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HomeMy WebLinkAboutRM 08-15-75August 15, 1975 10:00 . M. Presiding Officer: 1. ROLL CALL SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING 1200 County -City Building Mr. F. Jay Nimtz, 217 West Jefferson Blvd. President South Bend, Indiana 46601 issioners Mr. F. Jay Nimtz, President ent: Mr. John E. Chenney, Vice President Mr. Donald A. Wiggins, Secretary Mr. Robert J. Cira, Member Commissioner Mr. A. Peter Donaldson, Member Absent: Legal Counsel: Mr. Kevin J. Butler News Media: Ms. Jeanne Derbeck, South Bend Tribune Reporter Mr. David Anderson, WNDU -TV Reporter Mr. James L. Marchelewicz, WNDU -TV Photographer Mr. Wayne R. Doolittle, WSBT -TV Reporter Mr. Frank Vellner, WSBT -TV Photographer - Mr. Larry Ford, WSJV -TV Reporter Mr. Les Howard, WSJV -TV Photographer Others Present: Mrs. Janet S. Allen, Interested Citizen Mr. Gene Evans, Executive Secretary, Civic Planning Assn. Mr. Thomas Gibson, Interested Citizen Mr. John R. Kagel, Executive Director, Downtown South Bend Council Mr. Gordon E. Medlock, International Constructors Co. Mr. Bill E. Slabaugh, Dept. of Public Works Mr. Edward F. Soltesz, Chairman, Governmental Coordina- tion Committee of River Bend Plaza Advisory Committee LPA Staff: Mr. C. Wayne Brownell Mr. Mark S. Davis Ms. Helen S. King Mr. Richard Pfeiffer Mr. Keith P. Crighton Mr. Kenneth J. Schaller 2. APPROVAL OF MINUTES Moo on was made for the approval of the Minutes of Regular Meeting of ugust 1, 1975, as mailed, by Mr. Chenney, seconded by Mr. Cira and carried. - 1 - MINUTES APPROVED 3. APPROVAL OF CLAIMS Motion was made by Mr. Wiggins, seconded by Mr. Chenney and CLAIMS carried, to approve the claims, as submitted, and they be allowed APPROVED and ordered to be paid, totalling: $30,111.23. The claims, as authorized, are: P. .A. R -57 South Bend Exterminating Co. $ 30.00 Sweeney, Butler & Simeri 80.50 Total 110.50 P. .A. R -66 Na tilus Construction Co., Inc. $ 12,600.00 So th Bend Exterminating Co. 30.00 Sweeney, Butler & Simeri 1,563.96 Total 14,193.96 REDEVELOPMENT REVOLVING FUND Payroll: July 12 through July 25, 1975 $ 5,439.17 C- Wayne Brownell - Travel 43.30 Comet Car Wash 23.25 Continental Assurance Co. 38.50 Credit Bureau of South Bend - Mishawaka 4.00 Dorothy Z. Deane, Petty Cash 94.28 International Business Machines 752.68 Jack's Conoco Service 221.20 Postmaster 13.76 The Rotarian 25.00 South Bend Tribune 46.80 So th Bend Water Works 30.46 Total 6,732.40 P.E.A. N.D.P. A -10 Northern Indiana Public Service Company $ 4.14 Sweeney, Butler & Simeri 33.00 Total 37.14 BUREAU OF HOUSING E -7 Area Services, Inc. $ 5,917.94 Sweeney, Butler & Simeri 52.50 Total 5,970.44 REDEVELOPMENT DISTRICT CAPITAL FUND Al Batcho - R -57 Complaints $ 2,171.00 Home Plumbing & Heating 56.42 Factory Tile, Inc. 565.46 C. E. Lee 101.55 Total 2,894.43 - 2 - 3. APPROVAL OF CLAIMS (Cont'd DISTRICT CAPITAL BONDS OF 197 Acme Air - Filter Service $ 4.00 Curl ey's Mower Service 95.40 Sears, Roebuck & Company 72.96 Total 172.36 GRAND TOTAL $ 30;111.23 4. ELfCCTION OF ASSISTANT SECRETARY President Nimtz recommended Mr. A. Peter Donaldson be nominated MR. A. PETER Assistant Secretary of the South Bend Redevelopment Commission DONALDSON, to perform the required duties of the Secretary in the absence ELECTED ASST. of the Secretary--Mr. Donaldson being the senior Commissioner SECRETARY of the two members of the Commission. Motion was made by Mr. Wiggins to nominate Mr. L. Peter Donaldson, to serve as Assistant Secretary of the Redevelopment Commission, se onded by Mr. Chenney and unanimously carried by all Commission- ers present. 5. COMIMUNICATIONS a. a Letter from Mr. B. L. Wade, former Redevelopment Commissioner: MR. B. L. WADE, This letter was directed to Mayor Jerry J.' Miller, thanking LETTER OF THANKS him for taking the time from his busy schedule to present Mr. Wade with a key to the City of South Bend. Copies of the letter were also mailed to Mr. F. Jay Nimtz, as the President of the Commission, and Mr. C. Wayne Brownell, as the Director of the Department of Redevelopment. Mr. Wade stated he enjoyed serving on the Redevelopment Commission, and again as he said before, South Bend is a lot better off with the urban redevelopment that we have had, than without it. President Nimtz advised Commissioners Chenney and Wiggins [absent at the last meeting] that we had a nice ceremony at the last Commission meeting, with the presentation of the framed resolution commending Mr. Wade's services on the Commission, and Mayor Miller of our City was here and pre- sented Mr. Wade with a key to the City and:made some very appropriate comments. HUD Area Office letter dated August 7, 1975: This letter, MEETING FOR over the signature of Mr. Stephen J. Havens, Acting Director, PLANNED CLOSE- Community Planning and Development, confirms a meeting sche- OUT, NDP A -10 duled in their office for Wednesday, August 13, 1975, with Mr. C. Wayne Brownell and the Area office staff to discuss the planned close -out of our Neighborhood Development Program, Project Indiana A -10. HUD Forms 6250, 6251, 692 and 6282 to be prepared for the meeting. - 3 - 5. COMMUNICATIONS (Cont'd) Mr. Brownell said that he and Mrs. Dorothy Z. Deane, accountant in our fiscal division, attended this meeting in Indianapolis, along with the officials of the Regional office, Mr. Martin Segal and Mr. Richard Jacobson, and Mrs. Fredi Schmutte and Ms. Peggy Hudgens, of the Area office. They accepted these reports as of 7- 31 -75, but instructed us to continue to contract expendi- tures in line with our budget with close -out date of November 15, 1975. We may be,able to get the money for the financial arrange- ments -- $34,240 -- sent to the City of South Bend for our use in connection with this project. Mr. Brownell said that they reviewed the demolitions, condemnations, sale of the land to the City, etc., and that everything is coming along fine and is in good shape. Mot on was made to �eceive the 6. OLDI BUSINESS a. by Mr. Wiggins, seconded by Mr. Chenney and carried, above letters and place on file. Report on Disposition Parcel No. 6 -1, Project Indiana R -66: REAL ESTATE Mr. Brownell read this report, in its entirety, from Real RESEARCH Estate Research Corporation letter dated July 30, 1975, over CORPORATION the signatures of Mr. Nicholas C. Jannotta, Executive Vice REPORT President, and Mr. John W. Diamond, Vice President and Director of Hotel, Motel and Travel Studies. For the record, excerpts are noted: "This summarization has been prepared on the basis of the analysis made of the position of the hotel in the present market; an evaluation of its role in the face of indicated future developments; and with due consider- ation for alternative opportunities for the property. "In our judgment, further research would not substantively alter the findings presented in this report, but serve only.to reinforce these conclusions. "We are convinced there is an actual over supply of first- quality transient accommodations in the South Bend area market at this time. While not all of the existing es- tablishments offer the ultimate in visitor accommodations, the general level of quality is acceptable and well suited to indicated demands. Occupancy in any new rooms built, particularly in the downtown area, will be at the expense of existing establishments and will increase the wide- spread softness in the market. "The new convention center will be somewhat hampered in reaching full commercial convention potential by the limited number of good quality, committable rooms within walking distance of the complex. While the relationship - 4 - 6. OLD BUSINESS (Cont'd) of the center to the entire supply of first - quality rooms is not ideal, the distribution of outlying accommodations is certainly within acceptable limits and not unlike that existing in a number of other cities of a size comparable to South Bend. "It is, therefore, our conclusion that in spite of the very attractive opportunity presented by the Midway Motor Lodge/ Hoffman House combination that this project cannot be successfully supported without adversely affecting a market that is already having considerable problems." Mr. Brownell advised that he discussed this letter yesterday with Mr. Medlock and he is aware of this report and has been furnished with a copy of the letter. Motion was made by Mr. Wiggins, seconded by Mr. Cira and carried, to receive the report from Real Estate Research Corporation and place on file, pending further discussions with Mr. Medlock. At this point, Mr. Gordon E. Medlock, International Constructors Company, arrived in the meeting and President Nimtz advised him that Mr. Brownell had just read the letter from Real Estate Research and that he had also advised he had discussed this letter with him. The Chair also advised Mr. Medlock of the motion just made. b. Report on letter dated Au ust 1, 1975, from Mr. Harrison Miller, re sale of downtown property: This letter was received by Mr. F. Jay Nimtz, as President of the Redevelopment Commission, just prior to the Commission meeting being in session, Friday, August 1st meeting. The comments relating to the letter are noted in the Minutes of that meeting, 8a, pp. 9, 10 and 11, and the Chair had requested this item be placed on the Agenda for this meeting and referred to our Commission Legal Counsel, Mr. Kevin J. Butler, and Mr. Brownell, Executive Director, Department of Redevelopment, for a report. Mr. Brownell read the letter in its entirety. Mr. Butler advised that Mr. Nicholas C. Jannotta, with Real Estate Research Corporation, has been on vacation for the past two weeks. "We expect him to be visiting us next week for at least one day- - possibly two - -to discuss the Parcel 6 -1 disposition, as well as other disposition matters in =the downtown area, and this letter will be discussed with him at that time concerning Mr. Miller's recommendations, or opinion, that the one bid that we received and the proposal -- redevelopment plan that is involved with that bid - -that it not be approved by the Commissioners. That will be discussed with Mr. Jannotta." President Nimtz added, "Of course, it is my understanding from our previous discussions that you [Mr. Kevin J. Butler, Commission Legal Counsel] advised us some weeks ago that the bid itself, with its conditions, does not meet the requirements. This is no news to us here. This has been your position 'that the conditions that were in the bid, that they did not meet the legal requirements.' Is that right, Kevin ?" REPORT ON LETTER RE- CEIVED FROM MR. HARRISO MILLER, LAND SALE, R-66 6. OLD BUSINESS (Cont'd) Mr. Butler answered in the affirmative, and the Chair said that this is not new news. Mr. Butler added, "Right. I think Mr. Miller does go beyond that though, that the planning- -the development plan itself - -is not appropriate for that block, and, of course, that is the item and matter we will discuss with Mr. Jannotta." Commissioner Wiggins said, "We appreciate Harrison's interest. He formerly was employed here, you know, and it's nice that he has a continuing interest in what we are doing. I am a little surprised though that he hasn't retained his feeling that this Commission has some expertise- in this matter and is able to meet its responsibilities." The Chair requested a motion be made that this letter be re- ceived and placed on file. The motion was so made by Mr. Wiggins, seconded by Mr. Cira and carried. c. Reoort on Drinkinq Fountains discussed in Commission Meeting of August 1, 1975: Mr. Brownell read this letter in its entirety, dated August 5, 1975, from Mr. Patrick M. McMahon, Manager, Bureau of Public Construction, and Mr.'Bill Slabaugh, Project Engineer, to The Hickey Company, as Mr. Butler, Commission Legal Counsel, had requested an update and status of the invoice for the replacement parts in connection with the drinking fountains, in Site Plan Blocks 5 and 6 on the River Bend Plaza. Ideal Consolidated took the parts out of one of the fountains that was not working and sent them to HAWS. The River Bend Plaza Maintenance Crew activated the drinking fountain at Dainty Maid Bakery by by- passing the damaged or faulty parts. Mr. Slabaugh advised both of the drinking fountains previously discussed in August 1st Commission meeting are now working, along with the other drinking fountains on the Plaza. Mr. Butler said the only action needed on this letter is to re- ceive it and place on file, and to have Mr. Slabaugh stay on top of this. The motion was so made by Mr. Wiggins, seconded by Mr. Chenney and carried. Mr. Larry Ford, Reporter for WSJV -TV, inquired if this was all done within the past two weeks, why couldn'.t it have been done earlier and not have had the outburst that occurred a couple of weeks ago? They are not fixed the way they should be, but at least the drinking fountains are working now. The Chair re- ferred to the legal connotations and responsibility -in mainte- nance as he and Mr. Butler had expressed in the last meeting. Mr. Butler added that we made a determination, and since things had continued for such a long period of time.and no repairs had been made, it was within our province to go ahead, and through the bypass process, have the fountains in working conditions, pending the repair or installation of new parts. REPORT ON DRINKING FOUNTAINS, RIVER BEND PLAZA, R -66 N 0 BUSINESS (Cont'd Further lengthy discussions followed on the shut -off of the water fountains, replacement parts ordered, substituting HAWS parts with another manufacturer's, etc. Mr. Butler advised Ideal Consolidated does not have any right, without invalidating the warranty, to re- pair the fountains with anything other than HAWS' parts. The warranty runs from HAWS to Ideal Consolidated, to The Hickey Company, to the City of South Bend. BUSINESS a. Amendment to Contract 1722 -21, Merry Avenue Project: Commission approval was requested for this Amendment to the Merry Avenue Project Contract, which is between the City of South Bend, acting through its City Demonstration Agency, and the Department of Re- development, for additional funds of $12,433.00 the Agency has requested to complete the scope of services of the original agree- ment and both parties have mutually agreed. The total amount to be paid by the City to the Agency under this agreement is not to exceed $246,183.00 for full and complete satisfactory per- formance. The allowable cost is for consultant and contractual services. Motion was made by Mr. Wiggins, seconded by Mr. Cira and carried, for the approval of the Amendment to Contract 1722 -21, in the Merry Avenue Project, to complete the scope of services of the original agreement, as noted above, and the President and Secre- tary authorized to execute same, subject to Legal Counsel approval. b. Amendment to Contract 1925 -30, Model Cities Code Enforcement Project E -6, with amended boundaries: Commission approval was requested for this Amendment to the Model Cities Code Enforce- ment Project E -6, with amended boundaries, which is between the City of South Bend, acting through its City Demonstration Agency, and the Department of Redevelopment, for additional funds of $198,916.00 the Agency has requested to continue this Project with amended boundaries. The total amount to be paid by the City to the Agency under this agreement is not to exceed $591,613.00 for the performance of this contract. Funds for allowable cost to be expended for following purposes: 1) Personnel $ 137,948.00 2) Contract Services 431,760.00 3) Travel -0- 4) Space 5,600.00 5) Consumable Supplies 3,750.00 6) Rental, Lease or Purchase of Equipment 11,055.00 7) Other 1,500:00 Total.......... $591,613.00 The Project timetable is: December 1, 1974, and to terminate August 31, 1976. - 7 - AMENDMENT TO CONTRACT 1722 -21 APPROVED, MERRY AVE. PROJECT AMENDMENT TO CONTRACT 1925 -30 APPROVED, E -6 PROJECT, AMENDED BOUNDARIES 7. NEWIBUSINESS (Cont'd Mr. Edward F. Soltesz, Chairman, Governmental Coordination Committee of the River Bend Plaza Advisory Committee, asked what the amended boundaries are to this Project. Mr. Keith P. Crighton, Director of the Bureau of Housing Program, advised this Project originally started at the west end of the Model Cities Project. The first contract that the Redevelopment Commission entered into with the Model Cities Agency was on August 1,1973, for the E -6 Project. We have had three extensions on this Project so far- -not because the work has progressed slow, but because the work has progressed so well. We have had 125 homes on contract in the project and we anticipate another 40 or 45 homes to contract on additional funds we have left. The boundaries originally were Longley Avenue on the North; Wilbur Street on the East, Linden Avenue on the South, Meade Street on the West; and we have extended the boundaries. Every extension we have had we extended them a °block or two blocks. On this last extension, we have gone all the way East to take in both sides of Walnut Street, and we have added some sections on Linden that was previously excluded, and small section on Johnson Street. The area included approximately 140 homes on the new extended areas, so I believe our total number of homes in that Project should be in the neighborhood of 715 structures. Mrs. Janet S. Allen asked if this will include the Northwest home- owners- -the Blaine area - -as the Northwest homeowners were protest- ing that their area is not being included in the Model Cities Project. Mr. Crighton said the Northwest is a different project- - the two projects abute one another. The Northwest program starts on the eastern boundary of the Model Cities Project which would be the LaPorte Avenue, and it goes North to Van Buren. We have a number of people in that area who have a need for housing rehabili- tation and that is why we are in the Northwest. Motion was made by Mr.. Wiggins, seconded by Mr. Cira and carried, for the approval of the Amendment to Contract 1925 -30, in the Model Cities Code Enforcement Project E -6, to continue the Project with the amended boundaries, as noted above, with additional funds of $198,916.00, subject to Legal Counsel approval. c. Option Agreement for Parcel No. 76 -4: Approval was requested of an Option Agreement for Parcel No. 76 -4, for purchase price of $5,250.00, Project NDP A -10, Southeast #1, at 230 Paris Street. Motion was made for the approval of the Option Agreement, noted above, by Mr. Wiggins, seconded by Mr. Cira and carried, and the President authorized to execute same. d. Change Order No. 1 to Rehabilitation Contract No. 34, E -7: Ap- proval was requested of this Change Order, which is for addi- tional work on the second floor bathroom lavatory, at 506 East Pennsylvania, for an increase in contract amount of $67.00, with an amended contract total of: $3,736.77, and no change in time, Project E -7, Bureau of Housing. The contract is with Ted Combs Decorating & Construction Company. OPTION AGREEMENT APPROVED, PARCEL NO. 76 -4, NDP A -10, SE #1 CHANGE ORDER NO. 1 TO REHAB. CONTRACT NO. 34 APPROVED, E-7 7. NEWIBUSINESS (Cont'd) The memorandum from Mr. James Johnson, Chief Inspector for the Southeast Bureau of Housing, advises that the technical speci- fications call for securing the present lavatory to the wall. To complete the job properly, the staff agrees with the con- tractor and the homeowner that supply lines, shut -off valves, P- .trap, and vent arm should also be installed. The additional cost would be $67.00. The lavatory is located in the second floor bathroom near all of the bedrooms and is not working pre - sently. This presents a serious health problem and should be corrected. Commissioner Chenney asked what the situation physically might be, as the supply labor and materials are for the hookup of the lavatory. Mr. Keith Crighton, Director, Bureau of Housing Program, explained the original inspection was over a year ago, and we have no way of referring to what actually existed as we have none of the inspectors on the staff that were with us at that time. The original inspection, at that time, may have been good. However, the present condition on that lavatory needs the above work to make it operable. It is a needed $67.00, and it is a bargain for the amount of money. Motion was made by Mr. Chenney, seconded by Mr. Wiggins and carried, for the approval of Change Order No. I to Rehabilita- tion Contract No. 34, for an increase in contract amount of $67.00, with an amended contract total of $3,736.77, subject to Legal Counsel approval. e. Change Order No. l to Rehabilitation Contract No. 37, E -7: Approval was requested of this Change Order, which the Con- tractor is requesting in addition to their contract for replac- ing a rotted subfloor under the tub, and fixing the leak and overflow on it to meet the South Bend plumbing code, at 507 East Keasey Street, for an increase in contract amount of $143.80, with an amended contract total of: $5,174.41, and no change in time, Project E -7, Bureau of Housing. The contract is with Ted Combs Decorating & Construction Company. Mr. James Johnson, Chief Inspector for the Southeast Bureau of Housing, in his memorandum, advises the technical specifica- tions call for 1/4" underlayment and tile to be installed in the bathroom. Upon removal of the existing tub, it was found that approximately 10 square feet of subfloor was deteriorated, and that the tub overflow was not connected in a proper manner. As this is the only bathroom in the home, the staff had in- structed Ted Combs Decorating and Construction Company to pro- ceed with the changes immediately in order to provide bath facilities to the family as soon as possible. `The staff re- commends the change order be approved. CHANGE ORDER NO. 1 TO REHAB. CONTRACT NO. 37 APPROVED, E-7 7. NEWIBUSINESS (Cont'd Commissioner Chenney raised the question on the installing of the bath trap. Mr. Keith Crighton, Director of the Bureau of Housing Program, advised the memorandum the Commissioners have in their packet from Mr. Johnson states that the tub overflow was not properly connected, and as it originally was not pro - perly connected, the subflooring subsequently rotted. No in- spector or contractor can determine what the damage is in the wall or in the floor, until it is taken apart. Motion was made by Mr. Wiggins, seconded by Mr. Cira and carried, for the approval of Change Order No. l to Rehabilitation Contract No. 37, for an increase in contract amount of $143.'80, with an amended contract total of $5,174.41, subject to Legal Counsel approval. f. Program Guidelines and Construction Contract Regulations for the Community Development "Housing Rehabilitation Assistance Program': Commission consideration was requested for the continuation of contractual arrangement as developed under the Southeast Rehabi- litation Program, with guidelines and construction contract regu- lations for the Community Development "Housing Rehabilitation Assistance Program" approved by the South Bend Common Council on August 11, 1975. The project administration and contract guide- lines will remain essentially the same and will include the follow- ing programs: Project Area Rehabilitation HAD Referrals City -Wide Emergency Repair Non - Profit Group Rehabilitation Mr. Brownell read the letter from Mr. William Hojnacki, Director, Human Resources and Economic Development, requesting this be reviewed by the Redevelopment Commission in this meeting for the continuation of the contractual arrangements, as noted above. The Community Development Guidelines were attached for presenta- tion. Mr. Keith P. Crighton, Director of the Bureau of Housing Program, was requested to explain the above. Mr. Crighton advised, "Essen- tially, what we are asking is that we maintain the same working re- lationship we had with the Redevelopment Commission under the South- east Rehabilitation Program, only the relationship would be expanded to encompass the four direct programs under the Bureau of Housing this year, and this would be: 1) Project Area Rehabilitation, which would affect both the South- east and Northwest areas; . 2) HAO Referrals Program, which is also an experimental section of our community Development Housing Program; 3) City -Wide Emergency Repair Program, which is a very new and innovative approach to emergency housing conditions; and - 10 PROGRAM GUIDELINES FOR HOUSING REHABILITA- TION ASSIS- TANCE PRO- GRAM AP- PROVED 7. NEWIBUSINESS (Cont'd 4) Non- Profit Group Rehabilitation involvement, would be expanded to take in all e projects IN at we are involved with. The specifics are outlined in the regulations and the guidelines for the four separate programs. As far as major changes in the contrac- tual requirements -- talking about construction contracts - -we are re- commending that a couple of the insurance requirements be altered specifically, as far as subcontractors are concerned, as the pro - perty insurance requirements, I believe, were set a little bit too high under the Revenue Sharing Program. The other alteration is that, under Community Development, we are no longer required to request a separate wage determination from the Department of Labor. We are able to use the existing union rates for the City of South Bend, which is a first under our rehabilitation programs, and we are very happy about that aspect." There were no questions from the Commissioners. Motion was made by Mr. Wiggins to support the above recommendations, as outlined, seconded by Mr. Cira and carried. Ms. Jeanne Derbeck, Reporter for The South Bend Tribune raised the question, "What is the HAO referral? Why should the City be in- volved in this ?" Mr. Crighton said the "program is to take up an existing gap between our two housing programs. All of our programs have been designed so that there is little or no overlap, and, in this particular program, we are involving citizens that are over 62 years of age, and these would be people who have gone to the Housing Allowance Program that do not have the resources to make the recommended repairs on their homes. In other words, they would qualify for monthly subsidy from the Housing Allowance Program, but they would have to make the repairs before they could get it. In this case, if they meet the HAO guidelines, then they would qualify for grant assistance under our program. We would re- pair the home; they would go to HAD and be able to get their monthly subsidy, but they have to be over 62 years of age. The home would be brought up to standard." Commissioner Wiggins advised the money that the people get from the HAO can help pay their rent, interest or mortage payments, taxes, utility bills, home maintenance and other housing expenses. "Now, the one big problem that HAO has, as it appears, is that it will not accept a house under this program unless the house is already up to Code at the time it is accepted. The other problem that is a matter of some concern is that many of the people who would be eligible for housing assistance are, by reason of age, or for other reasons, would find it difficult to obtain a loan, or supervise the repair of their home and a contractor to make sure that the work was done, done pro- perly and be up to code when finished, and the possibility of not being ripped off in the process. I think this is also an attempt, in some degree, to supervise that operation to prevent these things from happening." - 11 - 7. NEW BUSINESS (Cont'd In answer to Ms. Derbeck's various questions on the HAO Program, Mr. Crighton advised that we are not supplying money to HAO; we are not assisting the HAO Program. We are assisting people who demonstrate a need; people who's income is so low that they couldn't get a bank loan if they had to, and also the age barrier. For further answers to the Housing Allowance Program, Mr. Crighton suggested Ms. Derbeck give Mr Charles F. Lennon, Jr., Director of the HAO Program, a call for specific answers she is requesting. Our concern - -our end of the program - -is to assist people 62 years of age and over into a standard'dwelling. Questions raised on the HAO referrals, as the program is referred to as "HAO Referrals Program,'" the Housing Allowance Office can refer people; however, they cannot follow up on the referral if the people they referred received assistance. HAO can follow up if the kinds of referrals they are making are appropriate ones, but cannot ask or find out the specifics. Mr. Crighton advised it is called the "HAO Referrals Program" because "we refer the people to HAO after we are finished with them. The referrals are the other way around." Commissioner Wiggins further added, "Many of these people, and a lot of it has happened with the ones the Department of Redevelop - ment has been associated with, where we had the house brought up to Code, but the people were not able to keep it up to code, can be helped. HAO can be a real advantage in terms of trying to keep the houses up to code as our department has rehabilitated some of the homes; e.g., in the LaSalle Park area, where we have .gone through repairing some of them twice now. The whole purpose of HAO is to keep these things on top once they are there. Mr. John R. Kagel, Executive Director, Downtown South Bend Council, requested to speak as a citizen only, and referred'to Item 7e, on the Agenda, that has been discussed, as an example; also to Item 7d. He discussed the removal of the tub and lavatories, plumbers seal, etc., at great length, and that if the cause is due to inferior work, then whoever did the original work in that fee is_the party that was responsible for it, then I would say "let's start working at the fee, because each week I have been noticing this comes up in your amendment to contracts. Now, I am only speaking as a citizen, but it appears to me if this keeps coming up by the end of the year, we will have a big rip -off, when you totalize each one of these." Mr. Edward F. Soltesz, Chairman, Governmental Coordination Com- mittee of River Bend Plaza Advisory Committee, stated, "Really, Mr. Chairman, it does bring up a point. When these jobs are done and the inspector, whoever it may be, must have a hairy time trying to find out whether the seal was put back properly -- whether all the piping or drains were put back properly. You can put down all the tile that you want; you can make all the changes of subfloor, but if the plumbing work isn't put together in the right manner, you are - 12 - 7. NEWIBUSINESS (Cont'd going to have the same recurrence in costs once again, and if you multiply that - -just Pike John says - -by 100 for each one of these, or 200, it keeps going up in multiples', regardless of where it is, in this plumbing aspect; and, therefore, I think under advisement, and some help to those people who expedite the inspection and also the costs that they present before the Commission, I think a little bit of kindness should be shown to them also, because they do have problem there, in making a proper presentation, to keep the pro - verbial rip -off from happening time and time again, which could not be their fault necessarily." Commissioner Chenney referred to the bathtub and Mr. Kagel's response and the repair of the subfloor and the leak. Mr. Crighton inter - rupted and advised that the leak was not from installing the bathtub; it was after the contractor pulled the tub up and discovered that the subfloor had rotted from an old connection--from an old overflow connection. The discovery was not a discovery of his own error; it was a discovery of someone else's error -- someone else who possibly had done the work 15 or 20 years ago, the floor had rotted, and the leak had subsequently stopped -- possibly from a buildup of lime and mildew. He said he is not a plumber and wasn't there and has not seen it, but the point is the floor had been severely rotted, and that is what °the change order is for. The leak was non- existent at the time the tub was removed for the underlayment and the tile in the bathroom. Commissioner Wiggins added that a tub overflowing is a rare thing, but over a period of 15 or 20 years it's enough to louse up the subflooring, and that when we are doing a job, it should be done right. Mr. Kagel referred to the drain section of the bathtub and if not properly sealed will cause further damage that the homeowner will not be aware of. Mr. Crighton was requested by the Chair to respond, and he stated, "We have ongoing daily inspections whenever any work is progressing at a homeowner's property., The Chief inspector con- ducts these `inspections, he goes.into the house and sees that the work is being done. He also must see the work prior to concealment, that is one point. The other point is: We also have a year's guarantee from the date of final inspection on all work completed under our contract, and if something goes wrong, the contractor must repair not only that item but any damage resulting from that deficient workmanship and /or material. And, lastly, as far as these change orders constantly coming before you, this procedure has not changed at all in the five (5) years that I have been doing this work. It is just now- -under the Revenue Sharing Program- - that the Commission has been directly involved in change orders. Change orders are literally impossible to get away from in these older homes, because so much is concealed; so much is damaged; and it is not visible to the naked eye, or visible if you bounce on it, or any number of things that our inspectors do when they go out to these homes, so it is a continuing problem, and it is something that we have to allow for in these contracts." - 13 - 7. NEW BUSINESS (Cont'd RE Rent Account Write-Off, NDP A -10, SE #1: Authorization was requested to write off a vacated rent account, in the amount of $20.50, at 222 East Elder Street, Parcel No. 66 -7, NDP Project A -10, SE #1. Motion was so made by Mr. Wiggins, seconded by Mr. Chenney and carried. 8. INTERNATIONAL CONSTRUCTORS COMPANY'S RESPONSE TO REAL ESTATE DCCrADru rnDDnDATTnn1 t c 1 E*TTCD nnTGn _1111 V In. Mr. Gordon E. Medlock, Sr., International Constructors Company, distributed copies of their response to the copy of Real Estate Research's letter of July 30th, which he has discussed with Mr. Brownell and Mr. Butler. Mr. Medlock said the response is for the Redevelopment Commission, as le had expressed his reaction to Mr. Brownell and Mr. Butler yesterday, an & this is the firm's reaction to the letter received fro7i Real Estate Research Corporation. He stated he also felt that some members of the press would be interested to their reac- tio , so he prepared the statement. Mr. Brownell received permission to read the response dated August 15, and did so in its entirety. Mr. Medlock said he does appreciate the approach we are taking and is looking forward to the opportunity to meeting with the Co fission and Real Estate Research next week. They would like to negotiate for what ultimately would be the best development for South Bend. In answer to President Nimtz's question, Mr. Medlock advised they did invite Real Estate Research to go to Grand Rapids to visit the Midway Motor Lodge and the Hoffman Hou a Restaurant, but they did not attend. Motion was made by Mr. Wiggins, seconded by Mr. Cira and carried, tha International Constructors Company's response dated August 15, 1975 be received and placed on file. 9. RIVER BEND PLAZA OFFICE: Mrs. Janet S. Allen said she would like to have a couple of things cle red up: She said she is not a member of the River Bend Plaza Advisory Committee, but that she does attend these meetings as an int rested citizen. "These people have been left hanging and do not know: 1) Whether the Plaza Office will be kept open, after August 30th? 2) Whether there is going to be an Advisory Committee? 3) Whether there will be on -going activities scheduled on the Plaza? 14 - RENT ACCOUNT WRITE -OFF, NDP A -l0, SE #1 INTERNATIONAL CONSTRUCTORS COMPANY 10. RI1ER BEND PLAZA OFFICE (Cont'd Mr . Allen stated, "This City has an awful problem with communications an I think somebody ought to clear this up and advise the Advisory Co mittee whether the office is going to be closed on the 30th of Au ust, or kept open, or what? This is kind of silly." Mr. Brownell said he didn't believe he has any authority in that area, but that he will say that he was told they plan to keep the office open with the new Director. Mrs. Allen said at least that is better then not knowing. 11. NE )T COMMISSION MEETING NEXT COMMISSION The next Regular Meeting of the Redevelopment Commission will be at MEETING: 10:00 a.m., Friday, September 5, -1975, in the Office of the Depart- 9 -5 -75 me t of Redevelopment. 12. AD OURNMENT ADJOURN - MENT There being no further discussion, motion was duly made by Mr. Wiggins, seconded by Mr. Cira and carried, for adjournment, at 11:00 a.m. neii, executive (SEAL) - 15 - President