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HomeMy WebLinkAboutRM 04-07-78SOUTH BEND REDEVELOPMENT COMMISSION County -City Building Room 1200 227 West Jefferson Boulevard South Bend, Indiana 46601 COMMISSIONERS' REGULAR MEETING Friday, April 7, 1978 10:00 A.M. PRESIDING OFFICER: F. Jay Nimtz, President 1. ROLE. CALL ssioners: F. Jay Nimtz, President Donald A. Wiggins, Vice President Robert Cira, Asst. Secretary 1 Counsel: Edward A. Chapleau New Media: Dave Anderson, Reporter, WNDU -TV J. Scott Brink, WNDU Photographer Steve Neher, Photographer, WSBT -TV Nancy Sulok, Reporter, South Bend Tribune John Wright, WSBT Gue ts: E. L. Cavanaugh John Kagel LPA Staff: C. Wayne Brownell .Gertrude E. Barth Marc Brammer Jane A. Zimmerman At this point Mayor Peter J. Nemeth arrived and was recognized by Mr. Nimtz ... then made the following comments concerning the announcement by Congressman Brademas of the award of the $7,600,000 UDAG grant to South Bend: My reason for coming down was to express our thanks to the Redevelopment Com iision for all your efforts - we are enjoying the happiness and the joy of the announcement yesterday, as well as the Crowe - Chizek announce- ment today and I think that these events of the past couple of days justify the positions that you have been taking over the past few years. I k ow you have been through a lot of hassle and struggle and we are still going through it. I have been through some of the same but I thi k that these events are proving that you people had the foresight and vision and all I can say is "thank you and keep up the good work! ". Als on behalf of our Community Development Department, they wanted me to top by and thank you for all of your assistance in getting the plan pre ared•. It was kind of like practicing for that Saturday football gam , everybody sees just the game itself and they don't realize the hours, the days and the weeks of practice that went before it. We know the complicated application procedure that we had to go through and we �ppreciate your help. Chair: rks by Mayor Nemeth, continued: Your Honor, we appreciate your confidence in us and the backing you have given us always - it has been a great team effort and I hope this is just the beginning of a great development in South Bend. I know that Don Wiggins- as the senior member on the Commission- has anticipated this for a long time and Don has probably taken more heat through the years than anybody in the community concerning this whole plan. Mr. Wi gins: We are glad you share our faith in South Bend and the future of South Bend. There were times that people thought we were just crazy but they found out that we are just crazy about this community. Chair: Mayor Chair: Mayor Your Honor, do you wish to say anything about the Crowe - Chizek. thing? I was going to tell about it this morning - do you want to say anything further about that? Nemeth: I think everybody knows about this - or had an inkling about it already, but Crowe - Chizek is going to construct a building on Block 6, there where Western Avenue turns into Jefferson, taking about 5.8 acres and when it is completed, Block 6 will be well on its way to being a successful development. Again, that indicates the wisdom in the type of planning and the type of procedures that we followed. We are seeing right now the difficulty we are having in downtown in clearing land for a project that is waiting to go. I know you received criticisms when buildings were torn down and land was cleared in Block 6, however it is turning out that is much easier to sell that land and move it because of the fact that it was cleared. We have the twelve story King Towers going up, Whitcomb & Keller has already opened, Lowe °s getting ready to open and now, Crowe - Chizek getting ready to break ground. I think again, this is testament to the fact that we are on the right track. Sometimes I know that we ourselves must have wondered, with some of the criticism we have had, whether we are on the right track so it has been especially nice to have things happen as they have, to justify the actions we have taken. Keep it up and one question: When and what is the next announcement? Oh yes, the St. Joe Bank Building (on Block 6) the Quality Inn blocked our view there. We hope it is soon. Your Honor, I might say that the day Mr. Lowe was here for Kitty Litter, I think the three of us were talking to him that day and he predicted exactly what was going to happen on Block 6 - that land would become a premium. He thought the plan was excellent and he said he was sure that Block 6 was going to fill up rapidly. "There will be a need for more land ". meth: I see John Kagel here, the Executive Director of the Downtown Council and John, we want to thank you and the Downtown Council . who have been most cooperative and helpful to us in getting things going and I know that no one has had more faith in getting the downtown going than you personally, as well as the members of the Council. - 2 - Mayor Ne eth (continued): It has been tough the last few years and we have had to scratch and scrape and push and pull but it looks like we have reached the peak - and perhaps we will have a little easier sledding than we have had in the past..and we are grateful to people like yourself who have maintained confidence in downtown and been willing to put in the amount of work and effort to get things going. That is not to say that we have reached Valhalla, we have a lot to do yet. . Chair: We have a lot to do: Mr. Kage : I think the Commission will attest that the Downtown Council stood the firing line with the Commission at great odds on the activities, at one time, the Associates, followed by Gulf & Western, followed by First Bank, and I think the Commission and the Downtown Council were about the only ones that said "Let's have faith, let's stay with this..." Chair: Very truly. Thank you again Mayor, all the criticisms and noise in in the background are now sub - marginal, when we get these good announcements we forget the bad things. Mr. Wigg ns: With about two more announcements, our critics will be saying "that's the way we said you should do it all the time ": Mayor Ne eth: The next criticism will be that we don't have enough land downtown. The Chair thanked the Mayor for coming... applause. 2. APPROVAL OF MINUTES Mr. Brownell pointed out that the word "excursions" on page 8 of the Minutes of the Regular Meeting of March 17, 1978 should read "aspersions ". With this correction noted, motion was made by Mr. Cira, seconded by Mr. Wiggins and carried for approval of said Minutes, as mailed. 3. APPROVAL OF CLAIMS On otion by Mr. Wiggins, seconded by Mr. Cira and carried, claims in the amount of $9,264.17 were approved as submitted, and were allowed and ordered paid, as follows: RED17VELOPMENT REVOLVING FUND Payroll: 3 -11 -78 to 3 -24 -78 Kevin J. Butler Business Systems, Inc. Credit Bureau of South Bend - Mishawaka Ind ana Bell Telephone Co. Postmaster mm $ 3,046.30 200.00 17.48 7.00 141.47 29.29 3. APPROVAL OF CLAIMS, continued REDEVELOPMENT REVOLVING FUND (cont Sch lling's Sales Company, Inc. Smith Petroleum Co. Total P.EIA. R -66 James R. Meehan & Associates Rea Estate Research Corporation Singer General Tire, Inc. Clyde E. Williams & Associates, Inc. 11 11 11 11 Total 312 LOANS Pla a Construction Company Ray Bockay Midwest Aluminum Siding Co., Inc. J & R Insulation Total REDEVELOPMENT DISTRICT CAPITAL Abstract Co. of St. Joseph County, Inc. Curly's Sales & Service Total Grand Total 4, COMMUNICATIONS There were no communications to bring before the Commission. $ 37.10 4.92 6.15 65.08 $ 3,554.79 $ 15.20 141.09 50.47 3,097.76 646.67 $ 3,951.19 $ 108.00 250.00 608.00 639.74 $ 1,605.74 $ 15.00 137.45 $ 152.45 $ 9,264.17 5. OLD BUSINESS Mr. Brownell stated that the Controller's office has filed an ordinance with the City Council to take $251,591.24 in revenue sharing money to pay the Redevelopment Department the City's indebtedness on Projects E -3 and E -5. That ordinance will have the first reading before the Council on Monday, April 10th, and then will be carried over for second reading.. "I wanted to bring this to your attention because you should have this information before we take up the relocation claim review of the Indiana Bell Telephone Company ". -4- Mr. Nimtz: I will not be able to be there on the 10th. Mr. Brownell: Its the first reading — they will probably refer it on to the 24th for second reading. Mr. Ni�tz:' Then you and I had both better plan to be there on the 24th. a. Indiana Bell Telephone Company, Relocation Claim Review: The matter of the S. M. Dix findings in their last letter was brought up in our previous meeting: that $239,711.84 was documented and $23,510.24 as not documented. That situation remains unchanged, but in view of the fact that we are getting some money and we might then be able to close this claim, I think they will renew their efforts to either et the items documented or have the company admit they cannot document them and drop that part of the claim. I am going to urge them to proceed that way so we can get rid of this claim. b. Damage to lighting fixtures on Plaza Park: Mr. Brownell: You will recall that when we entered into a lease with the Park Department or $1.00 a year we agreed that the Lessor would repair all the lights on the premises now damaged and hereafter, during the term of this lease, the Lessee shall maintain and repair all lights and other improvements to and landscaping of, the premises. The reason I brought this up is that I wanted your permission or authorization to attempt to get quotations and bids on fixing the lights in Plaza Park..to carry out our obligation. Mr. Wiggins moved to authorize Mr. Brownell to get such quotations and bids for the repair of the lighting fixtures in Plaza Park. Motion as seconded by Mr. Cira and carried. 6. NEW BUSINESS a. Commission consideration of a proposed Resolution No. 550 for the Plan Change which covers land use changes permitted in the area bounded by E. Colfax Avenue, St. Joseph Street, East Washington Street, and the Michigan Street Pedestrian Mall. Mr. Brownell said that with the exception of Mr. Cira and Mr. Donaldson the Commissioners were present at the Press Conference on Thursday (April 6th) so they all know about the UDAG grant..it has been in all the papers, etc. He had a copy of the press release in case any- one wished to have a copy. Our next item of business is considera- tion of Resolution No. 550 which was prepared by Mr. Butler for a Plan Change to cover the land included in the development area as described above. He also indicated copy of the letter from Mr. Janotta of Real Estate Research, dated October 5, 1977, entitled "Review of Retail Development Proposal, Central Business District" with attached Exhibits A, B and C and memo of the same date from Marc Brammer, Real Estate Officer which listed the properties of the four block area which houses stores that have either relocated or closed their doors permanently..these various exhibits have been made a part of the original Minutes file of the meeting date of April 7, 1978. Mr. Brownell then read a draft regarding the purpose of the resolution and indicated that the remaining local steps in the procedure include action by the Area Plan Commission and said he has arranged to have this - 5 - 6. (a) continued- put on their agenda for Tuesday the 18th of April, then the Common Cou cil, then the public hearings before this Commission, then the MACOG approval is required so I would like to present to you Resolution No. 550 as prepared by Mr. Butler, together with Attachment A. In Attach- ment A under Paragraph B, we have limited the effect of this Resolution on land use "as indicated above, this area will be devoted to a broad ran e of compatible retail and service uses, hotel -motel use which is oriented to and supports the city's Cultural Center development in Prea D, is also permitted in the block bounded by E. Colfax Avenue, St. Joseph Street, E. Washington Street and Michigan Street Pedestrian Mall ". Mr. Brownell continued: The purpose of limiting it to this area is to indicate that we are in no way trying to interfere with our last resolution that is before the court and it covers the entire Area C. We are limiting this resolution to this square block as defined above. We should not get involved with that lawsuit. Mr. b. Wiggins: I move for the adoption of Resolution No. 550 covering land use changes in the area as defined. Motion was seconded by Mr. Cira and carried. Commission approval requested for changes to be made on the Land Disposition Plan Map, as outlined in letter from John C. Pettigrew of Trkla, Pettigrew, Allen and Payne, in relation to the afore- mentioned area. Mr. Brownell: I would like to suggest to you that a motion be made to approve changes to be made on our Land Disposition Plan Map as they have been suggested to us by Mr. Pettigrew. The idea is to change the land uses for this area so that it would read like this map (Mr. Brownell then pointed to the revised Land Disposition Plan Map which had been prepared by Clyde E. Williams, incorporating the new land use "Retail/ Service - Commercial /Parking ")..we have had this map prepared for your approval. You will recall we vacated that street when we put the last plat of streets through. Mr. Wiggins: In other words, we are changing the map to match what we did in Resolution #550. Mr. Brownell: That's right. We also had them (Clyde Williams) put in the overhead walkway in the land use map. Mr. Wiggins: Is there any other action that we need to take? Mr. Brownell: All that I know of is that we need a motion to approve these changes in this map, even though its not part of our urban renewal plan. You can change it anytime but we would like to have it changed now. Mr. Wiggins: The point I raise is: are there any prohibitions against the land bridge, the connection between the Century Center and the development? I would hate for us to stumble over a rock there later on. . Brownell: I know of none. The Chair recognized Mr. Kagel. Mr. Kagel: The map that I have is not too clear, could I see where that pro'ected walkway will be? The area where the walkway is proposed was pointed out to Mr. Kagel and Mr. Brownell noted that it doesn't necessarily mean it will be built at that precise location, but somewhere in that block—generally, it is a walkway to go from Area C over to the Century Center. Mr. Kagel: In other words, this walkway would not be moved more than a half block in either direction? Mr. Brownell: I suppose that it would stay within this block—the idea I believe - I don't really know since we have no architect's drawings yet - but I assume that there will be a walkway south (he pointed to the map) and another from "here to here ". Mr. Wiggins: In that same connection, if you recall some time back when the Michigan Street traffic was diverted to St. Joe and St. Joe was dev loped, they put a tunnel in there. The expectation was that it would provide access to Century Center for delivery purposes, that sort of thing, and also one of the other purposes was that we expected to dev lop the hole to incorporate subterranean parking and that would create an ccess that would be available to both pedestrian and vehicular traffic, not cars.... Mr. Brownell: I think there has been some change on the part of the dev loper, from the thinking the Commission originally had, in that they are now thinking of using the elevators from the parking garage up and taking the overhead enclosed parkway. Mr.lWiggins: There is certainly a possibility of working it both ways. Mr. Brownell: I think the problem with the tunnel is that there is a high wat r table in that area. I am not sure that is the problem, but I think it is. Don Wiggins then moved for the approval of changes in the Land Disposition Pla Map as outlined above, motion seconded by Mr. Cira and carried. c. ICommission approval requested for Contract for Review Appraisal with Ralph C. Michaels, MAI, SREA, for ten 10 additional review appraisals, five for each of the two acquisition appraisers who are working. He has a rate of $70.00 per review in his first contract, this is the same rate, for a total additional contract price of $700.00. Mr. Wiggins moved for the approval of Review Appraisal Contract with Mr. Michaels, for additional contract price of $700.00, motion seconded by Mr. Cira and carried. d. Commission approval requested for execution of Contract for Reuse Appraisal Services with Mr. John Pence and'Mr. Ron Cettel, to cover proposed reuse appraisals in Indiana R -66. at $250.00 per parcel. Mr. (Brownell: If you will recall, about two years ago or more, we had Mr. Ralph Lauver and Mr. John Pence make reuse appraisals of some eighteen (18) - 7 - par els downtown. We need to have another set of reuse appraisals at this time for two reasons: one, the earlier ones are now out of date and sec nd, we have made some land use changes so I contacted Mr. Gettel, who is doing acquisition appraisals for us, and Mr. John Pence also, and ask d them if they would be interested in providing reuse appraisals and on what basis they would do them. They have both agreed to do this wor on the same basis that Mr. Pence and Mr. Lauver performed the re- use work last time, namely, they received $4500.00 each for the eighteen app aisals, which figures out to a rate of $250.00 each. The only thing thelt have stipulated is that they would not wish to do one parcel at a tim . They want.to do several parcels at one time so they won't lose tim , effort and money. I believe we can arrange it that way. I would the efore ask you to authorize and approve the execution of a contract for reuse appraisals with Mr. both Mr. John Pence and Mr. Ron Gettel. Mr. his Mr. and do i par( wi ti suci the Cira: Wayne, you referred to $250.00 per parcel and Mr. Pence in letter says 1250.00 to $300.00 Brownell: Mr. Gettel and I have a verbal agreement over the phone I have Mr. Pence's letter here, which indicate that they will both ;his work providing the contract does not limit them to doing one :el at a time but will be able to do several, at $250.00 per parcel, i a "minimum fee of about $1500.00 ". So I assume we can work out i a contract.at the same rate Mr. Lauver and Mr. Pence received for original appraisals. Mr. Wiggins moved for approval of execution of appraisal contracts with bot Mr. Pence and Mr. Gettel to cover approximately 18 parcels in R -66 dow town, at a rate of $250.00 per parcel. Motion was seconded by Mr. Cir and carried. 7. PRO�RESS REPORTS Mr. Brownell: Since Mr. Chapleau is here, I thought he might like to bri g you up to date on the law suit - is there anything you wish to rep rt? Mr. Chapleau: Only that the transcript is due to be filed this month.. in about a week, and when that transcript is filed I anticipate trying to transfer the case from the Court of Appeals to the Supreme Court, the reason being to bypass the delay that would entail two appeals. Mr. Wiggins: Does this transfer require the consent of the other parties i nvXed? Mr. Chapleau: No it does not, the petition is filed and then the court act on it. They either grant it or deny it. Chair: It is discretionary with the court. Mr. Chapleau: The Court of Appeals has indicated the feel it is important and they would have a the didn't act on the motion for a stay so that Mr. that if they hear it, speedy hearing - and is a good thing. Wiggins: How are we proceeding with the appraisals? The Mr. Brownell: I shall be glad to tell you that - the two appraisers have completed the real estate appraisals of all the parcels from Washington Street to Jefferson and they have been submitted to the reviewing appraiser, Mr. Ralph Michaels. Also he is going to get from Mr. Banta of S. M. Dix Associates, Inc., the places where there is conflict. For example, if one real estate appraiser included a heater to boost the hot water in a particular place and the other appraiser did not in- clude it in his appraisal, S. M. Dix comes along to do the fixture appraisal and they would say that the heater would have to go on both of the appraisals, or appear on neither of them. This problem is submitted to the reviewing appraiser so that S. M. Dix will know whether to inc ude the item under fixtures - or if it is considered real estate. In uch a case, the owners of a building are also the tenants so its really just a matter of getting it straightened out. Mr.lWiggins: To make sure that we don't pay for the same thing twice. Mr. Brownell: Then we have a letter from one owner who had to fix his roo and he sent a letter and a copy of a bill and said he thought he ought to include that in the amount of money we pay him for his building. I have nothing to say about whether it is included or not, that is up to the appraiser. In other words, the reviewing is being done and the re- view appraiser will then report to the Commission, the value he thinks should be assigned to each parcel. The review appraisals north of Washington Street have not been started yet because we have just authorized that contract work this morning ... work to begin when the real estate appraisals are completed. Mr. Wiggins: On the reusie appraisals, I assume these will cover the pro erty known as the hole. Mr. Brownell: Yes, these are parcel Nos. 4 -1, 4 -31 and 4 -32. Then there will be three other parcels added so the appraisers will have a group of six. Mr. Wiggins: It will be necessary to have reuse appraisals of all the pro erty in the area between Washington and Jefferson Sts? Mr. Brownell: We cannot do any of that until after we acquire it. Ch it recognized Mr. John Kagel. Mr. President, before your go on to Item No. 8 on your agenda, you should have or will be receiving, personal invitations to attend a very, very important seminar that is taking place here, with which we are involved, alotig with Indiana University School of Public and Environmental Affairs which is being held on April 21 and 22. I see that your next Commission Meeting is scheduled for 10 o'clock the morning of the 21st. May I point out to you that this particular seminar will be concerned with strategies for community conservation, having to do with both downtown and the neighborhoods—the very thing you are working on..I will discuss your rol in this in a minute Don—The individuals who are involved in this par icular seminar are..chiefly, one of the individuals is Mr. Embry, the man you sent your UDAG application to. Don, if you will recall a few years ago, this Commission and the city sent an official delegation to Cincinnati.. Mr.lWiggins: I remember it well. Mr. Kagel: Right, we do, how well we remember because of the outstanding program they have in Cincinnati, for neighborhoods. While we are singing these praises and basking in the glories this morning, it would behoove us to give very serious thought about this seminar that is.going to be held here, under the auspices of Indiana University and the Chamber of Com erce, especially in view of the cast of characters who are coming here, from Washington and elsewhere. To consider the neighborhood programs, the direction the administration is taking on self -help, citizen and community involvement, involvement by business, industry, com erce, etc ... perhaps you might consider this before you set the time for your next meeting because the seminar is going to be on two days, Aprl 21 and 22. Did you get a copy of that notice Wayne? Mr.lBrownell: Yes. Mr. Kagel: I believe that's enough said - we have been so fortunate and ble sed here with these good announcements, let's take a look at this pro ram..there is a small registration fee. Mr. Brownell: Thanks very much John. I have a notice from IUSB with the pro ram schedule and I have talked to Dr. Hojnacki about this matter because Mr. Nimtz and I are on as discussion leaders in one of the sessions, alo g with Howard Bessire. Mr. Kagel: I am on the panel too but we have people coming in from around the nation. Mr. Brownell: I talked to Dr. Hojnacki about the fact fli t in the morning and he said, "Oh, that won't make you are scheduled in the afternoon" so he doesn't seem us iearing what they say in the morning. Mr. Mr. Dr. the at mun ret Kagel: Who is speaking in the morning? that we have a con - any difference, to worry about Brownell: In the morning they have the welcome by Mayor Nemeth and Wolfson, the Chancellor of IUSB and Dr. Frank Steggert, Director of Department of Public and Environmental Affairs, IUSB. At 9 :00 A.M. r have Dr. Hojnacki on with "Urban Conservation: The Time is Now ", ):15 the Hon. John Brademas with "Congressional Initiatives in Com- ity Conservation" and at 9:30, Mr. Robert Embry, the Assistant Sec - try for Planning and Community Development, HUD. Mr.lKagel: You recall who the UDAG application went to? Mr. Brownell: Oh sure, he's in charge of planning, we know him well and he' a very important man in our projects. Mr. mat - has Brownell went on to relate the names of the speakers and subject er for the afternoon session. He also mentioned the fact that he a University of Michigan Class Reunion on the 28th of April, which - 10 - is a problem in changing the next meeting date. Mr. Wiggins: As a Commission we ought to authorize the attendance of staff that can attend and cover the fees for their attendance I would include the members of the Commission along with the staff. Chair: Can we get along without you (Mr. Brownell) on the 28th? Mr. Cira suggested that we change the date to Thursday, April 20th. Mr. Wiggins then restated his motion that the regular meeting be changed to Thursday, April 20th at 10:00 A.M. and that the members of the Commission and staff that desire to attend this seminar be authorized to do so and their registration fee be paid. Motion was seconded by Mr. Cira and carried. Mr. Ni tz: John, I don't know whether you know this or not but Mr. Carl Westmoreland from Cincinnati is being brought here by Southhold Historic Preservation Commission and Southhold Heritage Foundation on this neighbor- hood thing during Historic Preservation Week. He will be here to speak to Rotary and I think he will be here for the entire day. He apparently is nationally recognized on this neighborhood thing that you and Don were talking about. Mr. Kagel: I am not a Rotarian but I would be very happy to go as a guest of a Rotarian. Mr. Brownell: I will be glad to invite Mr. Nimtz and Mr. Kagel..anyone else on the Commission who wants to attend. The date on that is the 10th of May. Mr. K gel: We found in Cincinnati that it is a very conservative community, and they have magnificent neighborhood activities going on downtown, which is the heart of the thing, and they they spread out into the community. Isn't that right Mr. Wiggins? Mr. Brownell: We have been very fortunate because Real Estate Research has been very active there - and they do consulting work for us. 8. NEXT IMEETING As established in the previous discussion, the next regular meeting of the Redevelopment Commission has been re- scheduled to Thursday, April 20, 1978 at 10:00 a.m. in the office of the Redevelopment Department, 1200 County City Building. 9. ADJOURNMENT TherE adj oL carri being no further business to come before the Commission, meeting was rned at 10:37 on motion by Mr. Wiggins, seconded by Mr. Cira and ed. - 11 - Commis,sione s Regular t ting April 7, 19 8 President C. ltavn' -e � e1l, Executive Director t Commission -12-