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HomeMy WebLinkAboutRM 01-02-7619 January 2, 1976 10:15 A M. Presidi g Officer: 1. ROLL CALL SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING Mr. F. Jay Nimtz, President 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 issioners Mr. F. Jay Nimtz, President ent: Mr. Donald A. Wiggins, Vice President Mr. A. Peter Donaldson, Secretary Mr. Robert J. Cira, Assistant Secretary Mr. Lloyd E. Robinson, Sr., Member Leal Counsel: Mr. Kevin J. Butler Nevis Media: Ms. Jeanne Derbeck, South Bend Tribune Reporter Mr. Dave Anderson, WNDU -TV Reporter Mr. Jim Holloway, WNDU -TV Photographer Mr. Dan Caesar, WSBT -TV Reporter Mr. Frank Vellner, WSBT -TV Photographer Mr. Larry Ford, WSJV -TV Reporter Mr. Les Howard, WSJV -TV Photographer Others Present: The Honorable Peter J. Nemeth, Mayor, City of South Bend Mr. Roland A. Kelly, Vice President, Board of Trustees Mr. Gene Evans, Executive Secretary, Civic Planning Assn. Mr. John R. Kagel, Executive Director, Downtown South Bend Council Mr. Harrison Miller, Interested Citizen Community Mr. Keith P. Crighton Development Mr. James L. Johnson, Jr. Staff: Ms. Joan Ragland LPA Staff: Mr. C. Wayne Brownell Mr. Edwin R. Bauer Ms. Helen S. King Mr. William J. Parrish 2. APPROVAL OF MINUTES On motion by Mr. Donaldson, seconded by Mr. Wiggins and carried, th Minutes of the Special Meeting of December 17, 1975, held in li u of the Regular Meeting of December 19, 1975, were approved as mailed and distributed. - 1 - MINUTES APPROVED 3. APPROVAL OF CLAIMS In regard to the approval of the claims, the Chair called attention to Item 4a, on the Agenda, under "Communications." This is a letter from the Department of Housing and Urban Development, Indianapolis Area Office, dated December 29, 1975, by Mr. James E. Armstrong, Director, concerning the claim of Indiana Bell Telephone Company, In ., in regard to the relocation of the utility lines. The Chair re uested Mr. Kevin J. Butler, Commission Legal Counsel, to respond co cerning his opinion as called for in the letter. Mr Butler advised we have submitted an opinion to HUD accompanying thE claim. The opinion states that the properties which have been re ocated are entirely personal property. There is no real property in olved. Therefore, the claim is an eligible cost for the project. It is our understanding from the previous correspondence with HUD, an I believe reading between the lines of the communication dated De ember 29, that the same thing is stated there: That these costs ar reimbursable. The claim presently before the Commissioners wi 1 mean payment to Indiana Bell Telephone Company, Inc., in the amount of $31,390.56, for their claim, and then we will be request - in reimbursement from HUD for the payment. We have an additional claim which has been filed with us which hasn't been reviewed yet, submitted by Indiana & Michigan Electric Company. Mr. Butler advised he will submit an opinion on the I &M claim within the coming week, anc we will be submitting that for payment. Mr. Butler advised he will be writing a confirming letter to HUD. ThE Indiana Bell Telephone claim is actually two claims: One claim is in the amount of $22,160.53, and the other is $9,230.03, totalling: $31,390.56. [Claim listed below, under P.E.A. Indiana R -66, payable to Indiana Bell Telephone Company, in amount of $31,390.56.] ThE Chair asked if the Commissioners had any questions regarding CLAIMS this claim, and there being none, Mr. Wiggins moved for the approval APPROVED of the claims, as submitted, and that they be allowed and ordered to be paid, totalling: $44,031.84. Motion was seconded by Mr. Ci a and carried. The authorized claims are: P.q T A. INDIANA R -57 W. J. Parrish (Cr. Ernest Lark Disposition Parcel) Reap Estate Purchase St. Joseph County Dept. of Public Welfare P.q.A. INDIANA R -66 Indiana & Michigan Electric Co. Edward J. White, Inc. Indiana Bell Telephone Co. - 2 - $ 35.00 760.00 Total 795.00 $ 131.10 63.35 31,390.56 Total 31,585.01 3. APOROVAL OF CLAIMS _(Cont' REDEVELOPMENT REVOLVING FUND Payroll: November 28, 1975 to December 12, 1975 December 13, 1975 to December 31, 1975 Bo b's Merrill Co., Inc. Bu iness Communication Center Bu iness Systems, Inc. Cr Edit Bureau of South Bend - Mishawaka Do othy Z. Deane- Petty Cash I. M. (Copier) Ma ielski Art Shop Mu zynski Insurance Agency Mu zynski Insurance Agency N. .H.R.O. Subscription Northern Indiana Public Service Company Pence-Dickens & Heeter, Inc. So th Bend Water Works Total BUREAU OF HOUSING E -7 Bogeil Pest Control Total DISTRICT CAPITAL BONDS OF 1972 Acme Air - Filter Corporation Se fer Safe & Lock Service Total 4. COMMUNICATIONS a. HUD Area Office letter dated December 29, 1975: This letter is in reference to the relocation claim submitted by Indiana Bell Telephone Company, Inc., Project Indiana R -66, and dis- cussed above, under Item 3, "Approval of Claims." 5. OLD BUSINESS a. Amended Letter of Credit from St. Jose ment Corporation, on Disposition Parce Indiana R -66: Mr. C. Wayne Brownell, read the letter on this amended Letter of Credit written by Mr. Lloyd S. Taylor, Vice President of the St. Joseph Bank & Trust Company, which states this was requested by our attorney, Mr. Kevin J. Butler. The amended Letter of Credit was included in the packets and Mr. Brownell advised the change is that their Letter of - 3 - $ 4,991.53 5,194.41 24.65 50.65 4.00 4.00 46.98 629.32 18.36 170.00 138.80 12.00 10.96 157.50 10.47 11,463.63 $ 175.00 175.00 $ 10.00 3.20 $ 13.20 $ 44,031.84 HUD APPROVES RELOCATION CLAIM AS ELIGIBLE COST, R -66 AMENDED LETTER OF CREDIT, DISPOSITION PARCEL NO. 6 -1, R -66 5. OLO BUSINESS (Cont'd Credit expires in one year, and this one provides that before it runs out they are required to issue another Letter of Credit, or we can make claim for their failure to issue a new one. Motion was made by Mr. Donaldson, seconded by.Mr. Cira and carried, that the amended Letter of Credit from St. Joseph River Bend Development Corporation, on Disposition Parcel No. 6 -1, be approved and placed on file. b. Report on NDP Project, Indiana A -10: Mr. Brownell advised this Project consists of the Southeast Neighborhood (SE #1) and the Model Neighborhood (MN #1) on the west side of the City. In a letter, dated December 29, 1975, to Mr. Richard Bird, Department of Housing & Urban Development, Regional Office, Chicago, we enclosed a check for $73,561.00 to pay off the balance on our loan and interest, through December 31, 1975. We computed, for our own purposes, that our progress payment would be $8,207.00 and this amount was subtracted from the total due us, leaving a payment amount due from us to be: $73,561.00. Mr. Brownell said the Regional Office has not as yet indi- cated approval of this payment, but that we paid this on account to stop the accrual of interest on the loan balance. No action is required on this item. 6. NEW BUSINESS a. Lease request from Ritschard Bros., Inc.: This request came in letter form dated December 22, 1975, which Mr. Brownell read in its entirety. The request is over the signature of Mr. Carmelo Ritschard stating they are in the process of sub- mitting a bid on the demolition of the Wyman complex, and in connection with this, they would need a place to store the fill material necessary to fill the basement. Their request is to lease the sloped area from old Michigan Street east to the low area presently being used for parking. The letter further states that since the intent is to get the buildings off the tax rolls for next year, they assume they would need this area from January, 1976, through possibly April at the very latest. The demolition would have to be substantially completed by March 1st and the job should be completed no later than April. For the use of this property, they are offering $75.00 per month for the period of time that it is used. A lease would be contingent upon their success in getting a contract for the demolition of the Wyman Complex. - 4 - NDP PROJECT, INDIANA A -10, REPORT LEASE REQUEST FOR FILL MATERIAL TO BE STORED, R -66 6. NEW BUSINESS (Cont'd The Chair advised that Mr. Brownell had discussed this with him and he sees no objection to this request being granted, provided the City has no objection, and, of course, this would be purely for the slope and would not involve the parking area at all. Mr. Kevin J. Butler, Commission Legal Counsel, advised this request would need Commission approval, as technically we would also be involved in the determination of the request being ap- proved, and then to be submitted to the Board of Works as it is leased to the City. Mr. Brownell said the area they want to use is the low part of the slope out to where the parking starts. As the area is seeded, Commissioner Wiggins suggested we incorpo- rate in the motion, a provision - -if acceptable to Ritschard Bros., Inc. - -that they restore it to the condition that it is in at the time they start. In other words, putting the dirt on and taking it off is going to tear up the surface, and we are going to have a problem of controlling it, because if it goes up in weeds- - assuming there is no construction on there within the next growing season [next spring], then we are going to be liable for restoring the aesthetic values. The Chair agreed and said it was very well put, and that he felt sure Mr. Ritschard would be very cooperative in complying with our request. Mr. Gene Evans, Executive Secretary, Civic Planning Association, raised the question on access into the area, as to exactly how they will get into the area, and whether the loaded trucks will be driving over the curbs. Commissioner Wiggins responded that there are two accesses into the area - -off of Washington Street, and the other from the old Michigan Street across Wyman's -- and there is also a curb cut there. Mr. Dan Caesar, WSBT -TV Reporter, raised questions: Will it just be fill dirt? What about safety - -mud slides and things like that- - to prevent other people from climbing up on the dirt, and the responsibilities? One big giant mud slide, with a heavy rainfall, would wash it into the parking area. The liability, and will they have anything there to hold the dirt back? Commissioner Wiggins responded the point is well raised. The Chair stated the lease would have to provide that Ritschard would be liable for any acts resulting from the dumping of the dirt. Motion was made for the approval of the above with the stipulations included for the liability and restoring the area to present condi- tion as noted above, by Mr. Wiggins, seconded by Mr. Robinson and carried. The approval is contingent upon Ritschard Bros., Inc. receiving the demolition contract award, along with the Board of Works approval, with the stipulations incorporated into the Com- mercial Lease. - 5 - Q NEW BUSINESS (Cont'd) Amendment to "Housing Rehabilitation Assistance Program" to HOUSING b. extend the HAO Elderly Referral Program to all handicapped REHABILITATION persons, as defined in Housing Allowance Office, Inc., ASSISTANCE letter dated December 22, 1975: Mr. Brownell read the PROGRAM AMENDED letter from Mr. Keith P. Crighton, Director, Bureau of TO EXTEND HAD Housing, dated December 31, 1975, to him in its entirety. ELDERLY REFERRAL An excerpt of the letter: PROGRAM TO ALL HANDICAPPED If approved, this amendment shall extend the HAO PERSONS AS DE- Elderly Referral Program to all handicapped persons FINED IN HAD as defined in the attached letter from Barbara J. HANDBOOK Warren, Housing Information Supervisor for the Housing Allowance Program. If approved, the HAO Referral Program would be able to assist those handicapped persons who have applied for assistance through the Housing Allow- ance Program but are financially unable to correct their housing violations, as cited by.the HAO, in order to collect their monthly subsidy. At the present time this same service is available only to persons 62 years of age and older. This amendment is requested because previous assis- tance to handicapped persons has been unavailable. Barbara J. Warren's letter dated December 22, 1975 to Mr. Crighton states that the Housing Allowance Program defines a handicapped or disabled family or individual, the HAD Handbook, Chapter 2, Section 2.05 (1) states: An individual is considered disabled if he is eligible to receive disability assistance from Social Security and other public programs. Handicapped persons are individuals who have a physical or mental impairment which (a) is ex- pected to be of long - continued and indefinite duration, (b) substantially impedes ability to live independently, and (c) is of such a nature that such ability could be improved by more suit- able housing conditions. In cases where disability and physical or mental impairment cannot be easily identified, written verification from the attending physician may be required. All handicapped persons who are applicants must follow the same procedure as defined under the original HAO Referral Guidelines. However, although handicapped applicants are not subject to age restrictions, they must be a bonafide homeowner as defined under the General Guidelines, Grant Eligibility, Section (9a) - Occupancy - page #3. 6. NEW BUSINESS (Cont'd Mr. Crighton advised when we set up our Housing Rehabilitation Assistance Program, the Redevelopment Commission,`at the same time, was granted authority to approve any changes in the guidelines if they are recommended by the various neighborhood community groups and advisory boards that we deal with in the Bureau of Housing. There has been a need exhibited for assis- tance to the handicapped, and the definition of 'handicapped' is as noted above, from the Housing Allowance Office, that will be used in accepting the applicants under this Program. He stated he believes it is a good amendment to our present Program and that we will be able to help the estimated 30 or 35 people who have called in for assistance that we normally would not be able to aid them. Following questions were raised and answers provided by Mr. Crighton: 1) Commissioner Donaldson: Then this amendment would cover any handicapped, rather than the 62 and over? A. Right. Provided they are the homeowner. 2) Ms. Derbeck: Does that mean that they can get the Housing Allowance before they correct their housing violations, or would they be on the same basis as the others? A. They would have to follow the same procedure that we do with persons 62 years of age and over, and that is they apply to the Housing Allowance Program but are unable to get the monthly subsidy because the house has substantial code violations. They would also have had to already have met the income requirements of the Housing Allowance Program in order to qualify, except the fact that the housing violations are being corrected, and, as long as they have no financial means of making these corrections and they meet our guidelines for the elderly program, we would make the repairs for them. They would, in turn, go back to the Housing Allowance with the final inspection sheet from our group showing that we have corrected the items, and they would be able to get the monthly subsidy from then on. 3) Ms. Derbeck: In other words, what it amounts to is that for the people 62 and over, you make the repairs for them? A. That has existed all through '75, but this amendment would extend it to all handicapped persons also. 4) Ms. Derbeck: So it is for the elderly and handicapped, if they cannot afford to make their own repairs, you make it for them. Do they get anything for that part? A. No. That is done on a grant basis. - 7 - 6. NEW BUSINESS (Cont'd 5) Ms. Derbeck: I thought that one of the rules was that you could not get assistance from any Federal Agency? A. HUD waived that requirement. Lengthy conversations followed on the repairing of homes vs. the alternatives of tearing the deteriorating homes down that are substandard. Mr. Crighton advised that if somebody is already receiving Housing Allowance assistance, we are not allowed to make any repairs to the home as the subsidy received'is to be used to keep the home in needed repairs; our grant is not considered income, so it is not a Federal subsidy. Motion was made by Mr. Wiggins, seconded by Mr. Donaldson and carried, for the approval and adoption of the amendment to the "Housing Rehabilitation Assistance Program" to extend the HAD Elderly Referral Program to all handicapped persons, as defined in the Housing Allowance Office, Inc., letter dated December 22, 1975, with excerpts noted above. c. I Rehabilitation Contracts recommended for rejection, Southeast BIDS REJECTED Community Development Program : Per recommendations of the ON REHABILI- Southeast Advisory Committee, Commission.approval was requested TATION CON - to reject the following bids received for the rehabilitation TRACTS 10, of real property in the Southeast Community Development Program: 13, 14 & 17, Contract No. Address SOUTHEAST Amount Contractor CD PROGRAM 10 533 E. Indiana Ave. $9,651.07 Combs Decorating & Construction Co. 13 403 E. Keasey St. 8,607.50 " 14 129 E. Dayton St. 8,897.62 " 17 415 E. Ohio St: 9,863.51 " Mr. Brownell advised the above were the lowest bids received for these rehabilitation contracts, and as they are all in excess of the $8,000.00 maximum allowable for rehabilitation under the guidelines, and Commission approval is requested to reject these bids. Motion was made by Mr. Wiggins, seconded by Mr. Cira and carried, to reject the bids received on Rehabilitation Contract Nos. 10, 13, 14 and 17, as noted above, in the Southeast Community De- velopment Program. Mr. Butler, Commission Legal Counsel, asked if these contracts have been bid previously, and Mr. Crighton advised that they have not been; this is the first time. These are the second contracts for the Community Development Program. The above contracts are being rejected because they are too high.. 6. NEW BUSINESS (Cont'd Commissioner Robinson asked, "What is the only requirement for these people bidding on these renovations of these single family dwellings? Price only ?" Mr. Crighton advised that we accept the lowest and best bidder. The best insofar as the contractor has provided us with a bid bond, or certified check, in the amount of 10% on the total he has bid on. If he is awarded the contract, he must also provide us with a performance bond on the contracts. Mr.,Butler added that if the contract is more than $5,000 it needs to go before the City Council for approval; if the bid is over $8,000 under the guidelines it is to be rejected. Commis- sioner Wiggins added, possibly, in part, what Commissioner Robin- son is concerned about here is whether or not these contractors are, in fact, responsible and able to get the job done. Part of this is.a lot of experience. In our initial expertence:we found it took trying to find people who really wanted to do this kind of work and there weren't too many. Since there has been a fair volume over a period of time, there has been more interest in it. He asked Mr. Crighton what his experience is in this regard con- cerning the contracts. Mr. Crighton advised that he and his staff have been working very hard for the past few months getting additional contractors interested in bidding on these. In the past, it was too burdensome and too time consuming, and the pay- ments took too long to attract contractors to bid for this type of work. He believed that through the changes in the Community Development Program and through the changes the Redevelopment Commission have come up with that we have attracted more con- tractors. Commissioner Wiggins said that Keith Crighton's depart- ment and the various inspectors attached to it, do ride herd on the rehabilitation jobs to make sure that they are done properly and in a proper sequence. The motion was again made for the rejection of the above contracts, which was made by Mr. Wiggins, seconded by Mr. Cira and carried. d. Rehabilitation Contract Nos. ll /SECD, 12 /SECD,. 15 /SECD and 18 /SECD, in the Southeast Community Development Program: Fer recommendations of tie Southeast Advisory Committee, Commission approval was requested to award the following contracts, per bid tabulation, to the low bidder, subject to approval by the South Bend Common Council and Commission Legal Counsel: Contract No. Address Amount Contractor 16 /SECD 623 E. Keasey St. $6,189.35 Combs Decorating & Construction Co. 19 /SECD 409 E. Paris St. 7,900.00 Slatile Roofing Sheet Metal Motion was made by Mr. Wiggins, seconded by Mr. Robinson and carried, to award the above rehabilitation contracts, as noted, subject to approval by the South Bend Common Council and Commission Legal Counsel, and if approved by the Common Council, the President and Secretary of the Redevelopment Commission be authorized to execute said contracts. REHABILI- TATION CONTRACT NOS. 15 /SECD 19 /SECD AWARDED, E -7 6. NEW BUSINESS (Coat'd) Mr. Dan Caesar, WSBT -TV Reporter, asked: "Nave any of the Commission members ever gone out to the Paris Street area? Have any of the Commission members ever looked at this house at 409? You approve these things rather quickly here." The Chair advised that he believes we have to rely on our staff to do this. Commissioner Wiggins added that we have not only a staff, but that we have a neighborhood Advisory Committee and people who live in the neighborhood, who are familiar with the place and who must agree that the thing is as represented and is a fair deal. We have to depend on the people in the neighbor- hood. Ms. Jeanne Derbeck, South Bend Tribune Reporter, stated it is hard to believe that any house on that part of'Paris Street really is worth $8,000. Mr. Gene Evans, Executive Secretary, Civic Planning Association, asked Ms. Derbeck, "What is the alternative ?" Ms. Derbeck said she didn't know what the alter- native is, but "what are you going to have when you spend all this money ?" Commissioner Wiggins replied that we are going to have a place for somebody to live, and as to the $8,000 stressed, he added that it would be difficult to provide housing anywhere in town, and in this day and age that amount of money is not high for decent housing. On further comments from Mr. Caesar on the high amounts for the rehabilitations and how apprised the Commission is as to what is being done, the Chair replied we have had some dis- cussions on this in the past, and the theory as to whether we tear everything down in that area and just have vacant land, or do we try to keep as many of the houses going as we possibly can. As they stressed, the theory here is that if we can keep people living in that area, that is the best thina to do, rather than just to have wide open spaces of vacant land there which would not be used for living purposes. Further lengthy discussions ensued on the controversial subject. Commissioner Wiggins stressed to the flews Media that they should recall the fact that the Redevelopment Commission made attempts to get several different types of projects into the Southeast area over a period of years, and many of them met with failure on our part to get the Federal Government to finance the projects that we had proposed or that had been proposed for us by con- sultants, or experts, who went into the area. One of the things that happened several times, with more than one consultant, was that they felt we ought to tear down everything in that area and redevelop it into a new neighborhood. Over a period of time, the insignia of the Redevelopment Department has become a bulldozer in the eyes of many people, and from the standpoint of just shear economics of real estate development, it would be a lot easier to 'i[M 6. NEW BUSINESS (Coot' d tear the houses down and rebuild the area with new .houses on 60 -foot lots and new utilities and everything new, but we couldn't get that kind of funding. There wasn't a market for that sort of thing, in that area, that would cause it to happen privately. The only thing that could be accommodated for the people in the area in terms of financing is what we are doing. We set up an area where the houses were the worst and did an accelerated program of taking down the houses that had no potential. The very things we have been talking about here, right now. Where the building was so poor that we would have to put more money into it than it would cost to build a new one and those we had to wipe out. Anything else that has any capability of being rehabilitated and provides a decent place for people to live, within some kind of economic sense, is what we are trying to do, within that area, and that is what the money was ap- propriated for. On further comments from Ms. Derbeck on the feasibility of invest- ing funds in the area, Commissioner Wiggins stated that one of the things we are faced with here is that the deterioration of housing is not just simply a question of time and the elements working their way upon a structure of the building. One of the real problems- - and the big things that we tend to forget - -is that the neighborhood is people, and it depends upon people's attitudes; it depends upon a great many things; but it involves people, so that the media's question of rescuing neighborhoods is not only rescuing the houses, it's doing something with the people who live in the houses. If this becomes an attractive area to live - -from the standpoint of it being a friendly, warm, welcoming kind of neighborhood, then people will want to buy property and build houses there to live. If the area is run down, the media is right, the people will not want to live there. One of the keys to this is what happens here with the people of the neighborhood, not only being a party to, but being a principal in making decisions concerning that neighborhood, will be a determining factor. Commissioner Robinson stated it seems as though the poor and unfor- tunate type of people who are locked in this economic bracket, that they have to have some place to live, and the price of an individual, single family dwelling has skyrocketed to the point that a person making a good salary in life is going to have a hard time to even being able to afford one. "So, basically, I get back to my opening question, 'What are you going to do with themV In essence of doing nothing, you have to do something, and there is some place you have to start. So I would imagine this is the thought and trend in mind, in this organization, for this group of people." As to a list of what is going to be done to this particular house, asked by Mr. Caesar, Mr. Crighton advised he has the list if anyone wants to look at the rehabilitation items--all of which are major code violations. - 11 - 6. NEW BUSINESS (Cont'd e. Other questions followed which Mr. Crighton answered, and the answers are summarized for the record: Two contractors bid on the house in question. One of the stipulations for this rehabi- lation program is that the tenant of the house must be the owner; he must have insurance before he can be helped. As to whether a land contract can be considered ownership, it is only when they have added an amendment to the contract. The amendment is an aspect to be used under the LaSalle Park Program, the Redevelop- ment Code Enforcement Programs, and in essence becomes the fore- closure period in the form of 30 days to 90 days, and it also states that the seller has the title to that property. In other words, we are not dealing with someone who is buying the house on land contract, or someone who is also buying other houses on land contracts. We cannot help tenants under this Program--that would come under the Substandard Building Department. Under the Southeast Community Development Program, the owner must be living in the house. Mr. Caesar asked if the house can be rented after it is rehabilitated, and Mr. Crighton answered in the affirmative. Mr. Wiggins again made the motion tions of the Advisory Committee. tion and it was carried. Rehabilitation that we accept the recommenda- Mr. Donaldson seconded the mo- recommenaations OT the ,)ouzneasz Auvisury wm11ii LLe approval was requested to conditionally award the tracts to Newbill Construction Company, subject to Legal Counsel approval: Contract No. Address Amount ll /SECD 213 E. Calvert St. $1,993.00 12 /SECD 1816 S. Carroll St. 3,347.00 15 /SECD 721 E. Broadway St. 4,561.00 18 /SECD 506 E. Broadway St. 4,884.00 ogram: Ner e, Commission following con - Commission Brownell advised Newbill Construction Company was the low bidder on each of the above four contracts. The bid tabula- tion was included in the packets. Motion was made by Mr. Wiggins, seconded by Mr. Donaldson and carried, to award the above contracts as noted. Mr. Crighton requested the motion to contain additional wording to show that it is a "conditional award." The Newbill Construc- tion Company is a new contractor bidding on this type of work, and the motion should contain that if the Newbill Construction Company cannot comply with the contract regulations that the contract award should go to the next lowest bidder on the contract. We have Newbill's bid bond. When the contract is awarded, then the contractor files for a performance bond. The - 12 - REHABILI- TATION CONTRACT NOS. ll /SECD, 12 /SECD, 15 /SECD, & 18 /SECD AWARDED CON - TIONALLY, E -7 6. NEW BUSINESS (Cont'd performance bond is hard to secure and small contractors have this problem to hassle. If we do not have the "conditional award" then we would have to come back to the Commission and ask for a rejection to the .previous award, go back to the Common Council, and then have to go through the whole process for approval again, which would be a delay of at least si>x (6) weeks. The "conditional award" request is as noted in the letter dated December 31, 1975, to Mr. Brownell from Mr. Crighton, and included in the packet, which states: Since Newbill Construction Co. is a new contractor under the Community Development Program, we are requesting a conditional award subject to that company fulfilling all contract requirements. In the event that this firm is unable to comply with these requirements, we are requesting that these contracts be awarded to the following contractors listed as the next lowest bidders: #11 /SECD* $2,271.38 #12 /SECD* 3,366.20 #15 /SECD* 4,727.28 #18 /SECD ** 5,500.00 Combs Decorating & Construction Combs Decorating & Construction Combs Decorating & Construction Madison Builders, Inc. ( *) Subject to approval by Legal Counsel only. ( * *) Subject to Common Council and Legal Counsel approval. At the consent of the Commissioners, the prior motion was rescinded, and the motion is amended to read, that the above contracts, (Nos. ll /SECD, 12 /SECD, 15 /SECD and 18 /SECD)be awarded to Newbill'Construc- tion Co.,in the bid amounts as noted above by Newbill, as a "condi- tional award" subject to that Company fulfilling all contract re- quirements; in the event the firm is unable to comply with these requirements, the contracts are to be awarded to the next lowest bidders, as are noted above in the indented quote, [Contract #18 in this case would require Common Council approval also.] All are subject to Legal Counsel approval, and the President and Secre- authorized to execute said Contracts. The amended motion was made by Mr. Wiggins, seconded by.Mr. Donaldson and carried. f. Change Order No. 1 to Rehabilitation Contract No. 65, Southeast Project E -7: Commission approval was requested of Change Order No. 1 to Rehabilitation Contract No. 65, with Madison Builder's, Inc., for an increase in contract amount of $209.00, (Contract: $3,912.00), or an amended contract total of: $4,121.00, for re- habilitation work at: 605 E. Indiana Avenue, Southeast Project E-7. The letter by Mr. James L. Johnson, Jr., Chief Inspector, to Mr. Crighton, advises the specifications called for replacing the front porch tongue and groove floor 330 square feet. When - 13 - CHANGE ORDER NO. 1 TO REHAB. CONTRACT NO. 65 APPROVED, E-7 0 IA NEW BUSINESS (Cont'd the contractor removed the old floor, termites were discovered, which had completely infested the floor joists. [The bid for the extermination showing the location of the termites was in- cluded in the packet also]. Since the conditions affected the immediate safety of the occupants, the extermination was ordered for the structure and staff has issued a Chief Inspector's Proceed Order to replace the infested joists. The Change Order covers the replacement of five 2" x 6" x 30' floor joists, 16" on center, at a cost of $209.00. The termites have been exterminated. Staff recommended the approval of the above change order. Motion was made by Mr. Wiggins, seconded by Mr. Cira and carried, for the approval of Change Order No. 1 to Rehabilitation Contract No. 65, for an increase in contract amount of $209.00, or an amended contract total of: $4,121.00. COMMISSIONERS CONGRATULATED During the discussion period on Item 6d, the Mayor entered the Com- mission meeting and the Chair temporarily recessed the meeting to recognize The Honorable Peter J. Nemeth, the new Mayor of South Bend, and to extend a hearty welcome and congratulations. The Mayor congratulated the Commissioners on their -re- appointments. to the Commission and also congratulated the new member, Mr. Lloyd E. Robinson, Sr. In an air of jubilance with the Mayor's arrival, the Mayor stated, it is good to be here and I am sure you will con - ti ue the good work you have been doing. I wish you the best of su cess in the New Year -- especially on our downtown area." President Nimtz thanked the Mayor, and added: "Mayor, I can assure you--although my tenure on this Commission has not been too long- - that I watched it with great interest through the years as a member on the Board of Trustees, and I can assure you that we have great interest in seeing that downtown South Bend continues to grow.and to develop. I know most of us here are old time residents of South Bend and we are interested in seeing that this community continues to thrive and go forward, and we can assure you of our continued cooperation with you on downtown South Bend." Th to At Mayor further extended his thanks, and said, "We are certainly eking forward to working with each and every one of you toward ! successful completion of the downtown renewal program." the departure of the Mayor, the meeting re- convened. - 14 - a. Lei REPORTS Bureau of Housinq Staff Reports: 1) E -6 and Northwest Housing Program: This written report E -6 & is by Mr. John Davis, in which he reported work is con- NORTHWEST tinuing in the E -6 Code Enforcement Area with physical HOUSING rehabilitation taking place on Contract Nos. 4, 16, 18, PROGRAM and 19. Contract Nos. 22 and 23 were advertised for REPORT bids in month of December. The first contract for the Northwest Housing Program was advertised on December 19, 1975. The contract consists of eleven (11) separate structures and will be awarded after January 2, 1976. The work in both projects is proceeding. 2) Neighborhood Development Program: This written report is NEIGHBOR - by Mr. Kenneth J. Schaller, Project Director, in which HOOD DEVEL- he reported as of December 31, the statistics of the OPMENT program reveal 66 homes on contract. PROGRAM REPORT Five notices to proceed have been issued during the month of December, bringing the total number issued to 58. These do not include several chief inspector's notices to proceed that were issued to correct items affecting the applicants'health and safety. Thirty -one homes have been completed to date, and progress inspections are being conducted during the construction phase of each structure. One Preconstruction Conference was held in December. River Bend Plaza Director's Report: This written report was submitted by Mr. Doug Simpson, Director of the River Bend Plaza Office, which is a two -page report. The people activities held during December noted: Choral groups from Hamilton, Oliver, North Webster, Edison, Jackson, Riley and Niles High School; Jo Ann Brines School of Dance and the Cardinal Handbell Group; the Salvation Army Band and the Greater Friendship Baptist Church. The River City Summer, On the Road, sponsored by St. Mary's College and the National Endowment for the Arts and the Indiana Arts Commission which has travelled all over Michiana is on display in the lobby of the County -City Building. Several vendors were on the Plaza -- selling redwood signs, Christmas trees, bake sale, and Rose Bowl Programs. As of December 1, 1975, the Maintenance Crew for the River Bend Plaza was placed under the auspices of the River Bend Plaza Office. It has been and is continually being re- organized. Crew members are on call at all times. - 15 - RIVER BEND PLAZA REPORT 8. PROGRESS REPORTS (Cont'd C. a. b. A lost and found box has been started in the Plaza Office for all items retrieved from the Plaza. Bicentennial Glasses and Bumper Plates are being sold in the Plaza Office. Parking Garage Sweepstakes will run through January 16. Entries reached a peak of over 700 during a period of one week, with 104 prizes donated by 16 stores. The Holiday Bus Plan showed an approximate 30% increase during the free period. Example: One day the inbound buses carried 1,700 passengers, whereas 900 is their usual load. Parking statistics during shopping hours average 70 to 75 cars in the 80 -car spaces available. Various activities are in the planning stage. Relocation Progress Report: This written report is from the Relocation Staff: Southeast NDP A -10: All residents moved. However, one individual moved into substandard housing. Staff is continuing to work with the individual to secure adequate housing. Model Cities Extended Services: One individual remains on the workload. Individual has not contacted our staff with the information necessary to establish his eligibility. E -7 Neighborhood Development Program: One family is in the process of purchasing a home and one individual will be moving. City -Wide: One second -year Rental Assistance Payment remained to be paid -- pending approval of City Council. .IC SESSION FOR COMMENTS AND /OR QUESTIONS Spagnoli's Fruit Store: Commissioner Wiggins commented that Johnnie Spagnoli's Fruit Store sold well over 300 fruit baskets for the holiday season and is steadily building up his trade. Mr. Brownell added he understands Mr. Spagnoli is going to get a manager to run the store and he hopes to continue it. Tobv's: Mr. Kagel advised "Tob's operation was among the first to enter into the downtown area - -River Bend Plaza--and that perhaps the Commissioners might like to have that in mind at the appropriate time. They will be celebrating their anniversary in February. - 16 - RELOCATION PROGRESS REPORT PUBLIC SESSION COMMENTS SUMMARIZED 9. PU�LIC SESSION FOR COMMENTS AND /OR QUESTIONS (Cont'd c. Frances Shop: Discussions on the closing of the Frances Shop raised lengthy questions and answers and seeking the Redevelopment Commissioners to help in any way possible to prevent another building to be- come empty in the downtown area. Mr. Dan Caesar raised numerous questions and stressed anything the Commissioners can do to grant an assistance program to retain that business, or through their legal authority, or to purchase the building from the owner, as it is under a lease operation. Also, that he is concerned about all the other build- ings down there that may be closed unless something is done quickly. Mr. Brownell referred to The South Bend Tribune article that said something about a lack of foot traffic, but that there is probably more foot traffic to the bakery right next door than there is any place downtown. Commissioner Wiggins said the two big draws are between Robertson's and the Dainty- Maid.Bakery, and that of all the places on the Mall [the Plaza], that they probably have the best one; and that this now goes back to what has been said many times - -you cannot do everything for anybody. The guy in the spot has got to do some merchandising. He suggested there may be the possibility that Mr. Fishgrund just wants to retire and quit. He suggested that if the employees were to get organized they would have the same kind of potential here that South Bend Lathe had, for example. As to help through Commission's legal authority, Mr. Butler ad- vised there is nothing this Department can do; nothing this Com- mission can do to make the funds available. Regarding Mr. Caesar's question on perhaps purchasing the build- ing, Mr. Brownell advised that we have no authority to acquire that building under the Program, at this time, or any funds for that. Mr. Kagel advised that the first thing the employees would have to do if they are going to participate, even in a Small Business Administration loan, is to get performance statements prepared, and submit it to the financial institution. This may already have been done. The performance statement is needed to sit down with the Small Business Administration people in reference to fi- nancing that operation. He advised the news media that there has been contact, including with the Chamber of Commerce and with the landlord. The key word is "sufficient leadership" for the people who want the business. As to the proprietor selling to the employees rather than just to close out, Mr. Kagel said the statement is true, but the man who owns his own business has the prorogative of doing what he wants with the business and with the name. There may be legal ties involved and obligations. The name of the business will not be sold to the employees. - 17 - 9. PU6LIC SESSION FOR COMMENTS AND /OR QUESTIONS (Cont'd Mr. Caesar stressed that this is one example of a building that someone can do something about to retain a business there in the downtown area. Commissioner Wiggins added that very frankly, that is a prime location, and if Bob Fishgrund does what he said he proposes to do, and the employees don't pick it up and the Frances Shop disappears from that location, that the people who own that building are going to be actively seeking a new tenant, and " I would think that would be re- populated rather rapidly. Ifthere is any placie you would look for something to happen, that would be ideal place, because of the volume of traffic there. With that kind of foot traffic, that location is important." Ms. Derbeck didn't agree with the statement on a lot of foot traffic downtown. 10. NEXT COMMISSION MEETING Th next Regular Meeting of the Redevelopment Commission will be at 10 00 a.m., Friday, January 16, 1976, in the Office of the Depart- me it of Redevelopment. 11. ADJOURNMENT Th re being no further discussion or business on hand, motion was du y made for adjournment by Mr., Wiggins, at 11:00 a.m., and ca ried. s z, President' L1. ell, executive uirector NEXT COMMISSION MEETING, 1 -16 -76 ADJOURN- MENT