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HomeMy WebLinkAboutRM 05-05-781. ROLL Commi SOUTH BEND REDEVELOPMENT COMMISSION County -City Building, Room 1200 227 West Jefferson Boulevard South Bend, Indiana 46601 COMMISSIONERS' REGULAR MEETING Friday, May 5, 1978, 10:00 A. M. PRESIDING OFFICER: F. Jay Nimtz, President ioners: F. Jay Nimtz, President Donald A. Wiggins, Vice President A. Peter Donaldson, Secretary Robert J. Cira, Asst. Secretary Lloyd Robinson, Sr.; Member Legal Counsel: News McOi a: Guests: Communiy Development Staf : LPA Staff: 2. APPROVAL OF MINUTES Kevin J. Butler Dave Anderson, Reporter, WNDU -TV Les Howard, Photographer, WNDU -TV Jeanne Derbeck, Reporter, South Bend Tribune Larry Ford, Reporter, WSJV -TV Mike Newman, Photographer, WSJV -TV Henry Allen Tony Scott Rozell Newbill, Jr. James M. Harcus John Davis Kenneth Schaller Kathy Baumgartner C. Wayne Brownell Gertrude E. Barth Jane A. Zimmerman On moti n by Mr. Wiggins, seconded by Mr. Robinson and carried, the Minutes of the �pecial Meeting of April 20, 1978, were approved as mailed. South Be d Redevelopment Commission Commissi Hers' Regular Meeting Friday, May 5, 1978 3. APPR VAL 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 $7,454.62. The authorized claims are: REDS ELOPMENT REVOLVING FUND Payroll: 4 -8 -78 to 4 -21 -78 $ 3,189.58 Kevin J. Butler 200.00 Credit Bureau of South Bend - Mishawaka 7.00 I.B.14. Corporation 232.80 Schi lings' Sales Co., Inc. 17.20 TOTAL $ 3,646.58 P. E A. R -66 Kevii J. Butler Ralpi C. Michaels, M.A.I., S.R.E.A. Singipr General Tire, Inc. TOTAL 312 LOANS Abst act Company of St. Joseph County, Inc. Alfr d R. Belardes & Ray Bockaj Alfr d R. Belardes & Chapman's Home Improvement Sand -a J. Desits Ray 3ockaj REDEVELOPMENT DISTRICT CAPITAL Howa d Park Hardware Sear , Roebuck & Co. TOTAL $ 520.75 2,100.00 12.00 $ 2,632.75 $ 81.00 45.00 480.00 93.59 450.00 $ 1,149.59 $ 10.51 15.19 TOTAL $ 25.70 GRAND TOTAL -2- $ 7,454.62 South Beno Redevelopment Commission Commissio ers' Regular Meeting Friday, Mo 5, 1978 4. COMMUNICATIONS Therelwere no communications. 5. OLD BUSINESS (a) Letter to Mr. Carl Ellison, Director, Community Development, from Dr. Robert W. Dew, tabor Relations Specialist, De artment of Housin nd Urban Development in Indiana olis, dated A ri1 21, 1978, Re: W Rates for Rehabilitation Contract, Bureau of Housing. r. Brownell read the letter in its entirety. r. Nimtz: For those who were not in attendance at the last meeting, his is the result of a prolonged discussion we had at our last eeting concerning wage rates, and a conflict arose concerning what irections and what the signals were. Mr. Brownell and Mr. Butler ere directed to communicate with Mr. Dew relative to this, and this s a result of that contact.and communication. r. Brownell: Mr. Butler and I agree that we should recommend to you hat the contracts that were presented at the last meeting by r. Harcus should be disapproved because they do have wage rates pecified in them. Is that your understanding Mr. Harcus? Mr. Butler? oth Mr. Harcus and Mr. Butler agreed that this was the proper procedure. . Nimtz: I believe everything was tabled pending the outcome of is clarification, but I believe the proper motion now is that the ntracts as proposed be rejected. Robinson moved for rejection of the contracts as proposed, seconded Mr. Cira and it was carried. r. Nimtz commented that Mr. Harcus would have to start over but at east they have a clarification. Mr. Harcus agreed that the problem as resolved temporarily. r. Brownell mentioned that he had received another communication which ame to him too late to be included in the agenda, and proceeded to read he memo from Ms. Anita Fields, dated May 4, 1978, Re: Bureau of Housing age Determinations. chair directed that Ms. Field's memo be received and placed on file. -3- South Beno Redevelopment Commission Commissioners' Regular Meeting Friday, M 5, 1978 6. NEW BUSINESS (a) (b) (c) ommission approval requested of Resolution No. 551, authorizing he execution of Redevelopment A re2ment'for disposition of land and the execution of quit claim deed s for the transfer of title hereto.in connection with land to be disposed of in the LaSalle ark Project, Indiana R -57, as follows: rcel Number: 27 -39 Name: Theadore & Willie Mae Gunn 27 -40 mount: $650.00 Brownell pointed out a discrepancy in the "date adopted" section the resolution. The date should have read: "May 5, 1978 ". . Wiggins made a motion to adopt Resolution No. 551, as corrected, r disposition of land in R -57, seconded by Mr. Donaldson, and it was rried. . Nimtz: All this means is that we are selling two parcels of real tate in R -57. . Wiggins: We could expedite this as I am sure it is not necessary r Mr. Brownell to read all of these. It was agreed that Mr. Brownell uld not need to read the entire document. mmission app e following: oval requested for Sep John T. & Imogene Kenney 1118 Diamond Avenue ion 312 Loan Application for $6,750.00 18 /7 /MC- 007/1/1 Brownell indicated that Mr. Harcus and Ms. Baumgartner were present answer any questions. There being no questions.... . Wiggins raved for approval of the 312 loan application for John T. i Imogene Kenney, seconded by Mr. Donaldson, and it was carried. scion approval requested for execution of Certificate of etion, for Ind. R -66, Parcel 6 -1B, to Lowes, Inc. . Brownell read a letter he had received from the architect of Lowes, . James E. Childs, who has inspected their building. He read the nal paragraph ... "the building is believed to be in substantial conformance th the information shown on the plan and in the specifications." !E South Bend Redevelopment Commission Commissioners' Regular Meeting Friday, May 5, 1978 6. NEW BUISINESS (Cont'd (c) . Nimtz: Have you received the real estate description resolved th Art Perry? . Brownell: Yes, he agreed that our description is correct. I ve him a copy; he took it back to his office, checked it, and called this morning. Mr. Nimtz: Mr. Brownell, and Art Perry, the Attorney for Lowe's, were working on the legal description yesterday, and when I left them in the middle of the discussion, they had not reached agreement, but, Mr. Perry has now agreed that our description is correct? . Brownell: That is correct. . Wiggi.ns moved for approval of the Certificate of Completion to Lowes r Parcel 6 -1B, seconded by Mr. Cira, and it was carried. M% Nimtz: I think we all know there is a little more than four acres 1 ft in Block 6 (this piece was .339 acres), it has been sold, developed, aid the building is complete. The four plus acres is that parcel, which his not come up for take down yet. It comes up in November, and they t ke down a portion of it to increase the size of the bank. So, I believe t ey have a little more than four acres. . Butler: Have we received a formal request for take down on 6 -1A? Brownell: They have already paid us for 6 -1A. Butler: That is the Crowe - Chizek site? Brownell: Yes. (d) C mmission approval requested for execution of Certificate of Completion f r Ind. R -66, Parcel 2 -6A, to People's First Federal Savings & Loan of S t. Joseph Countv. Mr. Brownell: This is referring to the land that was sold to People's First Federal Savings & Loan, Parcel 2 -6A. We have had it inspected by o r architect, Mr. James E. Childs, and we have received a letter from him in which he stated that the buildings are substantially complete and ii substantial conformance with information shown on the plans and specifi- c tions. Mr. Robinson moved for approval for the Certificate of Completion for P rcel 2 -6A to People's First Federal Savings & Loan of St. Joseph County, s conded by Mr. Donaldson, and it was carried. �11 South Ben Commissio Friday, M Redevelopment Commission. ers' Regular Meeting y 5, 1978 6. NEW BO SINESS (Cont'd (d) r. Nimtz: If any of you have been to People's First Federal, they ave done a real nice job of putting in a drive -in- window, and they ave an excellent installation, as they have cleaned up the corner. . Brownell: Yes, and I think Lowes is going to be a very effective dition to the Block 6 development. 7. PROGRESS REPORTS There were no progress reports. FLOOR DISCUSSIONS Ms. Derbeck: We always have questions about the First Bank development and what is happening on the mall. Mr. Brownell: On the First Bank, and limiting my remarks to that, at the present time we are waiting for the release of funds on the $7,600,000 letter of credit, and as I understand it, the architects are working on site plans and architectural plans. I would rather not comment at all on the Mall Project because that is the one in which there is a lawsuit, and I have been advised by our attorneys to let them do the talking. Ms. De beck: There is no hold up then on the release of funds? Mr. Brownell: I don't know of any. Ms. De beck: Is that usual to wait a few weeks? Mr. Br wnell: Oh yes, it is normal...the request for release of funds has been mailed out. Ms. De�rbeck: What do you have to do after that? Mr. Br wnell: Wait for Mr. Ellison to receive the release of funds, then he has a etter of credit, and we draw on that. We draw down from Community Development, and they draw down from a letter of credit at a local bank. Ms. Dehbeck: As far as construction is concerned? Mr. Br wnell: Well, you can't very well construct anything until you have some archit ctural plans of what you are going to construct South Ben Redevelopment Commission Commissioners' Regular Meeting Friday, May 5, 1978 FLOOR DISCUSSIONS (Continued) Ms. Derbeck: Are they (First Bank) going to have to bid on that property? Mr. Brownell: Sure. Ms. Derbeck: Do you have any idea when they will bid? Mr. Brownell: Not until we put it up and advertise it. After we have it advertised, we then have a 21 (twenty one) day waiting period. Ms. Derbeck: Why haven't you advertised it then? Mr. Brownell: Well, because the land use is being changed for one thing. Mr. Ni tz: On Monday night, we presume, the final approval from the City Council should be completed. Mr. Brownell and I will be there presenting this change to the City Council, and I presume there will be no difficulty. It has already gone through Area Plan, and it has been approved by the Area Plan. Ms. Delrbeck: Then, after that do you intent to start advertising for bids? Mr. B ownell: No, the next step is the public hearings, we have to go through the procedure. Mr. Butler: In case there are remonstrances, etc. Ms. Derbeck: A public hearing on what? Mr. Brownell: On the land use. It's a very minor change, I can't imagine anyone being very much interested in it. Ms. Derbeck: After that then? Mr. Brownell: After that you have to go to the A -95 Review at MACOG. We can't get out of all these procedures that we have to follow. Then, we have to proclaim it to HUD; there are no short cuts. Ms. Derbeck: After the MACOG thing, then what? Mr. B wnell: We proclaim it..we notify HUD about the plan change. Ms. Derbeck: Then? Mr. B up fo tryi n wnell: They send us a letter back, and then we are ready to put it bid. At the same time that this is going on, of course, they are busy to design the building they want to put on the site. -7- South Bend Redevelopment Commission Commission rs' Regular Meeting Friday, Ma 5, 1978 FLOOR DISCUSSIONS (Cont'd) Ms. D rbeck: Would all that stuff take very long? Mr. B ownell: It will take several months. One of the things is that we have to wait twenty one (21) days after we publish for bids before the biddinIg is closed and the bid opening. Ms. Delrbeck: Are they likely to start any construction yet this year? Mr. B ownell: I don't know. They estimate it will take six months to complete the a chitectural plans, and of course, we have that much time to get our steps done, so there won't be any real delay on the project that I know of. Ms. Derbeck: And you want your attorneys to comment on Century Mall, right? Mr. Briownell: If there is anything you want to know about that, ask them. Mr. Butler: Mr. Chapleau is my attorney, and he told me to keep quiet. Mr. Nimtz: Ms. Derbeck, let me explain this take down to you. Maybe you got this at the conference we attended a couple weeks ago. It is all involved with the national debt concept—in that we get this grant, they don't send us the money, we get a letter of credit at a local bank and we draw on Carl Ellison's department. Mr. Ellison requisitions the money. This is one way they keep contr 1 of the national debt, so that when this money comes out of there, the natio al debt goes up; and they do it piecemeal, rather than $7,600,000 all at one time. It is a matter of requisitioning, and by computer or some way they keep track of everyone who is drawing on their funds this way. Mr. Brownell: Otherwise they would be issuing a lot of money that would be just lying in the bank somewhere. Mr. Wiggins: There was a day when we got the money; we invested it, and impro ed our position that way, but they have pretty well taken care of that now. Mr. Brownell: That used to be in our budget. We were supposed to have our inter st on the money they gave us. Ms. D rbeck: In other words, they are going to get the interest? Mr. B ownell: That's right, or to put it another way, they don't pay interest. Mr. B tier: On our last bond sale, the 2.8 million, or 3.8, whatever it was, we pr bably parlayed that through investments over the years to somewhere around 4.0 million dollars. Mr. By 11: That's where we get the money to fix the lights. South Ben( Commissior Fri day, Mz Redevelopment Commission ?rs' Regular Meeting i 5, 1978 FLOORIDISCUSSIONS (Cont'd) Mr. H my Allen (River Bend Remodelling Corporation): I would like to know, since you have disapproved of this rehabilitation contract, what will be the next tep? Will these homes come up for bidding again or what? Mr. H rcus: Yes, the contract package will be re- formulated to exclude the reference to prevailing wages, and we will continue with the normal procedure of pu lication of invitation to bid. In other words, we will process from the b ginning inviting new bidders. Mr. Nilmtz: In other words, they start all over. Mr. Allen:. From what I understand, this "no wage rate" clause....a contractor could hire anybody that wants to work, as long as he would advise him and see that he work is done right, is that correct? Mr. B ownell: I think there will still be some standards involved. For examp, you would have the minimum wage standards, overtime provisions, and all o le those things. Mr. H rcus: There is also some sort of inference in the contract that the bidders must show their ability to perform the work. In other words, they cannot be all "nailers ", some of them have to be craftsmen. Mr. Butler: There is still a requirement for bonding, initially the bid bond and the performance and completion bonding later. Mr. Allen: I have another question. If a man is qualified, will the commission help struggling contractors to obtain monies to help him with contracts? Mr. Brownell: I don't think the Commission has ever taken any part in helpi g contractors get loans. Mrs. aumgartner: The loans are for single family dwellings to owner- occupants. Mr. Cira: Probably what you should do is apply for a small business loan. Mr. Wiggins: Yes, there might be some possibilities in that route. Mr. Allen: Thank you. Mr. RozelllNewbill: Since there is no prevailing wage in the contract, will the previous contractors who had to pay the prevailing wage, will that be refunded? Mr. B tler: By the employees? Are you asking if their employees will have to pay b ck.... 10 South Benq Redevelopment Commission Commissio ers' Regular Meeting Friday, M y 5, 1978 FLOOR DISCUSSIONS (Cont'd) Mr. New ill: It is my understanding from the paper, that if the Director at HUD, who is in charge finds that you cannot make the contractors pay preva ling wages, that you will refund on previous contracts. Mr. B tler: I did not see that in the paper, I hope no one said that. Mr. R binson: If they do, you are going to have to get it out of your emplo ees, and that would be pretty hard to do because they probably had to spend it just to exist. Mr. New ill: What do you mean? Mr. R binson: If you have to get it out of your employees, and that is who it was paid to, I am sure that the only way you are going to get it back is to get it out of the employee... the courts are already overloaded, so lots of luck. Mr. New�ill: No, I understand that it is Redevelopment that would have to... Mr. Ra�binson: Redevelopment didn't get the money, the employees got the money. Mr. Wiggins: We didn't under pay, we overpaid, if anything, so if anyone gets 4ny money back, it would be us. Mr. New ill: I understand that, but I am trying to clear it up here.-on this pre vi us contract that is going to have to be rebid, it was a contract that state you have to pay prevailing wages...that means wages that are set down in th contract. Mr. Wiggins: In the bid documents that are provided in these contracts; and in the bid package it gave a prevailing wage schedule which dates back a year and a half or so, which is less than the current Davis -Bacon Wage Schedule. The result of this whole thing is that the bid documents which goes to the contractors cannot stipulate the wage that must be paid, this is what the confusion is about. In the past we have, as a matter of policy, said that they h ve to pay what the Labor Department says is the prevailing wage rate for thp area for craftsmen in these trades. Now HUD says we cannot do that. Mr. New�ill: Okay, didn't HUD also say that some money would have to be refunded? Mr. Wi find u stuck don't lgins: No, HUD said if we insisted on it and paid it, that they would in error when it came time to audit our books, and that we would be vith the difference, and that is the reason we shut this off, because we vant to incur any liability here. -10- South Bend. Redevelopment Commission Commissioners' Regular Meeting Friday, May 5, 1978 FLOOR ISCUSSIONS (Cont'd) Mr. New ill: Alright, but you have already incurred a liability. Mr. Wi gins: No we haven't. We are throwing out those contracts, and they will b rebid. Mr. New ill: What about the contracts that were previously signed? Mr. Brownell: We wouldn't be obligated to anyone except HUD. The contractor wouldn't have anything to do with it. Mr. Wiggins: We had authorization from HUD prior to that, so if there was any liability, it would be between us and HUD, not between us and the contractor. Mr. New ill: I understand. 8. NEXT CPMMISSION MEETING - May 19, 1.9.78 9. ADJOURNMENT There eing no further business at this time, motion to adjourn the meeting was ma a by Mr. Don Wiggins, seconded by Mr. Robinson, and carried. The meetin was adjourned at 10:30 A.M. a' President �— C. ownell t Commission Executive Director -11-