HomeMy WebLinkAboutRM 02-18-77February
10:00 A.h
Presidinc
1. ROLL
SOUTH BEND REDEVELOPMENT COMMISSION
REGULAR MEETING
18, 1977 1200 County -City Building
217 W. Jefferson Blvd.
Officer: F. Jay Nimtz, President South Bend, Indiana 46601
Commissioners
Pres nt Mr. F. Jay Nimtz, President
Mr. Donald A. Wiggins, Vice President
Mr. A. Peter Donaldson, Secretary
Mr. Robert J. Cira, Assistant Secretary
Mr. Lloyd E. Robinson, Sr., Member
Legall Counsel Mr. Kevin J. Butler
Mr. George Patton
News Media Mr. J. Scott Brink, WNDU TV Photographer
Ms. Jeanne Derbeck, South Bend Tribune Reporter
Mr. Terry O'Reilly, WNDU TV Reporter
Mr. Mike Newman, WSJV -TV Photographer
omm nity Development
Sta f
LPA Staff
2. APPROVAL OF MINUTES
Mr. Richard H. Clifford
Mr. Keith P. Crichton
Mr. John Davis
Mr. Stephen M. Hardy
Mr. Richard E. Pfeifer
Mr. Kenneth Schaller
Mr. C. Wayne Brownell
Ms. Gertrude Barth
Ms. Patricia Lodyga
Ms. Susan Ragland
On motion by Mr. Donaldson, seconded by Mr. Wiggins and carried, the
Minutes of the Regular Meeting of February 4, 1977 were approved as
mailed.
3. APPROIVAL OF CLAIMS
MINUTES OF
2 -4 -77
APPROVED
On motion by Mr. Wiggins, seconded by Mr. Donaldson and carried, the CLAIMS
claims in the amount of $22,967.05 were approved as submitted and were APPROVED IN
allowed and ordered to be paid. AMT. OF
$22,967.05
3. APPROVAL OF CLAIMS, Continued:
4.
Listlof claims approved this date is as follows:
PROJECT EXPENDITURE ACCOUNT, INDIANA R -66
Redevelopment Revolving Fund $18,969.38
The South Bend Tribune 7.09
Total $18,976.47
REDEVELOPMENT REVOLVING FUND
Payroll: 1 -29 -77 to 2 -11 -77 $ 2,996.93
The Bond Buyer
Business Systems, Inca
Dorothy Z. Deane - Petty Cash
International Business Machines Corp.
International Business Machines Corp.
James R. Meehan & Associates
South Bend Tribune
Stan & Ted's Lawnmower Shop
Amoco Oil Company
a.
5. OLD
a.
30.40
18.98
43.28
90.30
558.72
21.50
115.32
4.38
110.77
Total $ 3,990.58
Grand Total $22,967.05
U ICATIONS.
HOD Area Office letter dated February 11, 1977, signed by Stephen J.
Havens, Director, Community Planning & Development Division, re
Change Order No. 1, Contract No. 2, Downtown Project Indiana R -66,
S uth Bend, Indiana, concurrence in subject change order to
F egley Landscaping for.an additional $270.00. This Change Order
brings the total contract cost to $26,593.75.
C. Wayne Brownell indicated that the only action necessary on this
c ncurrence notice is to accept it and place on file. The Chair
a this point directed that this be done.
INESS
C mmission authorization to approve Resolution #540, authorizing
e ecution of Redevelopment Agreement for the Disposition of Land
aid execution of Quit -Claim Deed for transfer of title thereto in
c nnection with land to be disposed of in the downtown project Ind.
R-66, Parcel 6 -1E and 6 -1F, to St. Joseph River Bend Development
C rporation. This Resolution was tabled in meeting of February 4,
1 77, pending clarification of HUD regulations as they relate to
a signment of property.
110
HUD
CONCURRENCE
CO #1
CONTRACT #2
FOEGLEY
RESOLUTION
#540 TABLED
IND R -66
Parcels 6 -1E
and 6 -1F
5.(a) OLa BUSINESS, Continued:
Mr. Brownell then explained that we have an assignment which was
sent to us by HUD, from Mr. O'Malley of the Legal Department. In
discussion with him about the proper way to do this, he indicated
they would write us a letter detailing the HUD regulations which
govern transfer of a property before this development is completed.
Letter containing these regulations have been sent by Mr. Butler
to Mr. Taylor and to his attorney, Mr. Boynton. We expect to have
a letter from HUD within the next few days confirming what he (Mr.
O'Malley) told me over the phone. The transfer of interest re-
quires that we go through a submission of the transfer in accordance
with HUD regulations under 7214.1, page 43. This requires that we
"have a public disclosure and qualifications of financial responsibility
of transferee, that the documents be prepared and submitted to HUD
r approval without being executed; that there be a detailed break-
down of the redeveloper's costs attributable to holdings proposed
to be transferred; that it be certified by a certified public accoun-
tant; and that the appropriate officer of the redeveloper state
that the redeveloper will realize no profit on the transfer and a
statement by an appropriate officer of the redeveloper granting
p rmission to the Agency (that's us) and to the Federal government
t inspect and audit the books and records of the redeveloper."
. Brownell then stated that he would suggest to the Commission that
is item which was tabled on February 4 be continued in that status
til we get these documents.
M . Wiggins: I'll move the continuance and instruct the legal staff
a d director to proceed as outlined by HUD. Motion was seconded by
M . Robinson and carried.
b. Damage
to Plaza lighting fixtures - claim by Colip Electric for $262.10.
C.
Wayne Brownell: The Commission directed me to write a letter and
tell
Colip Brothers that we did not accept their claim because this
w
rk was being done at the time of the vandalism. We had not paid
t
em or accepted their work until later. The vandalism - according
t
Colip - was done during the week of July 26, 1976 and we did not
pay
for this work until September, 1976. I wrote the letter in
a
cordance with your suggestion and have not yet heard from them.
The
Chair directed that this item be kept on the agenda until we have
a
reply to Mr. Brownell's letter.
6. NEW 6
SINESS.
a. C
an a Order No. 1 to Contract NWCD /PR /CS -2/13 with Charles Brown
CO #1 to
Maintenance
Service, Northwest Community Development Housing Program:
REHAB CONTR.
A
proval of this change order was requested, for a net decrease in
NWCD /PR /CS-
t
e contract amount of $105.00, (Contract: $4,895), or an amended
2 -13 APP'D
c
ntract total of $4,790.00, with contract time unchanged, for re-
NORTHWEST
habilitation
work at 537 N. Blaine Avenue.
COMM. REVEL.
HOUSING
PROGRAM
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6.(a). co�ntinued-
C.� W. Brownell: Do you wish to comment on this one Mr. (John) Davis?
John Davis: The homeowner didn't want a humidifier and didn't feel
he needed a handrail, so he preferred that be taken out of the con -
tr ct and the contractor concurred.
Wiggins: What is this replacement of bricks at the side of the
nt steps?
Mh. Davis: That was part of the original contract, as a combined item,
then it was deleted.
Mr. Wiggins: That was part of the handrail?
Mr. Davis: Yes.
Motion to approve Change Order No. 1 to Contract NWCD /PR /CS -2/13 was
made by Mr. Wiggins. Mr. Donaldson seconded the motion.
Lloyd Robinson: Is there any reduction in the money appropriated for
this project?
Mr. Brownell: (There is a) $105.00 reduction. The bricks are a $25.00
addition and the deletion is $130.00, the net then is $105. reduction.
Mr. Robinson: OK, I missed that.
Th Chair put the motion to a vote and it passed unanimously.
b. Change Order No. l to Contract NWCD /PR /CS -2/14 with Charles Brown
Maintenance Service, Northwest Community Development Housing Program:
Approval of this Change Order was requested, for a net increase in
the contract price of $135.00, (Contract: $6,555), or an amended
contract total of $6,690.00, with contract time unchanged, for re-
habilitation work at 636 N. Diamond Avenue.
c.
Mr. Davis: I want to call to mind that this addition of bathroom
water closet on the second floor was recommended because it was
running over and had to be replaced- this happened 'during the time
of construction.
th
in
of
ion to approve Change Order No. 1 to Contract NWCD /PR /CS -2/14
made by Mr. Cira, seconded by Mr. Donaldson and carried.
Inge Order No. 2 to Contract NWCD /PR /CS -1/02 with Madison Builders,
:., Northwest Community Development Housing Program: Approval of
is change order for no change in dollar amount requested, to cover
addition of basement window, bathroom #1 window frame repair,
;tallation of combination window in bedroom #1; and the deletion
installation of hollow core door and privacy lockset on bed -
)m #1.
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CO #1 TO RE-
HAB. CONTRAC
NWCD /PR /CS /2
14 APPROVED
NORTHWEST
COMM. DEVEL.
HOUSING PRO-
GRAM
CO #2 TO RE-
HAB. CONTRAC
NWCD /PR /CS -1
02 APPROVED
NORTHWEST
COMM. DEVEL.
HOUSING PROG
6.(c) Conftinued- NEW BUSINESS
Mr. Wiggins moved for approval of this Change Order #2, seconded by
Mr. Donaldson and carried.
d. Commission authorization requested to.reject bids for the following BIDS REJECTE
contracts and for review and re- advertisement of bids for same as FOR REHAB
so )n as po ssible - per recommendation of the Southeast Advisor Board: CONTRACTS
SECD2 /PR /CS
SE D2 /PR /CS -8/61 1219 High Street $7937.00 Madison Builders 8/61,64,6
SE D2 /PR /CS -8/64 211 E. Calvert Street 8797.00 Madison Builders
SE D2 /PR /CS -8/65 217 E. Pennsylvania Ave. 9474.00 B & W Electric
Motion to reject the above bids was made by Mr. Robinson, seconded by
Mr. Wiggins and carried, with recommendation for review and re-advertise-
ment as soon as possible.
e. Commission authorization requested for approval of bids for contract COMM. APPROV
award, as follows, per recommendation of the Southeast Advisor Board, REHAB CONTR.
subject to Common Council approval and legal counsel review: SECD /PR /CS -8
60,62,63
SECD /PR /CS -8/60 1513 Marietta Street $6798.00 B & W Electric SOUTHEAST
SECD /PR /CS -8/62 415 Wenger St. 6914.00 B & W Electric COMMUNITY
SECD /PR /CS -8/63 1213 High Street 7827.00 B & W Electric DEVELOPMENT
REHAB PROJEC
Mr. Brownell indicated that B & W Electric was the low bidder in each - DENIED'
of these cases.
Mr. Cira questioned the reason for recommendation by Advisory Board
for approval of these three rehab contracts when the cost estimate and
B & W Electric bid has a wider spread than did the cost estimates and
the bids which were rejected under 6(d).
Mr. Schaller: Madison Builders did not submit a bid bond with his bids
which is why his were rejected here. OK, on 217 E. Pennsylvania, the
bid was rejected because all costs were over guideline limitations.
If you delete Madison's bid because he did not submit a bid bond, the
cost of repair for 211 Calvert St. would be over $9,000, and B & W
Electric would be too far off our cost estimate of $5,800. That's
why they have been rejected.
M . Wiggins: It seems they are all running over your cost estimates.
I there any particular reason for this? Are you estimating low or
a e they bidding high?
M . Schaller: At the present time we are still awaiting some of the new
c st estimation manuals so our cost estimates are based on, I believe,
1 st July.
. Wiggins: And are you cranking in different labor figures?
. Schaller: Yes. Mr. Wiggins: Does this account for the difference?
M . Schaller: Until we receive the (manuals) and have checked out the
11 pec" estimator publication...we are supposed to have them shortly.
- 5 -
6.(e) continued, NEW BUSINESS
Mr. Wiggins then moved the approval of contract bids as set forth
ab ve. Motion to approve died for want of a second.
Mr. Brownell: I sat in this meeting of the Advisory Committee and these
tw contracts, -64 and -65, the only bids that they could consider were above
th amount that we were supposed to consider. They were above $9,000.
Th se contracts that have been suggested for approval were 1513
Ma ietta which is a top on contract 60, the cost estimate was $5,152.
ani contract price bid was $6,798. We have approved a.number of bids
wi h that kind of relationship on previous contracts. Of course, it
is up to the commission but I wanted to draw it to your attention.
Th se are not out of line with previous approvals.
Mr. Cira: Why really have a cost estimate though Wayne, if you are
going to put them up there. I mean that is a couple of thousand
do lays. Somebody should update this cost estimate business.
Mrs Brownell: I would agree but they don't have their manual.
Mrs Cira: Yes, but they should have their manual.
Mr Robinson: Why don't we wait until they get their manual so we know
wh t they are talking about.
Mrs Cira: Business is business you know.
Mr Wiggins: Well, you may be in a position then of re- advertising and
we may not get this favorable a response the next go- round. This is
unusual actually, we have had a lot of these things that we were lucky
to get one bidder. We have gotten three bidders on all of these. I
guess Madison disqualified himself for lack of a bond in some instances.
Yoi have a pretty fair expression here on the part of three contrac-
to s as to what they feel the cost is to do this work.
Mr. Crighton: Our cost estimates are not prepared by a professional
cost estimator, nor are they prepared by an engineer. We prepare them
according to a home tech manual that has been in practice with both
the Department of Redevelopment and subsequently the Bureau of Housing
for the past seven years. This cost estimate is only to provide the
staff and the Bureau advisory committees with a rough idea of how much
it is going to cost. It is not intended to be an actual bona fide
comparison. If we were attempting to get an actual accurate cost
estimate, it would cost us approximately $50.00 per house. We don't
have the ability to pay for that.
Mr Wiggins: Well, is it your feeling that these are - they're within
$1 00 -$1600 for the most part I think - that this is a fair price?
Mr
wo
co
av
Crighton: I think the contractor's spread is close enough, which
ald indicate the prices are fair and not so much a comparison of our
;t estimate to the block of the contractors. On the contractor's
!rage price, I think the bids are fair.
6.(e) con�inued, NEW BUSINESS
Mr. Wiggins: Is it also your view that if you were to crank in the
di ference between the current wage rates in the manual of last July
th t you would not come up with the $1500 -$1600 difference?
Mr�. Crighton: Materials have gone up considerably since September.
Mr. Cira: On number 61, the Slatile contract..can you account for the
ex ra work or is Madison going to come back and say, "well, we for-
go to figure this in the inspection "and that sort of thing?
Mrj. Brownell: We are not suggesting approval.
Mr. Wiggins: Those that you mention are the ones we knocked down in our
previous motion. The ones we are talking about are at 1513 Marietta
Street, 415 Wenger Street and 1213 High Street, all with B & W Electric
wh ever they are.
Mr. Robinson: But at the same time Don, I still remember what was told
us last meeting, when they said they felt - and I don't know which one
of the gentlemen told us this, that all employers now are starting to
bid more than what the anticipated cost was and they didn't know if
there was a movement afoot for this to continue. So my feeling is, if
it above the cost estimate, maybe its time someone put their brakes
on and maybe we can slow these people down.
Mr. Wiggins: What they are saying to us here is that their cost es-
tirnates aren't all that good and if we think this is a fair price -
I think the only thing we can hang on is whether or not it is a fair
offer. If its a fair offer, we ought to take it. If not, we should,
obviously, decline it.
Mr. Robinson: Also, I have another question. This B & W Electric,
wh n did he become a general contractor, or is he going to sub this out?
Schaller: He became a general contractor to bid on these contracts.
Mr. Robinson: Is he going to sub out everything except the electrical
work?
Schaller: That is correct.
Ch ir: The Chair will try again, Mr. Wiggins, do you move that this be
aD roved?
Wiggins so moved. Motion was lost for want of a second.
f. Co mission approval requested for 312 Loan Application as follows:
Na a Address Amount Loan Number
M443 ce Meader
S. Kenmore
C.
$3,450.00 18 /SOU- 2/10/1 -76
Wayne Brownell indicated that in the Loan packet were the following:
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6.(f)
T
i
W BUSINESS Continued
1. Original and five copies of form HUD 6230 - application
312 loan.
2. Original of LPA Inspection and Cost Estimate.
3. One copy of C -100 Credit Report.
4. Original form HUD 6232, As -is Appraisal.
5. Original form HUD 6233, Verification of Employment.
6. Original form HUD 6234, Verification of Deposit.
7. Original form HUD 6239, Verification of Mortgage.
8. Original Financial Worksheet.
Brownell indicated anyone who wanted to could look through the
n packet.
312 LOAN APPLI-
CATION APPROVE[
$3,450.00
18 /SOU- 2 /10 /1 -i
JOYCE MEADER
443 S. KENMORE
n request by the Chair for clarification, Mr. Brownell stated that
are the only Commission in the state, as he understands it, that
allowed to locally approve 312 loans.
Mrj. Crighton said "that is correct ".
Chair: Where does the money come from?
Mrj. Brownell: The money comes from HUD.
Mr. Crighton: From the Department of Housing and Urban Development;
under Section 312 of the National Housing Act of 1964, in connection
with our Section 810 Homesteading Program that was approved last year,
we are also eligible to receive, I believe, $408,000 in 312 loan
funds. We have expended about $60,000 for which we had ten loans
approved last August and this is the first new set. We anticipate
receiving additional 312 funds for not only the Homestead target
areas but also for the community development target areas. Our total
budgeting for that project should be around $248,000 total in 312
funds.
Chair thanked Mr. Crighton for the explanation.
Mo ion to approve 312 loan as outlined was made by Mr. Wiggins,
se onded by Mr. Donaldson and carried.
Mr. Wiggins: Mr. Chairman, I think as a procedural thing, if we are
going to attach this much weight to these cost estimates, then we
have some responsibility for determining the validity of the cost
estimates. According to what you were saying a few moments ago, to
get a really.effective cost estimate, the commitment of some funds
is necessary, if you are going to hire a professional. Or, if you are
go ng to have the staff do this..I don't know where we are in this
re and but apparently you need some new tools.
Mr. Crighton: Well we are not required to do cost estimates by
co unity development regulations. We were (so required) under the
31 and 115 REGS under Urban Renewal, as you will recall. Community
Development has no such requirement. We do the cost estimates to the
be 3t of our ability, that is both skill level and financial ability,
in order for us to get an idea of approximately what it is going to
co t. If we get a cost estimate that's $8,000 or $9,000, then we
-8-
6.(f) NqW BUSINESS Continued
gene ally have the feeling that the bid is not going to come within
the imit, so we know where to cut items off the inspects "on to come
with n the limits and still correct the major code violations.
Mr. iggins: So, in other words, this has been done gratuitously and if
you ad not thrown it in gratuitously, I have a feeling this would probably
have passed this morning. Your generosity has undone you. Strange.
7. TRIBUTE TO DEAN WILHELM.
Chair: The Chair regrets the announcement of the death of Dean Wilhelm TRIBUTE TO
a former Trustee and former President of this Commission, and I think DEAN
it a propriate that we put on the record some tribute to him. I'll WILHELM
ask cur historian and chief writer, Don Wiggins, to draft such a resolu-
tion for presentation to the Commission.
8. LITIGATION.
Chai : Legal counsel for the Commission has been engaged in trial this
week concerning the Philadelphia relocation claim. Mr. Patton, do you
want to make any report concerning that matter?
Mr. atton: Well, it lasted a day and a half and is under advisement by
the Judge.
Chair: This is a bench trial and the Judge has it under advisement. Mr.
Butler do you have anything to report?
Kevir Butler indicated he had not.
Mr. Brownell: I would like to report on that matter of the transfer of
pare is 6 -1E and 6 -1F. I reported to the Commission that you have
written a letter to Mr. Taylor and to his attorney.
Mr. Butler: Yes, I wrote to his attorney, with a copy to Mr. Taylor.
Mr. Brownell: ....and that we expected a letter from HUD confirming....
Mr. Butler: Although I don't know that Mr. Taylor or Mr. Boynton got
theiy letter yet. I indicated to Wayne yesterday that it had been
dictated. I don't know if they have gotten it.
Mr. Brownell: What is it, a matter of it beina dictated but not read
or dictated but not sent? Anyway, I tried to report on it. If you
have any questions on it, I am sure Mr. Butler can answer them.
Chai : Is there anything further to come before the Commission? Any
ques ions by the Commission, the press or the public?
9, NEXTICOMMISSION MEETING.
Chai�: There being nothing further, the next Commission Meeting will
be on Friday, March 4, 1977 at 10:00 A.M.
REPORT ON
LITIGATION -
RELOCATION
CLAIM
PHILADELPHI
NEXT
COMMISSION
MEETING
3 -4 -77
10. PROGRESS REPORTS
Chair: Are there any progress reports? I see the Katz Building is
coming down.
Mr. Brownell: Yes, we have asked Mr. Butler to prepare the deed so
we can have a closing with Peoples Federal. They have requested a
closing so that is in the works too.
Mr. Butler: That also is in dictation, has been dictated I should say..
in the process of being dictated.
Mr. Brownell: We hope to have a closing on that and the contract with
Son eborn regarding that has been signed by Mr. Sonneborn and we have
prepared the report to HUD and legal opinion to go with it is in
dictation.
Jeanne Derbeck: I'd like to ask you if the Commission has any prospects
now for new development downtown other than what has already been
announced.
Mr. Brownell: I have only one word to reply ... yes.
Ms. Derbeck: Well?
Chair: Jeanne, there is a lot of talking going on.
Mr. Wiggins: Not much action, but a lot of talking.
Mr. Brownell: We have had meetings and conversations and negotiations and
we have prepared documentation and exchanged views and all the rest
of the words that don't tell you anything Jeanne. I just can't disclose
the state of the negotiations at this time.
Ms. Derbeck: Is this just the First Bank or is it something else?
We all know the First Bank..I consider that as something announced,
even if they haven't picked out their place.
Mr. Brownell: I am not limiting this to the First Bank—that's not what
I'm talking about.
Chair: There are other possibilities.
Terry O'Reilly: Are you talking about major developments?
Mr. rownell: Yes.
Ms. Derbeck: Block 6 is kind of taking care of itself.....
Mr. rownell: Yes, we talked about Block 6 before you came in this morning.
We have some technicalities to cover for HUD requirements.
Ms. erbeck: In regard to the senior citizen's building?
Mr, rownell: Yes, they have to go through the transfer procedure, nothing
difficult.
d"
10. PROGRESS REPORTS, Continued.
Ms. D rbeck: But beyond that, in other vacant spaces downtown?
Mr. Brownell: There are very definite negotiations underway.
Ms. D rbeck: Very definite negotiations!
Mr. Brownell: Yes.
Ms. D rbeck: But you can't say...
Mr. O'Reilly: Could the publicity campaign waged by Vegetable Buddies
using the big hole downtown be in jeopardy at this point?
Mr. Brownell: I don't know what that is so I can't answer your question.
I hav n't heard it.
Mr. O'Reilly: All of their advertisements give their location as "across
from the big hole downtown Are they going to have to change their spots?
Mr. Wiggins: That's where they dug up the carrot, eh?
Mr. O'Reilly: I guess.
Mr. Brownell: Well, there is no use in us playing games..I can't tell you.
Mr. O'Reilly: It's always worth a try.
Ms. D rbeck: When do you think you'll have some announcements?
Mr. Brownell: Gee, I wish I knew that.
Ms. D rbeck: There's been a definite depressive effect on the downtown with
the a nouncement that some of the movie houses closing—the State is closing
and tie Colfax is temporarily ...
Mr. B ownell: Yes, we had been informed on the State quite some months ago.
That Was not news to us.
Ms. D rbeck: I know, but it has a depressive effect.
Mr. Brownell: Yes, it is, especially when the movie houses on 31 are going
so we 1, and also out at Scottsdale Mall.
Mr. W ggins: There is one factor in this that I am sure everybody is aware
of. hat is, that those movie houses were built in a different time and
for a different kind of business. When you are stuck with a place that
seat4es a tremendous number (of people) and the ones who are doing business
are that seat a handful, comparatively speaking...
Mr. B�ownell said he had a man tell him all about the old State Theatre
when t was known as the "Blackstone" with an orchestra in the p.it, etc.
-11-
10. PROGRESS REPORTS, Continued
Mr. Brownell: I can only tell you that there are some very favorable
developments doing on that I can't disclose.
Ms. erbeck: With local people?
Chair: On the advice of counsel Mr. Brownell, I think you had better
not answer that.
Ms, erbeck: Well, did you answer my question with respect to when you
expect an announcement?
Mr. Brownell: I tried not to. I have been instructed by counsel not to.
11. ADJO RNMENT
There being no further business before the Commission, motion was made ADJOURNMENT
for adjournment at 10:40 A.M. by Mr. Wiggins, seconded by Mr. Robinson
and carried.
(SEAL
President
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