Loading...
HomeMy WebLinkAboutRM 03-17-78SOUTH BEND REDEVELOPMENT COMMISSION County -City Building Room 1200 227 West Jefferson Boulevard South Bend, Indiana 46601 COMMISSIONER'S REGULAR MEETING Friday, March 17, 1978 10:00 A. M. PRESIDING OFFICER: F. Jay Nimtz, President 1. ROLL GALL Commissioners: F. Jay Nimtz, President Donald A. Wiggins, Vice President A. Peter Donaldson, Secretary Lloyd Robinson, Sr., Member LegallCounsel: News Media: Guest §: Commu ity Development Stiff: LPA Staff: 2. APPROVAL OF MINUTES Kevin J. Butler Edward A. Chapleau Dave Anderson, Reporter, WNDU -TV John Strauss, Reporter, WNDU -TV Les Howard, Photographer, WNDU -TV Jeanne Derbeck, Reporter, South Bend Tribune Dan Caesar, Reporter, WSBT -TV Steve Neher, Photographer, WSBT -TV Larry Ford, Reporter, WSJV -TV Mike Newman, Photographer, WSJV -TV T. Brooks Brademas John Kagel Edward F. Soltesz Douglas Kline Anita L. Fields James M. Harcus Kenneth Schaller C. Wayne Brownell Jane A. Zimmerman On mo ion by Mr. Wiggins, seconded by Mr. Donaldson and carried, the Minutes of th Regular Meeting of March 3, 1978, were approved as mailed. COMMISSIONER'S REGULAR MEETING Friday, March 17, 1978 3. APPROVAL OF CLAIMS On motion by Mr. Wiggins, seconded by Mr. Robinson and carried, the claims were approved as submitted, and were allowed and ordered to be paid, totalling $18,519.83. The authorized claims are: REDEVELOPMENT REVOLVING FUND Payroll: 2 -25 -78 to 3 -10 -78 The Bobbs Merrill Company, Inc. Kevin J. Butler Business System, Inc. Business System, Inc. Comet Car Wash Credit Bureau of South Bend- Mishawaka I.B.M. Corporation The Kiplinger Washington Editors, Inc. Muszynski Insurance Agency, Inc. Postmaster Xerox Corporation Smith Petroleum Co. Secretary of State TOTAL raffiN • 1 Kevin J. Butler Edward A. Chapleau Redevelopment Revolving Fund Barton- Aschman Associates, Inc. TOTAL 312 Abstract Company of St. Joseph County, Inc. Abstract Company of St. Joseph County, Inc. Hubert L. Weaver Harrell Teer TOTAL GRAND TOTAL -2- $ 3,173.78 31.05 200.00 26.25 24.51 3.50 7.00 232.80 42.00 20.00 25.84 49.05 128.63 ,„ $ 3,974.41 $ 1,017.30 200.00 7,708.87 4,950.00 $13,876.17 $ 76.00 150.00 200.00 243.25 $ 669.25 $18,519.83 COMP Fri( 4. 5. a IISSI NER'S REGULAR MEETING lay, March 17, 1978 COMMUNICATIONS Letter, from Mr. Choice Edwards, Acting Area Director, Department of a. Housing & Urban Development, Indianapolis, Indiana, dated March 16, 1978, to Mayor Peter J Nemeth, a co of which was sent to Mr. C. Wayne Brownell Executive Director of'Redevelopment and to Mr. Carl Ellison, Director of Community Development. It is a follow -up letter on an acquisition monitoring visit made by Ms. Jacqueline Schmidt and Mr. Forrest Jones. Mr. Brownell read the letter, and the Chair directed that it be received and placed on file. OLD BUSINESS Letter, from S. M. Dix Associates, Inc., to C. Wayne Brownell, Executive a. Director, dated February 15, 1978, Re: Relocation Claim Review, Indiana Bell Telephone Company, 307 S. Main Street, South Bend, Indiana 46624. Mr. Brownell: They are still working on it. There is no change to report, because they still have $23,000, which has not been documented et. The chair then directed that the letter be received and placed on file. b. Inter-Office Memo, from Department of Redevelopment, Mr. C. Wayne Brownell, to James R. Seitz, Superintendent, Department of Public 'Parks, Re: Lease - is osition Parcel 6 -2 - Department of Redevelopment to the City of South end Park Department, with attached subject lease and money order. Ir. Brownell: The proposed lease was approved, signed, and returned, and e have it before the Commission today for signature. It is a one dollar year lease for three years. Motion was made by Mr. Robinson to have the proposed lease approved and to have the President and Secretary enter into this lease with the Park Department, seconded by Mr. Wiggins, and carried. NEW BUSINESS approval of bids for contract award, subject to South Bend a. Commission Common Council approval and legal counsel review was requested for the o11owing: Belleville Electric & Heating Company $14,266.75 Mr. Robinson moved the approval of the Belleville Electric & Heating Company bid, subject to Common Council approval and legal counsel review, seconded by Mr. Wiggins and carried. -3- COMMISSIONER'S REGULAR MEETING Friday, arch 17, 1978 6. NEW OUSINESS (CONTINUED) a. ommission approval of bids for contract award, subject to South Bend ommon Council approval and legal counsel review was requested for the 0llowing• om Ford Home Improvement Company $46,366.60 t was noted by Mr. Brownell that although Newbill Construction was he lowest bidder, they were not recommended to receive the bid because hey did not file the required bond as set forth in paragraph 6a of the nstructions to Bidders, therefore, it was recommended that the contract e awarded to Tom Ford Home Improvement Company, the next lowest bidder. r. Robinson moved the approval of the Tom Ford Home Improvement Company id, subject to Common Council approval and legal counsel review, seconded y Mr. Wiggins and carried. b. bequest for Commission approval on the following Rehabilitation Grant: 1637 South Grant Street $5,000.00 RENEW, INC. r. Brownell read the application and mentioned that it was recommended y the Bureau of Housing, South Advisory Committee. Mr. Brownell asked r. Kenneth Schaller if the cost for doing the job was more than $5,000.00, ut RENEW, INC. has agreed to take care of the overage. Mr. Schaller eplied that this was true. r. Nimtz: Don, are you keeping any contacts with RENEW, INC. or not? r. Wiggins: I am basically familiar with the program. This is, I feel, real good community effort, and I feel this is the sort of thing that e ought to foster all we can. It gets a lot of people in the neighbor - ood into the act, which has a lot to do in helping stability. r. Donaldson: Who is RENEW, INC., I am not familiar with the name? r. Wiggins: RENEW, INC. is a church operated group. The group will get number of volunteers to do a lot of the work. r. Brownell: We put the $5,000.00 into a joint bank account. The account s joint between RENEW, INC., and the Bureau of Housing. The money out of hat account is withdrawn to pay for the work, and the materials primarily. ccasionally, they have to contract a part of it, but most of the time, the ork is done by themselves. -4- COMMISSIER'S REGULAR MEETING Friday, rch 17, 1978 6. NEW BUSINESS b. (CONTINUED) Mr. Wiggins: I will carry this a step further. The house, after it becomes renewed, is then awarded on a no- profit basis to a family who is selected and agrees to maintain it. In many cases this family will help finish the work involved, or at least a part of it. This type of thing not only renews buildings, it tends to renew neighborhoods. There is a hidden blessing here that I think is quite important. Mr. onaldson: Where is RENEW, INC, located, only in certain neighborhoods? Mr. Wiggins: No, a part of this organization is out of Broadway Christian Parish, and in the northwest group, Holy Cross is involved. It is basically church sponsored with some oversight in it. Mr. donaldson: Then, it is a general effort of the churches? Mr. Wiggins: Yes, that is correct. Mr. ave:Anderson: Is this the first time Redevelopment has gotten involved with RENEW, INC.? Mr. Wiggins: No, we have supported the program for the last three or four years at least, and it has been to my knowledge, at least ten or twelve times. Mr. Robinson: I understand that RENEW, INC. is trying to help itself, and that they get the parishoners or others to help out on a volunteer basis; but Mr. Wiggins said the magic word ..... that sometimes they do have to hire someone to have the work done. Do they have the same provisions within this loan set up whereby the wages have been established, and that is what the empl yer must pay the employees? Mr. Wiggins: That, I cannot tell you. Mr. rownell: The question is ....... When RENEW has to hire a contractor, because they don't have people with the expertise, are those contractors paying the regular wages that are set for this area? Mr. Schaller: I can't answer that, I really don't know. Mr. Wiggins: Well certainly we can inquire with RENEW, INC. and have an answ r for you at the next meeting. Mr. Robinson: Shouldn't we delay this then until we get an answer? Mr. iggins: I don't believe there is any question about that. It is prob bly easier if we were to make that a stipulation. Mr. gobinson: If that is the stipulation, then I will agree. -5- COMMISSIONER'S REGULAR MEETING Friday, arch 17, 1978 6. NEW OUSINESS b. CONTINUED) Mr. liiggins: We will stipulate that when contractors are engaged, a pre- vaing wage must be paid. Mr. arcus: RENEW, INC. operates under a contract specifically with Sout Bend, and I don't know if the prevailing contract has any reference to wage scales to subsidize some of the workers for a short period of time. Any dela3 of stipulation of that nature may delay the awarding of this contract for a considerable period of time until we review the whole contract that exists. In o her words, you are not giving us a week's delay, it will be longer than that Mr. iggins: I believe that as a matter of principle, RENEW, INC., or any othe s would have to conform to the requirements of this Commission if we are furnishing them the money, wouldn't they? Mr. Nimtz: Yes. Mr. arcus: I am only mentioning this, because the task has to be completed very rapidly. To require a change in the contract may delay the awarding of this contract for some time. Mr. Robinson: We can't be speaking out of both sides of our mouth. We have to establish a priority or direction to go, and we have to maintain that. We can't just jump all over the ballpark, or we will never get anything accomplished. Mr. Harcus: No problem Mr. Robinson, just advise us. Mr. imtz: The question is that... on the passing of the resolution as amended, that any contract labor that is done, must be at the prevailing wage rate. Mr. Wiggins moved for approval of the rehabilitation grant to RENEW, INC., with the stipulation that on the passing of any rehabilitation grant, if there is any contract work to be done, there must be a prevailing wage rate, seconded by Mr. Robinson, and it was carried. c. osed agreement with Mr. Ralph C. Michaels, M.A.I. S.R.E.A., of h Bend, Indiana, to act as reviewing appraiser, of the acquisition aisals made by Mr. Ralph Lauver, and Mr. Ronald Gettel. COMMISSIPNER'S REGULAR MEETING Friday, March 17, 1978 6. NEW $USINESS C. (CONTINUED) Mr.' Brownell: The proposed contract provides for work to be done within thirty days, and to be billed at $2,100.00 to review the appraisals that have been made. There are thirty such reports; fifteen from each appraiser. Mr. imtz: Mr. Butler, is this a HUD requirement? Mr. Butler: Yes, this is a HUD requirement. Mr. Wiggins moved approval of the proposed agreement with Mr. Ralph C. Michaels to act as reviewing appraiser, seconded by Mr. Donaldson, and it was carr -ied. 7. PROGRESS REPORTS Thero were no progress reports at this time. FLOOR DISCUSSIONS e Chair at this time, recognized Mr. T. Brooks Brademas: Mr. rademas: I will try to be as brief as possible, but what I would like to s are with you this morning will require a little time to explain and you may Vave some questions. As an architectural designer I am unable to commun- icatE without drawings, so if you will bear with me, I will try to place these (dra ings) where they may be easily seen. What I would like to present to you this morning is a proposal that I think will help the City in conjunction with the rroposed mall development. I will be coming before the Commission with some chances in a section of the downtown, but in terms of priority, I believe that what I am proposing today certainly, in my view, has first priority. I have just received permission to occupy the 8- story, 4 -unit high rise apartment building that was just completed for the elderly in the 100 Center. I was impressed by the fact that a substantial number of the tenants moving into that development, while it is true that they are elderly, were not receiving a subsidy, or if they were, only a minor amount of subsidy. I think that this speaks well for the kind of thing that I want to share with the Commission today. There are people in the community who have contributed a great deal, and I am thinking of women such as Janet Allen, Virginia Guthrie, and my own mother who has been a teacher in the area for many years. All of these wonderful women are now retired. They do not require, nor do they need large homes, as they are in most cases, by themselves, and yet to try to find housing in close proximity, (the kind they are interested in), such as our cultural center, is very difficult. About the closest apartment housing that we have would be possibly the Mar -Main. Many people in that circumstance' do not require cars. -7- COMMISSIONER'S REGULAR MEETING Friday, arch 17, 1978 FLOOR DISCUSSIONS (Mr. Brademas continues): They don't really want the cars, as they are a burden to them. When I drive downtown about 5:00, or 5:45, or even 6 o'clock in the morning, you could literally shoot a gun or a cannon down the streets and not really worry about hurting anyone, because there is no one there. To be a great city doesn't mean that you have to have people living in the heart of a city. I do 't know if anyone of you has ever been to Helsinki, Finland, but that is ap absolutely charming city, and they have many people who are living in the heart of the city. London, obviously one of the major cities, has many people living right in the heart of the city. This, I believe, makes a great deal of sense. At the same time, I have been concerned, as I know that the Commission has been, about the fact that some of the merchants, who are going to be displaced from the Century Mall project, have taken the Commission to court to try to prevent them from carrying this out solely on the basis that these people, who are going to be displaced, feel that this will effectively put them out of business. I think that the history of the way he program has operated here in this community, as well as many other comm nities, would support that idea. That doesn't need to be the case. I tae off my hat to the group who has come forward to propose to carry out the entury Mall development. I think that local men and women who get toge her and carry out these kinds of developments should be supported. On tie other hand, with one or two exceptions, I do not believe, and I am not asting any excursions on the group, that they have had a long time inve tment or involvement in the downtown. By that I don't mean investment in 1 nd; I am talking about people such as Mrs. Berg and Mrs. Hawley, who in fact, have devoted most of their adult lives to the central retail core here in downtown. I think they should, therefore, be given every conceivable opportunity to remain in the downtown. I have some drawings here with me this morning that will accomplish a number of these objectives. (Placed drawings on the board and spoke as follows): All i wherf hand! you on tl poi n- to yc the i prop( genes that th ey )f you are familiar with the old American Bank Building and the block Wymans was located. Speaking as an architect, I believe it is a very ;ome building; unfortunately, it is not being very well utilized because :an't get to the second and third floors. It is, as the Commission knows, ie acquisition list, so it does not present any problem from the stand- : of acquisition in the sense that the owners would object. I can report ►u today that I have had an opportunity to speak with virtually all of iajor lending institutions in the community. I have presented this )sal to them, as well as to the administration, and I have received a ,al feeling of support from the institutions. In addition, the bank, acts as a trustee on a major portion of this site, has indicated that would offer no objection to the property being acquired if a fair price COMMISSI NER'S REGULAR MEETING Friday, arch 17, 1978 FLOOR DISCUSSIONS (Mr.lBrademas continues): for of t ther for I wo are Bank prop on t dime 100 stan cert and we w for the the pres the in a coul that as 5 have to t squa cent woul a sm do t Thes iden all draw gara pro pi has that say when that the property was received. I have contacted the owners of the remainder he land and they have indicated the same thing to me; so I don't think s are any particular problems present. At the same time, the proposal the "hole" across the street, is certainly of some magnitude, and what ild propose to do is give some support to that. Essentially, what we )roposing here is the old American Bank Building and the new American Building, and the new building that is built in back of it. We are using to construct approximately 20,000 square feet of commercial space ie ground floor. For those of you who have difficulty in visualizing isions, I will tell you that we have 125,000 square feet of space at the ;enter. What I am talking about here is not of great magnitude from the ipoint of diminishing the proposal for the Century Mall. We would Only not be draining off the type of shops that would go into the mall, iot those that would be going into the "hole" development. Essentially, )uld propose to build a series of small shops that would initially be :he relocation resources to take care of the businesses, that are in )resent mall area, such as Mrs. Berg and Mrs. Hawley, who want to stay in downtown area, but do not find any suitable relocation resources at the ?nt time. If we can get started with this in the spring we could have >uilding up within a year. We just built one, in terms of magnitude, )out a years time, at the 100 Center, and there is no reason why we I not do this building in about the same amount of time. We are proposing these shops range anywhere from as small as 500 square feet to as large ,000 square feet. I do not stand before you today and tell you that I any kind of commitment from McDonalds, but I have had an opportunity ilk with McDonalds, and they have indicated that they need about 5,000 °e feet, and they are very much interested in having a store in the ,al area of the community. Some of the other types of uses that we i want to put in here (points to drawings) would possibly include even ill burger dairy, a 7- eleven type store,etc. What we are proposing to ien is to stack on top of the commercial seven stores of housing. individual units (one- bedroom units for the elderly) would be almost J cal to what we have just completed at the 100 Center; and I invite )f you to come there and have a look at them. (Directs everyone to ng) ..... Novi what you will see here is that we have shown the parking le, and we have done that because it is an important part of the sal. In the past, the parking garage located here at Main and Colfax ►een under utilized. At the same time the majority of the types of shops we have proposed to put in this location are not the kind that people :hey are going downtown to visit. They are going to go to those shops they are downtown doing other kinds of errands; so I am suggesting to a great extent these would not be on their own major traffic generators. 10 COMMISSI Friday, I ER'S REGULAR MEETING rch 17, 1978 FLOOR DISCUSSIONS (Mr. Brademas continues): At the same time, in terms of the housing, the ratio that we are required to provide for the housing of the elderly is a quarter to one; so we would only be talking about 25 or 26 parking spaces, because we are talking about 104 apartments, the exact same number that we have built at the 100 Center. I cap tell you that since the 100 Center has been completed, we already have a waiting list. So if any of the members of the Commission, or others who eel that we are getting overbuilt with housing for the elderly, I can tell you that from my own studies and observations, that I think we can, in the foreseeable future, absorb all 1,600 units in demand. The rate of inflation in this country is going to continue to advance, and I am afraid at a very rapid rate. The people who are most adversely affected, clearly are those people who are elderly, and on generally fixed incomes. One of the most critical means they have is housing, and yet the rents on this housing would be $340.00 a month. I would hardly say that it is for low income, but the federal government has programmed to provide assistance of the difference. Henceforth, this three million dollar project would be on the tax rolls, and it would be privately owned, privately managed, and it would make a fine contribution to the community. Now I don't stand here today and tell you that I speak for Mrs. Berg and Mrs. Hawley, or for anyone else who is in that area; but I have had a chance to meet with them and with others. I can tell you that they have impressed me with the sincerity of their concern about staying in business in the downtown. They are not out to attempt to stop the commission's progress as such. What they have indicated tom is that if the Commission would do nothing more than take the steps that they have already taken to acquire this property, write down the price that this development could carry forward, and make the land available for any eveloper; then they would be ready, willing, and able to go forward. Obviously, we understand that there could be any developer who could make a pr posal on the Century Mall. We are not here to suggest that the Commission does anything out of character, or is not consistent with what has already been done in the past; but as I have said before, these two pieces of property are already on the Commission's acquisition list. At the same time I am confident that if the Commission would move forward in this manner, and the administration would use their good offices to secure a reservation of funds for the construction of the housing, that these two activities would not require any grant of funds by the City or by the Federal Government. We are not asking the City to build any parking structures, or to build a covered pedestrian walkway; we are only asking the redevelopment commission and the City administration to take actions, which will have little or no adverse effect on the dollars and cents of the City. -10- COMMISSIONER'S REGULAR MEETING Friday, March 17, 1978 FLOOR DISCUSSIONS (Mr.lBrademas continues): We believe, in the foreseeable future that the law suit, which is currently pending, will solve a critical problem, and at the same time add substantially to the character and strength of the City. (He points to his drawings and continues discussion) This is Michigan Street, and this is the parking structure back here. This is the American Bank Building. The commercial would be on the ground floor, and the housing on the top floors, and the parking structure would be tied in here with a covered pedestrian walkway. Now I could go on for some length and try to convince the Commission of the wisdom of this move, but I think to summarize my own business philosophy... that I have always tried to make an investment or spend my time in some activity, and to try to maximize that one activity or one investment so that it will have a snowballing effect. It should have an effect of multiplying in a sense that it will do double, or even triple duty, and I think that is exactly what I am trying to demonstrate here. We hive the opportunity to bring life into downtown by putting some people in tie downtown area after six o'clock. Many of these people will be around 62 y ars of age, very alert, and very active. Just because these people get to b 62 years of age doesn't mean that they cannot provide and lead useful and ictive lives, because my mother is 74 years old, and I have a time keeping up with her. We need these type of people in the heart of our city, and this prog am will make it possible. Now I am not suggesting that we take all the downtown buildings and stack housing for the elderly on top of them, but I do t ink there is a place for housing for the elderly in the downtown. The olutions to the legal problems that the Commission is faced with should be d ne in such a manner that it will be a positive thing. It is not a matt ?r of giving in because you are faced with a lawsuit, it is a matter of taki g actions which indicate to the community and indicate to the effective people in the area, that this Commission is not here to just clear land and make it available to some group who has not had their life invested in the down own, but to indicate conclusively to them, and to the community, that this Commission has compassion, and is ready to work to solve these problems, and we would like very much to work with the Commission in this regard. With that I will quit and see if you have any questions for me. Mr. iggins: What access will there be for the tenants in these apartments? How o they get into them? Mr. staff we h rademas: On the ground floor here (points to drawing). An elevator and way would be the principle means of access to the apartments, just as the in our apartments at the 100 Center. -11- COMMISSIONER'S REGULAR MEETING Friday, arch 17, 1978 FLOOR DISCUSSIONS (Questions asked of Mr. Brademas regarding his proposal): Mr. Wiggins: (Referring to Mr. Brademas's drawing). Does that pink area also provide access to stores in an interior mall arrangement? Mr. rademas: Yes it does. This is a walkway here (pointing to drawing). The entire basement would be excavated for storage space of some stores, and for heating and air conditioning mechanical equipment. For example, a store such as Hawley's Jefferson Book Store requires a fair amount of storage space, whereas a store such as Berg's Jewelry Store would not require nearly as much storage space. I believe that we can provide adequately for the necessary storage space of these shops, and at the same time, have access to a service drive, where trash can be taken out, etc. The pedestrians would come out to Michigan Street and come down a walkway. Mr. Wiggins: You mentioned a connector with the garage. Would that be at the econd level? Mr. rademas: It will be at the second or third level so that access to t e elevator will be.easy. Mr. iggins: So the elevator bank is at a corner in the garage? Mr. rownell: And the foundations are outside the walkway? Mr. rademas: Yes, I understand that, but the architect who has developed this concept has not refined it as yet, and of course it needs some detail and some refining. I think in terms of a basic concept, it is sound, and I beli ve it is fully feasible. The financing aspect of it is particularly attractive because we could finance housing for the elderly on a 40 -year basis, and take advantage of the fact that 10% of the total area is a residential area therefore, ten percent more may be added on for related commercial use. We can get rents that will be achievable from stores, and we could get rent that would be in the range of $8.00 per square foot. Mr. imtz: When that garage was originally built there was a concepter's plan for.... Mr. Wiggins: The expectations that would tie into Wymans, yes....and since it was built with that in mind, there is no reason why it couldn't be made into some other building on what was once Wyman's property. Mr. Orademas: I believe so. Mr. Nimtz: Any further questions? .......Ms. Derbeck... -12- COMMISSIONER'S REGULAR MEETING Friday, arch 17, 1978 DISCUSSIONS (Questions asked of Mr. Brademas regarding his proposal): Ms. Jeanne Derbeck: I have several. First of all you started a sentence in your presentation about Mrs. Berg and Mrs. Hawley. You mentioned that you couldn't speak for them but said that they had indicated......... From there you went on with your sentence, and never finished saying what Mrs. Berg and Mrs. Hawley had indicated. Had they indicated that they were inte ested in this project, and would like to have new stores there... is tat what you meant to say? Mr. rademas: Yes, they have. And if I may, I will return you to Mr. �ouglas Kline, who is their spokesman. Ms. eanne Derbeck: If this project, that you are proposing, were developed, WOU4 Mrs. Berg and Mrs. Hawley drop their suit? Mrs. Brademas: That is correct, and if I may, I will ask Doug to say a word, ash is their spokesman. Mr. Douglas Kline: I talked to Mrs. Berg and Mrs. Hawley and they are indicating a strong interest in it. They feel some discussions should be made in redevelopment, in the city, and all the projects. I feel they should all be put together and the timing has to be right. It can be done very successfully and I think everybody comes out a winner; no one loses anyt ing. They are not giving up anything. They want what is best for the City too, but they don't want to be thrown out, and thrown out of business. Most of those businesses will be torn down. Ms. qeanne Derbeck: When you said that construction.might start in the spring, did you mean this spring? Mr. Brademas: Yes. Ms. 4eanne Derbeck: Are you thinking of subsidizing housing for the elderly? Mr. rademas: Yes I am. The section eight which is currently being built, and hat was just completed at the 100 Center. Ms. geanne Derbeck: Have you got a feeling that you can get that? Mr. rademas: There is absolutely no doubt in my mind, that if the adminis- trat on requests it, that the funds would be forthcoming. There is no doubt in m mind at all. Ms. 4eanne Derbeck: Do you think that it would take very long? Mr. 4rademas: No, I don't think it would take very long at all. -13- COMMISSIONER'S REGULAR MEETING Friday, arch 17, 1978 FL00B DISCUSSIONS (Que tions asked of Mr. Brademas regarding his proposal): Mr. an Caesar: Why are you assured that it won't take very long? Mr. rademas: I have been working with the Federal Department of Housing & Urbap Development, and with politicians for some twenty years now. I can tell you that the funds are available, if the administration feels that this is a positive step, and in fact would aid in the overall development of the downtown through the official representatives in very short order. Mr. Dan Caesar: How much did you say? Three million, or less than that? Mr. rademas: The housing would probably be about two and a half million, and the commercial about half a million. It may be three and a half, but it will be somewhere in the neighborhood of three to three and a half million. Ms. Jeanne Derbeck: Does this involve tearing down the American Bank Building? Mr. rademas: No...No. Ms. eanne Derbeck: Then you will leave it up and rennovate it? Mr. rademas: Actually, rennovation of the exterior, and the first floor of t e building would not be extensive. The problem is the second and thir floor because there is no access. Ms. eanne Derbeck: Could you find a way to use the second and third floors? Mr. rademas: Yes, we have already had some discussion with Mr. Schrager, and he has indicated that he would be more than happy to cooperate with us. Ms. eanne Derbeck: Would this mean that you would not buy the American Bank Building? . Mr. rademas: That would not be necessary. It is possible, Mr. Schrager has ndicated to me, that if we are able to go forward, that he and his group mighi like to be involved with our development. We have had, for some time, the lorgan Trust Company as a principle investor in our various housing projects, and a have no fear about the financing; the financing is the least of the problems. Ms. qeanne Derbeck: Then, if you aren't going to tear down the old American Bank Building, we don't have to worry about the historic preservation. -14- COMMISSIgNER'S REGULAR MEETING Friday, arch 17, 1978 FLOOR DISCUSSIONS (Questions asked of Mr. Brademas regarding his proposal): Mr. Brademas: That is true. I am sure the Commission would want to ponder on this proposal and discuss it. Mr. imtz: Thank you. Are there any further questions or discussions? Mr. lave Anderson: I don't know if this is the first time you have seen this or not, but what is the feeling of the Commission about this proposal that has been laid out this morning? Mr. Nimtz: I believe that question is a bit premature. I think if there are no questions from the Commission, the Chair will direct that this proposal be received and referred to the staff for study and recommendation, as I am sure the Commission will want to explore this proposal further. Mr. Wiggins: It is our purpose to follow -up clearing these areas and getting something on them. Mr. Dan Caesar: Has the Commission received any other proposals? Mr. Wiggins: Not that we know of. Mr. Nimtz: We have received no proposal. I have indicated previously there have been tire kickers as we can say, looking around, but no proposals. Mr. Dan Caesar: Then this is the first solid proposal you have received? Mr. Nimtz: Yes. Mr. John Kagel: I would like to ask a question as a spectator here. I might doubl check that I heard right. Mr. Brademas mentioned that he would have no diffi ulty financing.....could you repeat that with a statement? Mr. Brademas: There are two ways that the housing portion, which of course is the major portion, could be financed. One is the Fannie May, Jennie May, Tandem Plan. That is exactly the way we financed the high rise. That program is available. The new program, that has just come out, and there are a number of issues, if you will, that have been successfully quoted, known as the 11 -B Program, which must be done in conjunction with the local housing autho ity, because these bonds are tax free. -15- COMMISSIgNER'S REGULAR MEETING Friday, arch 17, 1978 FLOOR DISCUSSIONS (Questions asked of Mr. Brademas regarding his proposal): (Mr. Brademas continues to answer Mr. Kagel's question) ..... The bonds are 40-year bonds, and they are for 100% cost of the construction and the mortgage or financing on the project, so that there are two very reliable ways to carry out the financing. In our discussions with some of the local lending institutions we have suggested that any additional funds be obtained by using an E.D.C. bond issue, which might be necessary to carry out the commercial portion of what would be done, and we have had some positive response to that. I don't really think that the financial aspect is a major problem. What we need are two things. One is the support of the Commission to take actions that they have the ability and power to do, and secondly, the support of the administration to secure a reservation for funds for the housing, which they can also do. Ms. Jeanne Derbeck: Did you say you had presented this to the city admi istration? Mr. Jrademas: I have had an opportunity to present this briefly to the Mavo . Ms. eanne Derbeck: Did you get any kind of reaction from him? Mr. rademas: I had presented to the Mayor a series of proposals, which we will be presenting later on to the Commission, and to the public. This was dust one of them, and I think the Mayor is still contemplating all of the proposals that were presented to him. Ms. eanne Derbeck: Then this Commission would have to make available the fina cial.....then, they wouldn't have to clear anything? Mr. drademas: That is correct, we could start construction tomorrow. Ms. eanne Derbeck: So what would they have to do? Would they have to make the tyman's property available to you? Mr. imtz: We would have to acquire it first. Ms. eanne Derbeck: Acquire it? Then that does take money, but could you get the money back? Mr. rademas: Well, you could get a portion of it back by the resale of the land. -16- COMMISSIONER'S REGULAR MEETING Friday, arch 17, 1978 FLOOD DISCUSSIONS (Questions asked of Mr. Brademas regarding his proposal): Mr. an Caesar: Any idea what the land is going to cost? Mr. Blrademas: I do not. Mr. an Caesar: Does the Commission have any idea what the land might cosA Mr. Wiggins: No. Mr. Dan Caesar: Has an appraisal of the land been made? Mr. Brownell: No, an appraisal has not been made. Mr. Dan Caesar: Kevin, the appeal that is pending.... Mr. imtz: Please direct your questions to Mr. Chapleau. Mr. Can Caesar: The appeal that is pending... in your opinion, would it delay construction of Century Mall? Mr. hapleau: Do you mean the appeal itself? Mr. dan Caesar: Yes. Mr. hapleau: It depends on how fast they would act to set up a hearing and then decide the case. I can't tell you .......... I don't know what they are going to do. I would say, that with the plans, that I am proposing to use for handling this thing, we intend to get a quick hearing. We intend to get this quick hearing as soon as they file their transcript, which is due pretty soon. Mr. imtz: Any further questions or discussions? Ms. leanne Derbeck: Then, your project only goes up to Allen's alley... right? Mr. grademas: That is correct. Ms. Jeanne Derbeck: Or would they be North of Allen's alley? Mr. rademas: Well, we had hoped that what we would propose would have a very beneficial effect, and suggest a more intensive use of the other land or buil ings in the adjacent area, and I think that it would. -17- COMMISSIONER'S REGULAR MEETING Friday, arch 17, 1978 FLOOR DISCUSS I Questions asked of Mr. Brademas regarding his proposal): Ms. 4eanne Derbeck: Then you don't intend to get rid of any of those buil ings. You would just enhance their value? Mr. �rademas: That is true. Mr. ohn Kagel: Mr. President, it certainly breathes some new life into the Indiana R -66 program, and into the City of South Bend. I think that we have had some negative attitudes from time to time, which robbed the future of the City of South Bend, and I think there are some of us in this room who feel that the opportunity for this City to grow and for things of this type to be developed are good. It is very interesting to see that there is some local initiative, that should this go through, I believe every opportunity should be given to certainly nurture it. I think that it is pretty good news for St. Patrick's Day. Mr. �an Caesar: Would there be any land use changes that would have to be made for this project? Or any alterations to the present R -66 program? Mr. utler: Off hand I haven't really had a chance to digest it all, but I would say yes sir, there would have to be a land use change. I think that thero is no housing for example, under the current land use. Mr. Can Caesar: Would it be a minor obstacle under the present? Mr. Butler: In a matter of time, but of course, we open ourselves up to a potential lawsuit again. Mr. Can Caesar: In what way? Mr. Butler: Remonstrators. No—we would have to go through the normal plan change process. If you are familiar with it, we have done it three times within the last two years. Mr. C apleau: I think there is a very real chance of litigation if the City attempts to acquire the property, and the owners don't want to sell it. Then, You Ire getting involved again. Mr. Butler: In the acquisition aspect..... yes. Mr. Brademas: That is true, but what would happen would be that the only point and contention would be the price of land, and therefore, the redevelopment Commission could proceed to acquire the land, sell it, and make it available and we could go forward with the development then at some later date, the price could be determined. ME COMMISSIONER'S REGULAR MEETING Friday, arch 17, 1978 FLO$ DISCUSSIONS (Questions asked of Mr. Brademas regarding his proposal): Mr. $an Caesar: Have you talked to Wyman's people? Mr. rademas: I have talked with the representatives of the owners of both pieces of property, and have been convinced that if the Commission offered a fair arm's length price for the property, that there would be no objection to selling it. Mr. Dan Caesar: Did they indicate a price to you? Mr. rademas: They did not. Mr. Butler: But our prices are always fair Dan, you know that. Mr. Wiggins: Nothing but fair prices. Mr. imtz: Anything further? Ms. " eanne Derbeck: Would these apartments be low income? For low income people or what? Don't you feel there is a market at all for housing for older people that might be a little nicer? Mr. rademas: Well, when you say a little nicer, I would invite you to come over to the 100 Center and see those apartments. They are all air cond tioned, carpeted.... they are really first rate. I would be more than happ to have my mother live in one. I think you would find that they are real y first rate. Mr. ghapleau: For $360.00, I think they are going to be pretty nice. Mr. rademas: That is right. It is just the formulas that the Federal friends have come up with that make it possible for us to really put up some very expert equipment. Now my mother of course receives some social security, and she is fortunate enough having taught for 52 years to receive a teacher's pension. But today, even to try to spend $250.00 a month for housing, which is probably what one would require or better, would hard press her lo do that. At the same time, the way the program is set up the tenants pay 5% of their income, and if their income is $500.00 a month, they are goin to pay $125.00, and get what would otherwise be at the market of $340.00 for a month's rent. -19- COMMISSIONER'S REGULAR MEETING Friday, arch 17, 1978 FLOOR DISCUSSIONS Questions asked of Mr. Brademas regarding his proposal): Ms. eanne Derbeck: Is that why subsidy is based on these? Mr. rademas: Absolutely. Ms. eanne Derbeck: Of course there are a lot of people who don't need ass Mr. rademas: That is right. We have people living in our project over there who are paying the full rent. We have a number of them in our project that do that, just because it is the kind of housing they want, the location they want. I think we will find the same thing even more so here. Ms. geanne Derbeck: Would it be elderly housing? Mr. rademas. Yes, over 62 years of age. Mr. an Caesar: Have you dealt with this project by a name? Mr. rademas: No we haven't. I appreciate the kind attention that I have rece ved here today. Mr. imtz: Brooks, we are indebted to you for coming over and spending your time. As the Chair well knows, things like this cost money. You just don't do this and not spend money to have it done. We know you have quit an investment involved in this thing already. I will say this.... I saw your mother at the teachers credit union last week, and she is anti ipating this move. Mr. Plimtz continued....... As the Chair directed before, unless there is some objection we will receive this, and refer it to the staff for study and recommendation to the Commission. Mr. Soltesz, the Chair will officially recognize you and welc me you back. I am sorry that I was unable to be here last week, but I wa in court last week, and I recognize your return. Do you have any word of wisdom for us? Mr. $oltesz: Only that I wish you all a Happy St. Patrick's Day. Mr. imtz: Is there anything further anyone desires to bring before the Commission? -20- COMMISSIQNER -S REGULAR MEETING Friday, March 17, 1978 8. NEXT 9. ADJOI TherE was n meeti COMMISSION MEETING - April 7, 1978 IRNMENT being no further business at this time, motion to adjourn the meeting lade by Mr. Don Wiggins, seconded by Mr. Robinson,,and carried. The ng was adjourned at 10:56 A.M. <; rqtz, President C. 4 B rownell, Executive Director -21-