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HomeMy WebLinkAboutSM 07-01-76July 1, 1976 10:00 A. M. Presidi g Officer: 1. ROLL) CALL SOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING HELD IN LIEU OF REGULAR MEETING OF JULY 2, 1976 Mr. F. Jay Nimtz, President 1200 County -City Building 217 West Jefferson Blvd. South Bend, Indiana 46601 ssioners Mr. F. Jay Nimtz, President nt: Mr. Donald A. Wiggins, Vice President Mr. Robert J. Cira, Assistant Secretary Mr. Lloyd E. Robinson, Sr., Member ssioner Mr. A. Peter Donaldson, Secretary t: Legall Counsel: Newsl Media: Others Present: omm nit eve o ment taf Mr. Kevin J. Butler Mr. George T. Patton Ms. Jeanne Derbeck, South Bend Tribune Reporter Mr. Dave Anderson, WNDU Reporter Mr. James L. Marchelewicz, 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 Mr. George W. Batchelder, Nautilus Construction Corp. Mr. Gene Evans, Executive Secretary, Civic Planning Assn. Mr. Reginald R. Howard, Reginald R. Howard & Associates Mr. John R. Kagel, Executive Director, Downtown South Bend Council Mr. Keith P. Crighton Mr. James L. Johnson, Jr. Mr. Kenneth J. Schaller LPA taff: Mr. C. Wayne Brownell Mr. Edwin R. Bauer Ms. Helen S. King Mr. James J. Rowan 2. APPROVAL OF MINUTES On m tion by Mr. Robinson, seconded by Mr. Cira and carried, the MINUTES Minutes of the Regular Meeting of June 18, 1976, were approved as APPROVED mailed. - 1 - 3. APPROVAL OF CLAIMS On motion by Mr. Wiggins, seconded by Mr. Cira and carried, the CLAIMS claims were approved, as submitted, and allowed and ordered to be APPROVED paid--totalling $14,727.30. The authorized claims are: PROJECT EXPENDITURES ACCOUNT; INDIANA R -57 Curl y's Mower Service $ 107.90 Total 107.90 PROD CT EXPENDITURES ACCOUNT, INDIANA R -66 Coli Bros. Electric, Inc. $ 7,566.37 Indi na & Michigan Electric Company 7.23 Indi ina Safety, Inc. 110.70 Sout Bend Tribune 76.08 Souti Bend Tribune 80.03 Tri- ounty News 92.61 Edwa d J. White, Inc. 20.00 Total $ 7,953.02 NEIGHBORHOOD DEVELOPMENT PROGRAM, INDIANA A =10 W. Joseph Doran, Clerk (Cause G -6286) $ 150.00 W. Joseph Doran, Clerk (Cause G -6322) 150.00 Total $ 300.00 REDEVELOPMENT REVOLVING FUND Payroll: May 29, 1976 to June 11, 1976 $ 5,837.36 Ault Camera Shop 27.85 Edwiti R. Bauer 15.00 Bobbs Merrill Company 116.70 Keviii J. Butler 200.00 Jacks Conoco Service 111.12 Jame R. Meehan & Assocites 35.10 The idge Company 23.25 Total $6,366.38 GRAND TOTAL $_149727.30 4. CORRESPONDENCE a. HUD letter dated May 27, 1976: This letter, over the signature f Mr. Richard A. Kaiser, Assistant Regional Administrator for ommunity Planning and Development, Chicago Regional Office, dvises Requisition No. 10 for Project Capital Grant Progress ayment, Contract No. Indiana R- 57(LG), in the LaSalle Project Indiana R -57, has been approved in the amount of $81,245.00. he enclosed S.F. 1096 indicates setoffs for outstanding direct emporary loans plus interest which have been made against the pproved payments. Since there is no remaining balance of the rogress payments, our agency will not receive a check pursuant o the approved payments. - 2 - REQUISITION NO. 10, PROJECT CAPITAL GRANT PROGRESS PAY - MENT APPROVED, R -57 4. CORRESPONDENCE (Cont'd Mr. C. Wayne Brownell, Executive Director, Department of Redevelop - ment, outlined the voucher deductions on HUD Form 1096. HUD granted us $81,245.00. The interest was $35,883.45 and HUD applied $45,361.55 on our loan, thus reducing the loan from $774,368.16 to $729,006.61, on our LaSalle Park Contract Indiana R- 57(LG). Mr. Wiggins made the motion the above letter be received and placed on file, seconded by Mr. Robinson and carried. b. HUD letter dated June 22, 1976: This letter, over the signature of Mr. Stephen J. Havens, Director, Community Planning and Develop - ment Division, Indianapolis Area Office, advises HUD concurrence of Change Order No. 3 to Plaza Park Contract No. 1, which increases the contract amount by $1,489.80 to a total of $201,248.30. The letter also states they note that no time extension is involved, and their records indicate that Change Order No. 2 extended the time 60 days to May 15, 1976, and assume the contract is now com- plete and Change Order No. 3 will be final. If this is not the ase, please advise. r. Brownell stated that we need to advise HUD we have Change rder No. 4 to this Contract with Nautilus Construction Corporation, hich was approved by this Commission on May'7, 1976, for a 30 -day xtension of time, with a contract completion date of June 15, 976, with stipulation as requested by Commission Legal Counsel. his Change Order No. 4 has not been submitted to HUD as yet. Ir. Larry Ford, WSJV -TV Reporter, inquired if the contract is 'inished, and Mr. Brownell advised Nautilus had their final inspec- .ion and they need to revise the ladder on their boat wells some nd that will take a little time until they get their revision on t. Also the landscaping needs certain additional things but that s on Foegley Landscape Design and Contracting, Inc. contract. r. Wiggins made the motion the above letter be received and placed n file, seconded by Mr. Cira and carried. CHANGE ORDER NO. 3 TO PLAZA PARK CON- TRACT 1 APPROVED, R -66 c. [IUD letter dated June 22, 1976: This letter, over the signature AUDIT of Mr. Stephen J. Havens, Director, Community Planning and Develop- FINDINGS ent Division, Indianapolis Area Office, advises their office has 5, 7 & 12 received our sample acquisition binder, and it has been reviewed RESOLVED, by the Realty Specialist and found to be acceptable. R -66 hey further advise the format established by the LPA, in the sample, hould be used for all future acquisition activities. udit Report Findings 5, 7 and 12, for period ending December 31, 974, in Project Indiana R -66, can now be considered resolved. he Chair requested Mr. Brownell to explain what this is all about. r. Brownell advised these were three (3) findings on acquisition hat happened in 1973, and HUD was checking them against regulations hey now have currently in effect, and the current regulations were of in effect in 1973. After explaining that, HUD requested we make - 3 - 4. CORRESPONDENCE (Cont'd p a sample folder under the present regulations on how we would o acquisitions. He advised that he had explained to HUD that a hole project was completed in the NDP A -10 Project, but HUD till requested a sample on the procedures used. We completed his; it has been accepted and the Audit Report is now final. he Chair added that HUD liked the way it was done and are using t as a model. r. John R. Kagel, Executive Director, Downtown South Bend Council, sked if this now means that all of the necessary federal fiscal udits are complete as it relates to the Redevelopment Commission f the City of South Bend. Mr. Brownell advised, "No. This was n audit in Project R -66 through December 31, 1974. That's all hat it means. That part is approved. There are no outstanding indings up to that date in R -66." he Chair requested a motion that this letter be received and laced on file. Said motion was made by Mr. Wiggins, seconded y Mr. Cira and carried. 5. OLD BUSINESS None 6. NEW BUSINESS a. esolution No. 526: Resolution of the City of South Bend Re- evelopment Commission authorizing the filing of Amendatory Appli- ation for Loan and Grant, Project IN R -66. Ir. C. Wayne Brownell, Executive Director, advised this item ;ame up as a result of a letter from the Department of Housing and Jrban Development to The Honorable Peter J. Nemeth, dated 25 June f976. The letter was read in its entirety and is quoted for the •ecord: HonoAabte.Pete& J. Nemeth Mayon, City of South Bend County -City Building South Send, Indiana 46601 D eats Ma yon Nemeth: Subject: Request 4o& Ungent Needs Funding Project Ind. R -66 The punpose of thin tenet is to advise you of the CentAat 044iee 6und.ing dee"ion which autho. i.zes us to invite the City o4 South Bend to zubm.i t an amendatory appt i.cation 6o& Title I Urban Renewat (=un6. It hays been detenmi.ned that the City o� South Bend has /suiiic ient excezz non -ca6h eAed it6 to match the T.i tee I Urban Renewat f=unds to eoveA the Utgent Needs request. 4- RESOLUTION NO. 526 ADOPTED, R-66 6. NEW BUSINESS (Cont'd youe Ju22 appt ieat i.on should be 6o& $2,500,000 and must ,inctude an of ig.inat and 4ive copies o6 each o J the 4 ottow.ing 1. Appt i cat i.on jot Loan and Grant HUD -612 and the neeessany legal data 4on 4iting the application. 2. Amended Project Expenditutcez Budget and Financing Plan (HUD 1=ohms 6200 and 6220). The &enewal gkant amount, as wete as the local sha&e, ate to be .inc&eased. Commun- ity Development Block Gant 4unds may be used, i4 neees- sany, 4o& the local shake. 3. A nak&ative statement outt in.ing any inenease on decAease should accompany the P&oj ect Expenditu&es Budget and Financing Plan. Each of the above documents a&e to be completed to accondanee with Urban Renewal P &ogxam Handbooks and Pnocedutceis. you& appt icat ion must be &ece.iv ed (In this o 6 j ice by close o4 bu.6iness Sept-ember 30, 1976. T J you have any questEons cvnee�w ng the ptcepa&a- tion and submi-6s.ion o6 tW mater iat, please contact Jeanne Meggs, at (317) 269 -7194. S,incetcety, /s/ Choice Edwa&ds, 6o& James E. Anmsttcong Area Diteeto& M% Brownell further advised that as a result of the above letter which a thorizes us to apply for the 2 -112 Million Dollars, as authorized by the W shington Office, we will present today, to the Redevelopment Commission, R solution No. 526, authorizing the filing of an Amendatory Application f )r Loan and Grant, in Project Indiana R -66. This Resolution has been d afted by Mr. Kevin J. Butler, Commission Legal Counsel. We have all the other forms filled out, plus we have an opinion from Counsel. We will need C mmission's adoption of this Resolution. The effect of this will be that w en we get the 2 -1/2 Million Dollars, our loan balance instead of being a proximately 7 Million Dollars, will be reduced to about $4,165,000 with tie monies from the sale of land and interest that we can pay. P rsuant to the invitation contained in the above letter, it was moved by M% Wiggins and seconded by Mr. Robinson to adopt Resolution No. 526, which i a Resolution of the City of South Bend Redevelopment Commission author - i ing the filing of Amendatory Application for Loan and. Grant, Project I diana R -66. Tie Chair stated this letter just came in this week and that our Commission L gal Counsel prepared the Resolution and opinion, and Mr. Brownell the other documentation required, as this is the culmination of the request for t is 2 -1/2 Million Dollars. He advised that we knew this was coming through s me weeks ago, but this is the formal recognition that we are going to get t e money. - 5 - 6. NEW BUSINESS (Cont'd ir. John R. Kagel, Executive Director, Downtown South Bend Council, sked if this came about as a result of Mayor Nemeth when he went to lashington, D.C. and met with some of the HUD people, and reading that ,he Mayor had indicated there is'a possibility of receiving funds, if his relates to that? Mr. Brownell said that this is correct, and layor Nemeth had attended a Mayors' Conference in Washington, and ,hile there the Mayor checked with HUD on our application for Urgent eeds Funds. In a constant effort, Mr. Nimtz and other people involved ave been asking both Republicans and Democrats to assist in obtaining his money. The Chair further added that this has been a combined ffort of a number of people, as Mr. Brownell,had stated, on both sides f the political fence to get this through. Ms. Jeanne Derbeck, South end Tribune Reporter, said that she was of the opinion that we had tated earlier that we had heard it would be approved, and the Chair onfirmed her statement; that we have had telephone notification some eeks ago, but this is our formal notification to submit our applica- ion and the credits will be forthcoming. t this point, the Chair stated we have a motion that Resolution No. 26 be adopted and it has been seconded; is there any further discussion? here being none, the Chair requested the vote. The "Ayes" were unani ous by the four (4) Commissioners present. The motion was carried nanimously and Resolution No. 526 is adopted. Ir. Dave Anderson, WNDU -TV Reporter, inquired whether the 2.5 Million collars is lower or higher than we expected, or applied for, and what mpact would the lowering of the balance have on the R -66 Project? Mr. ,rownell advised it is precisely the amount we asked for, and that the ffect of it is that our appraisals of our real estate left for sale ndicate that the value of the real estate, instead of being 5 Million, s more like 2 -112 Million Dollars. We had estimated it to come out hat way, and in our forms that we are sending to HUD, we will lower he funds estimated to be obtained from the sale of real estate by -112 Million Dollars; we will, increase the grant amount by 2 -1/2 illion Dollars and we will pay this 2 -1/2- Million Dollars when we et it on the Project Notes this September, when we refinance them, o it will reduce the amount of the Project Notes from roughly nearly Million Dollars down to $4,165,000.00 or thereabouts. He confirmed his is a grant, not a loan. Commissioner Wiggins added this would e a grant to be paid against what we owe, and in that effect this akes the downtown property that we hold far more marketable and reatly increases our opportunities to do something with it. r. Brownell affirmed that is correct and that we are in the process f doing this. We have had two appraisals made by independent ap- raisers, and in today's meeting, he will be asking the Commission or authorization to hire a reviewing appraiser to complete the re- iew and the determination of the fair market value based on the wo appraisals that have been made and the review. the question raised by Mr. Larry Ford, WSJV -TV Reporter, if we ve any examples of what the new prices will be on certain pieces property now, Mr. Brownell advised he did not know the actual ices, but he does know what the appraisers came in with and re- 6. NEW BUSINESS (Cont'.d ommended, but until that is reviewed, and whether it is correct or ot, at this time he does not know. The properties involved are the 8 parcels in our downtown area which have all been re- appraised, nd they will be reviewed. A number of them are coming out in the eighborhood of 60% to 70% of the value on them before. n answer to further questions, the Chair advised the Project Notes re scheduled in September, and when we did our last Project Notes nd worked this out, we were hoping we would get this 2 -1/2 Million ollars in time to apply it against the next renewal of the Project otes. The fiscal effect is that it reduces our overall indebted - ess, and, consequently, _reduces our monthly interest charges. We omputed that and what it is going to save us is really astronomical. elating to Ms. Derbeck's question if the overall indebtedness then s really 4 Million Dollars then, Mr. Brownell advised, "No. It as about 7 Million Dollars on the Project Notes including the inter - st. We think by September, we will be able to get the indebtedness own to just something over 4 Million Dollars. My estimate is 4,165,000. Now, HUD may change the estimate when they review it. hey always do. I always give them the estimates and they then stimate it differently." r. Dan Caesar then asked, "How can the 2.5 Million Dollars reduce it rom 7 Million to 4 Million Dollars?" Mr. Brownell advised that we ave some money from the sale of land and funds to pay interest, nd when you add those together to the 2 -1/2 Million and subtract t from $6,951,000 the figure will result in $4,1'65,:000. b. han e Order No. 1 to Rehabilitation Contract No. 53, in Southeast ode Enforcement Program, Project E -7: Commission approval was equested for this Change Order, with Barany Sheet Metal & Heating ompany, for a decrease in contract amount of $130.00, (Contract: 4,851.00), or an amended contract total of $4,721.00, for rehabi- itation work at: 622 East Broadway Street, in the Southeast ode Enforcement Program, Project E -7. Ir. Keith P. Crighton, Director, Bureau of Housing, advised essen- A ally what happened is that the homeowner did some of the work imself, and these items were deleted on the contract which amounted .o $337.00; i.e., replacing tank fixtures in the water closet; seal - ng repairing and painting the dining room walls and ceiling. Since ;he time of the initial inspection, the condition of the kitchen :eiling has further deteriorated, and the contractor proposes to Irywall and paint two coats the entire kitchen ceiling. This work s an addition to the contract amount totalling $207.00, or a de- :rease to the contract amount of $130.00, with an'amended contract otal of $4,721.00. r. Wiggins moved for the approval of Change Order No. 1 to Re- abilitation Contract No. 53, which is a decrease in contract mount of $130.00, or an amended contract total of $4,721.00, ith Barany Sheet Metal & Heating Company, in the Southeast Code nforcement Program, Project E,7. Motion was seconded by Mr. Cira nd carried. - 7 - CHANGE ORDER NO. 1 TO REHAB. CONTRACT 53 APPROVED, E -7 6. NEW C. BUSINESS (Cont'd)- ;hange Order No. 4 to Rehabilitation:Contract No. 54; in Southeast CHANGE ;ode Enforcement Pro ram; Project'E-7: Commission approval was ORDER NO.4 ^ equested for this Change Order, with Barany Sheet Metal & Heating TO REHAB. ;ompany, for a decrease in contract amount of $10.00, (Contract: CONTRACT 54 56,327.50), or an amended contract total of $6,317.50, for rehabi- APPROVED, litation work at: 628 East Indiana Avenue, 'in' the Southeast Code E -7 .nforcement Program, Project E -7. 1st Floor Bathroom & West Hallway Floors 'he specifications called for securing the stairway handrail. The iomeowner did this work himself, and, consequently, the contract s being decreased by $10.00. under water closet and install 1r. Wiggins moved for the approval of Change Order No. 4 to Re- Fabilitation Contract No. 54, which is a decrease in contract .mount of $10.00, or an amended contract total of $6,317.50, with using waterproof adhesive. ;arany Sheet Metal & Heating Company, in the Southeast Code Enforce - 3) ient Program, Project E -7. Motion was seconded by Mr. Cira and arried. Replace water closet and fixtures. hange Order No. 5 to Rehabilitation Contract No. SECD /HR /CS -1/05, CHANGE n Southeast Community Development Housin Pro pram• Commission ap- ORDER NO.5 roval was requested for this Change Order, with Slatile Roofing & TO REHAB. heet Metal Company, for an increase in contract amount of $655.00, ,CONTRACT Contract: $3,006.00 to amended amount of: $3,661.00), with the SECD /HR /CS- riginal contract set total of: $39,391.00 to amended amount of: 1/05 AP- 40,046.00, in the Southeast Community Development Housing Program. PROVED, ontract No. 5 rehabilitation work is at: 1532 Dunham Street. SECD HOUSING PROGRAM he kitchen, bathroom and hallway floors were not included on he specifications originally let for bids as part of the solution D the problem which need correction. he Chair called on Mr. Crighton for any further explanation of his Change Order. Mr. Crighton advised this is based on Housing llowance inspection and these items were not included on the riginal inspections. The additions are: 1) 1st Floor Kitchen & East Hallway Floors Install 3/8" underlayment and the using waterproof adhesive $ 255.00 2) 1st Floor Bathroom & West Hallway Floors Replace 12 sq. ft. of subfloor under water closet and install 3/8" underlayment and vinyl tiles using waterproof adhesive. 250.00 3) 1st Floor Bathroom Water Closet Replace water closet and fixtures. 150.00 Total 655.00 1. Wiggins moved for the approval of Change Order No. 5 to !habilitation Contract No. SECD /HR /CS -1/05, which is an in- ,ease in contract amount of $655.00, or an amended contract ►tal of $3,661.00. The original contract set total of $39,391.00 ; amended to $40,046.00, with Slatile Roofing &Sheet Metal impany, in the Southeast Community Development Housing Program. ition seconded by Mr. Robinson and carried. 8- 6. NEW e. SINESS (Cont'd) ange Order No. l to Rehabilitation Contract 'No. SECD /PR /CS -2/17, CHANGE Southeast Community Development Housing Program: Commission ap ORDER NO. 1 oval was requested for this Change Order, with Fleming Masonry TO REHAB. nstruction Company, for an increase in contract amount of $739.00, CONTRACT ontract: $7,465.00), or an amended contract total of $8,204.00, SECD /PR /CS- r rehabilitation work at: 415 East Ohio Street, in the South 2/17 DE- st Community Development Housing Program. FERRED FOR 7/16/76 MTG. . Keith Crighton advised the primary cost of this has to do with e sheathing underneath the roof on both porches and the rafters the main section. There was no way, at the time of inspection, determine what the damage was or the extent of the damage until e contractor started to reroof the house. Essentially that is e problem. The other problem is in order to keep the cost wn initially we recommended installing a new sink in the exist - g metal cabinet. Unfortunately, there aren't any sinks that t that size cabinet, so we had to come up with a 5' ft. sink se cabinet. mmissioner Wiggins questioned the amended contract total being er $8,000 and whether that will give us some problems in being er the limit. Mr. Crighton stated the limit is $8,000 as far the general rule applies, but the Commission has the authority go over that amount in cases where it is necessary. He said recalls one instance in which the repairs were in approximate ount of $8,700 in which he had photographs showing the upper ar porch had to be completely rebuilt as it was coming off the use. mmissioner Wiggins also asked, "In a case such as this, where e original contract required approval, not only by this body but the Common Council, does this change also require concurrence the Common Council ?" Mr. Kevin J. Butler, Commission Legal unsel, advised only the $5,000 figure requires Common Council proval; once it is over that figure, the Commission can approve e change orders. He asked if the contract is complete, other an for these items, as Commissioner Robinson had asked if the mmission can defer action on this until we get more factual in- rmation since it is over the $8,000 limit? Mr. Crighton stated e contract was in process and he suggested that possibly his aff can negotiate with the contractor to delete some less needed ems and a lot of the responsibility will have to go with the meowner. mmissioner Wiggins made the motion to defer action, and in the antime have the staff attempt to negotiate with the contractor d have this item placed on the Agenda for the next Commission eting, July'16. He said what we are concerned with here is the estion of value. You don't want to put more money into an ob- ously deteriorated house. than what the .whole thing is worth en you are done with it, and sometimes it is just a losing propo tion and that is what we.try to evaluate. ` $8,000 doesn't buy much renovation of a house as you would like in today's market d you have to set some kind of standards, or some kind of figures, 6. NEW OUSINESS (Cont'd nd go from there. I can see how it might be worthwhile to exceed hat under certain circumstances, and that is basically what we are rying to find out.here. We want a little more in -depth to look at t. otion was seconded by Mr. Robinson and carried. f. han a Order n Southeast . 1 to Rehabilitation Contract No.'SECD /PR /CS -3/20, nmunity Development Housing Program: Commission ap- roval was requested for this Change Order, with Fleming Construc ion Company, for an increase in contract amount of $83.00, Contract: $5,570.00), or an amended contract total of $5,653.00, or rehabilitation work at: 310 East Dubail Street, in the South- ast Community Development Housing Program. !r. James L. Johnson, Jr., Chief Inspector, stated the speci.fica- ions called for painting the bathroom walls and tiling the ceil- ng, but as he inspected the house the bathroom walls and ceiling re already covered with plastic tile so this obviously was an rror on the initial inspection. The money is now being utilized o tile the dining room with 3/8" underlayment which amounts to 198.00, and the painting of the bathroom walls and installing eiling tile is being deleted in amount of $115.00, leaving an ncrease to contract amount of $83.00. ommissioner Wiggins said this sounds like a fair deal and moved or the approval of Change Order No. 1 to Rehabilitation Contract o. SECD /PR /CS -3/20, for an increase in contract amount of $83.00 r an amended contract total of 5,653.00, with Fleming Construc- ion Company, in the Southeast Community Development Housing rogram. Motion was seconded by Mr. Robinson and carried. r. Dan Caesar asked if there have been any surveys taken on how he homes have been kept and maintained after these improvements re made to insure that the homeowners maintain these homes? Mr. righton said the Project Area Committees and the Advisory Boards hich are the neighborhood residents on the Board are responsible or the monitoring of whether the people are maintaining their omes. Housing maintenance is a kind of delicate situation in erms of what a person considers proper maintenance over what nother person does, but generally the Project Area Advisory, oards are pretty thorough because they are neighborhood residents oncerned with the success of the programs and the success of the eighborhoods. Generally they are being kept up. No formal reports re made. The information is relayed in monthly Committee meetings. ommissioner Robinson asked if it is a set policy that once the taff inspects these houses and the homeowners are granted funds o improve the residence, if there has ever been a time when the unds have been granted more than once to rehabilitate the same ouse, or is this a one -time deal? Mr. Crighton advised it is the olicy that it is a one -time grant only; we take no repeat perfor -_ ances within the same program. - 10 - CHANGE ORDER NO.1 TO REHAB. CONTRACT SECD /PR /CS- 3/20 AP- PROVED, SECD HOUSING PROGRAM 6. NEWIBUSINESS (Cont'd g. Contract with Real'Estal;6 Research:Corporation, Mr. Brownell re- REAL quested Commission authorization for contract with Real Estate ESTATE Research Corporation as a reviewing appraiser on the-R-66 ap- RESEARCH praisals made by Mr. John G. Pence and by Mr. Ralph D. Lauver, CORP. CON - M.A.I., in work to be done by Mr. James Schroeder, who is a TRACT AP- M.A.I. appraiser, in a lump sum fee of $2;000.00. The other PROVED, two appraisers were paid $4,500.00 each for the reuse appraisals. R -66 The Chair asked if this is a request of HUD to have a separate contract, and Mr. Brownell advised that it is, instead of having it done on their regular contract. Mr. Wiggins moved for the approval of a contract with Real Estate Research Corporation to review the appraisals in sum of $2,000.00. Motion was seconded by Mr. Cira and carried. In reference to Ms. Derbeck's question on the appraisal values of the land and Mr. Caesar's, Mr. Brownell advised he has the appraisal reports from the two appraisers, and they do lower the price of the land. They are lower than we have had prior. Now the reviewing appraiser has to go over those to see if there are any corrections to be made and recommend a fair value for the land. When that is completed and we report it to HUD, then that will be the official reduction in the land. h. IParcel B, in Block 6, Project Indiana R -66: Mr. Brownell advised PARCEL B, he received a letter from Mr. Lloyd S. Taylor, Vice President, BLOCK 6, t. Joseph Bank & Trust Company, a few minutes ago in the mail, DEBRIS hich is dated June 30, 1976, with no chance to have it on the REMOVAL, aenda. R -66 r. Brownell read the letter in its entirety, in which Mr. Taylor advised that per their phone conversation, he met with a builder lanning to construct an office on Parcel B, in Block 6. If verything works out, he should be breaking ground within 60 days. hat building will be constructed just south of the intersection f Lincoln Way East and Wayne Streets. This is where the pile of debris still remains. It will be necessary for them to get in and make soil borings within the next thirty (30) days. They letter further states that he would appreciate it if the epartment of Redevelopment would proceed with the clearing of he land per his letter of March 15 giving priority to the articular area cited. Ir. Brownell advised we are trying to proceed to get rid of the ebris. First, he is requiring Nautilus Construction Corporation o have a subcontractor take the debris out that he piled up from is work on the Plaza Park contract, and then when he gets through, e will have to go through with our site improvement contract for he balance of it. The rest is where the City used the front oader to take some brick out and there was some asphalt thrown up, ut that would be there anyway, because we would have had to have a ront end loader to take it out so that is no problem. He said he ust wanted the Commissioners to be aware of this letter. 11 - 7. PROGRESS REPORT a. enter City News was distributed by-the-Downtown South Bend RIVER ounsel. Various activities were.noted for the holiday festi- BEND ities, plus other upcoming events on the River Bend Plaza. PLAZA ACTIVITIES, These copies are also being distributed by the River Bend Plaza R -66 ffice. 8. NEXT COMMISSION MEETING The lext regularly- scheduled meeting of the Redevelopment Commission NEXT will be Friday, July 16, 1976, at 10:00 a.m., E.S.T., in the Offices COMMISSION of tie Department of Redevelopment. MEETING, 7 -16 -76 9. ADJOURNMENT There being no further business before the Commission,, motion was ADJOURNMENT duly made by Mr. Wiggins, seconded by Mr. Cira and carried, for adjournment, at 10:40 a.m. C. "Trownell, Executive F. J Nimtz, President (SEAL) 12