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HomeMy WebLinkAboutRM 04-15-77SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING April 1 1 1977 1200 County -City Building 10:00 a m. 217 West Jefferson Blvd. Presidi g Officer: F. Jay Nimtz, President South Bend, Indiana 46601 1. ROIL CALL Commissioners Present Mr. Mr. Mr. F. Jay Donald Robert Nimtz, President A. Wiggins, Vice President J. Cira,: Assistant Secretary Legal Counsel al s Media Otl ers Present Co munity Development St ff LPP Staff 2. AP ROVAL OF MINUTES Mr. Kevin J. Butler Mr. George Patton Mr. J. Scott Brink, WNDU TV Photographer Ms. Jeanne Derbeck, SBT Reporter Mr. Terry O'Reilly, WNDU Reporter Mr. Gordon E. Medlock, Attorney Mr. Warren A. Deahl, Attorney Mr. Keith Crighton Mr. Ken Schaller Mr. C. Wayne Brownell Ms. Gertrude E. Barth Mr. Marc Brammer On motion by Mr. Wiggins, seconded by Mr. Cira and carried, the Minutes MINUTES OF of the Regular Meeting of April 1, 1977 were approved as mailed. 4 -1 -77 APPROVED 3. APPROVAL OF CLAIMS On motion by Mr. Wiggins, seconded by Mr. Cira and carried, the CLAIMS claims in the amount of $19,604.82 were approved as submitted and APPROVED - we were allowed and ordered to be paid. $19,604.82 List of claims approved this date as follows: PRO I PECT EXPENDITURE ACCOUNT, INDIANA R -66 O'N al's Trucking Co., Inc. Real Estate Research Corp. Clyde E. Williams & Associates, Inc. Edward A. Chapleau Curly's Sales and Service Jam 6s E. Childs & Associates $ 5,471.65 1,086.96 2,266.60 400.00 259.50 6,237.25 Total $15,721.96 3. APgROVAL OF CLAIMS, Continued: 4. iEVELOPMENT REVOLVING FUND Pa4roll: March 26, 1977 to April 8, 1977 Mr. Kevin J. Butler Business Systems, Inc. Credit Bureau of S. B.- Mishawaka International Business Machines Corp. James R. Meehan & Associates Os (o Drug Po tmaster SoL th Bend Tribune Am co Oil Co. C. Wayne Brownell a. b. Total GRAND TOTAL MMUNICATIONS $ 2,996.93 200.00 27.56 5.00 279.36 43.50 32.92 4.41 168.55 69.03 55.60 $ 3,882.86 $ 19,604.82 HUD Area Office letter dated April 8, 1977 from James E. Armstrong Area Director, re Audit Report, Project Indiana R -57. Mr. Brownell read the letter in its entirety and commented, "Jeannie Meggs has that a little bit mixed up. What actually happened was that there was $35,000 left in A -10 from rehabilitation that we didn't use. They agreed that was surplus funds. Later they tried to re- move it from surplus funds and say that it had to go on the notes. That can't be done because we owe $9,638.00 of that to R -57 ". Chair: So it's actually $35,000 minus the $9,638.00 which will go to R -57? Ms. Derbeck: What is "A -10 "? Mr. Brownell: A -10 is a closed project that we had in the Southeast neighborhood. Mr. Wiggins: .......it was for neighborhood rehabilitation. The Chair ordered this communication received and placed on file. Letter dated April 4, 1977 from Ralph W. Wenger, Jr., President of Ralph Wenger and Company, Real Estate Appraisers and Consultants, Spring Lake, Michigan, re visit by Mr. Wenger to South Bend. Mr. Brownell read certain portions of the above letter, after which the Chair directed the communication to be received and placed on file, noting that Mr. Wenger's firm is interested in working for this department should the necessity arise for such services. - 2 - 4. COMMUNICATIONS, Continued- s. Derbeck: Is he an appraiser? Mr. Brownell: Yes. c. Letter dated April 7, 1977 from the Farm & Land Institute, National ssociation of Realtors, signed by Mr. John F. Amos, Executive ice President, re invitation to Mr. Brownell to address the Spring eeting of FLI, on April 28, 1977. Hr. Brownell: I have not as yet accepted. Mr. Butler: Do you get an honorarium Wayne? Hr. Brownell: I don't think so. Chair: Senators get it, I don't see why Wayne can't get it. Hr. Wiggins: You can't vote for him. Mr. Brownell: They would pay my expenses, but I thought I ought to bring it to your attention. The Chair: Well, unless there is a direct objection from some of the Commission members, the Chair authorizes you to accept this invitation to speak if they pay your expenses. Mr. Brownell: Thank you. Mr. Butler: I think that's quite an honor - unless you're being subpoenaed. Mr. Brownell: Whose side are you on? (Laughter). 5. OLE BUSINESS a. Request for Commission approval of Change Order #1 to Contract SECD /PR /CS -3/28 with Ted Combs, Inc. for a decrease in contract price of $120.00 (for amended contract total of $5,195.55), as set forth in letter from Mr. Kenneth Schaller, Project Director, and per instructions from Kevin J. Butler, Commission Attorney. Mr. Brownell questioned Mr. Schaller regarding the circumstances surrounding this reduction in the contract and Mr. Schaller replied: " This reduction is for a change in price which resulted when the contractor installed a steel tub instead of a cast iron tub as called for in the specifications. He is crediting our account, or decreasing the contract price in the amount of $120. for the difference between the steel tub and the cast iron tub. Mr. Wiggins moved approval of this Change Order #1 to Contract SECD /PR /CS -3/28, Mr. Cira seconded and motion carried. - 3 - 5. OLD BUSINESS, Continued - b. ReQuest for Commission approval of Change Order No. 1 to Contract ECD /PR /CS -3/22 with Ted Combs, Inc. for a net decrease in contract rice of $120.00 for amended contract price of $6,574.62) as set orth in letter from Mr. Kenneth Schaller, Project Director, and per nstructions from Kevin J. Butler, Commission Attorney. r. Brownell: This is a bathtub materials change from cast iron to steel too, isn't it? r. Schaller: Yes, this is the same thing. Chair: This is the one on Haney Avenue, isn't it? r. Schaller: No, this is on Pennsylvania Avenue. r. Wiggins moved approval of Change Order No. 1 to Contract SECD /PR/ S -3/22 with Ted Combs, Inc. for a net decrease of $120.00. Mr. Cira seconded and motion carried. c. Request for Commission ap rova1 of Change Order #1 to Contract SECD /PR/ S -3/25 with Ted Combs, Inc. for a net decrease in contract price of 203.50 for amended contract total of $5,254.67), as set forth in etter from Mr. Kenneth Schaller, Project Director, and per instructions rom Kevin J. Butler, Commission Attorney. r. Brownell: This is the one on Haney Street. r. Butler: Ken, are we ready to approve this one until the contractor nd subcontractor have come to some resolution or understanding between hemselves? My thought is that when the subcontractor went out and ooked over the job he was not bidding on a tub. The specifications ere ambiguous with respect to whether or not a tub was even called or in our instructions - or I mean "specifications ". There was no uestion that the subcontractor's specifications from Combs — that t (the tub) was not called for. Apparently there was no trap behind, s I recall, and there was some additional plumbing work inside that ad to be taken care of. Perhaps not all of that $195. credit for the ub is appropriate in this case. I wonder if we shouldn't let them esolve their difference before approving this one. What do you hink? I would recommend that we table this. r. Schaller: Fine. he Chair directed that this Change Order be tabled until the next ession. r. Butler: Ken, if you will let them know that we did this, the ommission did table this and that by the next Commission meeting .hey should have the matter resolved so they can make a recommendation. Ir. Wiggins moved to table this item, Mr. Cira seconded and motion ,arried...this Change Order will be considered at the next session. - 4 - 5. OLDIBUSINESS, Continued- d. lud concurrence for Change reeking Company, in the a an amended contract price Order #1, Contract D -39B, with Jackson oust of $213.00 additional costs, for f $2,000.00 Indiana Project R -66). r. Brownell stated that this is simply HUD approval of the Change rder which the Commission previously approved. e Chair directed that this be received and placed on file. e. HUD concurrence for Change Order No. 1 to Contract D -36 with Warne & Sons, Inc. for an additional.contract amount of $670.00 for an amended contract price of $2,664.00 Indiana Project R -66). . Brownell indicated that this is another HUD approval of a Change ier that was previously approved by the Commission. Mr. Wiggins: In short, they agreed with us. The Chair directed that this communication be received and placed on file. f. Application for 312 Loan in the amount of $3,592.00 to Miss Mary Alice Thomas, 501 South Chicago Street: The Chair asked Mr. Brownell about the addition to the agenda at this point, and Mr. Brownell indicated the Mr. Crighton had brought in a letter and file this morning re- lated to this 312 Loan Application. He then asked Keith to explain this item to the Commission. Mr. Crighton: This is a loan application under the Section 312 Loan Program that we have -- involved in both our community development and our homestead project areas. We just received the appraisal yesterday, so I asked Wayne and he very kindly agreed to submit it for approval to the Commission this morning, although there was not time to enter it on the agenda. It is for a loan in the amount of $3,592.00 to Miss Mary Alice Thomas, 501 S. Chicago Street. She is applying for 312 loan money for the repair and improvement of her property. The 312 program as you know has been an ongoing program. Homeowners are eligible to borrow money at a 3% interest rate. I would appreciate the Commission considering approval of this application this morning. Chair: Don (Wiggins) I believe you are the expert in this area. Mr. Wiggins: When you look at this whole bale of stuff you see that some other experts have been involved in this, are there any problems? Mr. Crighton: No, Stan has been working on this application for about six weeks. It is my recommendation that it be approved. Mr. Wiggins: I concur in the recommendation, I move that the loan be approved. Motion was seconded by Mr. Cira and carried. Chair: Keith, let me say that we appreciate the unsung work that you do on these things. These are the hours that you put in on stuff like this that nobody ever knows about. - 5 - 5. OLDI BUSINESS, Continued- . Crighton: Well, I ey put a lot of time ry much. 6. NEW BUSINESS would like to pass this on to my staff also. in and they are very competent. Thank you There being nothing under this heading, the Commission moved on to the ne t order of business. 7. PROGRESS REPORTS a. lElderly Hi -Rise Project, International Constructors, Inc. r. Brownell: On this topic we have a number of things. I will ask r. Butler to help me with this. So far we have put a notice in he South Bend Tribune, published Thursday, April 14, 1977. This s a notice of the fact that you intend to consider the contract for ale of land, parcels 6 -1E and 6 -1F to International Constructors V, a Limited Partnership. We have the information that has been urnished to us for public disclosure as well as the confidential 'inancial information. You have not yet had an opportunity to look t over. Mr. Butler has very kindly worked on this together with r. Boynton and Mr. Deahl, the lawyers involved, plus the firm in lkhart. The attorneys have gotten together, Mr. Butler representing s, Mr. Deahl representing International Constructors and Mr. Boynton epresenting the St. Joseph River Bend Development Corporation. hey are working out a transfer of the right to purchase from Mr. loyd Taylor's St. Joseph River Bend Development Corporation. r. Brownell continued: HUD has approved the Section 8 bid for nternational Constructors - they approved the selected bidder. ow we are trying to work out a transfer of the right to purchase rom the St. Joseph River Bend Development Corporation to the nternational Constructors Company IV. The Chair: The presumption is that since they have approved them (International Constructors) as a bidder, they (HUD) will approve the transfer. r. Brownell: Probably. I have talked to Mr. O'Malley and so has r. Butler (the Indianapolis office) and I wanted the Commission to now how this thing is progressing. Things are moving along and there s a deadline on the 25th of April. We have gotten the vacation of ld streets and the dedication of the new streets ... all of the in- ormation has been prepared and filed with the Board of Works. That ill be coming through in due course. . Wiggins: Now, with the ten day notice in the advertisement, that mes before the 25th? You just put it in yesterday and it gives u a day's grace. . Brownell: Yes. 7. PROGRESS REPORTS, Continued - is. Jeanne Derbeck: Meet the deadline for what? Ir. Brownell: Well, we have to give ten days' notice of the fact that e have the public disclosure. They furnish the information for the ublic disclosure and we have to put the notice in the paper. We ave done that. This notice tells you the name of the people, etc. Ir. Butler: We are going to have to take action before the 25th - y reading of the regulations it permits the Commission to,I believe, take action today. Basically, a redeveloper, in this case the St. Joseph River Bend Development Corp., the redeveloper of Block 6, as the right to convey its interests in property (for which it has lready signed a contract to purchase) if they meet certain conditions. They are in the process now of meeting with those requirements, with he transferee, International Constructors IV. As Wayne pointed out, ne of the requirements is the published notice. .r. Brownell: I have here the public notice. I also have the contract or sale of land for private redevelopment which has been prepared. They are here for whatever public examination anyone might wish to make. t this point the Chair recognized Mr. Gordon Medlock and his attorney, r. Warren Deahl. Mr. Medlock stated that they were pleased to attend he meeting. "We are just two years older than when we first came up to meet with you on this project ". "We were late in arriving this orning - we were working out the final details of the last agreement that has to be reached before we were comfortable that there would definitely be a clear path to the transfer of land once you approve it and so it's a happy occasion to hear you are favorably disposed. It on't be very long before we have some announcements on construction time and so forth." hair: Gordon, you may think we don't know the hills over which you ave travelled. Between Mr. Brownell and Mr. Butler we have been advised from time to time of dealings and negotiations you have had ith HUD and all the legalistics involved. You have been very patient, I will say that. Mr. Medlock: I think if I had known at the start what was involved, I would never have started. But.I am glad we had the staying power and the cooperation of some very fine people in making this possible. Mr. Deahl: Getting that HUD.Section 8 grant is quite a unique thing. Chair: Warren, I have said many times from this chair, when you accept "them.there" federal monies, you accept "them there" federal regulations. No matter if it's highways, welfare or what. I helped make some of them a few years ago. Mr. Wiggins: It takes a Philadelphia lawyer to figure them out. The Chair asked Mr. Butler what motions he thought would be appro- priate. Mr. Butler stated that if a request was being made by the St. Joseph River Bend Development Corp. and by the transferee, that the Commission approve that transfer. "I presume that is what - 7 - 7. PROGRESS REPORTS, Contnued- r. Medlock and Mr. Deahl are here for, that the Commission does pprove that transfer subject to the meeting of the requirements f HUD regulations and Indiana State law." r. Wiggins moved to approve this proposed transfer of real estate or the Elderly Housing Project, Parcels 6 -1E and 6 -1F, to Inter - ational Constructors Co. IV, an Ohio partnership, subject to com- liance with the requirements of the HUD regulations and Indiana aw, and subject to legal counsel approval. r. Brownell thought some explanation was needed and stated that nder HUD regulations, the documents must be prepared and submitted o HUD (unsigned), for approval, then returned to us for signatures. hat is what we are talking about when we say "subject to HUD regu- ations otion was seconded by Mr. Cira and carried. r. Brownell: I believe that we also will need a resolution on the eed. r. Butler: I would imagine the initial resolution authorized the ontract and the deed. r. Wiggins: As you can guess so far, we are mighty happy to approve his. We are very glad to have you and happy you are able to build. r. Medlock: We appreciate your encouragement over the past years. r. Wiggins: The sooner we see steel coming up out of the ground, the etter we are going to like it. r. Medlock: The only thing really good about the delay is that it ill be easier to start now than it would have been around the 15th f January. he Chair asked Mr. Butler if it would be necessary to have a pecial meeting on the 25th, to which he replied, "no, that will of be necessary - assuming that my interpretation of the very am- iguous regulations is correct ". r. Medlock: It has not been reviewed by the partners in Milwaukee o determine if the terms are entirely acceptable. There is the ffer by a reputable brokerage firm to provide financing, and if hat materializes, the institution which has indicated an interest onfirms it and the terms are satisfactory and acceptable to the partners, hen in a very short time we can disclose our construction plans, eadlines, etc. 1r. Brownell then stated that it is necessary to show in the Minutes ;hat the Public Disclosure documents are here at this meeting. Mr. I utler replied that the notice really covers that. Mr. Wiggins asked f the notice was authorized in a previous meeting and it was de- ;ermined that the publication of notice was not previously authorized. 7. PROGRESS REPORTS, Continued- Counsel suggested to the Chair that it is indeed proper for the Commission to ratify the actions of the Executive Director in the publication of the notice in the South Bend Tribune concerning availability of the public disclosure documents and the contract for sale of land for private redevelopment. Mr. Wiggins so moved, Mr. Ci.ra seconded and motion carried. Chair acknowledged an announcement that the public disclosure material which is necessary under the regulations concerning this project are available in this office and can be seen upon applica- tion with the Director. "Well Warren, I think we are in good shape now. Kevin has always steered us correctly up to now ". Mr. Deahl: He is doing everything he can - and Chuck Boynton has cooperated fully - he has ordered the title policies. We are working toward a closing during the week of the 25th (April). It is going to take a heap of doing as you might imagine with all of the red tape that has to be accomplished. Mr. Conard dropped off the plans - topographical - do you need them? Mr. Butler: We will need to approve the architectural and engineering plans. Mr. Brownell: We won't need the topographical plans, but we will need the architectural plans prior to commencement of construction. You can't start your construction until they are approved. Mr. Butler: We are talking basically about your architectural render- ings for the design committee approval. Mr. Brownell: We will have to bring the fire department in when you get the architectural rendering. Mr. Medlock: I think we have everything here. I had to go to Columbus yesterday and I flew through Cleveland to pick these up. This is what the contractor tells me are the architectural plans as approved by HUD in the approval of the final proposal and by FHA in the mort- gage insurance commitment. This represents what he refers to as the architectural set of drawings as opposed to a construction set. There are the various parcel descriptions, building details, and this is the parking. These are the floor plans - (Mr. Medlock was showing the Commission the drawings which he brought with him). Mr. Butler: Gordon, is the name of the project official? Mr. Medlock: The name of the project that we checked with the Mayor and the Chamber of Commerce ... and we got a general reaction that remembering Karl King would be appropriate. I talked with Ms. King - it's been a year ago now - and she was agreeable. We have been using the name - it is being called "The Karl King RiverBend Tower ". 7. PROPRESS REPORTS, Continued r. Medlock: Here is a complete set of plans for your records. The ontractor and architect can provide you with the necessary documen- ation: "who has approved what ". As I understand it, an FHA project s never static, in other words, there are always changes being re- uested for something. This set of plans would be subject to minor hanges, but basically this is the number of rooms, size of rooms eeting room area and so forth. he Chair: Thank you Gordon. Now if we may jump subject matter, eard you being cross examined by Ms. Derbeck over there and I ave always been reluctant to say anything about any conversations ou and I have concerning the other project. Is there anything hat you would like to put into the record informally here this orning? r. Medlock: Informally, although after the questions Jeanne has, I kink there may be something in the paper, we have an exclusive option or the purchase of land at the north end of Block 6, for construction of a Midway Motor Lodge and Hoffman House Restaurant. We felt that we could complete those plans and arrange the financing within a eriod of six months. This was not the case, but we have an agreement wi h the River Bend Development Corporation to extend that option or three months. We have been working all over the country to firm p permanent financing. We have a lot of people who are interested ut we don't have anyone signing their name. Yesterday I received hat has been promised for several weeks - a letter indicating the erms on which an institution has indicated they would be willing to rant us a permanent loan of the type and size we have requested. t has not been reviewed by my partners in Milwaukee. At this point, t would be premature to speculate that the terms would be entirely atisfactory. Ordinarily this phase of negotiating a permanent loan f this size - we are talking about a project that would involve our and one -half to five million dollars (4,500M=5,000M) dollars, ormally takes about thirty days. They will send some representatives o the site, they visit the hotel manager, the restaurant and so orth. At this point I am optimistic. We are.a heck of a lot closer han 99% of the people in the country who are trying to build hotels. e Chair: Since our conversation in Elkhart that day, I can report you that I have eaten in the Hoffman House in Rockford. It is beautiful place, a beautiful restaurant. r. Medlock: Since that time I have not advised you that Hoffman House as been purchased by Green Giant. Chair: Oh..I didn "t know that. . Medlock: They (Hoffman House) is now a part of what is a $500 Ilion corporation. - 10 - 7. PROGRESS REPORTS. Continued- he Chair asked if the Hoffman Brothers are out of the company now, o which Mr. Medlock replied that they are now managing the Hoff - an House Division. They have retained the same management but hey have new financial resources, basically, Green Giant. That akes them a pretty first class tenant. s. Derbeck: It is my understanding that the restaurant would have is own financing? r. Medlock: Only to this extent: we build the restaurant for them, nd sign a long term lease which supports the project. he Chair thanked Mr. Medlock and Mr. Deahl for attending the ommission meeting. . Brownell asked Mr. Medlock if we had a rendering of any kind and . Medlock replied that he did not and stated that he would talk the architect and contractor to see what could be shown to the emission... r. Brownell: It would be helpful to have a rendering that we could how to people who ask. A lot of people can't understand architectural lans, I'm one of them. r. Medlock: That elevation will give you an idea, but it won't o what you'd like. r. Brownell replied that he thought that would be very nice. r. Wiggins: Yes, you've got to put the pretty trees and clouds in.. o which Mr. Brownell added: "Yes, and it is good advertising ". r. Deahl: Thank you very kindly. Chair: Thank you - now is there anything further to come before Commission? r. Brownell: The only thing I had was a report in connection with he E -6 Northwest and Northeast Housing Programs. Mr. John Davis as given me a monthly report. Mr. Brownell read the report. he Chair directed the report be received and placed on file. 8. NEXT COMMISSION MEETING There being nothing further, the next Commission meeting will be held NEXT COMM on Friday, May 6, 1977 at 10:00 a.m. - unless we are required to have MEETING a special meeting concerning this Elderly Housing Project under some MAY 6, 1977 HUD requirement. Ms. Derbeck: Are there any other announcements .... about Century Mall? - 11 - D. COMMENTS Mrd Brownell stated that everything about the Century Mall is up in Mav r Peter Nemeth's office. Mr. Wiggins: Yes, we are very happy about the Mall plans..it is a mall tha would link the Century Center in a line with the Courthouse. C. 4ayne Brownell: We are very pleased of course to have a prospective dev toper interested and this would not forego or foreclose any other dev loper from coming in with a plan on this same property, or a different pro erty. We are interested in the plan and how it is going to be han led. We are also interested of course in the development. We will in Jue course follow our procedures, publish a notice as required and notify people so that they can either bid on the land at the time it is rea y or we may have to go ahead with certain acquisition in order to worK out a plan. Our work hasn't yet started. Ms.�Derbeck: Oh, it's not going to be in the "big hole" downtown? Mr. Brownell: I don't think it will be in the "big hole ". They may also tat about the hole, but -I am not sure. There is a hope that someday the hole will be developed too. Mr. Wiggins: What you really ought to see are the plans that the architect has put together. It -is a beautiful concept. The Chair: Well, to answer Jeanne's question, the architectural drawings and plans envision the development of the hole, but not by this pros- pective developer. Here again, their discussions have been in confidence and we cannot reveal what they have been. Mr. Wiggins: So that this really is, to a degree, in the planning stage. It is far enough along that they felt they wanted to, or were willing to make some public announcement of what they are proposing. Th Chair hoped that Jeanne would go look at these plans and Mr. Wiggins ad ed that she would certainly be impressed. Mr. Wiggins: You see, this is not before us to take action on at this time, only for comment that I can give you on our reaction to what we have seen of the proposal. There are a lot of "whereases" here before it gets down to the stage of happening. It sure looks good. Ms. Derbeck: Its not another "Associates thing" is it - where some- body is offering a plan that is going to tie up some land? Mr. Wiggins: As Wayne said in the beginning, this land is not tied up an it is not committed to these people. We are not going to fall in th t trap again. 10. ADJOURNMENT Th re being no further business before the Commission, motion was made by Mr. Wiggins for adjournment at 11:00 a.m., seconded by Mr. Cira an carried. - 12 - 10. 1 ADJOURNMENT. (SEAL) e1I, Lxec. - 13 - , Nres