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HomeMy WebLinkAboutRM 03-03-781. ROLL CALL Commi$sioners: Legal News 1 Counsel: Guest: SOUTH BEND REDEVELOPMENT COMMISSION County -City Building Room 1200 227 West Jefferson Boulevard South Bend, Indiana 46601 COMMISSIONER'S REGULAR MEETING Friday, March 3, 1978 10:00 A. M. PRESIDING OFFICER: Donald A. Wiggins, Vice President Donald A. Wiggins, Vice President A. Peter Donaldson, Secretary Lloyd Robinson, Sr., Member Kevin J. Butler ia: Lester Howard, Photographer, WNDU -TV Dave Anderson, Reporter, WNDU -TV Ms. Jeanne Derbeck, South Bend Tribune Reporter Larry Ford, Reporter, WSJV -TV Mike Newman, Photographer, WSJV -TV Commu ity Development Sta f: Edward F. Soltesz Beverly Fisher Kathy Baumgartner Ken Schaller Richard Pfeiffer James Harcus LPA Staff: C. Wayne Brownell Marc Brammer Mrs. Gertrude E. Barth Mrs. Jane A. Zimmerman 2. APPROVAL OF MINUTES On mo ion by Mr. Donaldson, seconded by Mr. Robinson and carried, the Minutes of th Regular Meeting of February 17, 1978, were approved as mailed. 3. APPROVAL OF CLAIMS On moltion by Mr. Robinson, seconded by Mr. Donaldson and carried, the claims were pproved as submitted, and were allowed and ordered to be paid -- totalling $21,552.98. The authorized claims are: Redevelop *nt Commission Meeting Friday, M rch 3, 1978 3. APPRO AL OF CLAIMS (CONT'D) REDEVELOPMENT REVOLVING FUND Payroll: 2 -11 -78 to 2 -24 -78 India a Bell Telephone Company P.E.A. IND. R-66 Ralph D. Lauver Redevelopment Revolving Fund James E. Childs & Associates, Inc. 312 LOANS Circle Lumber Company I & M Electric Heating Ray B ckaj Tom FM Home Improvement Co. TOTAL $ 2,998.28 143.96 $ 3,142.24 $ 9,500.00 6,286.51 195.00 TOTAL $15,981.51 TOTAL REDEV LOPMENT DISTRICT CAPITAL Abstract Company of St. Joseph County, Inc. Curly 's Sales and Service URBAN REDEVELOPMENT FUND Redevelopment Revolving Fund TOTAL $ 252.73 149.40 300.00 700.00 $ 1,402.13 $ 57.50 147.65 $ 205.15 $ 821.95 TOTAL $ 821.95 GRAND TOTAL -2- $21,552.98 4. COMMUNICATIONS Thede were no communications. 5. OLD BUSINESS a. C. Wayne Brownell: We received a letter from S. M. Dix Associates, Inc., directed to me, dated February 15, 1978, concerning the Indiana Bell Telephone Company relocation claim. This letter was presented at the last meeting of the Commission and we were directed by the Chair to bring it up at this meeting. Mr. Butler has a copy of this letter for further stu y... since the last meeting Mr. Banta, Vice President of S. M. Dix has been here and I spent some time with him discussing, among other things, this relocation claim of Indiana Bell. Mr. Banta indicated that he is continuing to work on this claim since there was a portion of the claim that was not documented. If it were documented, it might be a proper claim- though in our opinion, it is doubtful that it can be documented by the Telephone Company. It is my suggestion that we put this item over to/the nekt.meeting at which time I will bring you what information may have developed by that time. Mr. Wiggins: Are you all in agreement with this request? By consent then we will Mr. Brownell's suggestion and put this item over to the next Commission meeting. 6. NEW (BUSINESS a. ommission consideration of a pro f land and the execution of quit title thereto, in connection with aSalle Park Project, Indiana R -5 osed resolution for the Disposition claim deeds for the transfer o land to be disposed of in the esolution #549 was drawn for the purpose of authorizing the sale f Parcels No. 12 -8 and 12 -9, to Myrtle Baker for $720.00, in the aSalle Park area, which is a part of Indiana Project R -57, which as been closed out. We are still selling the land at appraised rices. Mr. Brammer negotiated this sale with $72.00 paid down and he balance due upon delivery of the deed. Mr. iggins: Is this property adjacent to that they (Ms. Baker) now owns. Mr. rammer: This property is south of Ms. Baker's property - vacant land actually which she is buying for garden space. It is buildable land, therefore it sells for about $,05 a square foot. Moti n was made by Mr. Robinson to approve Resolution #549 for the dis- posft,ion of land, Parcels No. 12 -8 and 12 -9 of LaSalle Park Project Indi na R -57, for $720.00, to Ms. Myrtle Baker. Motion was seconded by M% Donaldson and carried. Mr. Prownell noted at this point that there are some typographical - 3 - 6. NEWIBUSINESS, Continued- errors in the agenda: the address of the Telephone Company should read "202 S. Main Street ". Also the Harry Thompson 312 Loan was approved at an Earlier meeting (February 3, 1978), therefore no action is necessary at this time. We ave a complete 312 Loan packet for Walter Mikolajewski, whose loan application was approved and signed at the Commission meeting of October 7, 1977. The first application was lost by the HUD office however and we are therefore obliged to submit a second application with supporting paperwork. Mr. Brownell wished to call this matter to the attention of the Commission, but it is an exact duplicate of the original with the exc ption of the date.and we wish to know whether we need another approval. Mr. Harcus has signed this application. It was the concensus of the Commission that a second approval was not nec scary. b. Commission approval requested for Section 312 Loan Application for: Ms. Sandra Desits 802 W. Calvert $3,550.00 18 /SOU- 2/21/1- 76 -77 -78 The address for Ms. Desits is listed as "North" Calvert on the agenda. Mr. /Ms. Robert (and Beatrice) Taylor 1528 S. Kemble Street $4,200.00 18 /SOU- 2/22/1- 76 -77 -78 This address should read " Kemble" Street instead of " Remble" Street. James Harcus: If any member of the Commission wishes to raise any inquiries on these two applicants, Kathy Baumgartner is here, our Project Director in charge of 312 Loans. Mr. Brownell: I have a question about the amount on the Taylor appli- cation, our agenda shows $4,200.00 for the amount, the letter shows $4,350.00. Which is correct? Kathy Baumgartner: The amount is $4,350.00..what happened is that a contractor cancelled his bid on a particular item in the contract and we had to find another contractor, as a result there was an increase in the contract price..it should read "$4,350.00 ". Mr. Brownell: The letter reads 13,543.00 ", is that correct for the Desits application? Kathy B.: No, that should be $3,550.00. Mr. Brownell: You will correct these letters then before I sign the loan applications? Kathy B.: Yes, of course. 6. NEWIBUSINESS, Continued Wi ap se c. i provision for correction of noted errors, Mr. Donaldson moved for oval of the 312 Loan Applications as set forth above. Motion was )nded by Mr. Robinson and carried. Request for Commission approval of Change Order #1 to Contract SECD /PR /CS -8/61, with B. W. Electric Company, coverinq rehab work r Vo_Yd'L. Tidwell at 1219 S. High Street. This Change Order covers additions of $547.00 to install 9' of base cabinets and 9' of formica counter top; replace Rams Horn in the basement; and replace exterior water line, for $40.00 and $60.00 respectively. The additions total $647.00 The deletions under this Change Order are: a. replace 42" sink base and b. install 42" counter top and backsplash, for $171.00 and $85.00 respectively, or a total of $256.00. This Change Order resulted in a net increase of contract price of $391.00. Mr. Wiggins: I have a question - I note that the form of the change ord ihree r has been changed and that the last page of the form has a series of conditions (as follows): a. The aforementioned change(s) and the work affected thereby, are subject to all contract stipulations and covenants; b. The rights of the Local Public Agency are not prejudiced, and c. All claims against the Local Public Agency which are incidental to or as a consequence of the aforementioned change(s) are satis- fied. Mr. Schaller: Those three (conditions) are in the same language we have use in the past. Mr.lWiggins: They are the same? Ken�Schaller: Yes, the only change that was made is that the form was red ne and the name of Keith Crighton was changed to James Harcus. Mr. Robinson: We have never seen the form typed this way before, thats why it is questionable. Mr. Schaller: A similar form has been turned in with every change order, Mr. Robinson. There has been no change in verbage on the Change Order form. The only change that was made was to change the name of the Director of the Bureau of Housing from Mr. Crighton to Mr. Harcus. That made it necessary to retype the form. Mr. Brownell: As retyped it does look entirely different but it has the same language. - 5 - 6. NEWIBUSINESS, Continued- Mr. Wiggins: This is just a case of typing, the form came up in a little different format so it looks different but the wording is the same. Mr. Brownell then read the memo from Mr. Richard Pfeiffer for recommen- dation for approval of this Change Order. Motion was made by Mr. Donaldson, seconded by Mr. Robinson and carried for the approval of Change Order No. l to Rehab Contract SECD2 /PR /CS -8/61. ThelChair recognized Mr. Robinson who made the following statement. I an not sure if this is in the realm of our jurisdiction but it was bro ght to my attention this past week that when the Redevelopment Dep rtment and /or Bureau of Housing award contracts, they are supposed to hav an established wage rate and this past year we went through quite a ses ion with Mr. Harcus' predecessor when he wanted to lower the wage sca e in this town..and at that time we unanimously agreed that the wage sca a would remain as is so that everyone would get a fair and equitable wage. This week I was made aware of the fact that for one particular cra t, the wage rate is lower than it is supposed to be for the prevailing-! rate, so I want to know, if I would make a motion, could we get the rate the are using now to see if they need to be updated or whatever, so the wor men or mechanics on the job are receiving the proper wage. Mr. Brownell: I should think we could get that by simple request, can't we r. Harcus? Mr. Harcus: I would think so, we can bring in the package and give you copies from them, also we are in contact with HUD since you have notified us I and we will find out what their position is on the prevailing wage rate in South Bend. Mr. Brownell: We talked about this before the meeting, normally when the wage rates are changed they are published and we can get them out of the reg ster. In the past I went to Frank Alford for this, now Anita is here and I would assume that she can help you. Mr. Harcus: I sought recourse through Wayne on this and from Wayne's counsel, 1 am going to the Federal Register that is upstairs on the 14th floor and research it myself. I am also calling Eleanor Granger in Indian - apo is HUD office, so that we can apply the prevailing wage rates as they app 'y in South Bend. Mr. Brownell: I think it is just a matter that they weren't aware that the a was a change and if there is one in the register, they certainly wil pick it up. Mr. Mr. Mr. reg, Robinson: OK, then we will have those wage rates at the next meeting? Brownell: You will have them before the next meeting, how soon Jim? Harcus: As soon as Eleanor responds and I am able to find this in the ster, I will work it through as expeditiously as I can. 6. NEW BUSINESS, Continued - Mr. Brownell: If you will bring it to me, I will call Robbie and tell him it is available. The Chair requested that Mr. Brownell take care of the matter and report back at the next meeting. 7. PROGRESS REPORTS Mr. Brownell: I have no written reports but I wished to mention that after I was advised by our attorneys that there is no stay order in effect, at the time the court turned down this last motion, I called S. M. Dix in Gra d Rapids and asked Mr. Banta to come to South Bend and start his fixture appraisals. He has been working on them yesterday and today, getting some of the buildings downtown, talking with the people who are occ pying them, looking at the fixtures and determining what fixtures there are that are affixed to the real estate and also taking a look at the places for relocation benefits at the same time. He will go back to Gra d Rapids tonite (March 3) and then hopefully next week we will have eit er Mr. Banta or Mr. Berry back to continue this work. Mr. Dave Anderson: I have two questions, first, have the land appraisals beer completed and .... Mr. Brownell: No, they're not. Mr. Butler: They had gotten pretty far along before the stay order but the3 must now be finished. Mr. Anderson: The fixture and land appraisals are an ongoing process now until they are finished, when do you believe they will be done? Mr. Brownell: I would think within the next 60 to 90 days. Mr. Anderson: My second question, one that Mr. Chapleau could not really answer to my satisfaction and that is: this case is going downstate and whether it goes to the Appellate or Supreme Court, it is dependent upon whether or not the Redevelopment Department is granted a speedy hearing. However, Mr. Chapleau believes that there will be no condemnation suits or cemolition, prior to the appellate ruling, is that correct? Mr. Brownell: If he told you that, it is true because he's the attorney and we are being advised by him. We don't decide those things ourselves. The are decided by the counsel. Mr. Butler: I haven't discussed it with Ed yet but that, of course, is a decision that will have to be made..how far we are going to go.. Mr. Anderson: So there is a possibility that condemnation suits could be fil d prior to the appellate ruling? Mr.lButler: As a legal matter, yes. Jeanne Derbeck: Even if there is a stay? - 7 - 7. PRO9RESS REPORTS, Continued- Mr.lButler: No, not if there is a stay. Ms. Derbeck: Would you anticipate having to condemn many of the buildings? You won't have a condemnation suit unless the owner is not willing to sell at your (offering) price, isn't that right? As long as they are willing to see, you don't need to get into a condemnation suit. So as it looks now, are you anticipating any condemnations? Mr. Brownell: I don't think so. Mr. Butler: We haven't really had any contact with the owners and until we o that, we won't know. First of all, we have to have the appraisals, we have to know what figures the appraisers come up with before we can talk to the owners about price and price has always been a problem in any project area where the Department has proceeded with acquisition. Some of 1hese property owners feel the appraisal figures we obtain are not sufficient to compensate and are unwilling to enter into a simple agree- ment to sell, therefore it is necessary then to file the condemnation action, basically to let the court determine what the damages, or the value of the property actually is. Ms. Derbeck: Outside of what Ms. Hawley and Ms. Berg are doing, your purchases condemnation suits, etc. are with the owner(s) of the building, but the merchant tenants (Ms. Berg and Ms. Hawley are examples) if they do not care for your relocation price, or if they don't want to take it, I suppose court suits can arise from that. Do they have anything to say - is there any legal action they can take? Mr. Butler: Yes, I think the action taken in the case of the Philadelphia Restaurant is an example. Ms. Derbeck: Yes they had a suit regarding the price..but you still had legal right to make them get out..since the owner had sold the building, right? Mr. Butler: Yes. They can contest it, it does not automatically stop it. Ms. Derbeck: When you say the land appraisals are not complete, exclusive of fixtures are the appraisals of land complete except for Ms. Berg and Ms. Hawley? Mr. Brownell: No. Mr. Butler: I think Jeanne as we had indicated, they are pretty far along with the process but now Wayne has told them they can conclude that. Mr. Brownell: Some of the parcels in this plan change are not involved in the project - as you call it - you refer to the project on Michigan Street as "the Project ",,,for example, the Wyman property which is vacant land is in our plan change but not really part of that project. Ms, Derbeck: So you don't have to worry about it, are you having it appraised? Mr. Prownell: Yes, that parcel has to be appraised. In addition, after 7. PROGRESS REPORTS, Continued you have land appraised by two competent appraisers, you then have a re- view appraiser come in and review the work of the other two and see if they are accurate. The Review Appraiser corrects anything that needs to be corrected and as a result of his work, we then bring the matter to the Commission and they determine a price. The appraisers arrive at in- dependent figures - then the reviewing appraiser reviews all the work and recommends a selling price. Ms. Derbeck: This stay order is not in effect now, but it did also stay you from appraising such property as, say Wyman's, and other things which wer not going to be torn down? Mr. Brownell: Its very difficult to answer that question because so far as I am concerned a stay order was never written, I have never seen it.. I don't know what it says, the court simply says I will stay... Ms. Derbeck: Do you feel that it restricted you? Mr. Brownell: We didn't take any chances on violating the Judge's order, when he said "stay ", we stayed. That's the way it is..the only thing that was mentioned that was a violation that they mentioned was that a committee was set up by the city to select an architect. I don't think anything els has been charged as a violation of any kind. Ms. Derbeck: Have the appraisers been able to get into Ms. Berg's and Ms. Haw ey's? Mr. Brownell: Yes, both appraisers got in, they wouldn't let them go through the place but they did get inside. Mr. Anderson: I may be beating a dead horse but are you back on any kind of lime table? Mr. Brownell: At the present moment, we are 30 to 45 days behind our original sch dule. Mr. Anderson: It is not serious - or fatal to the project? Mr. Butler: Not fatal but we were operating within a very close time frame anyway and this simply makes it that much tighter. Lary Ford: Since you are operating under a tight time table, are you at liberty to disclose how much delay you have suffered? Mr. Butler: Basically, we have a deadline of April of 1979 to have the pro erty available and there are about 25 steps within the process as set up in the time table—there is not much leeway at all and it's much tighter thar any other project in the past. Ms. Derbeck: At the moment you are not under a stay and are going ahead wit the appraising..you say that would take another 30 - 60 days? Mr. Brownell: No, I said that it could take up to 90 days, that of course is an estimate. 7. PROGRESS REPORTS, Continued - - I Ms. Derbeck: Then the next step would be to - after you have set a price - to o and offer.. Mr. Brownell: I can't answer that at this moment Jeanne, again you are in he legal side where I have to ask the attorneys when we can proceed. Mr. Ms. Butler: That would be the next step. Derbeck: Supposing there is no stay in effect? Mr. Butler: Well, that is the next step in the process, I guess we are goi g to have to decide when we get to that point whether we are going to roceed to negotiate. Ms. Derbeck: By April of 1979 - you have to own the property, you don't hav to have the buildings demolished then? Mr.lBrownell: ..and submit it for bids. Ms. Derbeck: But you do not have to have it torn down? You have not de- cid d yet I suppose - if there is no stay on the action - but the appeal is rroceeding, I suppose then you would go ahead with pricing but would you go ahead with purchases? Mr. Butler: That is what we have not yet answered - or decided. Ms. Derbeck: Do you have a rough estimate of what the appraisals will cos ..the amount you will have to pay, the appraisers' fees that would be lost if.. Mr. Brownell: There's $12,000 in fees for each of the two appraisers, S.M. Dix contract is for $10,000 and we will have to pay the reviewing appraiser also. Ms. Derbeck: That's already $34,000 plus the reviewing appraiser. Mr. Brownell: The reviewing appraiser will be paid in the neighborhood of $100 per parcel, that would be about $2,000. Ms. Derbeck: Then we are talking about over $35,000 in appraisers' fees that would be down the tubes if... Mr. Brownell: I suppose that would be true in one sense, however we would use those same appraisals for the new resolution. Ms. Derbeck: When are you going ;:to have that new resolution? Mr. Brownell: Whenever we have to. Mr. Derbeck: You don't think we need it now? Mr. iggins: In effect, what he is saying is that if this project fails and another project comes along, we have the whole thing to do over again. We are not about to give up on South Bend, are you? mm 7. PROGRESS REPORTS, Continued- Ms.IDerbeck: No.. Mr. Butler: That was the argument with respect to our request for bond, the e certainly is monetary damages in the event this project fails. Ms :4erbeck: As far as the historic preservation thing with the Odd Fellows Bui ding, that still looks pretty settled, you aren't worried about that? Mr. Brownell: I can't answer "'yes'" to your question. The historic preser- vat on has been through the state level and we have a very good, pleasant rep rt back to the city, the federal step is still ahead of us. Ms. Mr. Mr. Ms. That Mr. for Ms. Mr. Mr. run Mr. appr appr Derbeck: Well, they quite likely will go along.. Brownell: I hope you are right. Wiggins: Any further comments from the press or the public? Derbeck: Since Attorney.Woods has asked for the praecipe of transcript. 's the first step in going ahead isn't it? Brownell: I am not aware that any praecipe has been filed or request transcript. Derbeck: He has a deadline to file doesn't he? Brownell: There is a deadline, but. Butler: And I am sure that they will wait until those last days, they will this thing out..I don't know the dates on it Jeanne, but it is approaching. Brownell: I have been having some conversation with possible reviewing - aisers and I would like to be authorized to negotiate with a reviewing �aiser, if that is satisfactory to the Commission. Mr. Butler: This should be in the form of a motion—not for finalizing the con ract but simply on negotiating, then the contract will come back to you (the Commission) for approval. Mr. Wiggins: In view of the discussion we have just had, it would appear we be as expeditious as possible. Motion was made by Mr. Donaldson, seconded by Mr. Robinson and carried, to aut orize Mr. Brownell to negotiate with a reviewing appraiser and prepare a c ntract for services to be presented to the Commission for approval. 8. NEXT MEETING The next Commission Meeting will be held on Friday, March 17, 1978, at 10:40 A.M. - 11 - 9. ADJOURNMENT The meeting was adjourned at 10:41 A,M. z, Nres -12-