HomeMy WebLinkAboutRM 11-21-75Novemb r 21, 1975
10:00 . M.
Presiding Officer:
1. ROLL CALL
C mmissioners
Resent:
L qal Counsel:
2.
N
SOUTH BEND REDEVELOPMENT COMMISSION
REGULAR MEETING
Mr. F. Jay Nimtz,
President
1200 County - City Building
217 West Jefferson Blvd.
South Bend, Indiana 46601
Mr. F. Jay Nimtz, President
Mr. John E. Chenney, Vice President
Mr. Donald A. Wiggins, Secretary
Mr. A. Peter Donaldson, Assistant Secretary
Mr. Robert J. Cira, Member
Mr. Kevin J. Butler
Media: Ms.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Others Present:
mun i ty
elopment
ff:
Jeanne Derbeck, South Bend Tribune Reporter
Lou Tutino, WNDU -TV Reporter
James L. Marchelewicz, WNDU -TV Photographer
Dan Caesar, WSBT -TV Reporter
Steve Neher, WSBT -TV Photographer
Larry Ford, WSJV -TV Reporter
Les Howard, WSJV -TV Photographer
Mrs. Janet S. Allen, Interested Citizen
Mr. Hubert Getzinger, Chairman, Downtown
South Bend Council
Mr. Thomas A. Oesterling, Clyde E. Williams &
Associates, Inc.
Mr. Allen E. Schrager, Interested Citizen
Mr. Edward F. Soltesz, Local No. 9, U.A.W. Representative
Mr. Kenneth J. Schaller
Ms. Joan Ragland
L A Staff: Mr. C. Wayne Brownell
Ms. Helen S. King
'PROVAL OF MINUTES
Mr. Edwin R. Bauer
Mr. William J. Parrish
tion was made by Mr. Wiggins, seconded by Mr. Cira and carried, MINUTES
r the approval of the Minutes of November 79 1975, as mailed. APPROVED
- 1 -
3. A�PROVAL OF CLAIMS
M tion was made by Mr. Wiggins, seconded by Mr. Donaldson and CLAIMS
c rried, for the approval of the claims, as submitted, and APPROVED
t at they be allowed and ordered to be paid, totalling:
$ 1,326.53. The authorized claims are:
PJE.A. INDIANA A -10
I diana & Michigan Electric Company
N rthern Indiana Public Service Company
Clarice Blue
Clarice Blue
P.IE.A. INDIANA R -66
R 1ph D. Lauver (Appraisal #5 -A)
South Bend Tribune
Clvde E. Williams & Associates
REAU OF HOUSING E -7
me Pest Control
rany Sheet Metal & Heating
DEVELOPMENT REVOLVING FUND
Payroll: October 18, 1975 to October 31, 1975
Business Systems
Continental Assurance Co.
Credit Bureau of South Bend - Mishawaka
Gates Chevrolet Corporation
Indiana & Michigan Electric Company
Jack's Conoco Service
Northern Indiana Public Service Company
DIISTRICT CAPITAL BONDS OF 1972
J.1W. Werntz & Son, Inc.
IMBURSEMENT TO REVOLVING FUND
P.E.A. Indiana R -57
P. A. Indiana R -66
- 2 -
$ 18.60
38.15
325.00
3,360.00
Total 3,741.75
$ 250.00
8.65
43.08
Total X1.73
$ 10.00
21,253.86
Total 21,263.86
Total
Total
GRAND TOTAL
Total
$ 5,537.67
13.92
127.00
4.00
153.50
23.68
85.32
22.43
5,967.52
$ 51.67
$-51.67
$ 31,326.53
$ 2,402.83
4,464.64
6,867.47
4.
5.
0
0
HUD Area Office letter dated November 13, 1975: This letter,
over the signature of Mr. Daniel B. Bowman, Director, Housing
Production and Mortgage Credit Division, advises Modification
No. 2, dated September 26, 1975, enclosed with the letter,
was. received by them subsequent to Wage Decision IN75 -2089,
mailed to us on August 29, 1975.
Mr. Brownell advised this is an updated wage decision cover -
ing our Plaza Contracts 6, 7, 8 and 9, Phase III, for addi-
tional work on the Mall, Project Indiana R -66. We have sub -
mitted this wage decision to all the bidders who attended the
bid opening.
Motion was made by Mr. Wiggins, seconded by Mr. Cira and
carried, that the above letter be received and placed on
file.
BUSINESS
Final consideration of Contract for the Sale and Disposition
of Model Neighborhood Area No. 1, Project Indiana A -10: Mr.
Brownell advised that we have published a notice of the fact
that the Redevelopment Commission is about to approve the
sale of the Model Neighborhood Area No. l to the City of
South Bend for the use of the Fire Station and park. The
affidavit disclosed the Public Notice was published in The
South Bend Tribune on November 10, 1975.
The Quit Claim Deed will be executed by the Redevelopment
Commission this morning, and Mr. Brownell advised that he
expects to receive the sum of $9,550.00, from the Civil
City of South Bend, on Monday or Tuesday of this coming
week, at which time he will hand over the Quit Claim Deed.
Authorization now is requested to confirm and approve
the sale of Model Neighborhood No. 1, to the Civil City
of South Bend, Indiana, for $9,550.00, and authorizing
the execution of the Agreement by the President and Secre-
tary.
The motion was made by Mr. Donaldson, seconded by Mr. Cira
and carried, that the Contract with the Civil City of South
Bend, Indiana, is confirmed and approved, for the Sale of
Model Neighborhood Area No. 1, in the Neighborhood Develop-
ment Program, Indiana Project A -10, and the President and
Secretary be authorized to execute said Contract.
- 3 -
WAGE
DECISION,
PLAZA
CONTRACTS,
R -66
AFFIDAVIT
OF PUBLICA-
TION
APPROVAL OF
CONTRACT OF
SALE AND
AUTHORIZA-
TION TO
EXECUTE,
MN #1, NDP,
IND. PROJECT
A -10
6. NEW BUSINESS
a Tabulation of bids received on Plaza Contracts 6, 7, 8, 9
and 10, on November 18, 1975, Project Indiana R -66: The
invitation for bids was published in The South Bend Tribune
on October 13 and 20, 1975, and in the Tri- County News on
October 10 and 17, 1975, for bids on:
Contract No. 6 - General Work, which includes grading, a
variety of pavings, drainage, walls, water lines,
electrical installation, pools, fountains, canopies,
street furniture, installing and maintaining a barri-
cade for public safety and other work incidental
thereto.
Contract No. 7 - Lawns and Planting Work, which includes
finish grading, top soiling, sodding, planting,
maintenance and other work incidental thereto.
Contract No. 8 - Demolition and Site Preparation Work,
which includes sidewalk removal, vault demolition,
removal of certain utilities.
Contract No. 9 - Concrete Walks, Gutters, Curb and
Edging, which includes special concrete surfacing
over sidewalk vaults to remain.
Contract No. 10 - Combination of Contract Nos. 6, 8 and
9.
The bid opening was on Tuesday, November T8, 1975, at 2:00
p.m., E.S.T., in the office of the Department of Redevelopment,
1200 County -City Building, South Bend, Indiana, at which time
the publishers' affidavits of the advertisement were displayed.
The following bids were received and publicly opened:
The contractors who bid on the principal contract (No. 10):
Bid Amount
The Hickey Company, Inc. .......... $ 750,298.00
H. G. Christman Construction ...... 787,662.33
Carl J. Reinke & Sons, Inc. ....... 914,011.50
The contractors who bid on the landscape contract (No. 7):
Robert Foegley Landscape Design
and Contracting, Inc. ............ $ 37,424.50
Exterior Designing, Inc. .......... 52,800.00
Klehm Nursery ................... 109,500.00
- 4 -
BIDS
RECEIVED,
PLAZA
CONTRACTS
6, 7, 8,
9 & 10, R -66
6. NEW BUSINESS (Cont'd
Mr. Brownell advised the bids we received were higher than
we had anticipated. Mr. Thomas A. Oesterling, with Clyde
E. Williams & Associates, Inc., engineering consultant, had
tabulated the bids received. They have done some evaluation
on these bids, but, at this time, they are not prepared to
make a full report, as the bids were received on the 18th of
this week.
The Chair requested the above bids be received and referred
to the architect and engineers (joint venture consultants:
Environmental Planning and Design and Clyde E. Williams &
Associates, Inc.) for their recommendation at a subsequent
date.
Motion was made by Mr. Chenney, seconded by Mr. Cira and
Contract for Reuse Appraisal of Redevelopment
carried, that the above bids be received and referred to
CONTRACT
the architect and engineer for recommendation.
Ralph D. Lauver, M.A.I.,
Contract for Reuse Appraisal of Redevelopment Sites with
CONTRACT
John G. Pence & Associates, Inc., R -66: W. Brownell
APPROVED
advised this item and the next are for authorization to
FOR REUSE
enter into contracts for updated reuse appraisals for 18
APPRAISAL
parcels remaining in Project Indiana R -66.
OF REDEVELOP -
The contract is a standard appraisal contract we have
MENT SITES,
WITH JOHN G.
used. Mr. Brownell advised the regulations require us to
PENCE &
have appraisals within 18 months of the date of sale of
ASSOCIATES,
any land. Our appraisals are dated January 1, 1969, and
INC., R -66
Mr. Brownell said he arranged with two independent appraisers,
Messrs. John G. Pence and Ralph Lauver, to enter into con-
tracts to re- appraise these 18 parcels for reuse, and have
arranged, subsequent to Commission approval, with Real
Estate Research Corporation to be the reviewing appraiser.
Mr. Brownell said he has talked to HUD about this and they
have no objection to Real Estate Research doing the work.
The contracts are for $4,500.00 each.
The 18 parcels listed are: 2 -6, 2 -13, 4 -32, 4 -31, 4 -1,
4 -3, 9 -1, 9 -8, 9 -9, 4 -30, 4 -42, 4 -66, 4 -65, 4 -88 (Map
shows 4 -87), 4 -8, 8 -1, 8 -9, and 8 -11.
Motion was made by Mr. Wiggins, seconded by Mr. Cira and
carried, for the authorization of the above contract
with John G. Pence & Associates, Inc., in an amount not
to exceed $4,500.00, and the President and Secretary
authorized to enter into said contract.
c.
Contract for Reuse Appraisal of Redevelopment
Sites with
CONTRACT
Ralph D. Lauver, M.A.I.,
S.R.P A , R -66: The
same ex-
APPROVED,
planation applies to this
item as above, only
this contract
RALPH D. LAUVER,
is with Ralph D. Lauver,
M.A.I., S.R.P.A., in
contract
R -66
amount of $4,500.00, for
the 18 parcels as listed above,
Project Indiana R -66.
- 5 -
6. NEW BUSINESS (Cont'd
Motion was made by Mr. Wiggins, seconded by Mr. Cira and
carried, for the authorization of the above.contract
with Ralph D. Lauver, in an amount not to exceed $4,500.00,
and the President and Secretary authorized to enter into
said contract.
d Change Order No. 1 to Rehabilitation Contract No. 6, E -7:
Commission approval was requested for Change Order No. l
to Rehabilitation Contract No. 6, with Barany Sheet Metal &
Heating Company, for an increase in contract amount of
$1,350.00 (Contract: $5,500.00), or an amended contract
total of: $6,850.00, for rehabilitation work-at: 310 -312
East Paris Street, Southeast Project E -7.
Mr. James L. Johnson, Jr., Chief Inspector, Southeast
Bureau of Housing, in his written memorandum substantiating
the change order, states since the time of the initial inspec-
tion, the furnace has gone out completely, which presents a
serious health and safety problem which should be corrected.
The Change Order shows the charges for the installation of a
new Low Boy Model w /160M BTU Furnace, and the hookup to
existing ducts, the installation of five (5) hot air ducts,
one (1) central cold air return, and replacement of thermostat,
for an amount of $1,350.00 increase to contract amount.
Mr. Kenneth Schaller, Project Director, Southeast Project,
advised that since the time of the original inspection the
furnace has gone out completely. The homeowner is 77 years
old and her only income at present is her social security.
Motion was made by Mr. Wiggins, seconded by Mr. Donaldson
and carried, for the approval of Change Order No. 1 to Rehabi-
litation Contract No. 6, with Barany Sheet Metal & Heating
Company, for an increase in contract amount of $1,350.00,
or total amended contract of: $6,850.00.
The Chair asked if this change order has to go to the City
Council for approval, and Mr. Schaller advised that it does
not; the City Council has approved the original contract
that was in amount of $5,500.00.
Mr. Ed Soltesz, Local No. 9, U.A.W. Representative, as an
interested citizen raised the following questions: "If I
may, on that furnace for 310 -312 Paris Street, am I to under-
stand the person living there, that the only income she has
is from Social Security? Let me ask this question: Why
would we be putting in a 160,000 BTU furnace? That's big
enough to almost heat a hotel really. A comparable answer
is all I need." Mr. Schaller advised that this is for the
heating system. The house has been split in half, and it is
now a two -unit house. 310 -312 is a duplex. The homeowner
lives in one -half of the house, and the other half is a rental
unit that is now vacant.
CHANGE ORDER
NO. 1 TO RE-
HABILITATION
CONTRACT 6
APPROVED,
E -7
[1A
e
f.
Change Order No. l to Rehabilitation Contract No. 26, E -7:
Commission approval was requested for Change Order No. 1 to
Rehabilitation Contract No. 26, with A.B.C.° Plumbing and
Heating Company, for an increase in contract amount of
$560.00 (Contract: $6,422.55), or an amended contract total
of: $6;982.55, for rehabilitation work at: 611 Wenger Street,
Southeast Project E -7.
Mr. James L. Johnson, Jr., Chief Inspector, Southeast
Bureau of Housing, in his written memorandum to Mr. Keith
P. Crighton, Director, Bureau of Housing, states the speci-
fications called for the replacement of the kitchen sink
faucets, trap, and plumbing lines. Since the time of the
initial inspection further water damage has caused the
deterioration of the sink base cabinet and the floor. The
first floor bathroom lavatory has pulled away from the wall
and the faucets need to be replaced. These conditions are
causing a health problem and should be corrected.
Mr. Ken Schaller advised they need to install an underlayment
and tile. The floor has since deteriorated because of the
leaking of the plumbing lines. In the kitchen they are re-
placing the metal sink base cabinet and the double bowl- stain-
less steel sink. In the bathroom, the lavatory faucets are
being replaced, and the metal legs are being installed in
order to support the lavatory. Commissioner Wiggins asked
if the subfloor is still viable there and Mr. Schaller
advised that it is.
The Chair also asked if the City Council has approved this
contract, and Mr. Schaller advised it has received approval.
Mr. Wiggins moved for the approval of Change Order No. 1 to
Rehabilitation Contract No. 26, with A.B.C. Plumbing and
Heating Company, for an increase in contract amount of
$560.00, or total amended contract of: $6,982.55.
Goodson -Tyler & Associates Contract: Mr. Brownell requested
this additional item be added for Commission approval. The
Commission had previously approved a contract with Goodson -
Tyler & Associates to do an audit on Project A -10, through
September 30, 1975, for $1,810.00. This contract has been
approved by the Regional Office of HUD, in Chicago, and by
the Area Office of HUD, in Indianapolis. However, the A -10
Project will not be closed out until December -- hopefully it
will be closed out in December - -so we are suggesting that
the audit period be increased from September 30 through
December 31. Mr. Brownell advised he was informed this
additional cost would be in the approximate amount of
$100.00 to the original contract amount.
- 7 -
CHANGE ORDER
NO. 1 TO RE-
HABILITATION
CONTRACT 26.
APPROVED, E -7
GOODSON -TYLER
& ASSOCIATES
CONTRACT
AMENDMENT
APPROVED, A -10
6. NEW BUSINESS (Cont'd
Goodson -Tyler & Associates contract amended to include the
period ending December 31, 1975, to audit NDP Project Indiana
A -10, is shown estimated at 11 man -days, or a total contract
fee of $1,928.00.
Mr. Brownell advised he has talked to HUD on this and that they
have given their approval. Goodson -Tyler & Associates will
be sending us an amended contract, as noted above.
Mr. Wiggins moved for the approval for the increase in audit
period for the NDP Project Indiana A -10, and the increased
cost as noted above, and the President and Secretary be
authorized to enter into said contract, subject to Legal
Counsel and HUD approval. Motion was seconded by Mr. Chenney
and carried.
7. PROGRESS REPORTS
a. Plaza Park: Mr. Brownell reported the contractor has poured PLAZA PARK
a lot of the concrete, and the landscaper has the black REPORT
surface dirt in. The landscaper, Mr. Robert Foegley, was
in and we have given him a Notice to Proceed and he is pro-
ceeding with the landscape work on the Plaza- Park. We have
received their Certificate of Insurance.
b. A -10: Mr. Brownell advised in the Southeast Neighborhood two A -10 REPORT
of the three remaining houses that we own have been taken
down this week, and the third one is supposed to be taken
down today. We have three tenants left, in 230 and 230 -1/2
Paris Street that we are trying to get relocated before the
end of this month and we will be taking those houses down.
There are two houses on that one parcel. We are hoping to
close out A -10 Project and get it completed by the end of
December.
c. Terrazzo on Plaza: Commissioner Wiggins asked if the work TERRAllO
on the Terrazzo has been completed in front of Baer's. Mr. STATUS,
Brownell advised that when he last looked at it, only the RIVER BEND
pouring was done. None of the scrubbing or etching, or PLAZA, R -66
sealing, has been done. They are waiting for the cement on
the joints to harden. He advised that he had inspected it
the other day with Phil Simonds and Tom Oesterlino. At this
point it does not look good as it has not been scrubbed or
cleaned as yet. Mr. Oesterling advised they plan to scrub
it on Monday.
d. Report on bids received, Plaza Contracts 6, 7, 8, 9 & 10, REPORT ON
R -66: Mr. Thomas A. Oesterling, Clyde E. Williams & BIDS RECEIVED,
Associates, Inc., arrived in the Commission Meeting after RIVER BEND
the tabulation was read by Mr. Brownell. PLAZA, R -66
President Nimtz asked Mr. Oesterling if he had any comments
to make on these bids as they are considerably above the
estimate made by the engineers. Mr. Oesterling advised that
7. PROGRESS REPORTS (Cont'd
apparently there are some elements of construction costs that
were greatly increased because of inflation, and, in fact,
there are some they were not aware of and did not know about.
Particularly, one they learned about was the steel company
apparently took a beating on the structural steel used for
the canopies on the previous contract, and the company has
increased their price accordingly y. Also, the costs of the
demolition are much higher. These are a couple of the items
involving the higher costs and Mr. Oesterling advised that
he will have a report on the complete evaluation in a week.
Mr. Allen E. Schrager asked the question, "In light of the bids
being substantially higher than anticipated, will there be
enough funds, do you know, at this time to go ahead with that
project ?" President Nimtz replied that is the same question he
had asked Mr. Brownell three days ago. The answer from Mr.
Brownell was, "Well, you tell me how much the project is going
to cost and I will answer your quest ion.' = In answer, Mr.
Schrager stated, "You saw the bids that were tabulated. My
question is though, do we have enough funds to proceed with
the project? Mr. Brownell said that he saw the bids, yes,
but that we need to evaluate them and determine what we will
do. Regarding the question on the funds "We always have
enough funds." Mr. Kevin J. Butler, Commission Legal Counsel,
advised that the engineer and architect will be working that
out with Mr. Brownell and the Commission as to what part of
the project can be done, with the money that has been made
available for it.
Mr. Schrager further added that the reason he asked the question
is that previous discussions were in terms of approximately
$450,000 and the article in The South Bend Tribune had stated
the bids were closer to $800,000 and "I am wondering if this
will mean that the project will have to be abandoned, or whether
they will have to redesign it, or what can be done ?" President
Nimtz advised they cannot answer that question today until the
report is received from the architect and engineers.
The Chair asked Commissioner Chenney to respond, who stated that
they are going to have to do a lot of cutting some place, because
right now, it is $142,000 plus over the estimate.
Relative to the questions, President Nimtz requested that we
not make any conjecture, at this time, until we get the report
from the architect and engineers. It is all academic at this
time.
8. COMMENTS AND /OR QUESTIONS FROM PUBLIC
T e Chair opened this session to the public. COMMENTS
ME. Derbeck, South Bend Tribune Reporter, asked: "Going back to the AND /OR QUESTIONS
r use appraisals, I am wondering what the reason is for having it ap-
8. COMMENTS AND /OR QUESTIONS FROM PUBLIC
p ailed now. Do you have any prospective bidders for this land?
M . Brownell advised the reason is that under the HUD regulations
w cannot sell any property unless it has been appraised within
1 months.
Ms. Derbeck inquired if the last appraisal was in 1969, and was
confirmed by Mr. Brownell to be January 1, 1969. Ms. Derbeck
added that the 18 months period then had elapsed in 1970. Mr.
Brownell said that regulation was not in effect in 1970; he does
not know the exact date it came out. He is requesting the updated
appraisal as people are approaching us about the possibility of
developing land. They want to know how much it costs and we can't
a swer their question without a new appraisal. President Nimtz
said we can't give an answer until we give an up -to -date figure.
Mrs. Janet S. Allen asked how we could have sold Block 6 then?
M . Brownell advised we had Block 6 reappraised.
Various questions were raised on Block 6 and Section 8 Housing,
with lengthly discussions following, summarized briefly: One
question asked by Mrs. Allen on how the price was arrived at
for the two acres at $108,900, when the 16 acres cost $651,111.
Mr. Brownell advised that actually what happened was that the
bidder (St. Joseph River Bend Development Corporation) in making
t eir bids bid more than the price which was required. Our price
w s $640,000 plus and they bid $651,000 plus, which is higher than
o r minimum bid price - -that is the first thing. Second, in bidding
ot it, they elected to take a stage take -down contract, which means
the developer splits the land into parcels and they set a date when
they want to buy it, or before that date, but not later than that
date. They set a date when they will complete their construction
op it. They also set the price that they will pay us on it. The
total of those prices has to total up to the $651,000 plus. What
price they set on each parcel is a matter of discretion and is-
o e that we approve when we accept the bid. They set a price on
each parcel that they selected. We had the entire parcel re- appraised
iii less than 18 months before they bought it. The point is that the
1 nd has to be re- appraised within 18 months of the contract of sale,
a d that contract has already been entered into.
Commission Legal Counsel, Mr. Butler, stated the St. Joseph River
Bend Development Corporation will not be bidding on Section 8 Housing,
so they are giving non - exclusive options to all contractors who are
going-to bid. So the successful bidder, if there is a successful
bidder for that site, will pay that much. Mr. Brownell stated that
a 1 the bidderswho originally bid under Section 8 Housing were re-
jected in St. Joseph County and it is being rebid, and the bids
are due on December 15, 1975, with HUD. This has been advertised
a d the documents are being sent out now. The St. Jospeh River Bend
Development Corporation is agreeing that they will give a non- exclusive
o tion which we will have to agree to, and approve, to anyone who
w nts to bid under Section 8 Housing on this particular parcel of land.
- 10 -
9. N�XT COMMISSION MEETING
10.
T e next Regular Meeting of the Redevelopment Commission will be
a 10:00 a.m., Friday, December 5, 1975, in the Office of the
D partment of Redevelopment.
OURNMENT
ere being no further business to discuss, motion was duly
de by Mr. Chenney, seconded by Mr. Wiggins and carried, for
iournment at 10:32 a.m.
($EAL)
rowneli, Ex
- 11 -
0
6
mtz,'14,r,esiden
NEXT
COMMISSION
MEET IN G:
12 -5 -75
ADJOURNMENT