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Home My WebLink AboutRM 11-07-75Novemt 10:00 Presic 1. SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING r 7, 1975 . M. ng Officer: Mr. F. Jay Nimtz, President L CALL mmissioners 1200 County -City Building 217 West Jefferson Blvd. South Bend, Indiana 46601 esent: Mr. F. Jay Nimtz, President Mr. John E. Chenney, Vice President Mr. Donald A. Wiggins, Secretary Mr. Robert J. Cira, Member missioner ent: Mr. A. Peter Donaldson, Assistant Secretary al Counsel: Mr. Kevin J. Butler Media: Ms. Mr. Mr. Mr. Mr. Mr. Mr. thers Present: mmunity velopment aff: Jeanne Derbeck, South Bend Tribune Reporter David W. Anderson, WNDU -TV Reporter James L. Marchelewicz, WNDU -TV Photographer Dan Caesar, WSBT -TV Reporter Frank Vellner, WSBT -TV Photographer Larry Ford, WSJV -TV Reporter Les Howard, WSJV -TV Photographer Mr. Newstell Dowdell, Atlanta Dept. of Labor Mr. Gene Evans, Executive Secretary, Civic Planning Assn. Mr. John R. Kagel, Executive Director, Downtown South Bend Council Mr. Keith P. Crighton Mr. James L. Johnson, Jr. Mr. Kenneth J. Schaller A Staff: Mr. C. Wayne Brownell Mr. Edwin R. Bauer Ms. Helen S. King Mr. William J. Parrish 2. APPROVAL OF MINUTES M tion was made by Mr. Wiggins, seconded by Mr. Chenney and MINUTES c rried, for the approval of the Minutes of October 17, 1975, APPROVED as mailed. - 1 - 3. APPROVAL OF CLAIMS Motion was made by Mr. Wiggins, seconded by Mr. Chenney and CLAIMS carried, for the approval of the claims, as submitted, and APPROVED that they be allowed and ordered to be paid, totalling: 96,460.66. The authorized claims are: F.E.A. INDIANA A -10 Indiana & Michigan Electric Company $ 28.60 uszynski Insurance Agency, Inc. 178.00 Sweeney, Butler & Simeri 164.00 Sweeney, Butler & Simeri 353.50 nna Warren 250.00 nna Warren 576.00 Total $1,550.10 MERRY AVENUE PROJECT uszynski Insurance Agency, Inc. $ 113.00 Total 113.00 P.E.A. INDIANA R -57 Abstract & Title Corporation $ 52.50 uszynski Insurance Agency, Inc. 201.00 South Bend Exterminating Company 30.00 Total $ 283.50 O.E.A. INDIANA R -66 uszynski Insurance Agency, Inc. $ 471.00 olip Bros. Electric, Inc. 8,850.86 outh Bend Exterminating Company 30.00 outh Bend Tribune 9.17 outh Bend Tribune 35.22 weeney, Butler & Simeri 1,259.50 ri- County News 38.44 arry H. Verkler, Contractor, Inc. 14,435.35 lyde E. Williams & Associates, Inc. and Environmental Planning 21,443.32 autilus Construction Corporation 30,979.21 Total 77,552.07 EDEVELOPMENT REVOLVING FUND Payroll: October 4, 1975 to October 17, 1975 $ 5,537.67 D rothy Z. Deane - Petty Cash I ternational Business Machines Corp. I ternational Business Machines Corp. Linder & Kerrihard Co., Inc. P stmaster S eeney, Butler & Simeri - 2 - 80.20 1,086.85 52.20 952.73 20.86 200.00 3. APPROVAL OF CLAIMS (Cont'd) Blume Pharmacy $ 10.80 gilliam W. Rupe & John Kreishman 275.29 D. Poe & Associates 240.00 Total 8,456.60 3UREAU OF HOUSING fed Combs Decorating & Construction Co., Inc. $ 5,752.00 iweeney, Butler & Simeri 24.50 Phillip Wesley 15.00 ladison Builders, Inc. 1,462.00 Total 7,253.50 ZEDEVELOPMENT DISTRICT CAPITAL FUND 'roject Expenditure Account R -66 $ 1,132.00 Total 1,132.00 ZEDEVELOPMENT DISTRICT CAPITAL FUND, 1972 ommercial Motor Freight, Inc. of Indiana ndiana & Michigan Electric Company ears, Roebuck & Company outh Bend Hardware outh Bend Hardware Total GRAND TOTAL 4. COMMUNICATIONS HUD Area Office letter dated October 17, 1975: This letter, over the signature of Mr. Stephen J. Havens, Director, Community Planning and Development Division, requests actions to be taken, as noted in the letter, on Acquisition Parcels 9 -21B, 12 -8, 32 -14, 5 -17, 43 -1, 6 -16, 32 -13, 38 -10 and 41 -3, in the LaSalle Park Urban Renewal Project, Indiana R -57. In addition to the actions named for the above parcels, they are also requesting a report by October 31, 1975 regarding the status of the remaining acquisition parcels in the project. Mr. C. Wayne Brownell, Executive Director, read the above letter in its entirety and advised we are proceed- ing to take care of the requests. - 3 - $ 36.49 29.59 5.77 41.82 6.22 119.89 $ 96,460.66 ACQUISITION STATUS, R -57 4. COMMUNICATIONS (Cont'd Real Estate Research Corporation letters dated October 20, REAL ESTATE 1975: Mr. Brownell read each of the letters. RESEARCH CORP. RESPONSE The first letter is over the signature of Mr. Nicholas C. Jannotta, addressed to Mr. Brownell with copies to the Honorable Jerry J. Miller, Mr. Peter Nemeth, Mr. John P. Slafkosky and Mrs. Audrey Conley, which is in response to Mr. Medlock's letter of October 6th. An excerpt in the response states: ". there is no pro- vision in the adopted urban renewal plan to accommodate transient facilities as proposed by Mr. Medlock. Therefore, the City of South Bend could have rejected the bid on the grounds that it did not meet the basic plan requirements. However, in an effort to be absolutely fair, the City elected to reconsider the need for transient facilities in the Central Business District once again, and, after reconsideration, the conclusions were that market conditions could not support the proposed project. I might add, that the current conditions that exist in the real estate industry today are partly the result of ill- conceived projects and in many instances, would not have occurred had more forethought been given to the basic market needs for space and the financial aspects prior to con - struction. I am confident of our market findings and in time, I'm sure Mr. Medlock will come to appreciate the concern and efforts of the City to make it not only a good community in which to live, but an economically healthy community as well." The second letter is over the signature of Mr. John W. Diamond, Vice President, addressed to Mr. Brownell in response to his letter of October 9, 1975, in which they state they are pleased With Mr. Brownell's expression of confidence in the services provided by Real Estate Research Corporation. An excerpt from the second letter states: "...subsequent to the analysis of the Albert Pick Hotel, our firm has been involved in 17 additional real estate consultations in South Bend, in- cluding in -depth studies of the hotel market conducted in 1968 and again in 1972. In the past 12 months, I have been personally involved in studies for hotels and motels that will be affiliated with the following national firms: Hilton Hotels Corporation; Ramada Inns, Inc.; The Stouffer Corporation; Lex Hotels, Ltd.; Braniff International Hotels; Americana Hotels; Holiday Inns, Inc.; Sheraton Hotel Corporation; Four Seasons Hotels, Limited; Western International Hotels; Playboy Club Hotels; Radisson Hotels." "Our advice in these cases was given with exactly the same degree of impartiality as our recommendations for Block 6. Mr. Medlock's charges to the contrary, while understandable as to motivation, certainly are totally inaccurate." - 4 - 4. COMMUNICATIONS (Cont'd 5. HUD Area Office letter dated October 29, 1975: This letter, HUD CONCURS over the signature of Mr. James E. Armstrong, Area Director, IN AUDIT concurs in the award for audit services to Goodson -Tyler AWARD, A -10 and Associates, IPA, for close -out of Project Indiana A -10. The cost of the audit is an eligible project cost and is to be reflected in the administrative staff expense budget. Paragraph 4 of our proposal and contract for audit services has been amended to provide that twenty -five (25) copies of the final audit report are to be submitted to the Regional Inspector General for Audit. HUD Area Office letter dated November 4, 1975: This letter, HUD APPROVES over the signature of Mr. Stephen J. Havens, Director, BUDGET REVI- Community Planning and Development, advises the revised SIONS, R -57 budget and financing plan for Projects Indiana R -57 and & R -66 Indiana R -66, which reflect Community Development Block Grant funds to be utilized in these projects, have been approved. Executed copies of the HUD forms, 6200 and 6220, for Pro- jects Indiana R -57 and R -66, were attached to the letter. tion was made by Mr. Wiggins, seconded by Mr. Cira and rried, that the above letters be received and placed on file. D BUSINESS Final consideration of Contract for the Sale of Disposition AFFIDAVIT OF Parcel No. 6 -1, Project Indiana R -66: President Nimtz dis- PUBLICATION played the affidavit of the publication of the Notice of Public Disclosure of Redeveloper's Statement on the above which was published in The South Bend Tribune on October 27, 1975. The Chair advised the Proof of Publication is made concern- ing notice that the Redevelopment Commission intends to execute the contract documents and that the Redeveloper's Statement for Public Disclosure (HUD Form 6004 - 9/69), pre- scribed by the U.S. Department of Housing and Urban Develop- ment pursuant to Section 105(3) of the Housing Act of 1949, as amended, is on file with the Commission and is available to the public. The motion was made by Mr. Wiggins, seconded by Mr. Cira and carried, that the Contract with the St. Joseph River Bend Development Corporation for the Sale of Disposition Parcel No. 6 -1, Project Indiana R -66, be approved, and the President and Secretary be authorized to execute the Contract, subject to receipt of satisfactory contract per- formance bond from the Redeveloper. - 5 - APPROVAL OF CONTRACT OF SALE AND AUTHORIZATION TO EXECUTE, PARCEL NO. 6 -1, R -66 5. OLD BUSINESS (Cont'd Authorization to execute and sign Option Agreements: Dis- cussion followed for Commission authorization to enter into Option Agreements. Mr. C. Wayne Brownell, Executive Director, advised that each bidder on Section 8 Housing will be given an option to buy two (2) acres of the Block 6 land, and we will under- take to join in and approve each of the said options, so that anyone who wishes to bid on Section 8 Housing on Block 6, on land specified for that purpose, will be able to get an option from the St. Joseph River Bend Development Corpo- ration, which we would join in, and we need authorization from the Commission to sign the Option Agreements. They will probably have to be signed between our Commission meetings because they have documentation sent to them now to make their biddings. Mr. Kevin J. Butler, Commission Legal Counsel, advised we will have a form that will be used in each case, and we will have to approve that form ourselves and HUD is going to have to approve it also. Once the form has been ap- proved by our Legal Counsel-and by HUD, the Executive Director can simply sign those on behalf of the Department of Redevelopment. The motion was made by Mr. Cira, seconded by Mr. Chenney and carried, that the Executive Director be authorized and di- rected to execute and sign Option Agreements with potential developers for not more than two (2) acres of Block 6 land for Section 8 Housing, in between Commission meetings, subject to Legal Counsel approval of the Option Agreement. EXECUTIVE DIRECTOR AUTHORIZED TO SIGN OPTION AGREE- MENTS, R -66 Mr. Gene Evans, Executive Secretary, Civic Planning Associ- ation, asked if that turns out to be more or less a three - way arrangement then between the developer, (the St. Joseph River Bend Development Corporation), the person or corpora- tion desiring to build Section 8 Housing, and the Redevelop- ment Commission? The Chair confirmed his statement. On the question raised on whether the St. Joseph River Bend Develop- ment Corporation must give an option and whether that is part of the contract, the Chair advised, the answer was "No, but that they are willing and have agreed to do so." In further explanation, Mr. Brownell advised that we have negotiated with HUD, and that HUD has had a Committee here looking over the sites and they have approved this site as one of the proper sites, and we have worked with HUD and with this developer and have worked out an arrangement whereby the bidders under Section 8 Housing may get an option on the two acres of land in Block 6. On questions raised by Mr. Dave Anderson, WNDU -TV Reporter, and answers summarized: Mr. Brownell advised the Section 8 bidding process has already started. It has been advertised. In the first round of bidders, all the bidders were rejected in St. 5. OLD BUSINESS (Cont'd Joseph County. The St. Joseph County, Section 8, bidding process has started and the bidders are starting to get the documents now from HUD. The bids are submitted directly to HUD, in Indianapolis. The Section 8 Housing was denied be- fore in South Bend. On questions raised by Mr. Dan Caesar, WSBT -TV Reporter, con- cerning the option on the land, who owns the land now, and if the option is agreed to on whether to build the Section 8 Housing, then who will get the money for the land, and answers summarized: Mr. Brownell advised the land is now owned by the Redevelopment Commission, and we are in the process by this Contract of agreeing to sell it to this Corporation. The Corporation will then have an equitable interest in the land. We will still hold the legal title. The St. Joseph River Bend Development Corporation will execute an option to the optionee and we will join in that Option and approve it, thereby combining both the equitable title and the legal title as the optionors, and this process has been verbally approved by HUD. President Nimtz advised one of the reasons that the previous bids were rejected by HUD, as he understands it, was that the bidders had no equitable interest in the land, so this takes care of HUD's objection that they raised in the previous bidding. The wording used by HUD, per Mr. Brownell, is that they do not have 'control of the land.' Even after we deed the land, we keep control, so we have to join in the option to make it valid. Mr. Evans asked, "At what point does the title pass, free and clear, over to the St. Joseph River Bend Development Corporation ?" Mr. Brownell advised when they pay us the money and we give them a deed, but we still retain control of the land after we do that, and that is through our land -use restrictions. Question raised by Ms. Jeanne Derbeck, South Bend Tribune Re- porter, as to when the contract will be signed, Mr. Butler advised it is already signed by their President, Mr. W. L. Steinmetz; Mr. Eugene Muia, their Secretary, was not available to sign it; but right after the Commission signs the Contract, he will be taking it over to Mr. Charles M. Boynton, the Attorney for the Corpora- tion. The negotiations have been completed, the contract is ready for final execution and action has just been taken for the approval. Change in Personnel Policy of City of South Bend, Department of Redevelopment: Mr. Brownell advised we have had a rate of TOT a mi e when an employee drove his personal car on business. The Common Council has changed the rate in the City from 10¢ a mile to 15¢ a mile, and we are trying to comply with the travel regulations of the City and increase that item. The limit has been $40.00 a day for all meals and lodgings and that limit has been raised to $45.00, so it has been suggested we increase our limit to $45.00. In the reimbursable cost where there is a daily meal allowance, but do not stay overnight, our limit has been - 7 - 5. OLD BUSINESS (Cont'd) 91 $7.50 as has been the City's; it is being increased to $15.00 so we are suggesting an increase here of $15.00. These are the only changes in the Personnel Policy at this time. Motion was made by Mr. Wiggins, seconded by Mr. Chenney and carried, for the adoption of the above changes in the Personnel Policy, City of South Bend, Department of Redevelopment. EW BUSINESS National Bank and Trust Company's proposed park on the old Kres e's site, Project Indiana R -66: Mr. Brownell advised the plans for the park have been presented to us for approval by the Urban Design Review Committee. The Committee has ap- proved the plans, and Mr. Edwin R. Bauer, our architect, gave a brief review of the displayed plans. They have been building a wood bulk head along the side of Robertson's building and along side of the bank building. The plans call for a concrete walk curbing along the end and there will be contoured mounds in a winding brick walk- way through it. This walkway will be lighted and there will be a series of benches. The drawings show various plantings that are proposed, ground covers, mounds with seasonal plant- ings, post lights and 8" curbing. This will make a very attractive addition to the River Bend Plaza. The park is temporary until the National Bank con- summates their building plans. Motion was made by Mr. Wiggins, seconded by Mr. Chenney and carried, to accept the proposed plans, as approved by the Urban Design Review Committee. PARK PLANS APPROVED, R-66 Change Order No. 1 to Contract No. 3, E -7: Authorization CHANGE ORDER was requested for the approval of this Change Order, with NO. 1 TO Madison Builder's, Inc., for an increase in contract amount CONTRACT of $336.00, (Contract: $5,799.00), or an amended contract NO. 3 AP- total of $6,135.00, for rehabilitation work at: 1016 South PROVED, E -7 Carroll Street, Southeast Project E -7. Mr. James L. Johnson, Jr., Chief Inspector for Southeast Project E -7, in his written memorandum advised the specifi- cations called for covering the north side and front and rear porches, and also over the bay window to install metal edging, eight squares. Since the time of the initial inspec- tion, the rear porch has continued to leak, thereby causing extensive damage to the rafters, sheathing and ceiling. The items present a health and safety problem and should be cor- rected. Mr. Keith P. Crighton, Director, Bureau of Housing, advised the contractor, in replacing the roof, discovered that the 6. NEW BUSINESS (Cont'd) sheathing and rafters underneath the porch were severely deteriorated also. Photograph was shown of the interior damage and the change order is to correct the situation. Motion was made by Mr. Wiggins, seconded by Mr. Cira and carried, for the approval of the above change order, as noted above. Change Order No. 1 to Contract No. 66, E -7: Authorization CHANGE ORDER was requested for.the approval of this Change Order, with NO. 1 TO Madison Builder's, Inc., for amended changes to Contract, CONTRACT as noted, with no change in contract total or contract time, NO. 66 AP- (Contract: $6,494.00), for rehabilitation work at: 505 PROVED, E -7 East Broadway Street, Southeast Project E -7. In the memorandum from Mr. James L. Johnson, Jr., included in the packet, he states the specifications called for re- placing seat and unstopping water closet, installing P -trap on the lavatory, repairing shower, and bringing the plumbing up to code throughout the structure. Since the time of the inspection, the homeowner no longer uses the basement faci- lities, and, therefore, is requesting the bathroom facilities be removed. Mr. Crighton further explained that the homeowner had in- stalled the bathroom facility in the basement, and the home- owner since the time of the contract decided since the faci- lities are not in use and they don't need it, that they would rather have it deleted from the contract, rather than have the whole area refurbished as the installations are not the way they should be. Motion was made by Mr. Wiggins, seconded by Mr. Cira and carried, for the approval of the above change order, as noted above. Letter of Resignation from Mr. William J. Kemp, Jr.: Mr. RESIGNATION, Brownell read the letter in its entirety. WILLIAM J. KEMP, JR. The resignation will be effective as of Friday, November 14, 1975. The position was part -time, as legal intern for the Department of Redevelopment. Mr. Brownell advised Mr. Kemp was studying in England last year at Notre Dame and is finishing his senior year here at Notre Dame. Motion was made for the acceptance of Mr. Kemp's resignation, with regret, seconded by Mr. Chenney and carried. - 9 - 7. PROGRESS REPORTS E -6, Model Neighborhood Code Enforcement Project and Northwest E -6 Housing Program Report: Mr. John E. Davis, Project Director, REPORT submitted a written report on the project and advised that work is proceeding in the area with physical rehabilitation taking place on Contracts 4, 14, 15 and 18. The Northwest Housing Rehabilitation Program will be ready to advertise the first bids during the month of November and progress in the area is satisfactory. Acquisition Status Report: Mr. William J. Parrish, Real Estate Officer, submitted the following written report: NDP A -10: All parcels acquired. MN #1: 34 Parcels purchased, l Condemnation Case, totalling 35. SE #1: 64 Parcels purchased, 5 Condemnation Cases, totalling 69. (Grand total: 104). R -57: Remains the same- -one parcel remaining to be ac- quired. 382 Parcels purchased, 18 Condemnation cases, totalling 400. R -66: Two (2) parcels remain to be acquired. 230 Parcels purchased. No condemnation cases re- maining. Merry Avenue: 40 Parcels purchases, 2 Condemnation cases. All parcels acquired. Community Development, Southeast Project Report: Mr. Kenneth Schaller, Project Director, submitted a written report. Summarized: Staff has received thirty (30) appli- cants for grants during October, total of: 100 applicants; ten (10) applications approved during October; twenty -two (22) applications rejected; and nine (9) contracts awarded during October. HAO Referral Program Report: Mr. Kenneth Schaller, Project Director, submitted this report: Presently, twenty (20) applications are being processed. In- spections have been scheduled, performed, and are being reviewed and prepared for cost estimation. Upon completion, a contract will be compiled and the work advertised for bids. - 10 - ACQUISITION STATUS RE- PORT, R -57, R -66, MERRY AVENUE & A -10 COMMUNITY DEVELOPMENT, SOUTHEAST PROJECT REPORT HAO REFERRAL PROGRAM REPORT 7. ROGRESS REPORTS (Cont'd Neighborhood Development Program Report: Mr. Kenneth Schaller NDP submitted the written report: Sixty -six (66) PROGRAM homes are on contract. Seven Notices to Proceed REPORT have been issued this month, with a total to date of forty -two (42). These do not include several Chief Inspector's Notice to Proceed that were issued to correct items affecting the occupants' health and safety. Twenty -two (22) homes have been completed to date and progress inspections are being conducted during the construction phases of each structure. Two preconstruction conferences have been held this month. Non- Profit Groups Report: Mr. Kenneth Schaller submitted NON- PROFIT this report for the non - profit groups. GROUPS REPORT Two homes have been purchased to date for rehabi- litation: 138 E. Pennsylvania Avenue, by RENEW, Inc.; and 617 East Haney Avenue, by RENEW, Inc., Spanish Division. The grants for the above were awarded by the De- partment of Redevelopment under the Housing Re- habilitation Assistance Program and the organiza- tions are working toward the rehabilitation of both dwellings. Relocation Progress Report: The Relocation Staff submitted RELOCATION the following written report for the month of PROGRESS October: REPORT City -Wide: October 14, 1975, staff was informed that no funds would be appropriated for City -Wide Relocation. Southeast N.D.P. A -10: The workload is four families and two individuals. Staff working with residents. Model Cities Extended Services: The workload is one indivi- dual. When his eligibility is determined, staff will proceed with relocation. E -7 NDP: The workload is one family and one individual. The individual has purchased a home and is expected to move within three weeks. Staff is working with the family. XT COMMISSION MEETING e next Regular Meeting of the Redevelopment Commission will be NEXT 10:00 a.m., Friday, November 21, 1975, in the Office of the COMMISSION partment of Redevelopment. MEETING: 11 -21 -75 - 11 - a Retention and Development Committee: Mr. John R. Kagel, RETENTION Executive Director, Downtown South Bend Council, advised AND DEVELOP - he had nothing to report other than some of the members MENT COMMITTEE of the Retention and Development Committee have noted the conflict of the time of their meetings and the Redevelop- ment Commission meetings, and their Chairman has been requested to see if they can change their meetings to another time, as some of their people would like to attend both meetings. Public Notice to confirm a Contract for Sale of Land for PUBLIC NOTICE, Redevelopment by a Public Body, Project IN A -10, Model CONTRACT FOR Neighborhood Area No. 1: Mr. Brownell advised in connection SALE OF LAND, with the A -10 Project, MN #1, he has signed the claim for A -10, MN #1 $9,550 and presented it to the City of South Bend, and we have put a Notice in The South Bend Tribune effective for the next Commission meeting, so that on November 21 we can close the sale of the land on which the Fire Station stands on the west side of town. This item will be on the Agenda for the next Commission meeting. Introduction of Mr. Newstell Dowdell: Mr. Brownell intro- MR. NEWSTELL duced Mr. Newstell Dowdell, from Atlanta Department of Labor, DOWDELL, who is with us this morning. He is with Community Development ATLANTA DE- here. Mr. Dowdell is a federal fellow studying with us to PARTMENT OF see if he can take back to the federal bureaucracy some feel- LABOR ings for some of the problems that we run into in dealing with bureaucracy. Mr. Dowdell thanked the Commission for the opportunity to at- tend this Commission meeting and he hoped he may be able to attend another one in the future, as he will be here until the 2nd week in December. Mr. Dowdell said this is strictly a learning process for the federal establishment in trying to see what goes on at the local level. They are trying to see if they can -- hopefully in the future - -it may not affect South Bend, but hopefully it will affect some other unit development along the line, and "we can become more sensitive to some of the problems that you do have here in City government. I am kind of floating across the board, and in all departments, and hope that I can learn and know I will learn something of what is going on at the local level and be able to communicate that back effectively to the federal bureaucracy." St. Joseph River Bend Development Corporation: Various questions ST. JOSEPH were raised on this item and discussions followed, specifically RIVER BEND on the two (2) acres, whether or not it is included in the con- DEVELOP - tract and the payment and sale of that portion. MENT CORP. - 12 - 9. QTHER DISCUSSIONS (Cont'd 10. (SEAL) It is included in the contract and the St. Joseph River Bend Development Corporation will be paying the Department of Re- development for the two acres. The HUD regulations specify the land must be resold for the same amount - -a profit cannot be made from the sale of the land. The total acreage of Dis- position Parcel No. 6 -1 is 16.3 acres, which has been referred to as Block 6. This includes the two (2) acres discussed above. Mr. Brownell advised the take -down price on 6 -1F is $108,900 for the two -acre parcel; the entire selling price of Disposition Parcel No. 6 -1 is $651,111. The first take -down date is April 1, 1976. Take -down date means the last day that they can wait to buy the property; they have to buy it on that date or before. Commissioner Wiggins further explained the stage contract is where they pay us for the land as they develop it; that is what take -down means. They do not pay us $651,111 as of today. On the first construction which will be the St. Joseph Bank with drive -in windows and the date of construction is April 1, 1976, with a completion date of April 1, 1977. The completion date of the entire project is October 1, 1980. The two kinds of penalties are: One is the penalty of interest, and the second is the penalty that they lose the right to the property, and we go back on their letter of credit, or whatever security is held. President Nimtz further added the questions asked here on the two acres were originally one of the points of negotiation with this group of developers, to give other builders and developers an opportunity to get into the housing program so that if they are successful they have an option to go ahead then. We have had excellent cooperation from the St. Joseph River Bend Develop- ment Corporation in working out arrangements. The St. Joseph River Bend Development Corporation is not a bidder for Section 8 Housing, but if someone else is the successful bidder on the designated two acres, the St. Joseph River Bend Development Corporation has agreed to sell it to them. This is basically what it amounts to. The meeting was requested for adjournment with further discussions thereafter. NT e motion was duly made by Mr. Wiggins, seconded by Mr. Chenney and ADJOURN - rried, for adjournment at 10:42 a.m. MENT rownell, Executive - 13 - mtz, Presiden I. R al Estate Research Corporation 72 WEST ADAMS STREET • CHICAGO 60603 PHONE: 312- 346-5885 CABLE:RERCO October 20, 1975 NICHOLAS C.) NNOTTA IVE VICE P ZESIDENT Mr. C. Wayne Brownell ! �f1L.,,L�'LU �I Exec five Director Department of Redevelopment 1200 o.unty -City Building South Bend, Indiana .46601 Dear ayne: Since my very respected associate John Diamond conducted the trans ient.housing market investigation in South Bend, I wanted him to respond to Mr. Gordon Metl ck's letter of October 6th in which the letter made unfounded -aIlegations. In addition, I also find it necessary to respond. It does appear that Mr. Metlock was in an apparently highly emotional state when he wrote his letter. I can certainly sympathize with Mr. Metlock's condi ion, but there must be economic justification for the type of development he had proposed. As yoi know, there is no provision in the adopted urban renewal plan to accommodate transi nt facilities as proposed by Mr. Metlock. Therefore, the City of South Bend could have rejected the bid on the grounds that it did not meet the basic plan require- ments However, in an effort to be absolutely fair, the City elected to reconsider the need or transient facilities in the Central Business District once again, and, after recon ideration, the conclusions were that market conditions could not support the proposed project; I might add, that the current conditions that exist in the real estate industry today are partly the result of ill- conceived projects and in many instan es, would not have occurred had more forethought been given to the basic market needs for space and the financial aspects prior to construction. I am onfident of our market findings and in time, I'm sure Mr. Metlock will come to ap re iate the concern and efforts of the City to make it not only a good com- munit in which to live, but an economically healthy community as well. cc: S1 rely yours, las C. Jannotta on. Jerry J. Miller, Mr. Peter Nemeth, Mr. John P. Slafkosky, Mrs.. Audrey Conley CHICAGO • NEW YORK • WASHINGTON, D.C. • ATLANTA • MIAMI • ST. PAUL • ST. LOUIS • KANSAS CITY DALLAS • HOUSTON SANFRANCISCO • LOSANGELES Two J. W. DIAMOND VICE PRE5IDENT b a( Estate Research Corporation 72 WEST ADAMS STREET • CHICAGO 60603• PHONE: 312-346-5885 • CABLE:RERCO Mr. C. Wayne Brownell, Director City of South Bend .Depc rtment of Redevelopment 1200 County -City Building Sout Bend, Indiana 46601 Dearl Mr. Brownell: October 20, 1975 I_J L--.J L! I� (__ We viere particularly pleased with the expression of your confidence. in the services provided by Real Estate Research Corporation as stated in yours of October 9, 1975. In the recent analysis of the proposal for additional transient facilities in downtown South Bend, as well as in the other assignments completed for the City, we have made every effort to deserve these comments. We certainly share with you a- considerable regret that market conditions do not support the highly imaginative project presented to the City by Mr. Medlock. We do not appreciate, however the allegation that our firm performed the study in a "superficial" manner. In your letter, the qualifications of the analyst involved in the study are well presented and we thank you for your remarks. Asa matter of interest we can add that, subsequent to the analysis of the Albert Pick Hate , our firm has been involved in 17 additional real estate consultations in South Bend, including in -depth studies of the hotel market conducted in 1968 and again in 1972. In th past 12 months, I have been personally involved in studies for hotels and motels that ill be affiliated with the following national firms: Hilton Hotels Corporation Ramada Inns, Inc. The Stauffer Corporation Lex Hotels, Ltd. Braniff International Hotels Americana Hotels Holiday Inns, Inc. Sheraton Hotel Corporation Four Seasons Hotels, Limited Western International Hotels Playboy Club Hote Is Radisson Hotels CHICAGO N W YORK WASHINGTON,.D. C. • ATLANTA • MIAMI • ST. PAUL • ST. LQUIS • KANSAS CITY - DALLAS • HOUSTON SA FRANCISCO • LOS ANGELES ASSOCIATED WITH CANADIAN REAL ESTATE RESEARCH CORPORATION LTD. I a1 estate Fesearch Corporation Mr. C� Wayne Brownell Page 2 October 20, 1975 Our advice in these cases was given with exactly the same degree of impartiality as our recom endations for Block 6. Mr. Medlock's charges to the contrary, while understandable as tomotivation, certainly are totally inaccurate. Very truly yours, REAL ESTATE RES CH CORPORATION John W. Diamond Vice President JWD /d