posals for the purchase of the Second Series A of Preliminary
Loan Notes (herein sometimes called "New Preliminary Loan Notes ")
of the Local Public Agency aggregating $1,375,000.00, which
appeared in a Notice of Sale published in the July 10, 1962
issue of the Daily Bond Buyer in the City of New York, proposals
4 for the purchase of said New Preliminary Loan Notes in the form
approved by the Local Public Agency were received, opened, and
canvassed at the time and place mentioned in said advertisement,
to it: At 129 West Colfax Avenue in the City of South Bend,
Ind ana, at 1 :00 o'clock, P.M., E.D.S,T., July 24, 1962, which
proposals are as follows:
Interest Principal
Name of Bidder Rate Amount Premium
Chemical Bank New York Trust Co. 1.920 $1,375,000 $25.00
New York 15, New York
Moran Guaranty Trust Co. of N. Y. 1.88/0 $1,375,000
New York 15, New York
Con inental Illinois National Bank 1.79•% $1,3750000
& T ust Co. of Chicago
Chi ago 90, Illinois
Sal mon Bros. & Hutzler 1,76% $1,375,000
New York 5, New York
$26.00
••0-
$37.00
and I
cane
Gr a
wit
Pre
►lution No. 49
2.
WHEREAS, the interest cost at which the Local Public Agency
sell the New Preliminary Loan Notes is substantially lower
i the interest rate which the Government is required to
:ge the Local Public Agency under the terms of the Loan and
it Contract, and the Government is desirous of cooperating
z the Local Public Agency in its endeavor to sell said New
Liminary Loan Notes in order to reduce carrying charges and
:r costs of the Project:
BE IT RESOLVED BY The City of South Bend Redevelopment
ission AS FOLLOWS:
Section 1. The aforesaid publication of the Notice of Sale
and the form and contents thereof as so published are hereby,
in all respects, approved, ratified and confirmed.
Section 2. In order to provide funds to defray expenses
incurred or to be incurred in the Local Public Agency's under-
taking and carrying out of the Project, or to retire, refund,
renew, or extend its outstanding notes issued in connection
therewith, the Local Public Agency hereby determines to borrow
the sum of One Million Three Hundred Seventy Five Thousand
Dollars ($1,375,000.00) and issue its negotiable New Preliminary
Loan Notes therefor in aggregate principal amount equal to said
Section 3. The Local Public Agency hereby ratifies and
approves the form of the proposal hereinafter in this Section 3
enumerated, for the purchase of the designated principal amount
of the New Preliminary Loan Notes, which proposal the Local
Public Agency hereby determines will provide the lowest interest
cost and is therefore hereby accepted, and said New Preliminary
Loan Notes are hereby awarded to said purchaser, as follows:
Principal
Amount
$1,375,000
Au
be
23
ra
nu
pr
Interest
Rate
Purchaser
1.76% Salomon Bros. & Hutzler
60 Wall Street
New York 5, New York
Section 4. Each such note shall be dated the 21st day of
xst, 1962; shall be designated "Preliminary Loan Note ", shall
payable, as to both principal and interest, to bearer on the
3 day of August, 1963; and, pursuant to the proposal for the
:hase of said notes, hereinabove accepted, shall bear the
of interest per annum, payable at maturity, shall bear the
Ders, be in the denominations, and be payable as to both
zcipal and interest at the bank or trust company, as follows:
Denomi-
haser Number nations
mon Bros. & Hutzler 1 -6 $100,000
'all Street 7 -15 50,000
York 5, New York 16 -23 25,000
24 -33 10,000
34 -38 5,000
Interest
Rate Payable at
1.76/ The Chase Man-
hattan Bank
1 Chase Manhattan
Plaza
New York 15, N.Y.
Resolution No. 49
3.
None of the New Preliminary Loan Notes shall be valid until
after the bank or trust company at which it is payable shall
have signed the agreement, appearing on each such note, to
act as paying agent thereof. Each of the New Preliminary
Loan Notes shall be signed in the name of the Local Public
Agency by the Mayor of the City of South Bend and shall have
the corporate seal of said City impressed thereon and attested
by the Clerk of the City of South Bend thereof, and said officers
are hereby authorized and directed to cause said notes to be
properly executed.
Section 5. Each of the New Preliminary Loan Notes shall
be issued in substantially the form of the note hereto attached
and marked "Exhibit A."
Section 6. The Agreement entitled "Requisition Agreement
No. 2" (herein sometimes called the "Now Requisition Agreement "),
which has been executed by the officers of the Local Public
Agency, and has been presented to and read before the meeting,
and the execution thereof, are hereby fully ratified, confirmed,
and approved. Said New Requisition Agreement, when executed by
the Government, is hereby declared to be and is hereby assigned
byt e Local Public Agency for the benefit of the holder or
holders from time to time of the New Preliminary Loan Notes, and
the proceeds of the Project Temporary Loan Note executed pursuant
to Section 7 hereof are hereby irrevocably pledged, first, to
the payment, at maturity, of the principal of and interest on
the New Preliminary Loan Notes issued pursuant to this Resolution.
Section. 7. The Mayor and Clerk of the City of South Bend
are hereby authorized and directed to prepare and execute the
Project Temporary Loan Note, in the principal amount of One
Million Four Hundred Thirty Nine Thousand Dollars ($1,435,000.00),
described in the New Requisition Agreement, the issuance of which
was heretofore been authorized by a certain basic Note Resolution
providing for the issuance of certain Project Temporary Loan
Notes in connection with Project No. Ind. R -7 and providing for
the security for the payment thereof, and for other purposes,
duly adopted by the Local Public Agency on the 4th day of
August, 1960.
Said note shall be designated "Project Temporary Loan Note ";
shall be numbered No. 3; shall be dated the 21st day of August,
1962; shall bear interest from the date of the acceptance of
the Local Public Agency's delivery thereof and the payment
the efor by the Government, shall bear a statement at the foot
the eof in substantially the following form:
"De ivery of this note was accepted and payment therefor made
on �he day of 1 196
UNITED STATES OF AMERICA
Housing and Home Finance Administrator
By
(T J- t1e) '
Resolution No. 45
MM
and shall not be valid until said statement is duly executed
on behalf of the Government. Said Project Temporary Loan Note
shall be delivered by the Treasurer of St. Joseph County ex
officio Treasurer of the City of South Bend to the Government
to be held and paid for by the Government in accordance with
the terms and conditions contained in said New Requisition
Agreement.
Section G. The proceeds derived from the sale of the New
Pre iminary Loan Notes, together with such amount of other
app opriate funds of the Local Public Agency as may be necessary,
sha 1 be applied, simultaneously with the receipt of said pro-
ceeds, as follows:
First: To the payment and discharge of the principal of
and interest on the following Project Temporary
Loan Notes of the Local Public Agency issued
pursuant to the Loan and Grant Contract and held
or to be held by the Government for its ovnz use
and benefit on the date of the New Preliminary
Loan Notes herein authorized:
Principal
No. Date Amount
None
Second: Pursuant to the provisions of the Outstanding
Requisition Agreement, the following amount
shall be paid to the paying agent named below,
for the sole and only purpose of paying the
principal of and interest to maturity upon the
designated Series of Outstanding Preliminary
Loan Notes of the Local Public Agency:
t Paving Agent Series
$306,323.05 Chemical Bank New York First Series A
Trust Company
20 Pine Street
New York 15, New York
Any balance of such proceeds shall be deposited in the appro-
priate account or fund established pursuant to the Loan and
Grant Contract and shall be used only in accordance with the
nr visions of the Loan and Grant Contract.
dix
the
let
(1)
de
(2)
tox
pal
on
Section °. The Treasurer of St. Joseph County ex officio
asurer of the City of South Bend is hereby authorized and
ected to send immediately a letter to each paying agent for
New Preliminary Loan Notes in substantially the form of the
ter hereto attached and marked "Exhibit B" and to transmit:
the New Preliminary Loan Notes to said paying agent for
ivery and payment in accordance with the terms of said letter;
None of funds of the Local Public Agency to the Administra-
Housing and Home Finance Agency, to be applied against the
ent of the principal of and interest to the date of payment
the Project Temporary Loan Notes described in Section 0
Resolution No. 49
5.
hereof; and (3) funds of the Local Public Agency to the paying
agent of the designated Series of Outstanding Preliminary Loan
Notes, to be applied against the payment of the principal of
and interest to maturity on such Series of Outstanding Prelimin-
ary, Loan Notes, as follows:
$1919 , 900' 0 00
mis
Paving Aaent
Chemical Bank New York Trust
Company
20 Pine Street
New York 15, New York
Series
First Series A
cued at the regular meeting of the South Bend Redevelopment
mission Meld on August 2, 1962, at the office of the Com-
sion, 120, West Colfax Avenue, South Bend, Indiana
ATWST
i
Jam Louis, President
util .Bend Redevelopment Commission
MEMORANDUM ON BID OPENING
Redevelopment Commission Office
129 West Colfax Avenue
Present:
Edwin L. Davies, Controller, City of South Bend, Indiana
James G. Louis, President, South Bend Redevelopment Commission
Henry Sucher, Executive Director, Department of Redevelopment
Frederick K. Baer, Attorney for Redevelopment Commission
The Executive Director, Henry Sucher, made proof of publication
of Notice of Sale of $1,375,000, Second Series "A" Preliminary
Loan Notes, having maturity date of August 23, 1963, funds to
be used in connection with Project No. Indiana R -7, South Bend,
Indi na. Publication was made in The Daily Bond Buyer on Tues-
day, July 10, 1962, and proof of publication certified by
affi avit was made.
It n�w being 12 :05 P.M., Central Daylight Saving Time, the
foil wing bids were opened and received:
Chem cal Bank New York Trust Company, Bank Investment Division,
20 4ne Street, New York. Interest rate of 1.92 per cent per
ann and premium of $25.00.
Moron Guaranty Trust Company, 140 Broadway, New York 15, N. Y.
Inte est rate of 1_88 per cent per annum and premium of $26.00.
Bank of America, National Trust & Savings Association, 300
Mont omery Street, San Francisco 20, California. Interest
rate of 1.79 per cent per annum and premium of $101.00.
Cont nental Illinois National Bank and Trust Company of Chicago.
Inte est rate of 1.79 per cent per annum and no premium.
Saloon Brothers & Hutzler, Sixty Wall Street, New York 5, N. Y.
Inte est rate of 1.76 per cent per annum and premium of $37.00.
Upon examination of the bids it was determined that the low bid
was gubmitted by Salomon Brothers & Hutzler calling for a
prem'um payment of $37.00 and a rate of interest of 1.76 per
cent per annum. The bids were telephoned to the Housing and
Home Finance Agency in Chicago and approval was given to the
bid f Salomon Brothers & Hutzler.
Thereupon Edwin L. Davies, Controller of the City of South Bend,
advised that he would forthwith wire Salomon Brothers & Hutzler
of the acceptance of their bid.
Henr Sucher/
Exec Live Director
7/24V62