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HomeMy WebLinkAboutRM 11-04-771. 2. SOUTH BEND REDEVELOP14ENT COMMISSION County -City Building Room 1200 227 West Jefferson Boulevard South Bend, Indiana 46601 COMMISSIONER'S REGULAR MEETING Friday, November 4, 1977 10:00 A.M. PRESIDING OFFICER: F. Jay Nimtz, President ROLL CALL Commissioners: Lega Counsel: News Media: Gues s: Comm nity Development Staff: LPA Staff: F. Jay Nimtz, President Donald A. Wiggins, Vice, President A. Peter Donaldson, Secretary Lloyd Robinson, Sr., Member Kevin J. Butler Dan Caesar, WSBT -TV Jeanne Derbeck, South Bend Tribune Dave Anderson, WNDU John DeLee Carl Ellison Kenneth Schaller John E. Davis J.L. Johnson, Jr. Richard E. Pfeifer C. Wayne Brownell Marc Brammer Christine L. Trippel APPROVAL OF MINUTES On m tion by Mr. Donaldson and seconded by Mr. Wiggins, the minutes of the regular meeting of October 21, 1977 were approved as mailed. 3. APPRgVAL OF CLAIMS On motion by Mr. Wiggins and seconded by Mr. Robinson the following claims in the amount of $23,444.60 were approved as submitted and allowed and ordered paid: REDEVELOPMENT DISTRICT CAPITAL Abstract Co. of St. Joseph County Inc. $ 52.50 Abstr ct Co. of St. Joseph County Inc. 152.50 Curly's Sales and Service 80.20 SUB -TOTAL $ 285.20 REDEVELO MENT COMMISSION MEETING MINUTES NOVEMBER 4, 1977 PAGE TWO 3. APPROVAL OF CLAIMS (CONT'D) 0 RED9VELOPMENT REVOLVING FUND Pay oll: 10 -8 -77 to 10 -21 -77 $ 3,002.74 Bru ing Div. Addressograph Multigraph Corp. 3.99 The Bobbs Merrill Co., Inc. 99.65 Credit Bureau of South Bend- Mishawaka 5.00 Ind'ana Bell Telephone Co. 369.86 Pos Imaster 26.47 SUB -TOTAL $ 3,507.71 PRO ECT EXPENDITURE ACCOUNT INDIANA R -66 Edward A. Chapleau $ 650.00 Holle & White, Reporting Service 77.40 James R. Meehan & Associates 16.80 The South Bend Tribune 7.09 SUB -TOTAL $ 741.29 312 (LOANS Abstract Co. of St. Joseph County, Inc. $ 160.00 Abstract Co. of St. Joseph County, Inc. 491.50 Abstract Co. of St. Joseph County, Inc. 403.00 Area Services, Inc. 375.00 Joe Kocsis Electric Co. 525.00 Joe Kocsis Electric Co. 535.00 Plaii Construction Co. 1,132.00 Plaii Construction Co. 2,266.00 Plaii Construction Co. 9,610.00 Bob Veaver's Roofing 675.00 Ward ow Construction 825.50 Ward ow Construction 825.50 Skel on Brothers Plumbing 603.00 Skel on Brothers Plumbing 483.90 SUB -TOTAL $18,910.40 GRAND TOTAL $23,444.60 COMMUNICATIONS a) L tter from Hickey Company dated October 28, 1.977 agreeing to` r pair: defective concrete =in `the downtown- °mall . Mr. rownell reported that this letter addressed to Mr. Oesterling of C yde E. Williams our engineers, indicated that all corrections indi ated in the letter from Clyde E. Williams on August 10 have all REDEVELO MENT COMMISSION MEETING MINUTES NOVEMBER 4, 1977 PAGE THREE 4. COMMUNICATIONS (CONT'D been completed with the exception of the replacing the defective plain and brown concrete. Mr. Hickey indicated that the core samples authorized by the Commission to discover the fault of the spa ling concrete showed that the air content did not meet the specifications and would be replaced at the expense of the Hickey Company. Mr. Hickey also indicated that they were having difficulty in locating the colored additive for the brown concrete and were expecting to receive some the week of October 31. This work is anticipated to be completed before the advent of bad weather but if this cannot be done it will be completed in the Spring of 1978 Mr. Nimtz directed that this letter be received and placed on file. b) Letter from Richard A. Kaiser, HUD, Assistant Regional Administrator from Chicago of Community Planning and Development subject the requisition for project capital grant progress payment Mr. Brownell reported to the Commission that we have project notes coming due on December 16. The amount is $4,150,000.00 and the interest is $85,822.00. We have on deposit $441,830.00 from the sale of land and the relocation payment of $321,479.00. We also have on deposit $93,647 from capital grant funds. The CD funds they put through as a reserve which will be allocated to this payment amou is to $1,100,000.00 and leaves a balance of $2,193,044.00. To round it off, HUD added back $1,956.00 leaving a balance of $2,195,000.0( to bD sold in notes on December 16. Mr. Wiggins asked what the interest item of $85,822.00 was and Mr. Brownell indicated it was 2.82% on this amount of money from the time we issued the notes until the 16th of December. Ms. Derbeck asked if that was included in the $4,150,000.00 to w ich Mr. Brownell said no that is additional money and that is in o r line item budget with CD. Mr. Brownell added that this did not aave anything to do with the $2.1 Million in urgent needs, that thes are project notes that we have to pay off by going through a trust company in New York. We are selling new notes in the amount of $2,1)5,000.00 and after estimating the interest, because the rates won' be known until after the bids are received, at approximately 3% f r eight months it could be $43,900.00. We should have a close out apital grant balance of $957,313.00 leaving a balance of $1,237,000.00. The relocation balance should be $445,978.00 leaving a balance of $791,709.00. We have $186,553.00 surplus out of the R -57 close out which ought to bring us down to $605,156.00 and we have a close out of $35,000.00 from A -10 surplus. We had to pay out some accounts receivable for A -10 which leaves a balance of approximately $13,000.00 which will reduce the note balance to $592,156.00. The Capital Grant and relocation is money held back, or if we pay the money to HUD they will reimburse us so it will come out the same. The balance will be paid out of CD funds which is less than 20% of our annual allowance or from the sale of real estate if we sell real esta e, whichever it turns out to be. Mr. 1imtz ordered this letter received and placed on file. REDEVELO MENT COMMISSION MEETING MINUTES NOVEMBER 4, 1977 PAGE FOUR 4. COMMUNICATIONS (CONT'D) c) A peal of the adoption of Resolution Nos. 540 and 542 by Edith H wley and Angela Berg. Mr. prownell reported that this matter has been given to our atto Heys to handle this'..law'suit'. Mr, imtz indicated that there is no further action necessary to this as it has already been referred to legal staff for proceeding. 5. OLD a) A r Mr. that that Chan has for tion the will Mr. brie city basi are: to t for wdul we a that been is a squa when come . a sq lett appri cred cont: press that potei This earns INESS eement between the redevelopers and the Redevelopment Commission arding the purchase of project land in the future. rownell indicated that this agreement has now been to HUD and this draft was approved with one minor change; that of wording, instead of South Bend Redevelopment Department it will be ed to City of South Bend Redevelopment Department. Mr. Butler ade that change and has furnished the contract to the investors heir signature. Commission approval is requested and authoriza- for the president and secretary to sign it today. As soon as nvestors sign and give us proper security Commission signature be necessary. 3utler indicated he would go over the provisions of the contract Fly. The parties to the agreement are the Commission, the civil and the investors. The agreement is broken down into three parts;.the first part the obligations of the investors which to submit a bid for the real estate in question subject only ie following provisions; that redevelopment offers the property >ublic bid by April 1 of 1979 and that the minumum bid price I not exceed,$450,00Oi00 Dollars.. - - -- This does not mean that °e locked into an appraisal of less than $450,000.00, it means if it is more than that they need not bid. This figure has discussed with Real Estate Research and they feel that this reasonable figure for the property in question, about 150,000 •e feet at about $3.00 a square foot. As a frame of reference talking about a large area of property the appraised value down. For example, Block 6 where the property sold for $.91 Lare foot. The next obligation of the investors is to submit a .r of credit payable to the Department of Redevelopment in the it of $45,000.00. This figure was arrived at as it is 10% of the oximate appraised value of the land in question. This letter of .t will provide that if a bid is not submitted as required in the -act they will lose that $45,000.00. At the time that they ant their bid they would be presenting a bid bond of 10% assuming the bid is $450,000.00. This has not been required: by any other .tial investor when they expressed an interest in the property. amount is appropriate since HUD was asking for some kind of !st money. REDEVELOPMENT COMMISSION MEETING MINUTES NOVEMBER 4, 1977 PAGE FIVE 5. OLD BUSINESS (CONT'D The obligations of Redevelopment and the City are; in the event that the investors submit and bid, and the bid is awarded to the investors Redevelopment is obligated to transfer title to the property by April 1, 1980, a year after the deadline of offering the property for bid. In the event the investors submit a bid to purchase the property and the bid is awarded by Redevelopment, the City and /or Redevelopment will be obligated to construct a parking garage or gara i es adjacent to or above the mall area providing at least 700 parking spaces and that City and /or Redevelopment will be obligated to develop the enclosed pedestrian malls related to the shopping mall. Deta'ls with regard to the parking garage(s) and the pedestrian walk Nays are to be worked out prior to the commencement of construc- tion. Some general provisions are: one, that we recognize the invest- ors signing the agreement may change as to individuals and total number of individuals but that will not in any way affect the vali ity of the letter of credit which we will have. Two, this agreement is the sole agreement and the previous proposal of August 1, 1977 is recinded. Three, the agreement will not be effe tive until it is approved by HUD and the Common Council of the City of South Bend. Once the investors, Redevelopment, and the Mayor on behalf of the civil city have all signed the agreement it must go to the Common Council for their approval. and final approval by HUD Area Office. The Common Council in October basically approved the utline of these provisions. If this goes through we have an exis ing contract and then we apply to HUD for the funds. Mr. Wiggins movedfor the approval of this draft agreement supported by Mr. Donaldson and carried unanimously. The president and secretary are- bth authorized to sign this agreement for and on behalf of the Redevelopment Commission. In further old business, Mr. Nimtz asked Mr. Wiggins to prepare a reso ution regarding Mr. Keith Crighton's services in the Housing Bureau because he had certainly done yeoman work for the City. This reso ution was read into the business of the meeting by Mr. Wiggins: (RESOLUTION 548) "Whereas, many people express concern about the myriad problems of urban blight and decay and the social and economic impact upon the lives of people both individually and as a community and, Whereas, some people demonstrate their concern by personal involvement in the process of seeking solutions and, Whereas, a very few people are both willing and able to bring a degree of dedication and leadership that culminates in real measurable progress enriching the life of the community and, Whereas, it has been the good fortune of the South Bend Department of Redevelopment and the City generally to have enjoyed the services of such a man over a span of time in several leadership capacities. REDEVELOPMENT COMMISSION MEETING MINUTES NOVEMBER 1977 PAGE SIX 5. OLD USINESS (CONT'D) Now therefore be it resolved that the South Bend Redevelopment Commission do hereby highly commend Keith P. Crighton for meritorious service." Mr . Wiggins moved for adoption of this resolution (Resolution 548) seco ded by Mr. Robinson and carried unanimously. Furt er under old business, Mr. Brownell indicated that the prev ous discussion with the Commission about the burned pedestrian brid -e and the cost of repairing the bridge which the Park Department obtained at a cost of $2,125.00 was checked by Mr. McMahon of Engi eering and found to be a fair figure. In talking with the attorneys, Mr. Brownell indicated the only way this could be done was to contract with the contractor, Nautilus Construction Corporation, that the Park Department talked to and obtained the bid. Kevin Butler prepared an agreement for Commission approval. It is merely a matter of .repairing the wood burned on the bridge by vandals which will be done for $2,125.00. Mr. Wiggins.moved that Mr. Brownell proc ed with this contract supported by Mr. Donaldson. Mr. Nimtz adde that the president and secretary will be authorized to sign this contract. The motion carried. 6. NEW BUSINESS a) C mmission approval is requested of the following change order r quest from the Bureau of Housing North: 1� Change Order #1 Contract #3 to increase by $3,000.00 Mr. Davis indicated that the home at 1016 North Duey Street was initially inspected July 21, 1977 and since that time a serious and hazardous structural deficiency has occurred. The roof is presently in danger of collapsing caused by broken rafters in the roof. Enough pressure has been exerted to cause the south exterior wall to be pushed out of plumb. These conditions were not apparent at the time the home was initially inspected. This contract would be amended to include the total replacement of rafters, sheathing, roofing paper and asphalt shingles. Mr. Davis indicated further that they did not know what caused the roof to sag, that there were only two layers of roofing on the house, and the present roof rafters were two by four rafters and they would be replaced by two by fours and sixteens. Mr. Robinson indicated his strong feelings that he could not believe that in three months this much difference was caused in the condition of the roof and someone is just not doing their job. Mr. Wiggins expr ssed his concern that with a little snow weight that the whole roof may fall in Mr. Robinson asked Mr. DeLee if he was the new official permanently or on a temporary basis. Mr. DeLee indicated that the Bureau of Housing reports to him but presently there was not a director. Mr. DeLee added that it is true that this should have been seen before, but we have to deal with the situation now. Mr, Wiggins reluctantly made a motion for approval supported by Mr. Donaldson. Mr. Robinson asked of Mr. DeLee that since he was now involved did he plan on better coordination of inspections so that they improve. Mr. DeLee stated that Keith Crighton and he had dis- REDEVELOPMENT COMMISSION MEETING MINUTES NOVEMBER 4, 1977 PAGE SEVEN 6. NEW BUSINESS (CONT'D) cussed this very item and that more training and upgrading of the inspectors was a future goal. The motion carried unanimously. b) C mmission approval is requested of the following change orders r quested by the Bureau of Housing South: 11. Change Order #1 Contract No. CS -1 101 to increase by $50.00 Mr. ohnson indicated that this change order was for the replacement of a bathroom water closet collar. Mr. Robinson moved for approval supp rted by Mr. Wiggins and carried unanimously. 21. Change Order #3 Contract Set 3/10 to increase by $702.72 Mr. Johnson indicated that this change order was to repair water dame e to dining and living room ceilings caused by leakage from the second floor bathroom. The contractor would secure the present ceiling while installing new ceiling tile by screwing one by three furring strips to the second floor joist. When asked why not ,just plaster patching Mr. Schaller replied that in most cases it is just as e pensive to patch the plaster as it is to replace the ceiling. By removing the loose parts of the ceiling and screwing the furring stri s to the floor joist the remainder of the ceiling would be held inta t. Mr. Donaldson moved for approval supported by Mr. Robinson and 3arried unanimously. 3�Change Order #4 Contract Set 3/10 to increase by $523.00 and decrease by $173.00 for a total increase of $350.00. This change order will correct damage to the kitchen and rear hallway ceilings by a leak in the roof that had been corrected. Ceiling tile will be installed in each room by securing one by three furring strips into the joist. Mr. Wiggins moved for approval seconded by Mr. Donaldson and carried unanimously by the Commission. At t is time Mr. Nimtz read into the record of the meeting the foil wing letter from One Hundred Center Development Company as sign d by T. Brooks Brademas: "Dea Members of the Commission: I am taking this opportunity to shar with you my continuing concern that I know you share for the succ ssful renewal of our central area. Nothing is more critical to tie future health and welfare of our community of South Bend than a su cessful rebirth of the central area. I am hopeful that all of you ieard Secretary Patricia Roberts Harris' remarks when she was visi ing the city last week, in which she stated that one of the corn rstones of energy conservation is the revitalization of the central cities. She noted that there is where sewage, utility, and transportation facilities are more economically concentrated. She specifically stated that we will achieve this revitalization goal through new construction of low and moderate income housing in the REDEVELO MENT COMMISSION MEETING MINUTES NOVEMBER 4, 1977 PAGE EIGHT 6. NEW BUSINESS (CONT'D) central area. If the members of the Redevelopment Commission are as dedicated to the rebirth of the central area of South Bend as I believe they are, I call upon them to make a specific request to the City Council for the Council to support fully the city's Housing Assistance plan, which was previously adopted by the Council which states categorically that housing for the elderly under the Section 8 fe erally assistance program should be built in the downtown area, readily accessible to the amenities which are and will be developed there. As you may know, the city's Housing Assistance Plan specifi- callV calls for housing to be built in Census tracs 9, the central business district, and Census trac 18, which is immediately to the east of the central business district. As you may know,.I have proposed the development of a 206 unit senior citizens development near Howard Park and at the same time, an out of town developer has proposed the development of approximately the same number of units far emoved from the central area at Jackson and Miami. It is clear that there are not funds enough to provide for the construction of both of these projects. In view of the critical importance to the rebirth of the central area of the city of this housing, I am asking that the Redevelopment Commission go on record as requesting that the available funds for this housing be used as set forth in the city's Housing Assistance Plan and not diverted to an area far removed from the central business district. While I know you are aware that there has been a great deal of rhetoric on the steps that need to be taken to renew the central area of our community, the Redevelopment Commission by making a specific request to the City Council for action on their part to insure that this Section 8 Housing for the elderly will be developed in support of the renewal of the central area will be providing concrete evidence to all of the citizens of South Bend that the Redevelopment Commission is totally committed to this important task Sincerely 100 Center Development Company, Inc. (signed) T. Brooks Brademas General Partner" Mr. Nimtz added the letter was datO November 4, 1977 and asked the pleasure of the Commission. Afte lett juri were Ms. proj for hand indi aut h of a hous of t Mr. the of pi body discussion of the project areas Mr. Brademas discussed in his r, the Commission felt that this matter was out of their diction, that they support his feeling of downtown housing but willing to leave this for him to fight with his own competitor. erbeck indicated that in an interview with Brademas the Jackson ct housing could not go ahead without approval from the council oning, and that not enough HUD money exists to take care of ing all of the project. Further feelings by the Commission members ated that his request to us was one Where.t_ hey- _did;.not have-any real rity, the Commission could go on record by resolution in favor y and all development in the downtown area including that of ng as housing would be very supportive for the further development e downtown business district. llison commented that the housing assistance plan is a part of ity CD application, essentially HUD requires it as a statement licy by the City's chief executive officer and its governing regarding where a location is suitable for development. Our REDEVELO MENT COMMISSION MEETING MINUTES NOVEMBER 4, 1977 PAGE NIN 6. NEW BUSINESS (CONT'D) pla is` developed along two goals recognizing the need of peripheral dev lopments downtown. Consequently, two tracts were designated for elderly housing with a numerical goal of 211 units. We also rec gnize the need for the location of lower income people and so any development that would tend to do that then is consistent. We boil it down to this particular situation where two good deVE lopments are proposed and both are consistent with the housing system point. The city administration is not particularly promoting one or the other, in fact we talked to Mr. Brademas in detail about the possibility of tying in with Harbor homes where there was another zoning problem. The reason we talked to Mr. Brademas about that was because of his consistence with business of the deconcentration of lower income people and rearranging the choice of location of housing. Consistently the city has said we need more units available, we need more units for small and large families and we have said that particularly for the elderly we would prefer downtown location. However, we would not object to a development opportunity in the outlaying areas if it is a consistent deconcentrating housing idea. In a nut shell the City administration has pushed neither quietly with HUD or publicly for that matter. We have said to HUD that we don't object to either if either developer can clear the zoning hurdles and et HUD's approval. The hair will direct this letter be received and placed on file with no 4rther action necessary. 7. The next Commission meeting was announced to be November 18, 1977 at 1D:00 a.m. 8. There being no further business Mr. Donaldson moved for adjournment seco ded by Mr. Robinson and carried unanimously. The meeting adjo rned at 10:50 a.m. F. Ja z, President ell, Executive Dir.