HomeMy WebLinkAboutRM 11-05-76November 5,
10:00 A.M.
Presiding 0
1. ROLL CA
SOUTH BEND REDEVELOPMENT COMMISSION
REGULAR MEETING
1976
fficer: Mr. F. Jay Nimtz,
President
L
Commissioners Mr.
Present Mr.
Mr.
Mr.
Mr.
Legal Counsel Mr.
Mr.
News Media Ms.
Mr.
Mr.
Mr.
Mr.
Others Present Mr.
1200 County -City Building
217 West Jefferson Blvd.
South Bend, Indiana 46601
F. Jay Nimtz, President
Donald A. Wiggins, Vice President
A. Peter Donaldson, Secretary
Robert J. Cira, Assistant Secretary
Lloyd E. Robinson, Sr., Member
Kevin J. Butler
George T. Patton
Jeanne Derbeck, South Bend Tribune Reporter
Dave Anderson,'WNDU -TV Reporter
Larry Ford, WSJV -TV Reporter
Mike Newman, WSJV -TV Photographer
Les Howard, WNDU -TV Photographer
Gene Evans, Executive Secretary, Civic Planning Assn.
Community
Mr.
Keith P.
Crighton
Developilent
Mr.
John Davis
Staff
Mr.
Mr.
James L.
Richard
Johnson, Jr.
E. Pfeifer
Mr.
Kenneth
J. Schaller
LPA Staff Mr. C. Wayne Brownell Ms. Helen S. King
Ms. Gertrude E. Barth Mr. James J. Rowan
Mr. Marc Brammer
2. APPROVAL OF MINUTES
On moti n by Mr. Donaldson, seconded by Mr. Cira and carried, the Minutes MINUTES
of Regular Meeting of October 15, 19764, were approved as mailed. APPROVED
3. APPROVAL OF CLAIMS
On moti n by Mr. Wiggins, seconded by Mr. Cira and carried, the claims CLAIMS
were ap roved, as submitted, and were allowed and ordered to be paid- APPROVED
totalli g $30,251.05. The request for approval of payment to Borge and
Pitt, ii the amount of $3,714.00, for legal services as noted on their
stateme t: Mr. Nimtz explained this is a firm of bond attorneys working
on amen ments to the legislation passed last year by the legislature.
3. APPROVAL OF CLAIMS, CONT.
Mr. Kevin Butler explained that Ice, Miller, Donadio & Ryan
who ar bond attorneys in Indiana had not had experience with incremental
financing, as there has been no incremental financing in the state of
Indian . Further, that Borge & Pitt have had experience with this type
of fin ncing and statutes providing for incremental financing. They
drafVother a proposed amendment to the statute after a lengthy study of the
law states.
The authorized claims are:
PROJECT EXPENDITURES ACCOUNT, INDIANA R -57
Abstract
Co. of St. Joseph County, Inc.
$
25.00
Kevin
J. Butler, Attorney at Law
280.00
Cole Associates,
Inc.
70.55
The South
Bend Tribune
2.60
II II
II 11
14.15
South
end Exterminating Co.
30.00
Tri -Co
my News
15.96
George
T. Patton, Attorney at Law
560.00
Total
$
998.26
PROJECT
EXPENDITURES ACCOUNT, INDIANA R -66
Butler, Attorney at Law
$
963.68
Kevin J.
Indiana
& Michigan Electric Co.
7.23
Jackson
Wrecking Company
2,000.00
The South
Bend Exterminating Company
30.00
The South
Bend Tribune
14.53
Total
$
3,015.44
REDEVELOPMENT
REVOLVING FUND
October 2, 1976 to October 15, 1976
$
3,057.16,
Payroll:
Comet Car
Wash
6.40
Credit
Bureau of So. Bend - Mishawaka
5.00
Downtown
Idea Exchange
39.00
Gates Chevrolet
Corp.
9.60
International
Business Machines Corp.
280.9.7
James F.
Meehan & Associates
8.41
Office
Engineers, Inc.
21.25
Postmaster
7.06
Total
$
3.,434.85
REDEVELOPMENT
DISTRICT CAPITAL OF 1972
Pitt, Attorneys
$
3,714.00
Borge 8
Total
$
3,714.00
BUREAU
OF HOUSING, E -7
Sheet Metal and Heating Co.
$
7,995.00
Barany
6,317.50
4,776.00
Total
$
19,088.50
GRAND TOTAL
$
30.251.05
- 2 -
4. CORRESPONDENCE
a. HUD Area Office letter dated October 20, 1976: This letter is CONTRACT 39
from Daniel B. Bowman, Director, Housing Production and Mortgage WAGE RATE
Credit Division and enclosed a wage rate decision IN 76 -2083 for DECISION
Demolition and Site Clearance Contract No. 39, Block 6, Project IND R -66
Indiana R -66 and includes Modification No. 1, dated 8 -13 -1976, No. 2
dat d 8 -20 -1976 and No. 3 dated 9- 3- 1976 ........... Ten days prior to
ope ing of bids or final contract sales or award, you should con-
tact this office in writing for the updated wage decision and
modifications."
b. UD Area Office letter dated October 21, 1976: This letter is IPA AUDIT
fro Mr. James E. Armstrong, Area Director, enclosing the original CONTRACT
and one copy of IPA Audit Contract for Project Indiana R -57 and IND R -57
stating that paragraph seven (7) of the contract should be amended
to include the following statement:
"A statement identifying such certification or license
shall be attached to this agreement."
"T e cost of an IPA audit is an eligible project cost. You should
not pay the audit fee until you are authorized to do so by this
office."'
c. iUD Area Office letter dated October 28, 1976: This letter is DISPOSITION
froi Mr. Stephen J. Havens, Director, Community Planning & Develop- PARCEL 2 -6A,
ment Division regarding the proposed sale of land in Central Down- 2 -6B, 2 -6C
town Project IN R -66, Disposition Parcel 2 -6. Mr. Havens requested IND R -66
that we submit the re -use plan for these three parcels prior to
suci sale since a parcel of this size may require zoning variance
or ould create a serious marketability problem in the future.
Upon receipt of this letter, C. Wayne Brownell telephoned Ms.
Jac ueline Schmidt and explained the proposed disposition of these
thr e parcels - in detail, and she indicated we should go ahead and
pas the resolution at this meeting and send her a copy of that
res lution with a letter confirming our telephone conversation.
Fol owing a discussion, Mr. Robinson made a motion, seconded by Mr.
Wig ins, to receive these letters and place them on file.
5. OLDI BUSINESS.
a. Plaza Park Railing Contract, Project R -66: Mr. Brownell advised PLAZA PARK
thal this contract was awarded to G. R. Nunemaker Construction in RAILING
bid amount of $996.00, at the Commission Meeting of October 15, 1976. CONTRACT
He then read a letter from Mr. Nunemaker dated November 3, 1976, IND R -66
which indicated that there was an error "of $1,000.00 in the
con ract amount. The bid should have read $1,996.00. The job
was figured last summer and was to be done in the warm months.
As
S1 al
result of this letter Mr. Brownell said he then asked Mr.
ugh to contact the three firms who had quoted on the contract
- 3 -
5. OLD BUSINESS. CONT.
work and ask them to submit new quotations. Mr. Slabaugh reported
that he had contacted the Hickey Company, they did not want to re-
duce their original quote of $2,593.00 so did not submit a new one.
MiAia Construction did not send in a new quotation - originally they
had quoted $2,217.00. Mr. Brownell then read a second letter from
Mr. Nunemaker dated November 4, 1976 which verified their bid for the
railing work, of $1,996.00 and also, Mr. Nunemaker came into the
office and discussed the matter with him. Since Nunemaker is still
the low bidder, Mr. Nimtz asked for "the pleasure of the Commission ?"
Mr. Wiggins said that at the time the bid was accepted and contract
a arded we thought we had a bargain, Nunemaker is still low bidder
a d we need to get going on this. Mr. Wiggins moved to accept the
a ended bid amount as set forth in Mr. Nunemaker's letter, of $1,996.00.
M . Cira seconded and motion carried.
b Change Order No. 5 and Pay Estimate No. 10, Contract No. 1, Plaza
Park, Project Indiana R -66: Mr. Brownell stated that he would
prefer that we do not act on this item today but lay it aside until
t e next meeting. Mr. Wiggins made the motion, seconded by Mr. Cira
arid carried, to carry over this item to the next meeting.
c Change Order No. 1 to Contract NWCD /PR /CS -1/07: This is for an
increase in contract amount of $949.00. You will recall the change
order resulted from the need to tuck point concrete block where
water was leaking into the basement - missing floor tile in the
kitchen, replace broken window pane and for new base cabinets in
t e kitchen. Mr. Pfeifer produced several pictures so the Commission
could see the repairs outlined in the change order. Since the cup -
b ards were hand made and not of regulation size, they would not
a comodate a new. sink, hence the need for new base cabinets. The
i itial inspection was made in September, 1975 and Notice to Proceed
was issued September 24, 1976, one year later. Further discussion
revealed that the inspector who had been responsible for the original
i spection was no longer with the Department but we are still stuck
with the kind of work he did. When asked if this figure includes the
new cabinet tops, Mr..Pfeifer said that it does - they just can't
put a new sink in the existing cabinet base because it will not fit.
Mr. Wiggins asked if the work is completed on the original contract.
My. Pfeifer said they cannot finish until they get approval from the
Commission for this change order. Mr. Wiggins said that since we
r ally have no choice he would move to approve the change order,
s conded by Mr. Cira and carried.
d. Amended Letter of Credit, St. Joseph River Bend Development Corp:
C. Wayne Brownell read letter from Mr. Lloyd Taylor, Vice -Pres. of
St. Joseph Bank & Trust Company, dated October "27, 1976, to which
was attached amended letter of credit from the St. Joseph River Bend
Development Corporation, extending the expiration date from November
7, 1976 to November 7, 1977. This is a simple matter - St. Joseph
River Bend Development gave us a letter of credit which ran out on
CHANGE ORDE
NO. 1, PAY
ESTIMATE #1
CONTRACT #1
PLAZA PARK
IND R -66
CHANGE ORDE
NO. 1,
CONTRACT
NWCD /PR /CS
1/07
AMENDED LET-
TER OF CREDIII
ST. JOSEPH
RIVER BEND
DEVELOPMENT
CORPORATION
vember 7, 1976 and the new letter will carry over to November 7, 1977.
n Wiggins moved to accept the amended letter of credit and place on
- 4 -
5. OLD BUSINESS, CONT.
file, motion seconded by Mr. Donaldson and carried.
6. NEW BUSINESS
a)
Public disclosure of Disposition Parcel 2 -6A: C. Wayne Brownell DISPOSITION
made reference to the affidavit of news publication on October PARCEL 2 -6A
27, 1976 and copy of Statement of Public Disclosure of Redeveloper's IND. R -66
Statement filed in accordance with HUD requirements, pertaining PEOPLES FIRS
to this disposition parcel 2 -6A, proposed development by Peoples FEDERAL SAV.
First Federal Savings & Loan Association, an Indiana Corporation. & LOAN ASSN.
Kevin Butler stated that the bid for this parcel was received at
the last meeting (October 15, 1976) and the papers were in order.
Mr. Wiggins stated that there is a HUD letter under Part 4(c) of
the correspondence which refers to this matter. He asked if we
should proceed with this on the basis of Mr. Brownell's conversation
with Ms. Schmidt of the HUD Area Office. Mr. Butler stated that we
cannot accept any money or give a Deed until HUD approves the dis-
position of the parcel, in writing. Mr. Brownell then indicated
we will pass to the next item on the agenda.
b) Resolution No. 537, Parcel 2 -6A, Ind. R -66: C. Wayne Brownell RESOLUTION
said this is the resolution authorizing the execution of redevelop- NO. 537
ent agreement for disposition of Parcel 2 -6A to the Peoples ADOPTED
First Federal Savings & Loan Assn, an Indiana Corporation and DISPOSITION
following passage of this resolution we will forward it to HUD PARCEL 2 -6A
as requested. The Chair asked if there were any questions from IND R -66
the press or others in attendance. Mr. Dave Anderson of WNDU
asked where this parcel is and Mr. Brownell explained that it is
right behind the Katz Building on Main Street and that Peoples First
Federal have an option to buy the Katz Building. They propose to
raze the building and build a canopy and put in a kiosk there,
(Mr. Brownell then displayed the architectural rendering of the
proposed development) and stated that the next item on our agenda
is a resolution authorizing the execution of -redevelopment agreement
for disposition of Parcel 2 -6B to Charles F. Sonneborn, Individual.
He wants to buy this parcel (Mr. Brownell indicated on the drawing
the parcel of land directly behind Mr. Sonneborn's present location)
and he also is interested in another piece of property adjacent to
2 -6B. Jeanne Derbeck asked if the parcel just referred to was the
land that Morris Civic wants to buy. Mr. Brownell stated that it
is not.the same parcel and if we can get Commission approval then
we do not expect any problems with HUD.on this.
Motion was made by Mr. Wiggins, seconded by Mr. Cira and carried
for the adoption of Resolution No. 537.
c) Resolution No. 538, Dis . Parcel 2 -6B, Ind R -66: C. Wayne Brownell RESOLUTION
read a letter dated November 4, 1976 from Mr. Charles F. Sonneborn NO. 538-NOT
offering to purchase the property designated as 2 -6B, Indiana R -66. ADOPTED
Mr. Sonneborn also told Mr. Brownell during a visit to this office OFFER TO
that when the deal goes through he wants both himself and his wife PURCHASE IS
on the deed. This resolution covers proposition to sell 2 -6B to ACCEPTED
Mr. Sonneborn, Individual, as the developer. Mr. Butler asked SUBJECT TO
hether we have the Public Disclosure and other documents on this. REVIEW AND
5 _ APPROVAL OF
6. c) I
NEW BUSINESS, CONT.
1r. Brownell stated that we do not have the other documents - in LEGAL
iqht of this, Mr. Butler said that we should hold up adoption of COUNSEL
,he resolution until we have the bid documents for review and approval.
e normally do this - where there is an offer we should have proper
ocumentation. Mr. Butler suggested that what we might do is accept
he offer to purchase, subject to receipt of bid documents and review
nd approval of same by legal counsel. This way, we will not have
o wait until the next meeting to act on this. On the minutes of
his meeting we will show the acceptance of offer to purchase by Mr.
onneborn. Mr. Wiggins then moved to accept Mr. Sonneborn's offer
f $8,624.00 for Parcel 2 -6B, subject to submission of, and approval
y legal counsel, necessary bid documents. Motion was seconded by
r. Donaldson and carried.
) Resolution No. 536, Disposition Parcel 11 -15, Ind R -57: Mr. C.
ayne Brownell explained that this is a resolution authorizing
isposition of land in LaSalle Park, Ind. R -57, to Maureen A.
alczak. The Chair asked if there were any questions about this
ie - there being none, Mr. Wiggins moved to adopt Resolution
). 536, Mr. Donaldson seconded, motion carried.
e) Change Order #04, HAO House #36, SECD /HR /CS- 2/18 -53, Charles
Brown Maintenance Service 14,242.00: Mr. James L. Johnson's
memo dated Oct. 25, 1976 to Mr. Schaller, Southeast Project Direc-
t , requested deletion of HAO House #36 from the above contract.
On motion by Mr. Wiggins, seconded by Mr. Cira and carried, the
a ove change order for deletion of House #36 was approved.
f Change Order #2, SECD /PR /CS -4/35, $6,589.00, 911 Marietta St.,
Ned and Mendora Trotter, Slatile Roofing: This chance order is
Tor an increase in contract amount of $100.00, for replacement
of gutters and downspout on the north side of this structure.
Mr. Johnson indicated that usually, in an effort to keep contract
amount down, we replace only those gutters and downspouts which
have rusted through, in this case, they were replaced on the
South side only - then when the contractor got up on the roof, he
found the gutters on the north side and a section of downspout
w ich needed to be replaced as they had started leaking since the
original inspection was done. Mr. Donaldson asked why the inspec-
t r had not seen the damage when he did the inspection and Mr.
_:_:. Johnson said the inspectors do their work from the ground and often
the damage cannot be seen until the contractor is on the roof.
On motion by Mr. Wiggins, seconded by Mr. Donaldson and carried,
the above change order was approved.
7. PR GRESS REPORTS.
No e.
8. RESIGNATION OF MS. HELEN S. KING.
Th� Chair acknowledged the resignation of Ms. Helen S. King as
Se retary to the Redevelopment Commission and made the following
RESOLUTION
NO. 536
ADOPTED -DISP.
PARCEL #11 -15
IND R -57
CHANGE ORDER
#04, HAO HOUSE
#36, SECD /HR/
CS- 2/18 -53
DELETED FROM
CONTRACT
CHANGE ORDER
#2,SECD /PR/
CS -4/35
APPROVED
SECD HOUSING
PROGRAM
8. REdIGNATION OF MS. HELEN S. KINC, (CONT)
"Helen, we regret having you leave - we probably have the best set
of minutes of any board or commission in the city. I think the only
se for member who ranks you is Don (Wiggins) and I think it ought to
be noted that although the Federal government is usually best known
for its voluminous reports and such - more important is the kind of
things that people do ... the things that this Commission has been
doing and is doing - and they must depend on the staff for many things.
We have been very fortunate that we have had people who have done their
jot and more. I suppose in the rush of things we do not take as much
time as we should to express our appreciation for a job well done.
Certainly that is reflected in the kind of activities that go on here.
We probably have the best minutes anywhere around and this is due
to Helen's concern. She has gone beyond the usual sort of thing
to study and prepare herself for this work. A large 'thank you'
fr m me personally and certainly from the rest of the Commission.
I sked Wayne to bake a cake - did you get that done Wayne ?"
Mr. Brownell: "Yes, we did... ".
Mr. Nimtz: "All the people thank you "....now can I take you back to
Item 3, what was the work that the legal firm of Borge & Pitt did ?"
Mr. Brownell explained that for some months, we had been negotiating
with the Mayor and Mike Carmichael and the 2000 Corporation - you will
recall that we had some legislation to be passed, a bill to allow cities
to do certain things in financing. In our discussions with the bond
attorneys, they had questions about certain paragraphs of that bill,
whether our city could do what we wanted to do in regard to financing.
Then Mr. Butler said that briefly, specifically, the legislation
re erred to is the increment tax legislation. This firm in Chicago
ha had a great deal of experience with this type of financing in other
st tes. The Ice, Miller, Donadio & Ryan firm is not familiar with it.
Peter Donaldson asked how many hours of work were involved in this.
Mr. Butler indicated that he did not know but there were many, many
hours - two meetings in Chicago and Borge and his associates did F,
considerable work on this matter. The legislation was submitted in
September to the Legislative Counsel.
Ms. Derbeck asked if it was possible that this is something that will
never be used. It was pointed out by Mr. Brownell that if Sears does
no "go" then we need to be in a position to move further. Mr. Nimtz
indicated that who ever is handling the bill - it's purely a techni-
cality, it is required by the bond attorneys and it has been his
experience that it will pass - there will be no difficulty.
9. NEXT MEETING
ThE
wil
off
next regularly scheduled meeting of the Redevelopment Commission
be Friday, November 19, 1976, at 10:00 A.M.,E.S.T., in the
ces of the Department of Redevelopment.
- 7 -
NEXT COMM.
MEETING
11 -19 -76
101
(SEAL)
ADJOURNMENT
There being no further b usiness before the Commission, ADJOURNMENT
motion was duly made for adjournment by Mr. Wiggins, seconded
by Mr. Cira, at 10:50 A.M.
ell, Executive
z, President