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HomeMy WebLinkAboutRM 03-05-76March 10:00 Presi SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING i, 1976 k. M. ing Officer: Mr. Donald A. Wiggins, Vice President 1. RO L CALL Co missioners Pr sent: Co missioners Ab ent: 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Mr. Donald A. Wiggins, Vice President Mr. A. Peter Donaldson, Secretary Mr. Robert J. Cira, Assistant Secretary Mr. F. Jay Nimtz, President Mr. Lloyd E. Robinson, Sr., Member Lebal Counsel: Mr. Kevin J. Butler Mr. George T. Patton News Media: Ms. Jeanne Derbeck, South Bend Tribune Reporter Mr. James L. Marchelewicz, WNDU -TV Reporter & Photographer Mr. Roy Roth, WSBT -TV Photographer Mr. Les Howard, WSJV -TV Photographer Others Present: Co nit Deefl o m nt St : Mr. Allan C. Bloomquist, First Bank & Trust Company Mr. Arnester Fleming, Fleming Masonry & Construction Co. Mr. Carl E. Ellison, Administrative Assistant, Human Resources & Economic Development Mr. Gene Evans, Executive Secretary, Civic Planning Assn. Mr. Hubert Getzinger, Chairman, Downtown South Bend Council Mr. Walt Jeter, Fleming Masonry & Construction Co. Mr. John V. Lindstaedt, Fair Tax Association Mr. Peter H. Mullen, Director, Bureau of Administration and Finance Mr. Keith P. Crighton Mr. Kenneth J. Schaller Mr. James L. Johnson, Jr. LPA Staff: Mr. C. Wayne Brownell Mr. William J. Parrish Ms. Helen S. King 2. APPROVAL OF MINUTES Mo ion was made by Mr. Donaldson, seconded by Mr. Cira and carried, MINUTES fo the approval of the Minutes of the Regular Meeting of February APPROVED 20, 1976, as mailed and /or distributed. - 1 - 3. APPROVAL OF CLAIMS Motion was made by Mr. Donaldson, seconded by Mr. Cira and CLAIMS carried, for the approval of the claims, as submitted, and that APPROVED they be allowed and ordered to be paid -- totalling $39,401.33. The authorized claims are: PROJECT EXPENDITURES ACCOUNT R -57 Abstract & Title Corporation $ 50.00 Kevin J. Butler 8.00 South Bend Exterminating Co. 30.00 Total 88.00 PROJECT EXPENDITURES ACCOUNT R -66 Kevin J. Butler $ 664.09 Colip Brothers Electric Co. 5,153.58 Indiana & Michigan Electric Co. 131.00 Ralph D. Lauver - Reuse Appraisals 4,500.00 Office Engineers, Inc. 361.17 South Bend Exterminating Company 30.00 Total 10,839.84 N. .P. A -10 Relocation Payments Warren Kennedy $ 250.00 Total 250.00 REDEVELOPMENT DISTRICT CAPITAL FUND tract Company of St. Joseph County $ 142.50 Total 142.50 BU EAU OF HOUSING, E -7 Ba any Sheet Metal & Heating Co. - Contract No. 51 $ 7,103.00 Ke in J. Butler 60.00 Total 7,163.00 REDEVELOPMENT REVOLVING FUND Payroll: February 7, 1976 to February 20, 1976 $ 5,739.88 Ke in J. Butler (January, February & March, 1976) 600.00 Ci y Controller of South Bend 58.65 Cr dit Bureau of South Bend- Mishawaka 5.00 Cu tom Graphics 145.00 13.M. 50.04 Mu zynski Insurance Agency 53.00 Office Engineers, Inc. 20.16 Po tmaster 13.68 Si ger General Tire, Inc. 40.80 So th Bend Water Works 6.78 -2- 3. APPROVAL OF CLAIMS (Cont'd 4 Mi a, 5. N 1 Cities Extended Services tchell A. Niezgodski - tchell A Niezgodski - ter F. Gillis, S.R.A. - MMUNICATIONS Replacement Housing Moving & Displacement Allowance Appraisal Total GRAND TOTAL HUD Area Office letter dated February 26, 1976: This letter, over the signature of Mr. Stephen J. Havens, Director, Com- munity Planning and Development, advises of HUD concurrence in Change Order No. l to Colfax /Pier Park Dredging Contract No. 1, with Nautilus Construction Corporation, Project Indiana R -66, for a net increase of $1,910.00 in contract cost. Executed copies of HUD 4217 were enclosed showing concurrence. Motion was made by Mr. Cira, seconded by Mr. Donaldson and carried, to receive the above communication and place it on file. RELEASE Mr. C. Wayne Brownell, Executive Director, dept. of Redevelop- ment, distributed copies of the News Release, dated February 27, 1976, which was provided by Mr. Allan C. Bloomquist, First Bank & Trust Company. Mr. Brownell advised that Mr. Bloomquist had agreed to come to the Commission meeting and answer any qu stions anyone may have. This is a new corporation organized as South Bend 2000, Inc., a iot-for-profit corporation that will focus additional private re ources on downtown development, with officers and directors re resenting a broad spectrum of the community's financial and bu iness interests who have pledged to work in close coopera ti n with officials of city government. Initial emphasis will be on revitalizing downtown as a retailing center. Regarding the question raised on the not - for - profit corporation prior to the meeting, Mr. Bloomquist, spokesman for the develop- ment group, reported what was decided was, to more effectively bring about redevelopment in the downtown area, it might be pre- ferable to take a cue from what Detroit, Ann Arbor, Milwaukee and other cities have done, wherein they have established not- for-profit corporations consisting of many of the local businesses, fi ancial institutions, etc., just on the premise that two heads ar better than one. Also, that a dozen heads are better than on 2, and the resources not only of brain power and time that can be brought to bear on our particular problem, but also money is 3 $ 13,650.00 500.00 35.00 20,917.99 $ 39,401.33 HUD CONCUR- RENCE, CHANGE ORDER 1 TO COLFAX /PIER PARK DREDGING CONTRACT NO. 1, R-66 SOUTH BEND 2000, INC. 5. N RELEASE (Cont'd effective perhaps to bring about improvement and development when aimed at a specific objective. The total commitment is to just get behind the downtown redevelopment and get things moving. There is no profit motive on the part of anybody. discussion on this part of the session was lengthy. The questions Ms. Jeanne Derbeck, South Bend Tribune Reporter, were directed to Bloomquist for answers and are summarized for the record Q. Statements made by Mr. Bloomquist here in the Commission meetings and at the Chamber of Commerce Committee meetings that when the First Bank had this, he said he would know sometime this spring, between March and May, as to whether the project for development was a 'go' or 'no go.' Since First Bank is not in control any more, does that statement now stand or not? A. That answer would be whether First Bank was in control or whoever was in control, because that timing is strictly related to the decision - making timetable of the major re- tailers. It is the position of South Bend 2000 that it is not necessarily helpful to try and communicate probabilities that we used to do, effectively or not, for specific time- tables. It depends upon the decision- making timetables of major retailers. Certainly there is a lot larger and more interest in the information, plan variations and data gathering than at any time in the past. Q. Are you getting questions from the major retailers? A. Related to the South Bend market -- absolutely. They are getting a lot of questions from firms which are really questions for the architects, additional data updates re- lated to the present market. Q. You said before, at the times I mentioned, that there was an increase in interest and that interest was sparking up among major retailers in general, and that was the reason, and you are now repeating the same thing. You said at that time that was the reason and you felt that you should know by the end of spring whether that development was going to go-- whether they would choose downtown South Bend or not. That was why you would know pretty well whether it could be 'go' or 'no go' by this spring, so why doesn't that situation still hold? You had seemed to say, that if by early spring there was not very much interest- -that if it didn't look good - -that was probably going to be it. Is this South Bend 2000 Corporation saying that? A. South Bend 2000 is not indicating specific timetables. That would be the only change. - 4 - 5. N8WS RELEASE (Cont'd C1 ni ti 01 o' ai i W w t d a t Q. Are they still working specifically on what I call the Super - block, or are they going out for anything there? A. This Corporation was only incorporated last Friday, although meetings have taken place. The major thrust of the past three meetings have been to acquaint the people of South Bend, with what you call Superblock, or the major retailing center, and have been devoting most of the attention to that. It just takes a lot of briefings and a lot of information- - a lot of questions- -just to address that particular situation. The overall objective of South Bend 2000 is building for the 21st Century, which means to do something that will make the downtown very vital and lasting through and up until the year 2,000. Q. I hope it doesn't mean we have to wait until year 2,000' Well, are they dedicated to moving fast? Are they also look - ing for alternates to the Superblock concept, or are they work- ing as the First Bank was -- mainly along the plan of Superblock? A. Moving fast -- absolutely: What specific form that will take has not been determined. It was on our Agenda when we met last Wednesday- -2 -1/2 hour meeting. The developer was in and there was much discussion with them, and so that point was not dis- cussed. Q. I want it cleared up. You know - -it looks to people as though the Government is passing the buck in delay. A. I would like to make one point -- particularly on the concept of delay -- because a couple of the downtown people have asked if this means we are going into a delay phase. This is absolutely quite the contrary. We are very distinctly entering a period of much greater intensity and effort on the downtown mall pro- ject, so it is completely the reverse. We are in a period of much greater concentration and intensity. mmissioner Wiggins asked, "Now, in this broader concept that you are w involved with, in the 2000 group, do you feel that you will be able actively promote people into other than the area that has been more less thought of in terms of Superblock? I am thinking not only some of the other parts of the central core area that are vacant d would welcome tenants, even in the periphery to the downtown, be- use I fully expect to see, as this thing develops, a great deal of terest and development in the area outside of the core area itself. 11 you people be involved in the whole thing ?" Mr. Bloomquist advised at is being considered is not only the CSB area, but it is at least e hypothesis. If we can anchor downtown with the major new dynamic velopment, this will have a very positive ripple effect spreading out om that, and you are going to get subsequent development not only from cant land downtown, but also extending into the neighborhood. People e going to want to live closer to the downtown area. It means that ansportation wise, downtown is really the focal point right now, but - 5 - 5. NEWS RELEASE (Cont'd) would really be the overall focal point and that should generate sub - uent improvement going out. Mr. James L. Marchelewicz, WNDU- TV'Reporter and Photographer, asked, pparently a decision was made between three major retailers. Could t is cause a delay ?" Mr. Bloomqui -st advised, "No. The concept is okay. That plan can move along most rapidly, and I'think -- particularly for Jeanne, as she isn't going to believe me - -but it's easier to go, at this point in time, with the three major retailers, than with two. Jeanne would say why can't you go with one. It goes back to the concept of c ideal mass of marketing, retailing, where it most assuredly is evi- dent to us that we can move along a lot faster and more easily with thlree retailers than with two." Ms. Derbeck added they would all be more willing to come then, but w uldn't it be kind of a race then with the Grape Road development? Mr. Bloomquist advised that it is a race and a contest, but there is a configuration where we could go and the Grape Road development could gc at the same time. It is not in our opinion a configuration where Grape Road could go with an anchor by four major retailers and the downtown with three; that is just too many new stores 'in the market. W are assuming we will go with something.. We are dealing, in certain circumstances, with the same major retailers that the 'Grape Road developer is; in some cases not, but most assuredly it is a contest, a d that is one reason why South Bend 2000 group will have this broader base with its expanded resources. Commissioner Cira asked if he would care to elaborate on the major retailers; what kind of interest and by w om? Whether they are outside interests of the City, or businesses already in the City? Mr. Bloomquist said he can't indicate names at all. The interests would be both. Mr. Gene Evans, Civic Planning Association, stated that he noticed most of the conversation is about the possibility of attracting retail Outlets, and he would assume Mr. Bloomquist is not overlooking other kinds of service- oriented businesses. Back to the point where we as- s med that Associates was going to build their headquarters in the downtown area, which everyone said -- though fantastic -- that's a captive a dience and that can support retail business. Now Associates has withdrawn and we have no replacement for that kind of activity and yet we are still talking about retail outlets, and then dealing with t e question, 'Can we attract this populace in this area where this store is, as opposed to concentrating on at least some degree on similar operations such as Associates would have provided -- office people--who may only shop at noon, but it is a fantastic amount of money that is available to a retail business ?' Mr. Bloomquist said t at anything that can be done to attract the office workers into the downtown area they would fully support, endorse, and that many ol the insitutions represented in South Bend 2000 have continuously o er the years made efforts in that direction, and, of course, that h ppens to be a major thrust of Dr. George Wing and his Committee at present. He stated his frank opinion relative to workers downtown it will not support a lot of retailing just by having a cast of office workers in the downtown area - -that absolutely critical to the retailing efforts in downtown is to be able to bring in particularly the housewife f om surrounding areas. - 6 - 5. NdWS RELEASE (Cont'd My. Bloomquist further advised that First Bank, for instance, will bE building a new bank office building and that bankers like to have as tall a building as possible, and that they would be more than h ppy to accommodate anybody that they can bring in or attract. T ey have worked with their own real estate and area development d partments and others to attract more people into the downtown a ea. In fact those efforts will continue and Dr. George Wing is m unting a very aggressive sales'effort'in that regard. reference to Ms. Derbeck's question if he has specifics, definite terests by major retailers and others in this project sufficient make the Corporation hopeful, Mr. °Bloomquist answered in the affir- tive. . Brownell advised the Commissioners Mr. Bloomquist' has invited e Commissioners to a luncheon meeting, at their convenience, to into more depth on their development. 6. OU D BUSINESS a. The Hickey Company, Inc. letter dated March 4, 1976: Mr. Brownell read this letter in its entirety, which is over the signature of Mr. G. A. Hickey, Chairman of the Board. This letter is in reference to our request for The Hickey Company to evaluate a further extension into April and then possibly to June 15, 1976 of their proposal of November 18, 1975, for Contract No. 10, Parts A and D, to be awarded for the Plaza continuation. The previous extension was to March 15, with no increase in price, as follows: 1) Contract No. 10, Parts A & D $ 750,298.00 2) Seven (7) deductions - 59,973.00 Total 690,325.00 If the scope of the project, as outlined, is extended until April 15, 1976, they advise there will be an additional cost of $17,930.00 for a total of $708,255.00. This would be due to additional increases in material prices around April 1 and new labor contracts in effect in May, June and July, and the subcontractors, suppliers and The Hickey Company would not be able to absorb the increases, per their letter. If the extension time is until June 15, 1976, the additional amount is $27,000.00 or a total of $717,325.00. Commissioner Wiggins chairing the meeting in the absence of the President, Mr. F. Jay Nimtz, stated this raises a little different question than what we considered before, and he asked Commission Legal Counsel, Mr. Kevin J. Butler, "How are we legally in terms of additions to the original bid-figure ?" Mr. Butler advised, off hand he would say that we would have to negotiate at such time as the Commission determines that they are ready to go with the Project. In other words, if the con- - -7 - THE HICKEY CO., INC. LETTER RE EXTENSION TO AWARD CONTRACT 10, MALL EXTEN- SION, R -66 6. OLD BUSINESS. (Cont'd tractor insists upon an increase in various items, then we probably are in a situation that we would probably have to rebid it. The Chair advised that he can understand.The Hickey Company's situation and what they are saying is certainly reasonable. This is a good example of what inflation means. Mr. Butler further added that at that time, the Commission would have to look at the other bid prices, and certainly it would have to be rebid if the Commission took the bid in excess of the next lowest bid we received. Motion was made by Mr. Donaldson, seconded by Mr. Cira and carried, to "receive the letter from The Hickey Company, Inc., dated March 4, 1976, and'to take it under advisement. Mr. Gene Evans inquired, "What is the status of your progressing towards an award date? Obviously you have a financial problem. Is that it?" The Chair advised that is not the problem. The problem involved here basically is if there exists a good possi- bility of going ahead with some major changes as Allan Bloomquist was just detailing here. Then we would be looking at a situation where we have let a contract to revamp that street area and then we would have to tear it up. We want to avoid that if we can. Mr..Butler added that one other factor is that the Mayor asked that his administration be given some time to review that parti- cular project- -the extension.of the mall - -in the context of the overall development within the City. 7. NEW BUSINESS a. Proclaimer No. 2, R -57: Authorization was requested for the Executive Director to execute Proclaimer No. 2, per the attached Schedule A, for Acquisition Parcel Nos. 45 -4, 1 -18, 41 -19, 19 -28, and 22 -21, in the LaSalle Park Urban Renewal Area, Pro - ject Indiana R -57. Motion was made by Mr. Cira, seconded by Mr. Donaldson and carried, authorizing the Executive Director, Mr. C. Wayne Brownell., to execute the above Proclaimer No. 2, Project R -57. b. Rehabilitation Contracts, Nos. 13, 21, 26, 27 & 24, Southeast Community Development Program: Per recommendations of the Southeast Advisory Committee, Commission approval was requested to award the following contracts, per bid tabulation, to the low bidder, subject to Commission Legal Counsel approval, in the Southeast Community Development Program: - 8 - PROCLAIMER NO. 2, ACQUISITION PARCELS 45 -4, 1 -18, 41 -19, 19 -28 & 22 -21, R-57 REHABILITA- TION CONTRA 13, 21, 26, 27 & 24 AWARDED, SE COMMUNITY DEVELOPMENT PROGRAM 7. Contract No. 533 Address. Amount $5,462.00* $5,889.00 13 /SECD 408 E. Keasey St. $ 4,605.00 21 /SECD 707 E. Indiana Ave. 3,975.00 26 /SECD 1614 Marietta St. 3,602.00 27 /SECD 316 E. Paris St. 3,020.00 24 /SECD 201 E. Indiana Ave. 4,174.00 Contractor Fleming Masonry & Const. 11 11 it II Area Services, Inc. Mr. John V. Lindstaedt, Fair Tax Association, inquired as to how the bidding process is coming along and if we are getting more people to bid on the rehabilitation contracts than we have in the past? Mr. Keith. P. Crighton, Director, Bureau of Housing, advised that we are, and the one contractor above -- Fleming Masonry & Construction Company- - is a new bidder. Mr. Lindstaedt also commented that a good many of these contracts on the Agenda are over $5,000 and that anything over that has to be approved by the Council, but on the others that are close to that figure, what happens when we have 'a change order that would bring the amended contract over the $5,000 amount? Mr. Crighton advised that it then would have to go before the Common Council for approval. The bids received on the rehabilitation contracts, which covers the above item and the next on the Agenda, were: Contract Address Fleming Area Services Ted Combs Slatile Roofing 10 533 E. Indiana Ave. $5,462.00* $5,889.00 $6,620.68 $8,091.00 13 408 E. Keasey St. 4,605.00* 6,922.00 6,117.20 8,555.00 14 129 E. Dayton St. 6,442.00* 7,181.00 7,064.97 8,555.00 17 415 E. Ohio St.. 7,465.00* 7,643.00 7,600.76 9,435.00 20 310 E. Dubail St. 5,570.00* 6,193.00 5,596.08 7,660.00 21 707 E. Indiana Ave. 3,975.00* 5,080.00 5,021.14 6,660.00 22 301 E. Pa. Ave. 7,198.00 7,419.00 6,694.62* 9,235.00 23 407 E. Ohio St. 6,895.00 ** 7,276.00* 7,351.85 9,860.00 24 201 E. Indiana Ave. 4,190.00 4,174.00* 4,479.62 5,125.00 25 628 E. Haney Ave. 6,410.00 5,567.00 5,458.17* 6,690.00 26 1614 Marietta St. 3,602.00* 4,807.00 4,392.02 5,970.00 27 316 E. Paris St. 3,020.00* 3,943.00 4,091.32 4,865.00 28 637 E. Indiana Ave. 5,355.00 6,636.00 5,315.55* 7,935.00 29 605 E. Broadway St. 5,542.00* 8,498.00 7,027.66 10,180.00 * Indicates low bidder. ** Compilation error by contractor. Total itemized costs are: $8,245.00 Motion was made by Mr. Cira, seconded by Mr. Donaldson and carried, to award Rehabilitation Contract Nos. 13, 21, 26 and 27, to Fleming Masonry & Construction Company; and Rehabilitation Contract No. 24, to Area Services, Inc.; in bid amounts of $4,605.00, $3,975.00, $3,602.00, $3,020.00, and $4,174.00, respectively, all subject to Commission Legal Counsel approval, in the Southeast Community Development Program. PSI C. 0 BUSINESS (Cont'd) 29, 23, 22,'25, and 28, Southeast Community Development Program: Per recom- mendations of the Southeast Advisory Committee, Commission approval was requested to award the following contracts, per bid tabulation, to the low bidder, subject to Common Council and Commission Legal Counsel approval, in the Southeast Com- munity Development Program: Contract No. Address Amount Contractor 10 /SECD 533 E. Indiana Ave. $5,462.00 Fleming Masonry 14 /SECD 129 E. Dayton St. 6,442.00 " 17 /SECD 415 E. Ohio St. 7,465.00 " 20 /SECD 310 E. Dubail St. 5,570.00 " 29 /SECD 605 E. Broadway 5,542.00 if " 23 /SECD 407 E. Ohio St. 7,276:00 Area Services, Inc. 22 /SECD 301 E. Pa. St. 6,694.62 Combs Decorating 25 /SECD 638 E. Haney St. 5,458.17 " 28 /SECD 637 E. Indiana Ave. 5,315.55 " The bids received on the above rehabilitation contracts are shown, under Item 7b, (Page 9 of Minutes). Motion was made by Mr. Donaldson, seconded by Mr. Cira and carried, to award Rehabilitation Contract Nos. 109 14, 17, 20, and 29, to Fleming Masonry & Construction Company; Re- habilitation Contract No. 23, to Area Services, Inc.; and Rehabilitation Contract Nos. 22, 25, and 28, to Combs Decora- ting & Construction Company; in bid amounts as noted above; and all subject to Common Council approval and Commission Legal Counsel approval. Order No. 2 to Rehabilitation Contract No. 28, South- east Project E -7: Commission approval was requestea OT Change Order No. 2 to Rehabilitation Contract No. 28, with Area Services, Inc., for an increase in contract amount of $186.00, (Contract: $7,443.32), or an amended contract total of: $7,629.32, for rehabilitation work at: 708 E. Broadway Street, in the Southeast Project E -7, per explana- tion in memorandum dated February 27, 1976, from Chief In- spector, Southeast Bureau of Housing. Mr. Brownell read the memorandum and change order covering the above. The specifications called for replacing a trap near the base- ment steps and lavatory in the second floor bathroom. Since the time of the initial inspection, leaks have been found in the basement and in the second floor bathroom. These items are affecting the health and safety of the occupants and should be corrected immediately. The change order is re- commended for approval by the Chief Inspector. The plumbing work is to repair leaks in the basement plumbing, replace faucet on hot water heater, replace waste and overflow in REHABILITA- TION CONTRACTS 10, 14, 17, 20, 29, 23, 22, 25 & 28 AWARDED, SE COMMUNITY DEVELOPMENT PROGRAM CHANGE ORDER NO. 2 TO RE- HABILITATION CONTRACT NO. 28 APPROVED, SOUTHEAST PROJECT E -7 7. NSW BUSINESS (Cont'd) second floor bathroom, and repair tub valve. The work totals $186.00. Motion was made by Mr. Donaldson, seconded by Mr. Cira and carried, for the approval of Change Order No. 2 to Rehabili- tation Contract No. 28, with Area Services, Inc., for an in- crease in contract amount of $186.00, or an amended contract total of $7,629.32, with no change in contract time, in Southeast Project E -7. e. Change Order No. 1 to Rehabilitation Contract No. 50, South- east Project E -7: Commission approval was requested of Change Order No. 1 to Rehabilitation Contract No. 50, with Barany Sheet Metal & Heating Company, for an increase in contract amount of $75.00, (Contract: $6,380.50), or an amended contract total of: $6,455.50, for rehabilitation work at: 621 E. Keasey Street, in the Southeast Project E -7, per explanation in memoranda dated February 26 and 27, 1976, from Chief Inspector, Southeast Bureau of Housing. Mr. Brownell read these in their entirety also. The specifications called for the roof to be replaced over the front and rear porch, the kitchen area, and for the gas boiler to be replaced. Since the time of the initial in- spection, the homeowner has had the roof repaired, and the contractor states, in writing, that the radiator system has not been used in ten (10) years and questioned the adequacy of the system. The homeowner has completed her roof and there is enough money in the existing contract for the boiler to allow a very small increase in the contract amount, and therefore the Chief Inspector has recommended the change order for approval. The 130,000 BTU counter flow furnace, per South Bend Code, including seven hot air ducts and three cold air ducts, and removal of boiler pipes and radiators, totals $1,350.00. The work that is to be deleted amounts to a decrease in the speci- fication amount of $1,275.00, which was for installation of roll roofing at rear kitchen area, 15' x 24'; rear porch 50'; front porch 190' ($325.00); the installing of gas hot water boiler in place of present oil, using same piping, ($950.00), or total decrease of $1,275.00. The difference in amount for the above changes is $75.00, an increase.to contract. Motion was made by Mr. Cira, seconded by Mr. Donaldson and carried, for the approval of Change Order No. 1 to Rehabili- tation Contract No. 50, with Barany Sheet Metal & Heating Company, for an increase in contract amount of $75.00, or an amended contract total of $6,455.50, with no change in contract time, in Southeast Project E -7. - 11 - CHANGE ORDER NO. 1 TO RE- HABILITATION CONTRACT NO. 50 APPROVED, SOUTHEAST PROJECT E -7 7. NqW BUSINESS (Cont'd f Change Order No. l to Rehabilitation Contract No. 51, South- CHANGE ORDER east Project E -7: Commission approval was requested of NO. 1 TO RE- Change Order No. l to Rehabilitation Contract No. 51, with HABILITATION Barany Sheet Metal & Heating Company, for a decrease in con- CONTRACT NO. tract amount of $60.00, (Contract: $7,103.00 , or an amended 51 APPROVED, contract total of: $7,043.00, for rehabilitation work at: SOUTHEAST 217 E. Dayton Street, in the Southeast Project E -7, per ex- PROJECT E -7 planation in memorandum dated February 27, 1976, from Chief Inspector, Southeast Bureau of °Housing. Mr. Brownell read the memorandum which stated the specifica- tions called for the replacing of the water closet tank fix - tures and to increase water pressure. Since the time of the initial inspection, the homeowner has replaced the water closet, and, therefore, the change order is recommended for approval. The amount of deletion for this work is: $60.00. Motion was made by Mr. Cira, seconded by Mr. Donaldson and carried, for the approval of Change Order No. 1 to Rehabili- tation Contract No. 51, with Barany Sheet Metal & Heating Company, for a decrease in contract amount of $60.00, or an amended contract total of $7,043.00, with no change in contract time, in Southeast Project E -7. g.1 Change Order No. 2 to Rehabilitation Contract No. 54, South- CHANGE ORDER east Project E -7: Commission approval was requested of NO. 2 TO RE- Change Order No. 2 to Rehabilitation Contract No. 54, with HABILITATION Barany Sheet Metal & Heating Company, for an increase in CONTRACT NO. contract amount of $160.50, (Contract: $5,912.00), or an 54 APPROVED, amended contract total of: $6,072.50, for rehabilitation SOUTHEAST work at: 628 E. Indiana Avenue, in the Southeast Project PROJECT E -7 E -7, per explanation in memorandum dated February 27, 1976, from Chief Inspector, Southeast Bureau of Housing. Mr. Brownell read the memorandum and change order which stated that the specifications conformed the plumbing and the beams, in the basement, and called for rehanging 39' of gutters on the west side. Since the time of the initial inspection, the plug in the soil pipe has begun to leak and one (1) jack post is needed in the center of the base- ment where the old furnace was located, and the gutters have been destroyed by ice and snow. This change order was recommended for approval. The additional charge for the work and materials is $185.50, less a credit of $25.00 for the rehanging of the gutters on the west side, formerly in the specifications, or a total increase to the contract amount of $160.50. Commissioner Cira asked Mr. Crighton what lapse of time do we have from initial inspection to this increase of cost that would occur, and he advised the gutters here in this instance occurred during the last pre -thaw that we had. From the ground level, it is impossible to check what condi- tion the gutters were in. Generally, our inspectors, if they - 12 - 7. NSW BUSINESS (Cont'd) can't see daylight through it and it is not rusted through, then they don't do anything. If the gutters fall apart during the course of construction, or during a bad winter they come down, it is understood they then write a change order. The same thing applies to roofs - -we don't have the capacity to do any constructive testing. Commissioner Cira's recommendation if we could only act faster on these as the adjusted bids always add up, and involves a lot of money in a period of a month. Mr. Crighton advised he and his staff are making an attempt to get these before the Commissioner faster, and that we have had a`fot of success during the past two to three weeks. Motion was made by Mr. Donaldson, seconded by Mr. Cira and carried, for the approval of Change Order No. 2 to Rehabili- tation Contract No. 54, with Barany Sheet Metal & Heating Company, for an increase in contract amount of $160.50, or an amended contract total of $6,072.50, with no change in contract time. h Change Order No. 1 to Rehabilitation Contract No. 57, South- east Project E -7: Commission approval was requested of Change Order No. 1 to Rehabilitation Contract No. 57, with Slatile Roofing & Sheet Metal Company, for electrical changes as noted on the change order, with no increase in contract amount and remaining at $5,546.00, for rehabilitation work at: 610 E. Indiana Avenue, in the Southeast Project E -7, per explanation in memorandum dated February 27, 1976, from Chief Inspector, Southeast Bureau.of Housing. The specifications called for the electrical work to be in- creased to 100 Amp service in accordance with South Bend electrical Code throughout the structure (circuit breakers) and project specifications in 1 -a, but as the structure al- ready has 100 Amp service the contractor proposes to make the necessary corrections in order to bring the existing service up to Code and there is additional electrical work to be completed. This additional electrical work consists of replacing lights, rewiring basement, and installation of one wall switch, repairing light in second floor bathroom, installing two in living room, one in dining room, and two grounded duplex plugs in kitchen. Motion was made by Mr. Donaldson, seconded by Mr. Cira and carried, for the approval of Change Order No. 1 to Rehabili- tation Contract No. 57, for the above specification changes in electrical work at no increase in contract amount or time, with Slatile Roofing & Sheet Metal Company, (Contract: $5,546.00), in Southeast Project E -7. - 13 - CHANGE ORDER NO. 1 TO RE- HABILITATION CONTRACT NO. 57 APPROVED, SOUTHEAST PROJECT E -7 7. NEW BUSINESS (Cont'd Chan Rehabilitation Contract Noo SECD /PR /CS -1/09, with Bailey Electric Company, for an increase in contract amount of $312.00, (Contract: $5,584.00), or an amended contract total of: $5,896.00, for rehabilitation work at: 503 E. Dubail Street, in the Southeast Community Development Hous- ing Program, per explanation in memoranda dated February 23 and 27, 1976, from Chief Inspector, Southeast Bureau of Housing. Mr. Brownell read the memoranda and change order which stated the specifications conformed the plumbing in the base- ment and bathroom. Since the time of the initial inspection, the water supply fines have begun to leak in the basement near the meter, in the bathroom lavatory, and water closet located on the second floor. The additional work consisted of replacing the water lines leading to the basement water meter, bathroom lavatory, water closet, and replacement of tank fixtures in the water closet, at a total cost of $312.00. A proceed order was issued by the Chief Inspector as the conditions presented a serious health and safety pro- blem and had to be corrected immediately, in accordance with Part 1, General Conditions for Rehabilitation of Real Pro- perty, Paragraph 108. Approval of the change order was re- commended. Motion was made by Mr. Cira, seconded by Mr.- Donaldson and carried, for the approval of Change Order No. 1 t Rehabili- tation Contract No. SECD /PR /CS -1/09, with Bailey Electric Company, for an increase in contract amount of $312.00, or an amended contract total of $5,896.00, with no change in contract time, in the Southeast Community Development Housing Program. Commissioner Wiggins, chairing the meeting, asked Mr. Crighton, "We seem to have a number of these change orders at this meet- ing. Were any of these generated by the series of complaints I read about in the newspaper ?" Mr. Crighton advised these particular change orders were.not generated by those.- One thing they can rely on, is that the inspectors will bring numer- ous change orders before the Commission. "We want to be sure- - as I mentioned before - -that every dollar that goes into this Project is accounted for, and are allocated and publicly known." CHANGE ORDER NO. 1 TO RE- HABILITATION CONTRACT NO. SECD /PR /CS 1/09 APPROVED, SOUTHEAST COMMUNITY DEVELOPMENT HOUSING PROGRAM Mr. Lindstaedt raised questions on the above program- - "How many of these people now are going into the Housing Allowance Program, when the houses are brought up to standard? Do you ever check into that ?" Mr. Crighton advised he is not. "It is the intent of our program - -all of our programs actually - -we are trying to do the major rehabilitation work to bring the houses up to code through the Housing Rehabilitation Assistance Program. We do not have the statistics on that; we refer these people to - 14 - 7. NSW BUSINESS (Cont'd the Housing Allowance Program, and the Director of that Program is Mr. Charles F. Lennon, Jr. We have a quarterly report due next week and I will be happy to provide you with a copy. We have two major groups: 1) Age 45 to 50-- generally middle -age homeowners and families in the home, and 2) Jump to a large group of senior citizens, and they would be in excess of 64 years of age. 8. PROGRESS REPORT: - Q a. Relocation Progress Report: This was a written report of the RELOCATION progress for the month of February by the Relocation two staff PROGRESS members: REPORT Southeast N.D.P. A -10: Remains the same--One (1) individual waiting for vacancy in the LaSalle Park Homes. Model Cities Extended Services: Working is one (1) individual and staff is working with the individual to purchase re- placement housing. City -Wide: Remains the same - -one (1) second year Rental Assis- tance Payment remains to be paid. ESTION AND ANSWER SESSION- The Chair invited questions from the audience. Ms. Derbeck raised questions on the Southeast Rehabilitation articles that appeared ir The South Bend Tribune, and discussion took place with answers provided both by Mr. Crighton and Mr. Brownell. 10. NEXT COMMISSION MEETING 11. The next Regular Meeting of the Redevelopment Commission will be a 10:00 a.m., Friday, March 19, 1976, in the Office of the De- partment of Redevelopment. OURNMENT Mo ion was duly made by Mr. Cira, seconded by Mr. Donaldson and ca ried, for adjournment, at 11:10 a.m. eii, executive (SEAL) - 15 - z, Fresiaen NEXT COMMISSION MEETING: 3 -19 -76 ADJOURNMENT February 27, 1976 NEWS RELEASE Organization of South Bend 2000, Inc., a not - for - profit corporation that will focus additional private resources on downtown development was announced today. The new corporation, with officers and directors. representing a broad spectrum of the community's financial and business interests, is pledged to work in close cooperation with officials of city government. Initial emphasis will be on revitalizing downtown as a retailing center. Lex B. Wilkinson, Chairman of the Board of the American National Bank and Trust Company, is President of South Bend 2000 and 0. C. Carmichael, Jr., Chairman of the Board of FBT Bancorp, Inc., is First Vice.President. FBT Bancorp is the holding company parent of First Bank and Trust Company. Other officers of South Bend 2000, Inc. are Warren E. McGill, of the law first of Thornburg, McGill, Deahl, Harman, Carey & Murray, Secretary; and Joseph D. Sharp, of Coopers & Lybrand, Certified Public Accountants, Treasurer. Directors include Paul A. Henderson, President of the National Bank and Trust Company; Benton M. Wakefield, Jr., Chairman of the Board of First Bank and Trust Company; John D. Gill, Presi ent of Tower Federal Savings and Loan Association; Dean Adair, President of South Bend Federal Savings and Loan Association; Warren G. Wheeler, Jr., President ol the South Bend Tribune, and Philip J.' Faccenda, President of the South Bend- Mishaw ka Area Chamber of Commerce and general counsel for the University of Notre Dame. Repre entatives of the utilities serving on the board will be Thomas W. Bucher, Division Manager of Northern Indiana Public Service Company; Jack E. Ellis, District Manager, In Tana Bell Telephone Company; and J. Lee Flanagan, Division Manager of Indiana & chigan Electric Company. i Wilkinson said the Executive Director will be Allan C. Bloomquist, Vice President of FBT Bancorp. Wilkinson said South Bend 2000 has acquired for a nominal sum all of First Bank's interest in River Bend Development Group. River Bend Development Group now becomes a joint venture between South Bend 2000, Inc. and Development Control Corporation of Northfield, Illinois, the firm that has been, and will continue to be the "developers" of an enclosed downtown shopping mall. "Development of the proposed downtown shopping mall is an ambitious under- taking," Wilkinson said. "It requires the mobilization of more of the community's financial and talent resources than are at the command.of any one institution. That's why we've come together as a non- profit organization committed to making a best effort attempt to revitalize downtown." Wilki son added:. "The downtown is so important to our community's economic health that if revitalization fails, every citizen loses. If it succeeds, everyone wins. �o The directors of South Bend 2000, Inc. applauded the leadership - attitude taken by the Mayor, the Mayor's Committee on Downtown Development, the Common Council,. the Departm nt of Redevelopment, and other departments of local government. He added, however, that "despite the excellence of these efforts, effective downtown de- velopment also requires the coordinated efforts of private enterprise to assist in meeting downtown development objectives. Hopefully, South Bend 2000, Inc. will be able to provide a strong leadership position in identifying financially feasible strategies for development, and assist in implementing such strategies. In the immediate future, South Bend 2000, Inc. will be placing its full attention on seeking to develop downtown South Bend as the major Michiana retailing center. -2` Wilkinson described the effort as "an uphill fight but.we do have some things going for us. South Bend 2000, Inc. has inherited at nominal expense development work valued at.an excess of $250,000. We have established a unified, cohesive a proach to our work. Most importantly, we have the really enthusiastic Involvement of people who can get a job done." The name of South Bend.2000, Inc. was chosen for the new corporation because "we're bu ding for the 21st Century," Wilkinson said. He added, "It's also fair, to estimate that downtown development, if'successful in its efforts, will create approximately 2,000 new jobs for the people of South Bend." The not- for - profit nature of South Bend 2000, Inc. can provide long range benefits, Wilkinson said." He noted that if the development becomes a reality and starts to generate what normally would be profits, these dollars can be "recycled into the community to support other necessary development." 3 Wilkinson emphasized that South Bend 2000, Inc. certainly does not have a monopoly OtL downtown development and stated that alternative strategies should strongly bet encouraged, especially since development usually complements and encourages other.develo.pment. He especially praised the development efforts and investigations of alternative strategies on the part of the Mayor's Committee on Downtown Development and. the Chamber of Commerce: "The important thing is not who gets the credit. It's what is accomplished to get downtown moving again. Without some affirmative effort, we can expect the loss of additional retail business. That would have disasterous results on employment, our tax base and the overall character of the central part of our city." Wilkinson said South Bend 2000, Inc. does not plan to make frequent reports on its progress. "The confidential nature of the commercial.aspects such as private financing and leasing, and department store negotiations makes it mandatory for us to avoid premature announcements," he said. "Our announcements will be timely and accurate. We also hope they will indicate that we have made at least some progress." _ 3 _