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HomeMy WebLinkAboutRM 09-17-76September 7, 1976 10:00 A. M. Presiding fficer: 1. ROLL CALL SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING Mr. F. Jay Nimtz, President 1200 County -City Building 217 West Jefferson Blvd. South Bend, Indiana 46601 Commissioners Mr. F. Jay Nimtz, President Present: Mr. Donald A. Wiggins, Vice President Mr. A. Peter Donaldson, Secretary Mr. Robert J. Cira, Assistant Secretary Commissioner Absent: Legal (Counsel: News *di a : Mr. Lloyd E. Robinson, Sr., Member Mr. Kevin J. Butler Mr. George T. Patton Ms. Jeanne Derbeck, South Bend Tribune Reporter Mr. Stephen M. Highsmith, WJVA /WRBR Reporter Mr. James L. Marchelewicz, WNDU -TV Reporter Mr. Terry O'Reilly, WNDU -TV Photographer Mr. Dan Caesar, WSBT -TV Reporter Mr. Frank Vellner, WSBT -TV Photographer Others Present: Mr. Carl Ellison, Assistant Director, Human Resources & Economic Development Mr. Gene Evans, Executive Secretary, Civic Planning Assn. Community Development Mr. Keith P. Crighton Staff: LPA Staff: Mr. C. Wayne Brownell Mr. Marc Brammer Mr. Helen S. King Miss Pat Joers Mr. Edwin R. Bauer Mr. James J. Rowan 2. APPROV8L OF MINUTES On motion by Mr. Wiggins, seconded by Mr. Cira and carried, the MINUTES Minute3 of Regular Meeting of September 3, 1976, were approved as APPROVED, mailed with amendment thereto as requested: ITEM 6g AMENDED "Tie motion made to rescind the conditional award of Rehabili- t tion Contract Nos. 11, 12 and 13, to Newbill Construction C mpany, in the Southeast Community Development Housing Program, should be changed, in all references in Item 6g, Page 7, to read: 'Contract Nos. 11, 12 and 18,' per memo- r ndum from Mr. Keith P. Crighton, Director, Bureau of Housing." 3. APPRO�AL OF CLAIMS On motion by Mr. Wiggins, seconded by Mr. Cira and carried, the claims CLAIMS were approved, as submitted, and were allowed and ordered to be paid -- APPROVED totalling $70,973.66. The authorized claims are: PROJECT TEMPORARY LOAN, R -57 Eddie ampbell - Refund Parcel No. 18 -7 $ 474.00 Amrie arris - Refund Parcel No. 16 -16 and 16 -17 20.00 Total 494.00 PROJECT EXPENDITURES ACCOUNT, INDIANA R -57 Abstract and Title Corporation Abstract Ccmpany of St. Joseph County Kevin J. Butler Curley's Sales & Service Stanlev Walczak Total PROJECT EXPENDITURES ACCOUNT. INDIANA R -66 Kevin 3. Butler Colip 3ros. Electric, Inc. Colip lectric, Incorporated Redevelopment Revolving Fund - Transfer Harry 1. Verkler, Inc. Total REDEVE(OPMENT REVOLVING FUND 11: August 21, 1976 to September 3, 1976 Amoco it Company Amoco it Company Credit Bureau of South Bend - Mishawaka Intern tional Business Machines James 1. Meehan Model ities Program Pence- ickens- Heeter, Inc. Total BUREAUJOF HOUSING E -7 Slatil Roofing & Sheet Metal Co., Rehabilitation Contract No. 16 Total GRAND TOTAL - 2 - $ 50.00 52.00 308.15 92.30 62.50 564.95 $ 790.14 7,002.68 563.69 51,398.50 293.41 $ 60,048.42 $ 5,163.52 10.99 70.20 5.00 279.36 2.36 1,984.06 3.80 7,519.29 $ 2,347.00 2,347.00 $ 70,973.66 4. CORRESPONDENCE a. HUD Area Office letter dated September 7, 1976: This letter is COLFAX f om Mr. Stephen J. Havens, Director, Community Planning and De- PIER /PARK v lopment Division, advising the final inspection of the Colfax DREDGING Pier /Park.Dredging site made by Mr. Bassett of their office on SITE WORK, September 1, 1976, shows the work to be completed and acceptable, COMPLETE & subject to the 24 -month General Guaranty cited in the General ACCEPTED Conditions. BY HUD, R -66 Also stated was that they are pleased that the work has been successfully completed and that it will add its share to the improvement of the St. Joseph River in the project area. b. HUD Area Office letter dated September 8, 1976: This letter is PLAZA PARK also from Mr. Stephen J. Havens, confirming Mr. C. Wayne Brownell's SITE WORK, co versation with Mr. Bassett, who represented the HUD Indianapolis INCOMPLETE, Ara Office at the final inspection held September 1, and they can- R -66 not find the work to be complete and acceptable on the Plaza Park Co tract at this time. The following items or actions will be re- quired: 1) Submission of a final Change Order to establish the total cost of the contract, based on final measure- ments and unit costs. 2) Completion of punch -list items. Mr. Havens' letter stated no further inspection by their office will be necessary -- merely our verification that the items have been com- pl ted in accordance with the contract requirements. Al o, he suggested that, if funds are available, subsurface storm drainage be provided in the Jefferson Plaza area to collect surface drainage and conduct it to the river. In view of the problems, which the contractor apparently experienced during construction with regard to erosion of seeded and sodded areas, it is believed that destructive erosion will become a real problem when the re- sp nsibility for maintenance is transferred to the Park Department, Zun ess such storm drainage is installed in the immediate future. Th letter also states the impact of this contract on the project ar a is very favorable and will be a valuable asset for many years to come. On the recommendation for the drainage, Mr. Brownell advised he wi 1 ask the engineer to submit a proposal and estimated cost, an if the cost would not be too high that we can handle it. c. Cii Engineer letter dated September 9, 1976: Mr. Brownell read PARCELS 2 -6A this letter in its entirety from Mr. Rollin E. Farrand, P.E., & 2 -6B, R -66 Director of Public Works, to Mr. F. Jay Nimtz, President, Redevelop- ment Commission, regarding disposition of Parcel No. 2 -6, in the Central Downtown Urban Renewal Project, R -66, in which he stated he ha reviewed the plat forwarded with his memorandum dated September 8, 1976. The disposition of Parcels 2 -6A and 2 -6B will not adversely - 3 - r 4. CORRESPONDENCE (Cont' a fect the proposed expansion of the Morris Civic Auditorium, and t at the expansion can be adapted to conform with this proposed dis- p sition. his letter, Mr. Farrand advised because of the compatibility of eir plans with our proposed disposition, he has no objections to e Department of Redevelopment proceeding with these property sales. President Nimtz advised that we had an inquiry concerning some of the land on the old City Hall block which was discussed with the Commissioners. We were concerned that there might be some future plans for the expansion of the Morris Civic Auditorium, and that in some of the meetings he attended recently, it was discussed that they may desire to move back the west wall of the Morris Civic Auditorium. He stated he didn't want anything we may do here to interfere with any expansion plans they may have and had directed Mr. Brownell to discuss this with Mr. Donald A. Dake, wh3 is Chairman of the Advisory Committee for the Morris Civic Au itorium; and he directed his letter to Mr. Farrand. We can now proceed to establish our procedures for the disposition of the parcels. Parcel No. 2 -6 is the real estate located and in back of the Katz building, People's First Federal Savings & Loan Association, and the Sonneborn's Sport Shop. This Parcel 2 -6 is be ng divided into three parcels: 2 -6A, 2 -6B and 2 -6C. The Parcel designated as 2 -6C is the piece of land we will hold and will be la yid banked until the City or Morris Civic or someone else desires to purchase it. This will allow for the Morris Civic to expand th i r stage area. A lengthy discussion ensued in which Mr. Brownell explained Morris Civic had discussed this with him at least a year ago, and this parcel was platted to allow Morris Civic to expand, as they need more space for dressing rooms, dock space, and it involves the 14 ft. alley directly behind them. In order to either close the alley or 'push' the alley over, whichever the City should decide to do, it will come into Redevelopment land, and Morris Civic wants some fo tage to expand. Mr. q ue 2 -6 he and spl the abi sio don cri The the Gene Evans, Executive Secretary, Civic Planning Association, stioned if the Morris Civic does not use the parcel designated the only access to that piece of land is the alley, and that is concerned about the planning, as you cannot operate a business ask customers to come into the business off of an alley. By itting that land, we are actually reducing the marketability of remaining parcels. We definitely need to keep in mind the market - lity of any land that we may or may not be selling. The Commis - iers agreed with the statements. President Nimtz stated, if we 't allow for the expansion, he believes we would be severely :icized. Mr. Brownell stated he wanted to make it clear that the is Civic theatre people are definitely interested in expansion. reason they can't carry out their plans is that they don't have money at this time. - 4 - 4. CORRE$PONDENCE (Cont'd d. John G. Pence Associates, Inc., letter dated September 15, 1976: Tr. Brownell read this letter in its entirety, in which Mr. Pence stated he was asked to review his recent appraisals and make a study of the market in Block 6 to determine whether or not the values as submitted in his most recent Re -Use Appraisal would be altered if the uses of a portion of the land were to be changed sc that a motel could be constructed on a portion of it and hous- ing for the elderly on another portion. Mr. Pence has completed an analysis which will be submitted under separate cover and which indicates that under current conditions there is no reason to believe that there would be any change in value due to this change in use. Motion was made by Mr. Wiggins, seconded by Mr. Cira and carried, to recei the above letters and that they be placed on file. 5. OLD BUSINESS None. 6. NEW BUISINESS a. Deilolition and Site Clearance Contract No. 39 -A, Project Indiana R-56: Post approval was requested for the award of Demolition anJ Site Clearance Contract No. 39 -A, to the low bidder, Ritschard Br )s., Inc., in bid amount of $1,246.74, and the President and Se retary be authorized to execute said Contract, subject to Legal Co nsel approval, in the Central Downtown Urban Renewal Project In Tana R -66. Mr s co co th, Brownell advised this is a small contract that involves the :e clearance in the Block 6 area so that the Whitcomb and Keller itractors could get the land ready for their building. We ildn't wait for the time to execute a large contract to do the ale site so we made the small contract. We got quotations from •ee (3) contractors as follows: Contractor Bid Amount Ritschard Bros., Inc. $ 1,246.74 1204 West Sample Street South Bend, IN 46621 Warner and Sons, Inc. 1,371.00 29099 U.S. 33 West Elkhart, IN 46514 Harvey Jackson (doing business as) 1,499.00 Jackson Wrecking Co. Route 4, Box 233A Rochester, IN 46975 - 5 - BLOCK 6 RE -USE APPRAISAL,. R -66 POST APPROVAL, CONTRACT 39 -A AWARDED TO: RITSCHARD BROS., INC., R -66 6. NEW BWSINESS (Cont'd . Brownell advised we have gone ahead with the award, the ntractor has done the work, and we are now seeking Commission proval at this meeting for the contract. M tion was made by Mr. Wiggins, seconded by Mr. Cira and carried, f r post approval to award Demolition and Site Clearance Contract 3 -A, to the low bidder, Ritschard Bros., Inc., in bid amount of $ ,246.74, and the President and Secretary also authorized to e ecute said Contract, subject to Legal Counsel approval, R -66. b. Resolution No. 534 and Proclaimer Certificate No. 10, Project I liana R -66: Commission approval was requested of the Reviewing A praiser's Report of the Fair Re -Use Value for the eighteen (18) disposition parcels in the Central Downtown area, Indiana Project R-66. Mr. Brownell advised we have the report from.the Reviewing Ap- praiser, Real Estate Research Corporation, our consultants. Mr. Nicholas C. Jannotta is Executive Vice President of the firm. He is an M.A.I. and C.R.E., as is Mr. Joseph M. West, and both of these appraisers reviewed the appraisals. Resolution No. 534 approves the fair Re -Use Value of the land and approves the Reviewing Appraiser's Report in the Downtown Urban Area in Project Indiana R -66. The parcels are noted on Exhibit "A" attached to the Resolution and made a part thereof, is esta- blished as shown thereon and all documentation related to such determination is contained in the Local Public Agency files. Proclaimer Certificate No. 10, relative to establishment of Fair Re Use Value, is also attached thereto, and authorization is re- quested for the Executive Director to execute said Proclaimer. Mr. Brownell requested adoption of Resolution No. 534, approving the values on the attached Exhibit "A." This is a confidential li t of the values that is not to be made public until later, as al appraisals are confidential. Mr. Dan Caesar, WSBT -TV Reporter, questioned why this information ca not be released, as these are the Re -Use Appraisals; he is aw re that the first appraisals are confidential. Mr. Brownell ad ised these appraisals are submitted to HUD on a confidential ba is and reviewed by them before we can release the information. Generally, this will do just what we expected and told the public be ore. The value of the land downtown was estimated approximately at 5 Million Dollars and it has been reduced to just under 2 -1/2 Million Dollars for the 18 parcels that we own in the downtown area. The Urgent Needs Funds we received for 2 -1/2 Million Dollars makes up for this gap. Ms. Jeanne Derbeck, South Bend Tribune Reporter, quipped: "So, in other words, it is half -price now." Motion was made by Mr. Wiggins, seconded by Mr. Cira and carried, fo the adoption of Resolution No. 534, and the Executive Director, Mr C. Wayne Brownell, be authorized to execute Proclaimer Certifi- ca a No. 10, with the attached Exhibit "A." RESOLUTION NO. 534 ADOPTED & PROCLAIMER CERTIFICATE NO. 10 AUTHORIZED, R-66 6. NEW BUSINESS lCont'd Mr. Brownell stated he wanted to report at this time, and as ex- plained prior to the Commission, that we were going to issue new Notes, in the amount of $4,221,000 and we were going to pay the Trustee $2,785,190 and that has been accomplished. They have now refunded to us $1,045 which was the overpayment. That transaction is now complete. c. LaSalle Park Urban Renewal Project Audit Contract, R -57: The LASALLE following firms submitted proposals for audit of the LaSalle Park PARK AUDIT Pr ject, Indiana R -57, for period from July 1, 1973 to October 31, CONTRACT 1976: AWARDED TO: CROWE, Company Bid Proposal CHIZEK & CO., R -57 Crowe, Chizek and Company $ 1,500.00 Goodson - Tyler & Associates 3,000.00 Peat, Marwick, Mitchell & Company 5,000.00 Mr Brownell advised the recommendation is that the contract for th audit be awarded to the low bidder, Crowe, Chizek and Company, in bid amount of $1,500.00. Th recommended motion was made by Mr. Wiggins, seconded by Mr. Ci a and carried, and the contract award is to go to Crowe, Chizek and Company, in bid amount of $1,500.00, and the President anJ Secretary be authorized to enter into contract, subject to HU and Legal Counsel approval. d. Change Order No. 1 to Contract No. pr val was requested of Change Orde wi h.Colip Electric, Incorporated, R- 56. Mr. Brownell advised Colip has had bu they are the same contractor we Pa k Project, Contract No. 3. 3, Project Indiana R -66: Ap- r No. 1 to Contract No. 3, Plaza Park, in Project Indiana a change in the firm's name, presently have for the Plaza Mr. Brownell explained the items on the change order: The over- runs on additional concrete in three bases for $180.05, and in the rigid conduit for $582.40; and then there was an underrun of $1026.14. So we are now asking for this change order to ener- gize the three lights on the East Ramp by the bridge, at a cost of $563.69, which will bring this contract out to exactly the am unt that it was originally negotiated at: $32,394.80. In of er words, Colip Electric has reduced the price of doing the en rgizing work so that it will come out to the contract amount. Mo fo Co :ion was made by Mr. Wiggins, seconded by Mr. Cira and carried, the approval of Change Order No. l to Contract No. 3, with ip Electric, Incorporated, Plaza Park, as noted above. - 7 - CHANGE ORDER NO. 1 TO CONTRACT NO. 3 AP- PROVED, R -66 6. NEW BUSINESS (Cont'd e. Resolution No. 532, Merry Avenue Project: This Resolution authorizes the execution of Quit- Claim Deed for the transfer of title in and to be disposed of in the Merry Avenue Project to the Economic Development Corporation. Mr. Brownell advised that we have been working under a contract with the Model Cities people to do the work of acquiring the property in the Merry Avenue Project_ We have completed that work and we have title to all of the land and the alleys. Merry Avenue has been vacated. There are one, two or three condemna ti ns where we got the Clerk's Deed and paid the money into Court where the matter is still pending to. determine whether or not we will have to pay any additional funds. He stated he has apprised Mr. Carl Ellison of that fact and that we will be glad to come before the Commission for the authorization and to execute a Quit-Claim Deed to the property, but we wanted him to know that there might be some additional expenses that they may have to pa us under the contract if the Court should find that we owe any additional funds. The Chair asked Mr. Carl Ellison if he hao any objections to that, and Mr. Ellison advised he had none. Mr. Dan Caesar, WSBT -TV Reporter, asked if that involves approxi- ma tely four acres and Mr. Brownell stated there are two pieces of land involved here: One is the land that was deeded by the. So th Shore Railroad to the City of South Bend, and by the City of South Bend to the Economic Development Corporation; and the of er is the piece of land that we acquired as the Merry Avenue Pr ject which we will transfer to them. The parcel we have is ap roximately six acres and Mr. Brownell advised he did not know th size of the other parcel. Mo ion was made by Mr. Wiggins, seconded by Mr. Cira and carried, fo the adoption of Resolution No. 532. f. Invitation for Bids, Demolition & Site Clearance Contract Nos. 39 and 39 -B, Project Indiana R -66: Mr. Brownell advised he wanted to talk to the Commission about two,things that are not on the Agenda: One is an invitation for bids on the large con- tract to clean up Block 6, Demolition & Site Clearance Contract No 39; and the other item is for a small contract which will be for cleaning up some of the debris on Block 6 that we want to get out of the way for the Bank to proceed, which will be Demoli- tion & Site Clearance Contract No. 39 -B. We are getting quotations on that right now and hope to have all of them in today. Mr. Brownell said he is requesting a motion for Commission authori- zation to advertize for the invitation for bids on the site clear- ance and demolition in Block 6, on Demolition & Site Clearance Co tract No. 39, Project Indiana R -66. Mr. car Wiggins moved for the approval, seconded by Mr. Cira and ied. RESOLUTION NO. 532 ADOPTED, MERRY AVE. PROJECT DEMOLITION & SITE CLEAR- ANCE CONTRACT NOS. 39 & 39 -B, R -66 6. NEW BUSINESS (Cont'd g. Parcels 2 -6A and 2 -6B, Central Downtown Urban Renewal Project., PUBLICATION Indiana R -66: Parcel No. 2 -6 was discussed earlier, under OF LEGAL Rem 4c. NOTICE TO RECEIVE BID Mr. Brownell requested Commission authorization to approve the PROPOSALS publication of a Legal Notice to receive bid proposals for the APPROVED, development of Parcels 2 -6A and 2 -6B for Service Commercial Use. PARCELS 2 -6A & 2 -6B, Motion was made by Mr. Cira, seconded by Mr. Wiggins and carried, R -66 authorizing the publication of Legal Notice for bid proposals for de elopment of Parcels 2 -6A and 2 -6B of Parcel 2 -6 of the Downtown Re ewal Plan, Project Indiana R -66. 7. NEXT COMMISSION MEETING The net regularly - scheduled meeting of the Redevelopment Commission NEXT . will be Friday, October 1, 1976, at 10:00 a.m., E.S.T., in the offices COMMISSION of the Department of Redevelopment. MEETING, 10 -1 -76 I W IIID►MI"M There eing no further business for discussion, motion was duly made ADJOURN - for ad.ournment, at 10:30 a.m., by Mr. Cira, seconded by Mr. Wiggins MENT and ca ried. 9. MEETING RECONVENED Presid nt Nimtz advised he has a matter that we have been directed COMMISSION to bri g to the Commission's attention, and we would like to reconvene MEETING the me ting. RECONVENED The Ch it directed the meeting be reconvened at 10:43 a.m., and to let th record show that Commissioners Cira, Wiggins, Donaldson and Nimtz re present. We have a quorum to proceed. 10. OTHER OUSINESS FOR DISCUSSION a. Re olution No. 533 to be blighted and er inaiana K -bi n Renewal Plan. _re-declaring the LaSalle Park Renewal Area RESOLUTION re- approving an Urban Renewal Plan for Project NO. 533, and for the making of certain changes to the R -57 Mr Brownell advised Mr. Kevin J. Butler, Commission Legal Counsel, has Resolution No. 533 that we would like to present to the Com- mission for consideration, which is to amend the acquisition list to drop the parcels which we have deleted from the acquisition list. We will have to go through an amendatory action which will ne d to also be approved by the Area Plan Commission, City Council, an MACOG. This will be the first Resolution on this action that wi 1 be put through. 10. OTHQI BUSINESS FOR DISCUSSION (Cont'd Mr. Brownell further explained the purpose of the Resolution is to amend the "...application in behalf of the City of South Bend, Department of Redevelopment, deleting from the acquisition list of the LaSalle Park Urban Renewal Plan those acquisition parcels not yet acquired, which are specifically enumerated on Attachment 'A' which is attached hereto and incorporated by reference herein, and amending the Cost Estimate and Financing Plan and the Project Expenditure Budget to reflect the decrease in expenditures caused by this deletion is hereby approved and that the Executive Director is hereby authorized and directed to execute and file such applica- ti )n with the Department of Housing and Urban Development, to pro- vile such additional information and to furnish such documents as mat be required in behalf of this Department and to act as the au horized correspondent of the City of South Bend, Department of Re level opment." Mo ion was made by Mr. Donaldson, seconded by Mr. Cira and carried, fo the adoption of Resolution No. 533. 11. ADJOU As th's concluded the business before the Commission, motion was duly made for adjournment, at 10:50 a.m., by Mr. Cira, seconded by Mr. Donal son and carried. .-,�g yne,�owne i i , Executive uirec .,_ r'. jay Nirktz, (SEAT ) - 10 - ADJOURNMENT