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HomeMy WebLinkAboutSM 12-17-75 (2)Decembe 17, 1975 10:00 A.M. Presidi g Officer: 1. ROUL CALL SOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING HELD IN LIEU OF REGULAR MEETING OF DECEMBER 19, 1975 Mr. F. Jay Nimtz, President 1200 County -City Building 217 West Jefferson Blvd. South Bend, Indiana 46601 Commissioners Mr. F. Jay Nimtz, President Pr sent: Mr. John E. Chenney, Vice President Mr. Donald A. Wiagins, Secretary Mr. A. Peter Donaldson, Assistant Secretary Coff miss ioner Absent: Legal Counsel: %s Media: 0 Mr. Robert J. Cira, Member Mr. Kevin J. Butler Ms. Jeanne Derbeck, South Bend Tribune Reporter Mr. Lou Tutino, WNDU -TV Reporter Mr. James L. Marchelewicz, WNDU -TV Photographer Mr. Dan Caesar, WSBT -TV Reporter Mr. Steve Neher, WSBT -TV Photographer Mr. Larry Ford, WSJV -TV Reporter Mr. Bill Cressler, WSJV -TV Photographer ors 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 Com unity Mr. Keith P. Crighton Ms. Joan Ragland Development Mr. J. L. Johnson, Jr. Mr. Kenneth J. Schaller to LPA Staff: Mr. C. Wayne Brownell Ms. Helen S. King Mr. Edwin R. Bauer 2. APPROVAL OF MINUTES Mr. Wiggins moved for the approval of the Minutes of the Regular MINUTES Meeting of December 5, 1975, as mailed. Motion was seconded by APPROVED Mr. Chenney and carried. 3. APPROVAL OF CLAIMS Mr. Donaldson moved for the approval of the claims, as submitted, CLAIMS and that they be allowed and ordered to be paid, totalling: APPROVED $154,345.11. Motion was seconded by Mr. Chenney and carried. The authorized claims are: P.E.A. NDP INDIANA A -10 Dep . of Housing & Urban Development $ 73,561.00 Pro - ect Expenditure Account NDP A -10 4,250.00 Total 77,811.00 P.E.A. INDIANA R -66 Rob art Foegley Landscape $ 6,950.39 Nautilus Construction Company 30,632.04 Total 37,582.43 DISTRICT CAPITAL BONDS OF 1972 South Bend Water Works $ 27.35 Acm2 Air - Filter Service 10.00 Total 37.35 BUREAU OF HOUSING E -7 Arrow Pest Control Co., Inc. (Contract No. 66) $ 60.00 Total 60.00 REDEVELOPMENT REVOLVING FUND Payroll: November 15, 1975 to November 28, 1975 $ 4,951.91 Indiana & Michigan Electric Company 27.49 NDP A -10 33,545.90 Nor hern Indiana Public Service Co. 17.42 Fis er Paper Company 275.00 Rin Riverside Printing, Inc. 2.50 Sou h Bend Water Works 34.11 Total a�88,854.33 GRAND TOTAL $ 154,345.11 - 2 - 4 COMMUNICATIONS a.1 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. OLO BUSINESS a. 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. OLDI 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: 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. OLDIBUSINESS (Cont'd Mr. Steinmetz advised, parenthetically, there was no secrecy about the officers and principal stockholders of the St. 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. t is anticipated that the total development costs for the Block project will be in excess of $14 million now that the plans are eing formalized and the response from within and outside the ommunity has been so enthusiastically favorable. r. Taylor also advised that negotiations are already underway with wo prospective parties for buildings in the office portion of lock 6 and bids have been re- submitted to the Department of Housing Urban Development for the 200 units of Section 8 Elderly Housing n the two -acre site at the far Southeast end of the property. He lso said it might be of interest to some here on the Section 8 lderly Housing, which is a Federal program for housing of the lderly, that HUD did take bids last summer and then rejected all f those bids. Now, as of December 15th, that project was rebid nd we have furnished non - exclusive options to six different bidders n this particular site, and so he believed most of the bids are ow being concentrated on this site. Mr. Taylor displayed a sche- atic drawing of one of the bidders proposed development of the 00 -unit elderly housing site. None of the bidders have been ccepted as yet. This should probably get under construction ext year, assuming that one of those bids is accepted by the De- artment of Housing & Urban Development. - 5 - 5. OLd 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 - 6 - 5. OLDIBUSINESS (Cont'd summer period down to the dock, which will add a lot to our down- town area. 6. NEW I BUS INESS a. Proclaimer Certificate No. 9, 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 - nen, there's no problem on reaching some kind of a settlement ?" Ir. 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, ind the Park Department. Commissioner Wiggins added that the price is determined and there is no bargaining. rs. Janet S. Allen raised the following questions summarized: ere there only two appraisals made on that or three; and you ook the higher of the two; since you are handing it over to he City more or less and expecting them to put money into it, by did you take the higher appraisal in this case? Mr. Brownell dvised two appraisals were made; higher of the two appraisals as taken; we are spending several hundred thousand dollars build - ng the park in addition to the land cost, and the reason we have wo appraisals instead of three is that the Indiana Statute was hanged. It used to require three; today it only requires two. - 7 - PROCLAIMER CERTIFICATE NO. 9, AUTHORIZED FOR SIGNA- TURE, R -66 6. NEW IBUSINESS (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 deluded 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 f Indiana, for the use and benefit of its Board of Park Com- issioners, for and in consideration of $37,564.28, for the eal estate as stated on Exhibit A. Ir. Brownell advised we had previously deeded by Quit -Claim )eed, this property to the City for the Park Department, and .he reason for another deed is that some of the titles were iot complete at that time and the Quit -Claim Deed didn't =urnish all of the titles of the real estate in order to make ;hat correction and we had another Quit -Claim Deed prepared, ind are requesting authorization for execution of that now. - 8 - QUIT -CLAIM DEED, SE #1, NDP PROJECT A -10 6. NEWIBUSINESS (Cont'd) c 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. Change Order No. 1 to Rehabilitation Contract No. SECD /PR /CS- CHANGE 1/03, E -7: Commission approval was requested for this Change ORDER 1 TO Order, with the Bailey Electric Company, for an increase in CONTRACT contract amount of $394.00, (Contract: $5,718.00), or an 1/03, E -7, amended contract total of: $6,112.00, for rehabilitation work APPROVED 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. IChange 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. he Chair again called on Mr. Crighton to respond to the hange order. The documentation was included in the packets lso. 1r. Crighton advised at the time of inspection, this furnace was iot operating because it was during the summer. His staff had no indication of what condition the furnace was in, although it was )ld, so our specification merely stated that this furnace was to - 9 - CHANGE ORDER 1 TO CONTRACT 1/04, E -7, APPROVED 6. NEWT 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. Ir. 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 3TU 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 Huggins advised some factors enter into this and that it is not just the size of the furnace, but the connections to the furnace- - Doth hot air and cold air ducts - -could cause some variance in the prices, depending on how much duct work is involved. r. Wiggins again moved for the approval of the above Change rder, seconded by Mr. Donaldson and carried. e. Change Order No.lto Rehabilitation Contract No. SECD /PR /CS- 1/08, E -7: Commission approval was requested for this Change Order, with the Bailey Electric Company, for an increase in con- tract amount of $1,072.00, (Contract: $3,187.00), or an amended contract total of: $4,259.00, for rehabilitation work at: 310 East Sample Street, Southeast Project E -7. - 10 - CHANGE ORDER 1 TO CONTRACT 1/08, E -7, APPROVED 6. NEWIBUSINESS (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 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. 4here 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 <nowledge 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. Vow, 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." 1r. John Kagel, Executive Director, Downtown South Bend Council, idded: "Being a proponent of in -City living, as a tax base and all ;he other things that go along with the amenities of living in a :ommunity, we have discussed the point of who lives in these houses, ind I think one of the very serious problems, and I am involved with i neighborhood group myself, in the ownership of that property -- - 12 - 6. NEW 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 care less 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 natter 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." 7. PROGIRESS REPORTS Nonel submitted. 8. NEXTICOMMISSION MEETING The Chair announced that the next Commission meeting will be the ANNUAL Annual Organizational Meeting, Friday, January 2, 1976, at 10:00 ORGANIZA- a.m., and immediately following the Organizational Meeting will be TIONAL MTG., the Commissioners' Regular Meeting for the 1st Friday of the month, 1 -2 -76 & January 2, 1976. REGULAR MTG. 9. RESOLUTION NO. 519 FROM REDEVELOPMENT COMMISSIONERS The hair recognized Commissioner Wiggins, who read the following Reso ution, commending Commissioner Chenney for his services: - 13 - RESOLUTION NO. 519 9. REJOLUTION NO. 519 FROM REDEVELOPMENT COMMISSIONERS (Cont'd R E S O L U T 1 0 N N 0. 5 1 9 HUH ER EAS: The Wto)Ly o4 zign-i4.icant community pugtas in thus guat City o4 South fiend, Indiana, ha6 tong been maAked by the unze 6i6h contribution o6 time and tatent by an abte and 6oxtWght citizen, and HUH ER EAS: Such e66oAts have not atways met with univeuat acclaim, yet he has continued to pAess on and has given 4Aeety o4 h" best e�4otcts to build a betteA Aeatity 4oA his 6eUow townsmen, and W ER EAS: A4ta many yewLz o4 toyat seAvice, he hay, etected to bAting to a cto s e his teAm o4 Vice P,%a i.den t o4 this Body, N 0 W, T H E R E F O R E, B E I T R E S O L V E D: - -- --- - - - - -- -- -- -- - - - - -- That the South Bend Redevelopment Commi66.%on commends ....... J 0 H N E. C H E N N E V ....... 4oA hips ou t,5tanding pubt i.c s eAv.ice and devotion to duty and 4utrtheA commends him 4oA hiz .inteAmt and e44o&a that have afteady improved the quality o4 t.i4e 4oA South Bend and all o4 .cis citizens. IN TESTIMONY W H E R E 0 F: The South Bend Redevelopment Commizsion, in meet - ing az .6embted on thus 17th day o6 DecembeA, 1975, hay adopted thus Ruotution and a66ixed .its sign and seat. CITY OF SOUTH BEND REDEVELOPMENT COMMISSIONERS /,5/ F. Jay N-cmtz /,S/ A. PeteA Donatds on F. Jay Nimtz, A. PeteA Donatd6on PAe,sident kssiztant SecfcetoAy /,6/ Donald A. W�ggins only -W ggtns, SectrttaAy (SEAL) - 14 - A/ Robat J. Cdvc.a Ro ent J. Ci a. MembeA 9. RESOLUTION NO. 519 FROM REDEVELOPMENT COMMISSIONERS (Cont'd Mr. Wiggins moved for the adoption of Resolution No. 519, seconded by r. Donaldson, and carried unanimously. Ms. and The Derbeck asked how long Mr. Chenney has been on the Commission, Mr. Chenney answered, "A little over eight (8) years." Chair said to Mr. Chenney: Jack: We oAe going to miss you. you horsed a .Cot o6 quat on5 and you made these meetings v etc y inteAe.5ting . We know that you cite tcetitc,ing vofuntatzity and you want to spend matte time in doing some otheA the ng�s you want to do -- tAav et, etc. We wi,5h you good h w-tth and happinez,5. We cute going to mi.5,s you heAe. And, tike Pled Hetmen, you ane a&ay6 weecome, Jack, wheneveA you want to come up hetLe. The Boated o6 Ttcubteeb at the-it Annuat Meeting pa,5.5 ed a Raotut%on kecognizing youtc seAvice and commending you bon youA s eAvices . This Ra otutio n iz now apptcop)uct te,2 y 6tcamed and wrapped " a Chtu�stmat5 pAment. It Z5 beauti6uf. I . -ooked at it yate)Lday. We wiU have the above Commissioners Raotution 4kamed aLo and witt present it to you when it iz heady. I hope this witt ttecaU many happy expo ences that you had with u,s. I know it witt necaU some atcguments you had in this Body, but I know that your. ze)tvicea have been recognized by the City and it hays been wo&thwhiie. Comrissioner Chenney thanked the Commissioners and said: 1 5uAe have enjoyed being a membeA o6 this Commission, and 1 ,u,%Q,P. mizz evetcybody, inc ending the Comm,izz ioneAz and the sta66, and I hope you aU have cus good a 6utuAe as I have had in the U,s-t eight yeatu5. thank eveAybody, and e�speciaUy the Ptustees 6oA this 6,t_amed motution, and I wiU hang tha in an apptcoptu.ate p.P_ace at I said, I wiU miz,5 you aU. 10. ADJOIURNMENT Motion for adjournment ofthe meeting was made by Mr. Wiggins, ADJOURNMENT seconded by Mr. Donaldson and carried, at 10:48 a.m., with every- one being invited to stay for coffee and cake in honor of Commis- sioner Chenney. - 15 -