HomeMy WebLinkAboutRM 01-16-76COMMISSIONERS' REGULAR MEETING
Frid y, January 16, 1976
Transcript of the following items on the Agenda:
4. COMMUNICATIONS
Letter from The Hickey Company, Inc.
MR. ROWNELL: The next item is the letter from The Hickey Company, Inc.,
which reads as follows. It's directed to the Department
of Redevelopment and states -- it's dated January 15,
1976, and states:
In accotrdance with outs convetusati.on o6 Januarry 15,
1976, we wEU extend out ptoposa2 �otr confitract numbetr
10, Patrts A and D dated Novembetr 18, 1975 untie Man.ch
15, 1976 with no incne"e in ptrice. This cowtAact
totaeed $750,298.00.
1/6 the 4ottowing items cure deducted, the va2ue/s acre
ass 40ttows :
1) Two pootz, chemicatz and /sump pump $46,650.00
2) Benches - 16 units 2,923.00
3) Sub/st-itute btwwn conctrete Ooh
tetctrazzo paving 1,900.00
4) Btuick paving in i/stand nean LaSaUe Ave. 2,500.00
5) Bicycee nachos - 12 unit.6 1,700.00
6) Sound /system conduit 21-700.00
7) Demotiti.on o4 vautt - SP 8A, tnceuding
co ncAete paving 1,600.00
TOTAL DEDUCTION 591-973.00
In addition.. we aequest that the eomptetion date be adjuwsted
to eo&&elspond with any decayed /staAt-ing date.
We tAust this " the in4onmation you desi&e, and took ionwatrd
to working with you on th" ptoject.
Stneenety,
/,s/ G. A. Hickey
G. A. Hickey
C ha-i ,t nan o4 the Bocurd
I would like to read the letter from Foegley too, because Mr.
Robert 0. Foegley sent us a letter dated January 15, 1976:
COMMItSIONERS' REGULAR MEETING
Frida , January 16, 1976
MR. NIIMTZ:
Transcript: Page 2
Pete out phone conveuat(-on o4 January 15, 1976, we agree
to the exten ion o4 the bid award 4ot the Pedestxian Way,
Phaae #3 (P" ect Ind. R -66) through Febtuatcy 29, 1976.
It ,ins also undetvs.tood that the beginning o4 cowsttuc ion
and the compte ion datez wilt atzo be detayed.
youjus very tAut y,
/z/ Robert U. Foegtey
RobeeAt 0. Foegtey
Let's consider that along with the Mayor's letter which is
under "Old Business, 5a -1)."
MR. BROWNELL: All right.
MR. NIMTZ: Do you think that is proper?
MR.
ELL: Well -- either way. I think we need... at some point...we need
a motion to extend the time...like we did the last time we
had that extension. This doesn't extend for as long. This
only goes to February 29...really.
MR. NIMTZ:
Yes, but... but. Of course, Kevin, now ... we have this letter
from the Mayor, which is the next item, requesting that we
delay construction of the Mall until June 1, 1976, for the
various reasons listed in the letter.
MR. ROWNELL: This would only delay the awarding of bids until February 29,
which would probably be continued on.
MR. NIMTZ: To give us time to discuss with Hickey and ...
COMMISSIONERS' REGULAR MEETING
Frid y, January 16, 1976
Transcript: Page 3
MR. UTLER: I think, if I understand it correctly... what they want
to do is evaluate. The contractors want to evaluate
their cost factors, periodically...rather than giving one...
MR. IMTZ: Well, that's reasonable; that's reasonable. Take it step
by step.
MR. ROWNELL: That's right. Because the labor rates may go up, and
costs of material...
MR. IMTZ: Lloyd, you are probably the expert on this... Do you see it,
as taking it step by step, rather than... in fact, even this
June 1 thing, has it been discussed with Hickey or Foegerly?
an
ELL: Yes, I told him about it...informally..over the phone, and,
of course, they will have to have an increase of some amount- -
probably in price, but they have no way of determining that
amount at this time, because they don't know when the date';s
going to be; it might not be June lst, you see. We don't
know.
MR. WIGGINS:
MR. NTMTZ:
We have currently an extension to February 1, which we will
not have another meeting until after that time, so we have
got to take action at this meeting, to carry it...
I see, Wayne. I see your point.
MR. W
GGINS:
... to further
extension, and, as
long
as
we have
the letters
of request from
them, I think we
ought
to
act upon
those
COMMISSIONERS' REGULAR MEETING
Frida , January 16, 1976
Transcript: Page 4
MR. WIGGINS: and, in that light, I make a motion that we receive the
Cont'd
letters and approve their request for the extension in
time in which to award the bids...
MR. BIROWNELL: To February 29.
MR. WIGGINS: To February 29.
MR. OIRA: I support that.
MR. IMTZ: Any discussion?
MR. GEL: Is that for... pardon me... is that for both: February 29.
One is to March 15 - -the Hickey. Are you referring?
M
GGINS: Well, inasmuch as these are all parts -- parcels - -of the same
operation, let's use the 29th date, and we'll see what
develops meanwhile. If it is necessary to further extend
them, then we can do it then.
MR. KAGEL:
The fact that February 29 is a Sunday, is irrelevant in
this stage of the game?
MR. WIGGINS: Yea, because we'll have to take action ... any further action
that might be required will have to be taken... done, by
our second meeting in February.
MR. VANS: Mr. Chairman, I hear you members of the Commission, using
the terminology, 'acknowledging their request.' Actually,
the request for the extension was not from the contractors;
it was from the Redevelopment Department, was it not?
COMMISSIONERS' REGULAR MEETING
Frida , January 16, 1976 Transcript: Page 5
MR. BROWNELL: No. Not that way. I simply explained the fact that we
had a request from the Mayor to delay the project to June
1st.
MR. EVANS: Did not the request—did not the extension for the awarding
of the contracts initiate prior to the Mayor's letter?
MR. BROWNELL: The first one did.
MR. IGGINS: There was an extension.
MR. BROWNELL: We explained to the contractors we either had to reject the
bids, or they could be extended.
MR. EVANS: But they were too high'
MR. BROWNELL: No, that was but one of the problems, but ...
MR. EVANS: Well, okay.
MR. BROWNELL: ...but, the other problem was the timing.
MR. EVANS: But that request was initiated by the Redevelopment Department
and the contractors agreed to the extension of time.
MR. BROWNELL: No. That's not true!
MR. EVANS: That's not true?
MR. WIGGINS: You might put it this way: We asked them to request it and
they did, and we honored the request that they made.
COMMISSSIONERS' REGULAR MEETING
Fri January 16, 1976
MR. EIVANS : I see.
Trnascript: Page 6
MR. WIGGINS: If you like it better that way...it all comes out the same.
MR. VANS: I wanted to settle and clear it in my mind. I was curious.
MR. BROWNELL: All I really explained to them was that we had two choices:
we could reject the bids and then rebid the project, or
they could request an extension if they wanted to.
MR. EVANS: I see. All right.
MR. NIMTZ:
All right. We have a motion to extend these to February
29th, which is Roland Newman Chenney ( ?), Sr's. birthday.
Do I have any further discussion, or questions?
["Done -- No response.]
All in favor, signify by saying, 'Aye.'
COMMISSIONERS: Aye. ['Aye's' unanimous.]
MR. NIMTZ: That is carried.
MR. BIROWNELL: The ...
MR. NIMTZ: Now, ...
MR. E
ROWNELL: The next item is under, 'Old Business,' Mr. President, and
that is a report on the Plaza continuation, Project Indiana
R -66, 5a -1), is a 'Letter from The Honorable Peter J. Nemeth,
Mayor, City of South Bend,' directed to Mr. F. Jay Nimtz,
President, Redevelopment Commission, County -City Building,
South Bend, Indiana 46601.
COMMItSIONERS' REGULAR MEETING
Frida , January 16, 1976 Transcript: Page 7
Deat Mt. Nimtz:
I am Aequesting that the Redevetopment Deparctment
decay eonst) uat%on o4 the mate on Michigan St)Leet between
Je44euon and Washington StAee<t�s unt it June 1, 1976. I am
making this rcequezt 4or the 4ottowing teasonz:
1. To provide the Mayon's Downtown Devetopment
Committee with an oppoktunity to study the
downtown probtem and make tecommendations;
2. To attow mote time to study the impact
o A �&ee patFr i.ng on the pros peat%v e mate aAea
between Je44ervson and Washington StAeets;
3. To avoid unnecasaty expense in the event
the downtown matt prof eat o6 the FiAst Bank
and TAust Company comes into tuition.
Ass 4oA the th.itd teazon, I wish to emphasize that the
pto babit i.ty o4 success o 4 the Hut Bank prof eat cannot be
dete,kmined 4oA anotheA three oA 4ou L mowtks; however,
o44iciats o4 the Hut Bank and Trust Company have
indicated to me that they shoutd know within that pe iod
o4 time whetheA or not thew prof eat w,i tt pAoeeed.
In the event the project does prcoeeed, it woutd be
very 400V sh jot us to enteA into a contract and commence
eovvstruation o4 the matt at this time and then have to
undo that eonsttuation at a tatet time. I fleet that the
,shorct time invotved 4ot the decay, as wett as the
possibte saving6 o6 tax money, ju6t 6ies my teque�st
joA the decay.
Thanking you Got youA ass,i stance and coopeAati.on
in this matteA, I ,temain
vv.y ttcuty gout's,
/6/ PeteA J. Nemeth
PeteA J. Nemeth
Mayor
PJN/bjb
cc: Redevetopment Commi6sioneu
C. Wayne BAowneU
MayoA',s Downtown aevetopment Committee
News Media
COMMISSIONERS' REGULAR MEETING
Friday, January 16, 1976 Transcript: Page 8
MR. NIMTZ: Any comment, or questions, by members of the Commission, as
to this delay, and as to the parking?
COMMISSIONERS: [None -- No response.]
MR. NIMTZ: If not, I'll call on Mr. Getzinger.
[Directed to Mr. Getzinger] I believe this has been dis-
cussed with you and Mr. Kagel, and the merchants downtown?
MR.
ZINGER: Yes. Mr. Chairman and members of the Commission: Of course,
you must be aware of my feelings in the matter. We were
taken completely by surprise of the announcement, and, our
first reaction, of course, was one of shock and amazement;
however, I feel that the Mayor and this administration does
have the community's and downtown business community's
interest at heart. I feel that in retrospect, that he does
need some time to study the situation and I would recommend
that we would go along with his request at this time.
I hope that the six months's delay, or five months - -or
whatever it is - -I don't remember the exact date ...
MR. NIMTZ: June 1st.
`Y0
INGER: At that time, or time between now and then., that we can
have some sort of a plan on what is going to happen shortly
thereafter.
COMMISSIONERS' REGULAR MEETING
Frida , January 16, 1976
Transcript: Page 9
MR. G TZINGER: We feel that we did have some communication with you,
Cont' d
gentlemen, prior to Christmas. We had resolved what
we had wanted to do - -to start the construction of the
Mall. I realize that there has been a change of adminis-
tration, and, so, because the Mayor has made this request,
and because we too want to do and cooperate, and we will
agree to that request.
MR. KMTZ:
MR. G
Would you like to address yourself as to the parking request- -
that we extend the parking in the additional block or half
block?
INGER: Yes, I would. I certainly feel that if we are not going to
construct the mall, that the entire block should be opened
up to the parking.
MR. N MTZ: Well, that's the Mayor's request.
MR. G TZINGER: Yes, I agree with his request. I think that if we are
going to do that, then we have to support him wholeheartedly
in this request, but I do think that there could be some
enforcement of the time period - -a maximum of two hours- -
and I think this is important also.
ufT;�►1
Thank you, sir.
[Directed to Mr. Kagel]. Mr. Kagel, do you have any comments,
or feel like a speech coming on?
COMMISSIONERS' REGULAR MEETING
Fri January 16, 1976 Transcript: Page 10
MR. GEL: No.... [Laughter].
I know that this has been studied in the Chamber of Commerce
by several Committees, and I believe that what Mr. Getzinger
said, I would reflect on the same.
MR. NIMTZ: Thank you, sir.
Mr. Bloomquist, do you have any comments, or?
MR. OLOOMQUIST: No. I agree with Hub, and the gentleman.
MR. IMTZ: All right. Thank you, sir. Any other questions or comments?
[None -- No response].
Now, I have discussed this matter, informally, with the Mayor,
and, of course, I think we all realize the legal responsi-
bility on the parking is with the Board of Public Works, and
it's my understanding, if we have no objection to this and
approve this, this morning, this will go before the Board
of Public Works the next meeting, which will be Monday morning.
Am I correct on that, Mr. Butler?
MR. DUTLER: Yes.
MR. NIMTZ: Do I hear a motion?
MR. DONALDSON: I so move.
MR. ROBINSON: Support.
COMMISSIONERS' REGULAR MEETING
Fr id y, January 16, 1976
MR. NIMTZ:
Transcript: Page 11
Any further discussions or questions?
[None -- No response].
All in favor signify by saying, 'Aye.'
COMMISSIONERS: Aye. ['Aye's' unanimous.]
MR. NIIMTZ: That is carried.
MS. OERBECK: What was the motion?
MR. NIIMTZ:
That we accede to the Mayor's request, and that the delay
as requested for the construction of the Mall on Michigan
Street between Jefferson and Washington be postponed until
June 1, 1976, and that we have no objection to free parking
on the area between Jefferson and Washington Streets.
That's your motion, isn't it, Pete?
MR. CAESAR: That is the free, two -hour parking?
MR. NIMTZ: Well, this ... the fine points and the details, of course, are
legally in the Board of Public Works. We have nothing to
say about that. All we are saying, is that we have no objec-
tion to that area being used as parking. Right?
MR. DPNALDSON: That's right.
MR. E ANS: Mr. Chairman, does this make the extension of the previous
contract, which you discussed, a rather moot point?
COMMISSIONERS' REGULAR MEETING
Frid , January 16, 1976
MR. NIMTZ:
Transcript: Page 12
No. This gives us time, as I understand it now--if they
are still interested, to ask for another continuation until
June 1st.
[Directed to Mr. Brownell]: Right?
MR. ROWNELL: Yes, and review the expenses involved.
MR. IMTZ: Right.
MR.
VANS:
You
would
not have to go through
a rebidding, necessarily?
MR. BUTLER:
Not
if we
can get their accession
for continued delays on
the
award
until June 1, or until
such time that ....
MR. VANS: But, there is no change in the bid? And no change in the
price?
MR. BUTLER: Right.
MS. ERBECK: What if only one contractor agrees?
MR. IGGINS: Well, then the other part would have to be rebid. These are
separate, although they are ...
MR. BUTLER: If the determination is made to go ahead with the construction
of the mall, the alternatives would be either to reject the other
bid and rebid everything, or simply we rebid the one that...
MR. IMTZ: Not acquiesce.
COMMIISSIONERS' REGULAR MEETING
Friday, January 16, 1976 Transcript: Page 13
MS. ERBECK: If the contractors agree to postpone, you do not have to
rebid.
MR. IMTZ: Any questions? Further ... I have to keep watching
Legal Counsel here.
MR. BUTLER: Legally, Jeanne, the notice to the bidders and the instruc-
tions to the bidders indicated the Commission would act
within thirty (30) days after receipt of bids. Now, that
is what is being extended. That was our commitment. Of
course, it protects the contractor - -the contractors - -if
there were no deadline, the Commission could sit on it
for seven or eight months, and we have their bid bonds;
they would be bound. So, and, as a matter of fact, we
would receive no bids, unless there were a .... Now, they
are acceding by their requests to a delay in that thirty
(30) day commitment.
MS. ERBECK: Have you contacted the contractors? Are they willing?
MR. OUTLER: The letters are here.
MR. OROWNELL: We have read the letters.
MS. OERBECK: Yes, but the letter said the 29th.
MR.
Well, their point is ... they cannot evaluate the situation
all the way up to June 1. What they want to do, is evaluate
it periodically -- probably on a monthly basis. We'll see what
COMMISSIONERS' REGULAR MEETING
Frida , January 16, 1976
F2 1W.,
Transcript: Page 14
happens. If they feel that they can hold their costs to
the levels of their bids. Of course, we are delaying the
starting. They were originally going to start the first
week in January.
MS. D
RBECK:
So,
in other words,
they are agreeing here
to
a bid award
on
February 29 for
construction that would
be
delayed here?
MR. BUTLER: Right. They know that we are talking ultimately about a
June 1 date on the outside for a decision... for a final de-
cision to be made.
MR. B OWNELL: The next item [ "Old Business 5a -2) "] is a letter from the
First Bank & Trust Company to Mr. Hubert Getzinger, Chair-
man of the Downtown South Bend Council, and they have
shared a copy of that letter with the Commission.
[Directed to Mr. Nimtz]: I don't know whether you wish
it read in full or not?
MR. N MTZ: N0: ... I mean, that is not necessary.
MR. W GGINS: I think this letter was also shared with the Press, was it
not?
ELL: Yes. It was in the Press, and it was read over in that
meeting at the Chamber of Commerce. Do you wish to receive
it?
COMMIISSIONERS' REGULAR MEETING
Friday, January 16, "1976 Transcript: Page 15
MR. WIGGINS: I move that it be received and placed on file.
MR. OIRA: I support that.
COMMISSIONERS: Aye. [ "Aye's' unanimous.].
MR. NIMTZ: That is carried.
End of discussion under, "Old Business, 5a -1) and 2).
Ori final transcript attached to
Official Minutes, along with
above letters discussed. Transcript r cordeed� and taped
By:
Helen S. King
Executive Secret a y
Dept. of Redevelopment
CITY OF SOUITH BEND
South end, Indiana 46601
Jxa��c xvx Peter J. Nemeth
Mayor
The Honorable Peter J. Nemeth
Mayor, City of South Bend
Co my -City Building
So th Bend, Indiana 46601
r Mayor Nemeth:
COMMUNITY DEVELOPMENT PROGRAM
DEPT. OF REDEVELOPMENT
1200 County -City Bldg., Phone 284 -9371
Redevelopment Commission
F. Jay Nirntz
President
John E. Chenney
Vice President
Donald A. Wiggins
Secretary
A. Peter Donaldson
Assistant Secretary
Robert J. Cira
Member
C. Wayne Brownell
Executive Director
Kramer, Rowe, Sweeney,
Butler, Simeri & Laderer
Legal Counsel
January 21, 1976
I am pleased to report to you that in response to your letter of
January 8, requesting that the Department of Redevelopment delay
awarding of any contracts for the construction of the mall on
Michigan Street between Jefferson and Washington Streets until
June 1, 1976, the Commission, at its meeting of January 16, unani-
mo sly approved your request. Technically, we delayed the awarding
of any bids until February 29; however, Mr. Brownell is talking to
thE contractors in regard to extending the eventual awarding date,
if that is the decision, to June 1, 1976.
Further, the Commission unanimously agreed that they have no objec-
tion to the extension of parking in this block from Washington to
Jefferson Street. However, we realize that the technical responsi-
bility and supervision is within the purview of the Board of Public
Works.
With every good wish, I am
FJN:
Respectfully yours,
F. Jay Ni z
Pres i dent
h
`" �°deelgp t Commission
PLANNERS R ENGINEERS F` DESIGNERS 19 BUILDERS
Mr. Wayne Brownell, Executive Director
Department of Redevelopment
Room 1300, County -City Building
South Bend, Indiana 46601
Dear
In ac
exter
Noven
This
If
1)
2)
3)
4)
5)
6)
7)
Mr. Brownell:
January 15, 1976
Re: South Bend Pedestrian Way
Project: Indiana R -66
South Bend, Indiana
:ordance with our conversation of January 15, 1976, we will
i our proposal for contract number 10, Parts A and D dated
)er 18, 1975 until March 15, 1976 with no increase in price.
:ontract totaled $750,298.00.
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
terazzo paving 11900.00
Brick paving in island near LaSalle Ave. 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
In ad ition, we request that the completion date be adjusted to
corre pond with any delayed starting date.
We trust this is the information you desire, and look forward to
working with you on this project.
�) ncerely,
u aw G. A. Hickey
Chairman of the Board
GAH:v
cc: Mr. Tom Oesterling (Clyde E. Williams)
Mr. James T. Zakrocki
CO
INUeYt 70c5lecy
XanJscape 2lesifyn anti Contractin ff, Snc.
60648 _Ci1 «e ` ..,l
S..tli 8..cl, S.h..a 46614
�e�ep`ione (219) 291 -6253
January 15, 1976
Mr. C. Wayne Brownell
Department of Redevelopment
1200 County -City Bldg.
South Bend, Indiana 46601
Deer Mr. Brownell:
Pe our phone conversation of January 15, 1976, we agree
to the extention of the bid award for the Pedestrian Way,
Ph se #3 (Project Ind. R -66) through. February 29, 1976.
It is also understood that the beginning of construction
an the completion dates will also be delayed.
RF1
Yours very truly,
.
��
Robert 00 Foegley
s
L 3 A `s 15 19 7 6
}
CITY OF SOUTH BEND
South Pend, Indiana 46601
Peter J
Mayor
Sg 1*111
Nemeth
Mr. F. Jay Nimtz, President
Redevelopment Commission
County -City Building
South Bend, Indiana 46601
Dear Mr. Nimtz:
January g, 1976
I am requesting that the Redevelopment Department
delay construction of the mall on Michigan Street between
Jefferson and Washington Streets until June 1, 1976. I am
making this request for the following reasons:
1. To provide the Mayor's Downtown Development
Committee with an opportunity to study the
downtown problem and make recommenda-
tions;
2. To allow more time to study the impact
of free parking on the prospective mall area
between Jefferson and Washington Streets;
3. To avoid unnecessary expense in the event
the downtown mall project of the First Bank
and Trust Company comes into fruition.
As for the third reason, I wish to emphasize that the
probability of success of the First Bank project cannot be
determined for another three or four months; however,
officials of the First Bank and Trust Company have
indicated to me that they should know within that period
of time whether or not their project will proceed.
OFFICE OF THE AYOR
SOUTH BEND, I DIANA
Mr. F. Jay Nimtz
Page 2
January 8, 1976
In the event the project does proceed, it would be
very foolish for us to enter into a contract and commence
construction of the mall at this time and then have to
undo that construction at a later time. I feel that the
short time involved for the delay, as well as the
possible savings of tax money, justifies my request
for the delay.
Thanking you for your assistance and cooperation
in this matter, I remain
V truly yours,
#z
Peter J. Nemeth
Mayor
PJN /bjb
cc: Redevelopment Commissioners
C. Wayne Brownell
Mayor's Downtown Development Committee
News Media
JAN 1 -51976
"rstBank & Trust Company
OF SOUTH BEND
BENTON M. AKEFIELD, JR. Jarivar
CHAIRMAN OF THE BOARD y 14, 19 7 6
�-� Mr. Hubert Getzinger, Chairman
r.
Downtown South Bend Council
32 West Jefferson Boulevard
South Bend, IN 46601
De r Mr. Getzinger:
I think it might be of interest to the members of the
Downtown South Bend Council to review the status of the
proposal by the River Bend Development Group (a joint
venture between First Bank and Development Control Cor-
po ation) for the Downtown Mall enclosed shopping center
an bank /office building.
River Bend Development Group decided to take over the
pr ject last April when it was apparent Associates would
not continue, because we felt the Downtown Mall proposal
was the best and most likely means of developing the down-
town. Particularly important was the need for some cor-
poration to provide leadership for developing the downtown,
and not lose the benefit of the significant and costly work
that Associates had completed. Since April, considerable
time and money has been spent by our group to refine the
concept and to do additional research at the request of
maj r retailers whose leases are absolutely essential for
a s ccessful development of a downtown retail project.
As you will recall, during a major portion of 1975 the profits
of inany retailers declined significantly. As their profits
dec ined their interest in considering new store expansion
also declined. In the fourth quarter profit's and expansion
interest of major retailers increased, and the River Bend
Development Group has aggressively sought to capitalize on
the opportunity that a more positive expansion mood provides.
During the past thirty days, meetings have been held with top
off cials of several major department store chains and all
hav confirmed their continuing interest in our downtown retail
sho ping mall. The one major department store which agreed to
P.O. BOX 1602 SOUTH BEND, INDIANA 46634 0 PHONE 219, 284 -3256
pa
Page 2
January 14, 1976
.e space in our project a year ago has continuously re-
ifirmed their intent, subject to another major depart
it store joining them in this mall, plus satisfactory
-king arrangement with the City of South Bend.
At this point, we are more optimistic about our chances for
success than at any time to date. However, it should be
clearly understood that there are many variables that can
influence the success or failure of such a major project,
and many of these variables are non - controllable, such as
na ional retail sales.
It'is extremely difficult to quantify the probability of
su cess or failure. While it would be a more optimistic
ap roach to highlight the positive progress, we have con-
ti uously emphasized the speculative nature of this project,,
anp we simply cannot guarantee success.
I am personally most grateful for the moral support, the
in outs, and suggestions from various members of the Down-
town South Bend Council as well as from other South Bend
citizens interested in the development of the downtown.
Where possible, such suggestions have been utilized, and
we continue to solicit them.
Evan more gratifying is the increasingly widened leadership
for developing the downtown as reflected by the activities
of many more downtown business people, local government com-
mittees, the universities, and other groups. This increasing
leadership reflects, in my opinion, the tremendous vibrancy
and spirit that differentiates South Bend from many other
ci ties.
If I might repeat what we have suggested to all concerned
individuals and groups, as long as our project remains highly
speculative, it is very important that alternative development
strategies be pursued.
I ould also like-to repeat that no one has a "hold" on the
"big hole in the ground" land. The objective of First Bank
is to develop downtown South Bend, which, considering the
amount of space available, we believe will require a large
coordinated development. It is also our evaluation that,this
caa best be accomplished with an enclosed shopping mall. We
ho De our project succeeds. However, if it does not, it would
be highly desirable for downtown South Bend to have developed
an analyzed alternative strategies. Since First Bank does
not have the resources to pursue two major development stra-
tegies, we certainly encourage the development efforts of
others.
Page 3
January 14, 1976
Ir summary then, the economy has improved enough that
WE feel major retailers will be making a decision about
their expansion plans in the'Michiana market. We feel
m re optimistic about the Downtown Mall proposal than
at any time to date; however, we also hasten to point
out that there is still a substantial downside risk of
failure. Logically then, we continue to encourage others
to examine alternative strategies for developing the
downtown.
/fmr
Sincerely yours,
enton M. W kefie
Chairman of the 1