HomeMy WebLinkAboutRM 01-20-78SOUTH BEND REDEVELOPMENT COMMISSION
County -City Building, Room 1200
227 West Jefferson Boulevard
South Bend, Indiana 46601
REGULAR MEETING
January 20, 1978
10:00 A. .
Presiding Officer: F. Jay Nimtz, President
1. ROLLI CALL
Commissioners: Mr. F. Jay Nimtz, President
Mr. Donald A. Wiggins, Vice Pres.
Mr. Robert J. Cira, Asst. Secretary
Mr. Lloyd E. Robinson, Sr., Member
Leaall Counsel:
Mr. Kevin J. Butler
News Media: Ms. Jeanne Derbeck, So. Bend Trib. Reporter
Mr. Dan Caesar, WSBT -TV Reporter
Mr. Larry Ford, WSJV Reporter
Mr. Scott Brink, WNDU Photographer
Others Present:
Comrunity Development Staff:
LPA (Staff:
Mr. John Kagel, Chamber of Commerce
Mr. James Harcus
Mr. John Davis
Mr. J. J. Johnson
Mr. Richard Pfeiffer
Mr. C. Wayne Brownell
Ms. Gertrude E. Barth
Mr. Marc Brammer
Ms. Jane Zimmerman
NOTE: Prior to the Call to Order, the Chair recognized Ms. Irene Gammon, City
Clerk, who administered the oath of office to Commissioners - designate
Cira and Wiggins, both of whom were absent when the other members of
the Commission were sworn on January 3, 1978.
Chair observed that this is the 13th term of office for Mr. Wiggins,
second for Mr. Cira.. and called the regular meeting to order.
2. APPROVAL OF MINUTES
On tion by Mr. Wiggins, seconded by Mr. Cira and carried, the Minutes
of the Regular Meeting of January 3rd as well as the Minutes of the
Organizational Meeting of the same date, were approved as mailed.
3. APPROVAL OF CLAIMS
On lnt otion by Mr. Wiggins, seconded by Mr. Cira and carried, claims in the
amo of $24,480.55 were allowed and ordered to be paid.
3. APPRpVAL OF CLAIMS
REDEVELOPMENT REVOLVING FUND
Payr
11: 1 -1 -78 to 1 -13 -78
$ 3,378.67
Busi
ess Communication Center
55.00
Kevii
J. Butler
200.00
Busi
ess Systems, Inc.
8.48
Busi
ess Systems, Inc.
15.78
Credit
Bureau of South Bend /Mishawaka
78.00
Dorothy
Z. Deane - Petty Cash
83.68
Gates
Chevrolet Corp.
19.99
Gates
Chevrolet Corp.
41.97
IBM
orporation
72.00
Penc
- Dickens & Heeter, Inc.
3.80
Post
aster
16.65
Sear;,
Roebuck & Co.
49.99
Souti
Bend Tribune
51.00
Xerox
Corporation
15.75
Natl.
Assn. of Housing & Redevelopment Officials
18.00
AmocD
Oil Company
52.97
Total
$ 4,161.73
PROJIECT
EXPENDITURES ACCOUNT, INDIANA R -66
Kevin J. Butler $ 817.80
Edward A..Chapleau 330.00
John Dobson & Company 855.00
O'Neal Trucking Company, Inc. 575.00
Redevelopment Revolving Fund 10,104.20
Dict
la phone Corporation 46.00
Total $ 12,728.00
312 LOANS
Barn s Electric $ 135.00
Depar,tment of Housing & Urban Development 4,150.00
Joe Ilaia Construction Company 1,132.00
R. A. Stickler 96.00
Henr Stewart 375.00
Plyw od Discount Center 1,422.82
Ray 3ockaj 280.00
Total $ 7,590.82
4. COMMUNICATIONS
a. fetter dated January 6, 1978, signed
Pricks on Odd Fellows Building wall.
GRAND TOTAL $ 24,480.55
( Julius O'Neal, Jr. re Loos(
r. Brownell explained that the proposal from Mr. O'Neal was for removal of
he loose concrete and bricks off the wall, for a price not to exceed
600. He (Brownell) asked Mr. O'Neal to go forward with the work and
t was done on January 7th - the bill is among the claims to be
pproved this morning.
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4. COMMONICATIONS, continued
Mr. obinson stated that he had seen the bill and took note of the amount,
"did O'Neal have the "not to exceed" figure before he gave you a price,
or was it based strictly on time and material "?
Mr. rownell stated that he asked O'Neal to give us a "not to exceed"
fig e which he did..that he had to hire someone with a "chair" truck to
reac the area or something like that.
The hair then asked Mr. Wiggins to stop by there and visually inspect
the �ite at his first opportunity.
b. etter dated Janua
i rected to Mr. Plc
18, 1978 from Clyde E. Williams and Associates
on, ` Dept of Public Works, re Plans and Drawings
or River Bend Plaza, micro
This letter was for information and file and accompanied the microfilmed
refe enced plans.
The Chair directed both of these letters to be received and placed on file.
5. OLD (BUSINESS
a. Contract for professional services, Real Estate Research Corporation.
The Chair indicated that this contract was discussed in the meeting of
Dece ber 16 - that the old contract had expired, or is expiring, and
that legal counsel was directed to work out a new contract. Mr. Butler
has done that and we have it here.
Mr. iggins inquired as to whether the terms are substantially the same
as in the old contract... and Mr. Butler stated that they are.
Mr. Brownell said that actually the top compensation has been reduced
by $10.00 per hour and some of the lower rates are increased somewhat.
Ther is a wider range now, they start at $15.00 per hour for staff.
Dan asked if the overall contract is going to cost more -or less -
than �aesar
the old one.
Mr. Brownell stated that there is no way we can answer that since we do
not know - nor can we project - the number of hours that will be put
in by various members of the staff.
Mr. Butler indicated that we have the contract price set at not to exceed
$10,000 for the coming year.
Mr. Caesar asked how much it was last year - Mr. Butler explained that we
entered into the contract in 1973, contract amount being $40,000..that a
total of $41,300 and some odd dollars was spent and we are ratifying the
excess payment.
Dan Caesar asked how much Redevelopment has paid to date to this firm.
Kevin Butler repeated the $41,300 figure and Dan asked if $10,000 is the
amount allotted for 1978.
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5. OLD �USINESS, Continued
Kevin Butler affirmed this but stated that there is no way of knowing
exactly what the Commission and Mr. Brownell are going to be asking of
this firm.
Mr. Wiggins pointed out that on the basis of $41,000 covering a four -year
span there surely can be no exceptions taken to the $10,000, as that
figu a comes out with simple arithmetic.
Moti n was made by Mr. Wiggins, seconded by Mr. Cira and carried for
appr val of contract with Real Estate Research Corporation in the amount
of $ 0,000.
b. Contract for professional services, S. M. Dix & Associdtes, Inc.
Mr. Brownell stated that along this same line we have a contract with S.
M. Dix which Mr. Butler has revised and approved - for your consideration
at this time. They cannot work at this moment because we are under a stay
but these are the people who appraise the movable fixtures, inspect the
buildings and determine relocation benefits -for this department - under
this contract. This contract covers such services for two groups of
busi esses, Group I is for five businesses, for a fee of $2,350. and Group
II i comprised of fourteen (14) businesses, for a fee of $7,650, or a
tota contract price of $10,000.
Mr. Brownell observed that S. M. Dix is the firm that performed these
relocation services for us the last time around ... and Mr. Wiggins noted
that we have used them for the last ten years, their work has always been
sati factory.
Ms. Derbeck asked for the total amount of this contract and was told that
it is $10,000 providing we use all of their services, that there are as
pointed out above, two groups of parcels.
The Chair asked Mr. Butler if the contract has his approval and was assured
that it does.
Mr. Wiggins moved for approval of this contract, with second by Mr. Robinson.
Motion carried unanimously.
c. Certificate of Completion, Whitcomb & Keller Building, revised.
You will recall, said Mr. Brownell, that we have issued a Certificate of
Completion for the Whitcomb & Keller Building itself but we did not include
the andscaping. The Commission previously approved the completion
certificate for the landscaping also but we did not then have the correct
lega description. The legal description has now been revised to include
the landscaping and we are asking you to approve this again.
Mr. iggins moved to approve the amended and corrected Certificate of Com-
plet on for the Whitcomb & Keller Building and surrounding landscaping,
moti n was seconded by Mr. Cira and carried.
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6. NEW (BUSINESS
a. C mmission approval requested for Change Order No. 1, Charles Brown
Flaintenance Co., Inc. 1047'Georgiana Avenue; additional charges
f r installation of ceiling rafters on the front orch, remove
aid reinstall sheathing and felt and -installation of asphalt shingles
n t addition to the contract of $745.00.
Mr. Brownell read Mr. Pfeifer's memo with recommendation for approval
of change order.
Mr. Robinson: I can understand that they could not see this at the
time of inspection but on Item B where it says "remove and reinstall
sheathing and felt" did they really use the same sheathing that was
on top of the rafters previously or did they put in new sheathing and
his is something of a typographical error? Mr. Davis said that the
contractor had used new sheathing and felt.
Motion was made by Mr. Robinson, seconded by Mr. Wiggins and carried,
to approve Change Order #1 to Contract 3,
b. Commission approval re uested for the following four change orders,
#1,2,3,4 to Contract Set 04A,'Charles Brown Maintenance Co., Inc.
qeneral Construction Contract, Rehab Contract*Bureau of Housing South.
ange Order #1, 437 S. Pulaski Street, deletion of repairs to front
d rear porches, and addition of replacement of front porch, replace
orm doors, rear steps, and floor joists, for a net increase in contract
ice of $727.
. Robinson said he can agree with some of this but he questioned why
two doors weren't noticed during the initial inspection. That
)uld have been rather obvious.
r. Johnson said that we could certainly assume so but the present
ituation is that the storm doors have to be replaced. We did call for
ome repairs on both storm doors originally.
Dan Caesar asked where you find such an expensive aluminum combination
sto door. Mr. Brownell stated that the $125.00 charge for the door
includes the labor for installation.
Mr. (Caesar: Is that the usual cost Mr. Robinson, to install an aluminum
stor door - which costs in the neighborhood of $30.00 wholesale at best?
Mr. Johnson: In our program it is, the combination of solid door and storm
door{ would cost between $250 and $300.
Dan Caesar asked Mr. Robinson if that is the usual cost and Mr. Robinson
said that for a normal storm door, it is just a little bit high. If there
was a door there and they are replacing one with the frame, I wouldn't
feel $125. would be too conservative a figure, but from what Mr. Johnson
just said, I presume they have to do work on the inside door as well.
S&M
6. (b) �ontinued-
Mr. Johnson: In this case it doesn't have anything to do with it but I
am just saying that when you have both doors, you realize that on the open
market you might be able to buy them a lot cheaper, but in our program
we have to pay these men $8.00 per hour and that is taken into consideration
too.
Dan aesar: An aluminum storm door wholesale would run $30.00 and that
come with the frame - how long does it take to install one? I myself
inst lled one in about half an hour.
Mr. rownell: I don't think you caught what he was telling you - we have
to p y a minimum wage which runs approximately $8.00 per hour, which is
a gr at deal more than you are paying in the open market.
Mr. obinson: Even so, like what Dan is saying Wayne, if he installed one
himself in half an hour and we realize we are talking about the possi-
bility of the structure itself being in worse condition than what Dan's
particular residence is in, he is saying that a $125.00 fee is excessive.
I would say its a little bit excessive Dan but I don't think its way out
unreasonable.
Mr. Caesar: Does it take ten hours to install that door?
Mr. Robinson: He's got to make his markup on the product, then he has to
take care of his overhead and insurance and all the other things the law
requires him to take care of - he has to make a margin of profit and the
cost of material, so we'll give him the benefit of the doubt and say it
took him a couple hours to hang it, it (the price) is not excessive.
Mr. Wiggins: You know, you are comparing doors without seeing either one
of them - you don't know that they can buy this door for $30.00.
Mr. Robinson: There are too many unknown factors Dan to give you a bonified
flat answer... every condition would be different.
Mr. Wiggins: They are not losing any money on this..
Mr. Robinson: Amen, they are not losing money I agree, but I wouldn't say
its way out there to an extreme either.
Motion was made by Mr. Wiggins, seconded by Mr. Cira and carried to approve
CO #l, as recommended by the Project Director.
c. The #2, 1342 Poland Street, deletion of ceiling tile repair, 1st floor,
addion of replace ceiling tile, bedroom #1, 1st floor, for a net increase
in contract price of $190.00.
Mr. iggins moved for approval of this change order as recommended by the
Project Director, Mr. Schaller, seconded by Mr. Robinson and carried.
d. CO #3, 605 S. Kaley Street, deletion of "replace lattice work, deck,
repair east and north foundations and replace and paint steps "; and the
addition of "replace front porch with concrete including concrete steps,
one corner post, two regular posts and one steel railing on steps, and
replace 20' steel railing on the front porch ", net increase of $400.00.
6.(d) Continued-
Mr. Wiggins noted that the overall change would make this a much better
job.
Mr. Robinson asked if this replacement of the foundation means a base-
ment wall and Mr. Johnson said that we are talking about the founda-
tion that supports the front porch - a cement block foundation.
My. Robinson: In other words, it (the porch) didn't have a proper footer
under it when they did it - Mr. Johnson said that was true and they are
now going to put a concrete porch in its place.
Mr. Wiggins moved for approval of the change order as outlined, motion
seconded by Mr. Robinson and carried.
e. C #4, 1345 Dunham Street, deletion of "renail porch ceiling" and add
(1) tear out old ceiling, front porch, replace with plywood; (2) tear
Out flooring in utility room and install support beam with 2 jacks,
install new subflooring with trap door; (3) install insulation in utility
r om (crawl space walls); and (4) build up wall in shower area of bath-
room (west wall) including ambitibi on both sides of wall ", for a total
n t increase in contract price of $1,290.00.
My. Robinson asked Mr. Johnson if he had done a spot check on some of
t ese things.
Mr. Johnson: If you are referring to this one -I viewed it personally.
Mrs. Wiggins: How did they miss it?
My. James Harcus: Actually, I wouldn't say they missed it. The house is
ir a very congested area with a lot of debris and the inspector had to
r move a lot of material while he was making the inspection in the back
of the house - because of these obstacles, the items were not initially
o served.
My. Cira asked if there was tile on the shower stall walls and why they
want to build up the walls.
My. Harcus: When you take a very close look at the bottom of the sheath -
i g, you will find a quarter inch space between the cement floor of
t e shower and the sheathing so that when someone takes a shower, water
accumulates in the basement. You would have had to go over every
s uare inch to have caught that (space) at the base. We are really
talking about a different type of dwelling than most of us have ever
s en in our lives and it is good that we have this program to go in and
r pair that area, the homes of these helpless people.
Dan Caesar: What is the cost of the wall board to be used and how many
pieces will they need?
Mr. Johnson: It will probably take two 4 x 8 sheets, one on each side of
t e wall and the wall will then be sealed, I don't know the cost per sheet.
D. Caesar: You don't know the cost of the wall board or how much the labor
will be?
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6.(d) COntinued-
M . Johnson: No, we no longer have a cost estimator that was cut out
o? our budget this year so we have to go along with what is normal
p actice for all other contractors combined. The general specifications
o the contract call for the contractor to use a median range wall board,
t at is what they should be using.
Mr. Caesar: It should be around $9.00 then, two pieces would be $18.00
p us $8.00 an hour to install it..
J Johnson: Plus whatever overhead he wants to add .. we have one of two
choices here, we can either reject the change order and have someone
e se come in and bid that especially, or we can allow this contractor
to go ahead with it.
Chair: The lesser of two evils..
Mr. Wiggins: But he also has to waterproof the whole thing there's
probably more labor involved in this than in normal wallboard installa-
t on.
Mr. Harcus: The issue is - we are not permitted - nor do we seek authority
for destructive inspection. Once the contractor begins service and re-
moves panels, one can really see what is behind the walls. If additional
is then observed we must continue our function to make these homes safe
a d respectable to live in.
Mr. Caesar stated he wished to see what the taxpayers are paying for..
Mr. Harcus pointed out that there is a long "run" on the walls being
repaired.
Mr. Robinson moved for approval of CO #4, seconded by Mr. Wiggins, and
carried.
f. D scussion and affirmation of the First Bank - Marriott Hotel Development
as pr000sed.
C Wayne Brownell stated that the news people have discussed this rather
t oroughly..the proposed development calls for a new bank building
0 132,000 sq. ft. gross, a 300 room Hotel Marriott, with some 700-
8 0 parking spaces, with the expectation that about 500 of these will
be underground; and a three story office building.
Chair: I think the next procedure is for Mr. Butler to work with the City
Administration and First Bank concerning the drafting of the contract
with the people from Texas, the Hines Company, relative to their acting
as construction managers and consulting architects on the project.
Mr. Brownell: I think there is one thing we have to consider also, and
that is the use of the parcels, namely 4 -31, 4 -32 and 4- l..Parcel 4 -1
is now designated for public parking and I believe we are going to have
to consider a land use plan change as we are going to need multiple
uses for this land in order to give the developer the flexibility to
6.(e) continued
de elop parking underground and commercial use above ground. This is
necessary so that we do not have to make a plan change each time they
change the development plans. If we can, we should get this into multiple
uses now. I discussed this on the telephone with Mr. Janotta and he
thought this might be a way to go so that we could start our plan
ch nge shortly and have it ready by the time we get to the architectural
dr wings and relevant plans.
Mr. Wiggins: As a matter of procedure, wouldn't it be appropriate for
this Commission to approve the concept that has been detailed and ex-
plained here and instruct our staff to cooperate fully in the implemen-
tation of it? There is also, I suppose, a role for our staff to play
in the preparation of the request for the $8,000,000 (UDAG grant) and
thalt sort of thing.
Ke in Butler: I think Community Development will do the lion's share on
th t - Mr. Ellison.
Mr. Brownell: I started with a letter that might go to Mr. Choice Edwards
at HUD - from this Commission - and scratched out some ideas .... and here
Mr. Brownell read the notes he had prepared for possible submission to
Ch ir: I agree Mr. Brownell but I believe that Don (Wiggins') suggestion
is appropriate - that we pass a resolution approving the concept of the
de elopment, a general resolution, does it include more than block 4?
Mr.l Brownell: It is within Block 4 but does not include all of Block 4.
Mr. Brownell then pointed out on the wall map the areas involved in the
pr jected development, including Mill Street which was vacated and added
to Block 4 in the replat.
Mr. Wiggins: The reason I suggested we do this is that we are getting
in olved in a new program that does not have all the ground rules laid
down yet - there will be a real need for flexibility and a need to move
ex editiously, because the line will be forming and we want to be at the
head of it.
Mr � Brownell: There will also probably be some overhead enclosed walkway,
po sibly over Washington Street, etc..
Mr.1 Wiggins: There is already access under St. Joe Street in that area.
Mr. Brownell: We'll probably have to keep that for vehicle use..but the
ov rhead walkway could connect with Century Center and across to this
of er plan we are working on.
Mr.
to
esi
Robinson: Wayne, in your conversation with HUD officials, in regard
this new UDAG grant program for inner core cities, is there any
imate of how many cities are applying for a grant?
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6(e) Continued
Mr. Brownell: I did not talk with HUD officials but there is an estimate
that there are quite a few applying out of those who are eligible. The
difficulty for many cities will be to get their application in by the
31st of January - which is a requirement for this round. The next round
happens in March and by that time, there will be more obstacles and more
rule5 to follow.
Mr. iggins: The other thing that makes it very important for us to get
in oi this early is that we are probably further down the road than many
of tie cities that might be applying - which should give us a giant lead
in ... we are ready to go.
Mr. rownell: I think there is another advantage, we have a good financial
rely ionship'with HUD, we have paid our notes, we have a closeout plan
that is workable—all these things will have a bearing.
Kevin Butler: I would just point out as a matter of caution, as a practical
matter, it certainly looks like this development is going to go on that
block but obviously we - the Commission - cannot lock ourselves in to
any particular development - the property is going to have to be bid.
Mr. Wiggins: I move that the Commission approve the concept of development
as proposed and detailed concerning the portion of Block 4 as announced
by First Bank & Trust Company, and that we instruct the staff to cooperate
with all departments of the City as well as with the First Bank staff to
expedite whatever work and requirements are necessary to move this along.
Motion was seconded by Mr. Cira and carried unanimously.
Mr. John Kagel: Mr. President, is this particular subject coming up for
public hearing by the City Council Monday night, this UDAG thing?
Chair: Yes, it is.
7. Progress Reports
There were no progress reports.
8. Next Meeting
The next Commission Meeting will be held Friday, February 3rd, 1978 at
10: CO A.M.
9. Adjournment
Mr. Wiggins moved for adjournment at 10:50 A.M., motion seconded by Mr..
Cir and carried.
z, Fresident U. wvw w ownei i, txecutive uir.
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