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HomeMy WebLinkAboutSM 12-17-75Decembe 17, 1975 10:00 A.M. Presidi q Officer: 1. ROUL CALL SOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING HELD IN LIEU OF REGULAR MEETING OF DECEMBER 19, 1975 1200 County -City Building Mr. F. Jay Nimtz, 217 West Jefferson Blvd. President South Bend, Indiana 46601 Commissioners Mr. F. Jay Nimtz, President Present: Mr. John E. Chenney, Vice President Mr. Donald A. Wiggins, Secretary Mr. A. Peter Donaldson, Assistant Secretary Commissioner Mr. Absent: Legal Counsel: Mr. News Media: Ms. Mr. Mr. Mr. Mr. Mr. Mr. Robert J. Cira, Member Kevin J. Butler 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 Bill Cressler, WSJV -TV Photographer ers Present: Mrs. Janet S. Allen, Interested Citizen Mr. Gene Evans, Executive Secretary, Civic Planning Association Mr. Fred J. Helmen, Honorary Chairman, Redevelopment Commission, City of South Bend Mr. John R. Kagel, Executive Director, Downtown South Bend Council Mr. Charles F. Lennon, Jr., Executive Director, Housing Allowance Office, Inc., and former Executive Director, Department of Redevelopment Mr. William R. Steinmetz, President, St. Joseph River Bend Development Corporation Mr. Lloyd S. Taylor, Spokesman, St. Joseph River Bend Development Corporation munity Mr. Keith P. Crighton Ms. Joan Ragland elopment Mr. J. L. Johnson, Jr. Mr. Kenneth J. Schaller LPA Staff: Mr. C. Wayne Brownell Mr. Edwin R. Bauer Ms. Helen S. King - 1 - 2. APPROVAL OF MINUTES Mr. Wiggins moved for the approval of the Minutes of the Regular Meeting of December 5, 1975, as mailed. Motion was seconded by Mr Chenney and carried. 3. APPROVAL OF CLAIMS Mr. Donaldson moved for the approval of the claims, as submitted, and that they be allowed and ordered to be paid, totalling: $1 4,345.11. Motion was seconded by Mr. Chenney and carried. The authorized claims are: P. .A. NDP INDIANA A -10 De t. of Housing & Urban Development Pr ject Expenditure Account NDP A -10 Total P.g.A. INDIANA R -66 Ro ert Foegley Landscape Na tilus Construction Company DI TRICT CAPITAL BONDS OF 1972 South Bend Water Works Acne Air - Filter Service Total Total BUREAU OF HOUSING E -7 Arrow Pest Control Co., Inc. (Contract No. 66) Total REDEVELOPMENT REVOLVING FUND Payroll: November 15, 1975 to November 28, 1975 Indiana & Michigan Electric Company ND A -10 Northern Indiana Public Service Co. Fisher Paper Company Ri k Riverside Printing, Inc. So th Bend Water Works Total GRAND TOTAL - 2 - MINUTES APPROVED CLAIMS APPROVED $ 73,561.00 4,250.00 77,811.00 $ 6,950.39 30,632.04 37,582.43 $ 27.35 10.00 37.35 $ 60.00 60.00 $ 4,951.91 27.49 33,545.90 17.42 275.00 2.50 34.11 $ 38,854.33 $ 154,345.11 4 5 ICATIONS a. HUD Area Office letter dated December 4, 1975: This letter, REDEVELOPMENT over the signature of Mr. Stephen J. Havens, Director, Com- ANNUAL ADMINIS- munity Planning and Development, advises the Annual'Adminis TRATIVE BUDGET trative Budget for the City of South Bend, Department of APPROVED Redevelopment, is approved. Copies of the executed budget were returned for our files. Mr. Wiggins moved the above letter be received and placed on file. Motion seconded by Mr. Chenney and carried. OLD BUSINESS a.1 Report on Plaza Continuation, Project Indiana R -66: Mr. C. Wayne Brownell, Executive Director, advised this report con- sists of two letters he has received: One is from The Hickey Company, Inc., dated December 16, 1975, signed by Mr. G. A. Hickey, Chairman of the Board, which states: In accordance with our conversation of December 15, 1975, we will extend our proposal for Contract No. 10, Parts A and D, dated November 18, 1975, until February 1, 1976, with no increase in price. This contract totaled $750,298.00. If the following items are deducted, the values are as follows: (Seven (7) items listed in letter with total deduction, in amount of $59,973.00). In addition, we would request that the completion date be adjusted to correspond with any delayed starting date. Mr. Brownell advised The Hickey Company is agreeable to the deductions we have requested. The other letter is from Robert Foegley Landscape Design and Contracting, Inc., dated December 16, 1975, signed by Mr. Foegley, which states: Per our phone conversation of December 15, 1975, we agree to the extension of the bid award for the Pedestrian Way, Phase #3 (Project Ind. R -66) through January 31, 1975. It is also understood that the beginning of construc- tion and the completion dates will also be delayed. Mr. Brownell stated that both of the above contractors are the low bidders and they have both agreed to continue the time for awarding bids to the end of January, 1976. Mr. Kevin J. Butler, Commission Legal Counsel, advised the dead - line now is tomorrow, and now are within the time limit of extending the period to award the bids. - 3 - TIME EXTENSION APPROVED TO AWARD BIDS RECEIVED FOR PLAZA CONTINU- ATION, R -66 5. OLO BUSINESS (Cont'd The motion was made by Mr. Wiggins to receive the letters from The Hickey Company, Inc. and Robert Foegley Landscape Design and Contracting, Inc. (noted above), and to approve their re- quest for extension of the time in which to award the bids to February 1, 1976, and to extend the starting dates and the completion dates correspondingly. The motion was seconded by Mr. Donaldson and carried. b. Amendment to Contract with Abstract Company of St. Joseph POST- APPROVAL, County; Inc.: This is an amendment to the NDP A -10 Project CONTRACT contract we have for Professional Services with-the Abstract AMENDMENT, Company of St. Joseph County, Inc. and the Department of Re- NDP A -10 development, dated April 6, 1973. The amendment is to Paragraph 3a(1) of the Contract, and amended to read as follows: Mr. Steinmetz advised they are very pleased to be here and that their purpose really here this morning is to bring all the Commissioners up to date, as well as the News Media on the progress they have been making with Block 6 and the in- vestor group. Mr. Steinmetz revealed a model of the corpo- ration's plan for Block 6 near downtown. - 4 - The Local Public Agency will pay the Contractor $75.00 for each acquisition parcel upon which a title policy in the amount of $2,000.00 has been issued where no prior title evidence is furnished by the owners. Dated December 1, 1973, and signed by Mr. Horace B. Clarke, President, Abstract Company of St. Joseph County, Inc. Mr. Brownell explained what happened is that the Abstract Company increased their price $5.00 and we didn't get the amendment approved by the Redevelopment Commission, and this is being requested by the auditors for the close -out of the NDP Project A -10. Mr. Wiggins moved for the approval of the above - stated amend- ment to Contract with Abstract Company of St. Joseph County, Inc., dated April 6, 1973. Motion was seconded by Mr. Chenney and carried. c. Model and Schematics presented by the St. Joseph River Bend MODEL AND Development Corporation, on Disposition Parcel No. 6 -1, SCHEMATICS Project Indiana R -66: The Chair recognized Mr. Lloyd S. PRESENTED Taylor, spokesman for the St. Joseph River Bend Development FOR BLOCK 6 Corporation, and Mr. William R. Steinmetz, President of the DEVELOPMENT, Corporation. R -66 Mr. Steinmetz advised they are very pleased to be here and that their purpose really here this morning is to bring all the Commissioners up to date, as well as the News Media on the progress they have been making with Block 6 and the in- vestor group. Mr. Steinmetz revealed a model of the corpo- ration's plan for Block 6 near downtown. - 4 - 5. OLO BUSINESS (Cont'd Mr. Steinmetz advised, parenthetically, there was no secrecy about the officers and principal stockholders of the S -t. Joseph River Bend Development Corporation, but that they were simply not in a position, until all of the negotiations had been completed, to make this public, but that they are now in that position and are happy to do it. Mr. Steinmetz said in addition to himself, as President of the St. Joseph River Bend Development Corporation, are: George Herendeen, Vice President; Eugene Muia, Secretary; Joseph Fragomeni, Treasurer; and the additional investors are: Richard A. Rosenthal, Duane Bobeck, and Jerry Hammes. Mr. Steinmetz advised their group has a management contract with the Real Estate Department of the St. Joseph Bank and Trust Company, and they will be handling the development and the leas- ing of this property. Mr. Taylor gave a brief presentation of the model outlining the development of Block 6, located alongside the City's Plaza Park, immediately south of Jefferson Boulevard, from Colfax to Monroe all the way along the river, with a boat - docking facility, which is pretty well completed now. Then seven acres from the Grand Trunk Bridge up to the high- quality restaurant, the site will be developed as a professional "office park" consisting of eight to ten, one- and two -story buildings. A site is being reserved here of about three and one -half to four acres for a major office structure. However, if this does not come to be, Mr. Taylor said they will simply extend the office park into that. The others are a drive -in banking facility, a six - to eight- story, 200 -unit apartment for the elderly, a convenience center to include a delicatessen, drug store, cleaners and Laundromat, plus parking suitable to accommodate occupants and visitors. It is anticipated that the total development costs for the Block 6 project will be in excess of $14 million now that the plans are being formalized and the response from within and outside the community has been so enthusiastically favorable. Mr. Taylor also advised that negotiations are already underway with two prospective parties for buildings in the office portion of Block 6 and bids have been re- submitted to the Department of Housing & Urban Development for the 200 units of Section 8 Elderly Housing on the two -acre site at the far Southeast 'end of the property. He also said it might be of interest to some here on the Section 8 Elderly Housing, which is a Federal program for housing of the elderly, that HUD did take bids last summer and then rejected all of those bids. Now, as of December 15th, that project was rebid and we have furnished non-exclusive options to six different bidders on this particular site, and so he believed most of the bids are now being concentrated on this site. Mr. Taylor displayed a sche- matic drawing of one of the bidders proposed development of the 200 -unit elderly housing site. None of the bidders have been accepted as yet. This should probably get under construction next year, assuming that one of those bids is accepted by the De- partment of Housing & Urban Development. - 5 - 5. OLO BUSINESS (Cont'd This portion was opened for question and answer session to be directed to Mr. Taylor or to Mr. Steinmetz for answers: Ms. Jeanne Derbeck, South Bend Tribune reporter, asked if the branch bank is the first building to be constructed, and Mr. Taylor advised, "Not necessarily. I don't know.which is going to be the first building to go up. We are presently negotiating for two (2) offices in the Office Park The negotiations have gone to the extent that the buildings are actually under design by archi- tectural firms within our City, and I don't know who is going to be the first one to break ground." Also, Ms. Derbeck asked, "Will those office buildings- -the office park - -be put up by somebody else ?" Mr. Taylor advised, "Yes. Most of the construction here will be by other parties associated with US." As to the bank being designated to.be first, Mr. Taylor said, "We indicated that we will take down the bank parcel, but I just don't want to comment on when the bank construction might start. There's a lot of flexibility in that contract. We indicated that would be one of the first parcels we would take down. Depending on sales or development agreements within the office park area will depend on when we take that down. We have to take it down when we start, or we can take it down sooner. As we start first construc- tion, we have to take that down. Mr. Lou Tutino, WNDU -TV Reporter, asked when the landscaping will be completed. Mr. Taylor advised they will have to integrate, of course, the landscaping with the development of the individual parcels, and obviously we are working with different developers for different buildings within this configuration, and as a building is completed, the landscaping around that particular building will be developed. The landscaping cannot be developed until the con- struction is started. Commissioner Wiggins said he notices there is indicated a pedestrian link with the bridge through the project, and at what point will that be constructed, or will that depend on when they have the office struc- ture pretty well together? Mr. Taylor indicated on the model where it is, and showed the area where an easement will be required by them to be provided, stipulated by the Department of Redevelopment, from Columbia Street to the Bridge. He said he does not know whether the Department of Redevelopment intends to pave a walkway there, or just what the intent is. "It simply indicates the easement that we have provided for access." Commissioner Wiggins said he was under the impression, right or wrong, that in the process of this, there is a certain amount of flexibility as to where that would be located in order to give them some options in their development, but that is fairly well nailed down at this point. Mr. Taylor con- firmed that is pretty well established now, at this point, yes. As to the landscaping on the Plaza Park, Mr. Taylor said it looks very nice, and they do anticipate a lot of river traffic to the restaurant and the other facilities. He also advised another firm has bought a river boat and plans to make excursions during the 5. OLq BUSINESS (Cont'd summer period down to the dock, which will add a lot to our down- town area. 6. NEW BUSINESS a. Proclaimer Certificate No 99 R -66: Authorization was requested for the Executive Director to execute Proclaimer Certificate No. 9, for the establishment of fair reuse value, for Parcel No. 6 -2, in the Central Downtown Urban Renewal Project, Indiana R -66. Mr. Brownell advised Parcel No. 6 -2 is Public, (Green Belt Park), with 172,684 square feet. John G. Pence Associates, Inc. ap- praised the parcel at $.91 a square foot, and Forrest W. Eckert appraised the parcel at $.93 a square foot. We recommend the LPA Reuse Value at $.93 per square foot. The approximate Reuse Valuation is: $160,000.00. Motion was made by Mr. Wiggins, seconded by Mr. Donaldson and carried, to authorize the Executive Director to sign the Pro - claimer Certificate No. 9, proclaiming this value. Mr. Gene Evans, Executive Secretary, Civic Planning Association, asked the meaning of the $160,000; if we are going to sell it to the South Bend Public Park Department; if this is the land on which the Green Belt is presently being developed; we are in the position of having already invested some moneys and continuing to invest something by the City of South Bend, Park Department, on this land and they do not as yet hold clear title? Answers summarized, Mr. Brownell advised that we do hope to sell it to South Bend Public Park Department for $160,000; the Green Belt and the bridge is being developed on this land; and the land sale is similar to the land sale we had just deeded to the City last week on the West side with the fire station built on it, in our Project NDP A -10, Model Neighborhood No. 1. Mr. Evans further asked, "Being all fine, upstanding and honorable gentle- men, there's no problem on reaching some kind of a settlement ?" Mr. Brownell said he didn't believe there would be any problem, and that we are spending several hundred thousand dollars build- ing this park and are offering to sell both the land and the park for $160,000.00, which is quite a bargain for the City really, and the Park Department. Commissioner Wiggins added that the price is determined and there is no bargaining. Mrs. Janet S. Allen raised the following questions summarized: Were there only two appraisals made on that or three; and you took the higher of the two; since you are handing it over to the City more or less and expecting them to put money into it, why did you take the higher appraisal in this case? Mr. Brownell advised two appraisals were made; higher of the two appraisals was taken; we are spending several hundred thousand dollars build- ing the park in addition to the land cost, and the reason we have two appraisals instead of three is that the Indiana Statute was changed. It used to require three; today it only requires two. - 7 - PROCLAIMER CERTIFICATE NO. 9, AUTHORIZED FOR SIGNA- TURE, R -66 6. NEW BUSINESS (Cont'd Mrs. Allen asked, "In spending the urban redevelopment funds, under the stature or whatever it was, Urban Redevelopment would pay the City a certain amount - -a percentage - -in lieu of the taxes that the City lost from the properties that were torn down, have you, at any time, ever paid the City any of these ?" Mr. Brownell answered, "As far as I know, we have not. We have, however, allowed the City to use our land for parking purposes and other purposes and let them collect the fees and keep the fees. It is not the same thing at all; it is probably an off - set." Commissioner Wiggins added that as a result of the acti- vities of this Department, the amount of taxable base that has been generated within this community, has far more than offset whatever loss there was in terms of taxes on the property pre - viously. Had it not been for the proposed redevelopment of the downtown, the developers of the downtown buildings would not have made that investment. Mrs. Allen said what she is really asking is if the rules set down in the Urban Renewal Plan in the first place, if those rules are being followed, or have been followed? Mr. Lloyd S. Taylor, asked the Chair if he may respond to that as he is aware of what Mrs. Allen is referring to, (as a former Executive Director of the Department of Redevelopment), and that Mrs. Allen is referring to the R -66 plan and he does not know of any real deviations from the basic plan. Maybe the basic plan kind of painted a higher density development of the downtown then ultimately what we are going to see, but that he thinks that is just a change of our economic situation. Commissioner Wiggins stated, "Frankly, what the downtown of South Bend needs are boosters and positive attitudes. We have been deluved and beset for years with all kinds of complaints and 'knitpicking' that have created more problems then they have solved and we have all the problems we need." Mrs. Allen said she just wanted to bring this up before Urban Redevelopment is completely phased out. b. Quit -Claim Deed, Southeast Neighborhood No. 1, NDP Project A -10 Authorization was requested for the President and Secretary to execute the Quit -Claim Deed, in which the City of South Bend, Indiana, Department of Redevelopment, releases and quit - claims to the City of South Bend, a Municipal Corporation of the State of Indiana, for the use and benefit of its Board of Park Com- missioners, for and in consideration of $37,564.28, for the real estate as stated on Exhibit A. Mr. Brownell advised we had previously deeded by Quit -Claim Deed, this property to the City for the Park Department, and the reason for another deed is that some of the titles were not complete at that time and the Quit -Claim Deed didn't furnish all of the titles of the real estate in order to make that correction and we had another Quit -Claim Deed prepared, and are requesting authorization for execution of that now. QUIT -CLAIM DEED, SE #1, NDP PROJECT A -10 6. NEW BUSINESS (Cont' Motion was made by Mr. Chenney, seconded by Mr. Donaldson and carried, for the President and Secretary to be authorized to execute the above- stated Quit - Claim Deed, for the Southeast Neighborhood No. 1, NDP Project A -10. c. Change Order No. l to Rehabilitation Contract No. SECD /PR /CS- 1/03, E -7: Commission approval was requested for this Change Order, with the Bailey Electric Company, for an increase in contract amount of $394.00, (Contract: '$5,718.00), or an amended contract total of: $6,112.00, for rehabilitation work at: 630 East Indiana Avenue, Southeast Project E -7. The Chair called on Mr. Keith P. Crighton, Director, Bureau of Housing, to explain this change order. The documentation was included in the packets Mr. Crighton advised the original inspection for this particular home had included the repair of the first -floor bathroom walls that was due to water damage. We felt the items, in the amount of $113.00, should be deleted because there was 7" of rain in August and the deterioration continued and we decided to request the following items be added to the change order and repair the damage to the bathroom walls, which includes removing the plastic tile, upper congolium, install drywall, and seal, sand, tape, prime, and paint two coats, using non - porous latex semi -gloss enamel and on the ceiling install the drywall, seal, sand tape, prime and paint with two coats, amounting to $507.00, less the deletion items amounting to $113.00, or a total increase to the contract amount of $394.00, for an amended contract total of: $6,112.00. Mr. Wiggins moved for the approval of the above Change Order No. 1 to Rehabilitation Contract No. SECD /PR /CS -1/03, for an increase in contract amount of $394.00, or an amended contract total of: 6,112.00, E -7. d. Change Order No. 1 to Rehabilitation Contract No. SECD /PR /CS- 1/04, E -7: Commission approval was requested for this Change Order, with the Bailey Electric Company, for an increase in contract amount of $1,054.00, (Contract: $2,405.00), or an amended contract total of: $3,459.00, for rehabilitation work at: 608 East Haney Street, Southeast Project E -7. The Chair again called on Mr. Crighton to respond to the change order. The documentation was included in the packets also. Mr. Crighton advised at the time of inspection; this furnace was not operating because it was during the summer. His staff had no indication of what condition the furnace was in, although it was old, so our specification merely stated that this furnace was to CHANGE ORDER 1 TO CONTRACT 1/03, E -7, APPROVED CHANGE ORDER 1 TO CONTRACT 1/04, E -7, APPROVED 6. NEW BUSINESS (Cont'd be checked and any defective parts were to be replaced. Since the contract has been awarded, (I might add this change order was expected.), the contractor's heating subcontractor re- commended this unit be replaced. The furnace is a cast iron coal unit that was converted to oil, and, subsequently, con- verted to gas. It is rather old and .inefficient unit. It is also leaking fumes and it would cost as much money to tear it apart and repair as it is to replace the furnace. Mr. Wiggins moved for the approval of the above Change Order No. 1 to Rehabilitation Contract No. SECD /PR /CS -1/04, for an increase in contract amount of $1,054.00, or an amended contract total of: $3,459.00. Seconded by Mr. Donaldson and carried. Commissioner Chenney asked who makes the inspections in the first place; who made it on this one? Mr. Crighton advised, as he had said, our inspectors made the inspection during the summer; the furnace was not operating at the time, and we have no capacity to pay for a heating man to go out and inspect the furnace. Be- cause we are relying on our staff, the specification merely said the furnace was to be inspected after the contract was awarded and the furnace was to be operable. Commissioner Chenney stated that all his inspector had to do in the first place in the summer time is to turn on the gas and he would have found out that the furnace was no good then. Mr. Crighton advised that our staff has no capacity to say that, because our inspectors are not pro - fessional heating contractors, so, therefore, when we add it to the contract, we state that we recommend the furnace be checked and replace any defective parts. Mr. Gene Evans, Executive Secretary,Civic Planning Association, inquired if the 140,000 BTU furnace is a standard size, and if that is specified on all of our furnaces for the heating in BTU. That this particular change order and the next call for 140,000 BTU furnace with a slight difference in price. He asked what the size of the house is. Mr. Crighton replied the structure is 44 x 21, with five rooms, one bath, two bedrooms. Commissioner Wiggins advised some factors enter into this and that it is not just the size of the furnace, but the connections to the furnace- - both hot air and cold air ducts - -could cause some variance in the prices, depending on how much duct work is involved. Mr. Wiggins again moved for the approval of the above Change Order, seconded by Mr. Donaldson and carried. e. Change Order No.lto Rehabilitation Contract No. SECD /PR /CS- CHANGE 1/08, E -7: Commission approval was requested for this Change ORDER 1 TC Order, with the Bailey Electric Company, for an increase in con- CONTRACT tract amount of $1,072.00, (Contract: $3,187.00), or an 1/08, E -7, amended contract total of: $4,259.00, for rehabilitation work APPROVED at: 310 East Sample Street, Southeast Project E -7. 10 - 6. NEW BUSINESS (Cont'd The Chair again referred the comments to Mr. Crighton, who stated this furnace, at this structure, was working at the time the house was inspected and since then, during the construction in the performance of the contract, the furnace is no longer oper- ating. In situations like this, Mr. Crighton stated, we request a change order. The furnace that the homeowner had was in- stalled in 1947 and it had been converted. Mr. Wiggins moved for the approval of the above Change Order No. 1 to Rehabilitation Contract No. SECD /PR /CS -1/08, for an increase in contract amount of $1,072.00, or an 'amended contract total of: $4,259.00. Motion was seconded by Mr. Donaldson and carried. Ms. Jeanne Derbeck, South Bend Tribune Reporter, stated that over and over again, we get these change orders and "I can see why they arrive, but my question is, with some of these really old houses that are in bad shape like this, if there is not a point at which there is a cut -off point of how much money ought to be put into them. When you don't know before you start how much money is going into it, you can - -with these thousands of dollars- - be trapped into spending more money than the house is worth." President Nimtz said there is another side of the picture, and that he, as President of Southhold Restorations, and as an owner of a house in which he was born in some 60 years ago, and an entrepreneur owning some places around here, that once you tear a house down, it is hard to get somebody to put money into it to build a new structure there. If part of the plan here is to keep neighborhoods in existence and not just to have vacant spaces, this is one of the prices you have to pay to keep neighbor- hoods in existence without a lot of vacant space in them. Ms. Derbeck said the historical old houses are different and some old houses may be reconditioned, but some of these old houses in the southeast neighborhood, if we are not just throwing away money just for a year or two. Commissioner Wiggins said this work is sup- posed to bring the house up to standard that is established by the City for safe and standard housing which would put it on some kind of an equivalent basis with new construction in part. The price for any kind of new housing today, I would guess would be in the neighborhood of $29,000. To buy or build an equivalent space at current market prices is absolutely prohibitive. This is the best bargain in the world to repair a lot of these older homes rather than have them demolished and gone, and the necessity exists then to create new equivalent space for people to live in. One of the problems we have discovered is that it was even difficult to get contractors to do this type of repairs. You are not sure what you will get into, until the work is started; no one can tell what is behind that surface until they get into it. There are people who can't afford to even keep up the structures that they have; they ought to have that kind of an alternative. There's no incentive here really for people to maintain them, and there - 11 - 6. NEW BUSINESS (Cont'd are people who have really let these things go down, and seem to learn nothing from their experiences. Seems kind of sad, really! Mr. Crighton said, "As far as the City's overall neighborhood re- habilitation task for old neighborhoods is: when is the cutoff point; when do you decide whether it is worth it to rehabilitate this house, or to leave it as it'is, because that is exactly what we have to do. If we don't put the money into it we have to leave the house as it stands. If we rehabilitate all the houses surrounding it, and this one house stands as an eye sore, then it's a health and safety problem. We have no available reloca- tion money; we have no capacity to relocate people from houses that take over our limitation, let's say. So, it's our point of view that rehabilitation is far more feasible than going through - -if we did have relocation money and did massive relo- cation, or just leaving the person in the home. As far as these change orders are concerned, at the time of inspection when we look at a house, our inspectors write up everything as it exists. If we have to cut it because we feel that the item isn't serious enough, then we do. If the item may get serious over a two -month period from the time we advertise for it and from the time the actual work starts, so the reason we have these continuous change orders presented to you (the Commission) is the fact we want to keep all the money involved in this project completely above board. We don't want to add an item to an inspection that may not be a bona fide code violation at the time, because then we would be criticized for adding unnecessary things to the contracts. Commissioner Wiggins added, "I think you have to recognize that this is all a part of the piece- -that there are sociological factors; there are economic factors involved in the whole thing. In short, you can find neighborhoods comprised of old structures far older in many cases in other sections of the country than we have here. Where the houses have been maintained for over a period of 100 -200 years or more, but this is a question of both the understanding of the people who live in them and their economic capacity to maintain and keep up the buildings; the desire to do it is part of it; the knowledge of it is part of it. All of these enter into the picture. Jess Dickinson went through a lot of that with some of his experiences in terms of public housing in'their lease program. Putting families in one house after another and the family just tore up the house. Now, this wasn't a question of the building falling down because of the elements. There is a question of people not only not maintain- ing the building, but in some cases being destructive." Mr. John Kagel, Executive Director, Downtown South Bend Council, added: "Being a proponent of in -City living, as a tax base and all the other things that go along with the amenities of living in a community, we have discussed the point of who lives in these houses, and I think one of the very serious problems, and I am involved with a neighborhood group myself, in the ownership of that property -- - 12 - 1.1 7. a BUSINESS (Cont'd the person who owns that property- -has a responsibility more so than the people who live in that property. Now, there are some owners of these properties that couldn't care less, could care less about who is living in the property, could care less about the neighborhood, could careless about the City of South Bend. I don't know how this is going to be corrected, but'I do have this compliment to pay the incoming Mayor. The previous ad- ministration has done everything that they could do through these various programs, but the incoming Mayor says we are going to try to make the City livable, and I think that we have to look for those owners of those properties that are responsible for some of the social problems that we have. How are you going to work hand -in -hand, I don't know. Keith Crighton is doing an excellent job, but how do you get to these people? How do you, through friendly persuasion, get that ab- sentee property owner to try to do something about the problems. Now, I agree, one property can take the whole City block. In a matter of five years, it can go down 'hill. Mrs. Allen referred to Item 6c on the Agenda and discussed above: The contract is increased from $5,718.00 now to $6,112.00. She said she understands that anything over $-5,000 has to go before the Council, so that no doubt we have received approval from the Council. Now with the amended contract - -like $394.00 here and in some cases it is $1,000 more added to the contract, does that then go back to the Council for further approval? Mr. Butler advised that it does not. That basically, they have had discussion with the Council and they have indicated that their initial approval is sufficient. Mrs. Allen said the Council could approve a contract for over $5,000 and we could then put $10,000 into it, and Mr. Butler advised that, "Theoretically, yes; although the Commission would not do it, I am sure- -not another $5,000." GRESS REPORTS Norge submitted. NEXT COMMISSION MEETING The Chair announced that the next Commission meeting will be the ANNUAL Annual Organizational Meeting, Friday, January 2, 1.976, at 10:00 ORGANIZA- a.m., and immediately following the Organizational Meeting will be TIONAL MTG., the Commissioners' Regular Meeting for the lst Friday of the month, 1 -2 -76 & January 2, 1976. REGULAR MTG. RES LUTION NO. 519 FROM REDEVELOPMENT COMMISSIONERS The Chair recognized Commissioner Wiggins, who read the following Resplution, commending Commissioner Chenney for his services: - 13 - RESOLUTION NO. 519 9. REPOLUTION NO. 519 FROM REDEVELOPMENT COMMISSIONERS (Cont'd RESOLUTION NO. 519 WHEREAS: The hilstotcy o6 s.ign.ijicant community pnog&e.6s in this ghat City o4 South Bend, Indiana, has .long been mctt ked by the un/s eta i�sh cone ibution o6 time and talent by an able and Jotthtr,%ght citizen, and W H ER EAS: Such e44oAts have not always met with univeual acc to i.m, yet he ha/s continued to pnes/s on and has given 4neely o4 W best e44on t�s to build a bette)L neat ty 4o& his 4ettow town6men, and W ER EAS: AjtetL many yeax6 o4 loyal .6 eAv.ice, he has elected to bn i.ng to a cloyse his teALm o� Vice PtLe6ident o� th.i s Body, N0 W.- THEREFORE SE IT RESOLVED: That the South Bend Redevelopment Commission commend3 ...... J 0 H N E. C H E N N E Y ..... 6o,,L his outstanding pubt ie s eAvice and devotion to duty and 4utrthen commends him 4otL W -inte&est and e46otrt6 that have a,2tceady .imp&oved the quat ty oA ti.ye bon South Bend and a.0 o f itz citizens. IN TESTIMONY W H E R E 0 F: The South Bend Redevelopment Comm,iz s ion, in meet - ing aszembted on this 17th day o6 DeeembeA, 1975, hays adopted this Resolution and a46ixed ,it6 z ign and seal. /z/ F. Jay N,imtz F. Jay Wimtz, P,tes.ident /s/ Donald A. Wiggins on A. Wtggtns, S ecAetan y (SEAL) CITY OF SOUTH BEND REDEVELOPMENT COMMISSIONERS - 14 - //s/ A. PetelL Donald6 on A. ete& DonY,06on A.s si.stant S ec&etatL y Robetrt J. Cita Ro etrt J. Cita Membe& 9. RESOLUTION NO. 519 FROM REDEVELOPMENT COMMISSIONERS (Cont'd Mr � Wiggins moved for the adoption of Resolution No. 519, seconded by Mr. Donaldson, and carried unanimously. Ms Derbeck asked how long Mr. Chenney has been on the Commission, an Mr. Chenney answered, "A little over eight (8) years." ThO Chair said to Mr. Chenney: Jack: We atce going to miss you. you tea used a tot o4 questions and you made these meetings vetcy .interesting. We know that you are retL ng votuntaAity and you want to spend more time in doing some othea things you want to do -- trav et, etc. We wish you good h eat th and happiness. We are going to miss you here. And, tike Fred Hetmen, you atce atways wetcome, Jack, whenever you want to come up helte. The Board o4 Trustees at thei& Annuat Meeting passed a Raotution recognizing youtc seAv.ice and commending you 4or your s env,ices . This Reis otutio n is now appro pr,iat ety 4,tamed and wrapped as a ChAiztmas present. Tt is beauti4u2. I Looked at it yesteAday. We wiU have the above Commilss-ionetu Ruotuti.on 4ramed atso and w-i t present it to you when it is tread y. I hope this w,it2 %eeaU many happy experiences that you had with us. I know it witt reeaU some ateguments you had in this Body, but I know that your services have been recognized by the City and it has been worthwhit e. issioner Chenney thanked the Commissioners and said: I sure have enjoyed being a membetc o4 this Comm.izzion, and I w,i Pt miss everybody, inetud.ing the CommissioneAz and the sta44, and I hope you ate. have as good a 4utuhe ass I have had in the tact eight years. I thank everybody, and espeeiaUy the Trustees 4or this gamed Retsotuti.on, and I w.i t hang this in an apptoptci.ate ptaee at home. As 1 said, I wiU miss you aP.e.. 1.0. ADJOURNMENT Motion for adjournment of the.meeting was made by se onded by Mr. Donaldson and carried, at 10 :48 one being invited to stay for coffee and cake in s i C bey. . ----I C. rownel l , Exec. (S AL Mr. Wiggins, ADJOURNMENT a.m., with every - honor of Commis - ay Ni#z,lyresident PLANNERS M4 ENGINEERS 7i DESIGNERS "' BUILDERS December 16, 1975 Depart ent of Redevelopment Room 1 00, County /City Building South end, Indiana 46601 Attent�on: Mr. C. Wayne Brownell Executive Director RE: South Bend Pedestrian Way Project: Indiana R -66 South Bend, Indiana Dear Mi. Brownell: In acc rdance with our conversation of December 15, 1975, we will extend our pr posal for contract number 10, Parts A and 10, dated November 18, 1975 until ebruary 1, 1976 with no increase in price. This contract totaled $750,238-00. If the 1 2 3 4 5 6 7 In add corresi following items are deducted, the values are as follows: Two pools, chemicals and sump pump $ 46,650.00 Benches - 16 units 2,923.00 Substitute brown concrete for terrazzo paving 11900.00 Brick paving in island near LaSalle Avenue 2,500.00 Bicycle racks, 12 units 1,700.00 Sound system conduit 2,700.00 Demolition of vault - SP 8A, including concrete paving 1,600.00 TOTAL DEDUCTION $ 59,973.00 ition, we would request that the completion date be adjusted to )ond with any delayed starting date. i_ Depar ment of Redevelopment Decem er 16, 1975 Page . . . . . . . . We trulst this is the information you desire, and look forward.to working with you o this project. Sincerely yours, THE HICKEY COMPANY, INC. G. A. Hickey \ Chairman of the Bo GAH /j cc: Ir. Tom Oesterling, lyde E. Williams & Associates, Inc. s T. Zakrocki �uir:r eg /ery oCanJsca P e Asi n and Contractinf, SIC. 6064// n 8 _Cil.c W o-a S..th end, c. .h.na 46614 'elepAone (219) 291 -6253 December 16, 1975 Mr. C. Wayne Brownell Department of Redevelopment 1200 County -City Bldg. South Bend, Indiana 46601 DearlMr. Brownell: Per our phone conversation of December 15, 1975, we agree to t e extension of the bid award for the Pedestrian Way, Phas #3 (Project Ind. R -66) through January 31, 1975• It isl also understood that the beginning of construction and the completion dates will also be delayed. RF /s Yours very truly, Robert 0. Foegley if _ j' U z } z a a 0 U } W Y U S W PLANNERS F3 ENGINEERS 73 DESIGNERS ral BUILDERS Mr. Wayne Brownell, Executive Director Department of Redevelopment Room 1300, County -City Building South Bend, Indiana 46601 DearlMr. Brownell: December 16, 1975 RE: South Bend Pedestrian Way Project: Indiana R -66 South Bend, Indiana In a cordance with our conversation of December 15, 1975 we will extend our roposal for contract number 10, Parts A and D, dated November 18, 1975 until February 1, 1976 with no increase in price. This contract totaled $750,298.00. If the following items are deducted, the values are as follows: 1 Two pools, chemicals and sump pump $ 46,650.00 2 Benches - 16 units 2,923.00 3 Substitute brown concrete for terazzo paving 1,900.00 4 Brick paving in island near LaSalle Ave. 2,500.00 5 Bicycle racks - 12 units 1,700.00 6 Sound system conduit 2,700.00 7 Demolition of vault - SP 8A, including concrete paving 1,600.00 TOTAL DEDUCTION $ 59,973.00 In a dition, we would request that the completion date be adjusted to corr spond with any delayed starting date. We t ust this is the information you desire, and look forward to work- ing ith you on this project. GAH /) cc: (S,Fipcerely yours, G . Hickey Chairman of the Board rb \ Mr. Tom Oesterlin)(Clyde E. Williams) Mr. James T. Zakrocki At a meeting of the South Bend Redev Dpment Commission in the County - City Building on Wednesday, William h. Steinmetz, president of the St. Joseph River Bend Development Corporation, revealed a model of the co poration's plan for Block 6 near downtown. Located alongside the city's Plaza Park immediately south of Jefferson Boulevard, Block 6 planning calls for a high quality restaurant, an "office park" consisting of eight to ten one and two-story buildings, a rive -in banking facility, a 6 to 8- story, 200 -unit apartment for th� elderly, a convenience center to include a delicatessen, drug stare, cleaners and laundromat, plus parking suitable to accomodate upants and visitors. Ne otiations are already underway with two prospective parties for buildings in the office portion of Block 6 and bids have been re- sutmitted to the Department of Housing & Urban Development for the 200 units of Section 8 Elderly Housing on the 2 -acre site at the far Southeast end of the property. Off icers and Principal stockholders of the St. Joseph River Bend Development Corporation in addition to Mr. Steinmetz are George He endeen, Vice President; Eugene Muia, Secretary; Joseph Fragomeni, Tr asurer. Also, Richard A. Rosenthal, Duane Bobeck, and Jerry Hammes. It is anticipated that the total development costs for the Block 6 project will be in excess of $14 million now that the plans are being formalized and the response from within and outside the community has ben so enthusiastically favorable. - 30 - rR.�T �W0 Al f/oWARD PARK At a meeting of the South Bend Redev Dpment Commission in the County - City Building on Wednesday, William K. Steinmetz, pres °dent of the St. Joseph Ri er Bend Development Corporation, revealed a model of the corporation's plan for Block 6 near downtown. Located alongside the city's Plaza Park immediately south of Jefferson Boulevard, Block 6 planning calls for a high quality restaurant, an "office park" consisting of eight to ten one and two -story buildings_