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HomeMy WebLinkAboutRM 05-19-781. ROLL (CALL Commissioners: Legal l News Counsel: SOUTH BEND REDEVELOPMENT COMMISSION County -City Building, Room 1200 227 West Jefferson Boulevard South Bend, Indiana 46601 COMMISSIONERS' REGULAR MEETING Friday, May 19, 1978, 10:00 A.M. PRESIDING OFFICER: F. Jay Nimtz, President F. Jay Nimtz, President Donald A. Wiggins, Vice President A. Peter Donaldson, Secretary Robert J. Cira, Asst. Secretary Lloyd Robinson, Sr., Member Kevin J. Butler ia: Larry Ford, Reporter, WSJV -TV Jim Robinson, Photographer, WSJV -TV Dave Anderson, Reporter, WNDU -TV Dick Nemeth, Photographer, WNDU -TV Jeanne Derbeck, South Bend Tribune, Reporter mu ity Development St ff: LPA Staff: 2. APPROVAL OF MINUTES James M. Harcus Kenneth Schaller Kathy Baumgartner Anita L. Fields C. Wayne Brownell Marc Brammer Gertrude E. Barth Jane A. Zimmerman On mo ion by Mr. Wiggins, seconded by Mr. Cira and carried, the Minutes of tho Regular Meeting of May 5, 1978, were approved as mailed. 3. APPROVAL OF CLAIMS On mo ion by Mr. Wiggins, seconded by Mr. Donaldson and carried, the claims were pproved as submitted, and were allowed and ordered to be paid, totalling $32,2 0.95. The authorized claims are: South Beno Redevelopment Commission Commissio ers' Regular Meeting Friday, M y 19, 1978 3. APPRO�AL OF CLAIMS (Continued) PROJECT EXPENDITURE R -66 James E. Childs & Associates, Inc. Peoples' First Federal Savings Redev lopment Revolving Fund 312 LOANS Ray B ckaj Fiber lux of Indiana, Inc. Natio al Homes Acceptance Corp. South Bend Heating Oil Corporation REDEVELOPMENT REVOLVING FUND Payroll: April 24, 1978 to May 12, 1978 Proje t Expenditure Account R -57 Ketch 2n Bros. & Kenady, Inc. Smith Petroleum Company Postmaster REDEV LOPMENT DISTRICT CAPITAL Abstract Co. of St. Joseph County TOTAL TOTAL TOTAL TOTAL GRAND TOTAL -2- $ 322.50 2,860.00 19,757.05 $22,939.55 $ 1,250.00 1,988.80 1,583.00 748.80 $ 5,570.60 $ 3,207.58 404.26 20.00 53.89 $ 3,703.30 $ 57.50 $ 57.50 $32,270.95 South Bend Redevelopment Commission Commissioners' Regular Meeting Friday, May 19, 1978 4. COMMUINICATIONS a. tter, dated May 5, 1978, from the Hic Gerald A. Hickey, Re: Inspection of 66 Phase III Contract #5 as part of C fective Workmanship. ey Company, Inc.; signed Urban Renewal Project Indiana ntract 3 Year Guarantee against M . Brownell: Since receiving this letter, I have asked Mr. Slabaugh t check this work and I intend to talk to Mr.06sterling on Monday, t see if he will have it checked also. The Chair then ordered this letter be received and placed on file. b. L tter, dated May 2, 1978, from William J. Murta h, Keeper of the N tional Register, U.S. Department of the Interior, concerning r quest for determination of eligibility for inclusion in the National IR ister of the Odd Fellows Building, to Carl Ellison, a co of which w s sent to this office bv.:ir- Fllisen- M . Brownell read this letter in part and pointed out that on page two oF this communication it indicated the Odd Fellows Building was not eligible to be placed on the National Register. One reason it is not eligible is that it is not fifty years old. The Chair directed that this letter be received and placed on file. c. L tter, dated May 17, 1978, from Bill Slabau h, Project Engineer and J hn Leszc nski, Man a er, City of South Bend Bureau of Public Constructi IR : Phase IIE, Sidewalk Ramps, Other. Mt. Brownell read this letter in its entirety. M Nimtz: Mr. Brownell talked to me about this letter the other day. M Allen Schrager has been after Mr. Brownell to get this thing fixed. I this our responsibility? Did the American Bank take up part of the s dewalk when they moved out of there? M . Brownell: Yes, but they have been put in new since then. They r placed one or two sections. There were vaults under-dhere, and they b ilt a wall, filled it in, and tamped it with one of these machines; but a parently didn't compact the fill well enough. 1. Wiggins: This is under his guarantee, fsn't it? -3 South Be Commissi Friday, Redevelopment Commission rs' Regular Meeting 19, 1978 4. COMMUNICATIONS (Continued) c. (continued) M-. Brownell: I believe so. We have another problem in connection with this sort of thing.... there is a hole over on the sidewalk at Michigan Street in front of that parking lot, and the sand keeps drifting away. I don't know where it is going, and I referred this to Mr. Slabaugh. Mr. Slabaugh said he would have someone look at it. I think this too is a problem that we are responsible for, because we rent that lot to the people for parking, and the sidewalk, in effect, is our sidewalk. The Chair directed that this letter be received and placed on file. 5. OLD BUSINESS There was no old business to bring before the Commission. 6. NEW a. B SINESS C mmission a roval request d for Section 312 Loan Application for the f 11owin : R n & Claudia Johnson 810 Fairway Street S uth Bend, Indiana Fred & Lorene Pearson 1134 E. Miner Street S uth Bend, Indiana 46619 Dale E. & Joan Teter 152 N. Albert Ave. S uth Bend, Indiana 46619 Francis & Lucinda Hubbard 751 Cottage Grove S uth Bend, Indiana 46601 Winifred Grayson 1 04 E. Bissell Street S uth Bend, Indiana 46617 John S. Jr. & Connie Balint 517 S. Edison Avenue S uth Bend, Indiana 46619 -4- $8,000.00 18 /SOU- 2/25/1 -77 -78 $1,650.00 18 /7MC- 0011 /1 $5,450.00 18 /SOU- 2/27/1 -77 -78 $11,350.00 18/7MC- 0011/23/1 $4,100.00 18 /7MC- 0011/25/1 $6,550.00 18/SOU- 2/26/1 -77 -78 South Ben Commissio Friday, M Redevelopment Commission rs' Regular Meeting 19, 1978 6. NEW BOSINESS (Continued) a. (Continued) . Brownell read the names and addresses of all loan applicants with amount of the loan involved in each case. M . Robinson: What kind of house could the one be on Cottage Grove w ere it is going to take $11,350.00 for renovation? That must be q ite a place. M . Wiggins: There are some pretty good sized houses down in that n ighborhood and it probably needs a lot of work. These are not grants, t ese are do it yourself loans. M . Robinson: I know, but I thought that the people that were getting, t is type of loan, were the people who basically were at the lower end o the economic scale. Mr. Wiggins: They probably are, but a repayment schedule on $11,000 1 an amortized over the normal length of these things, it would look a 1 t better than buying a new house for $40,000. M,. Butler: As a matter of fact, some of this might be refinancing an e isting mortgage, if there is one; part of it would be to refinance that. i' . Robinson: Then, it might not necessarily be all for renovation then? . Wiggins: It might not be. s. Baumgartner: It is not, we are refinancing about $1,400.00, the st is all rehabilitation. The rehabilitation is about $9,991.00. . Nimtz: This house is north of Lincolnway West right? s. Baumgartner: Right. . Nimtz: About how many houses north of Lincolnway West? . Baumgartner I don't know. We have the appraisal figure in there you would like to see that. -5- South Ben Commissio Friday, M Redevelopment Commission ers' Regular Meeting y 19, 1978 6. NEW BOSINESS (Continued) a. (continued) M-. Nimtz: That used to be a pretty good neighborhood years ago, and F ed Vaughn and I used to own the second house north of Lincolnway West, w ich was John Campbell's house and Judge Dempsey's folks lived right n xt door, but the neighborhood has gone down and as Don says, there w re real substantial and big homes in that neighborhood. Mt. Robinson: I was just curious, if that was all renovation, what i the house worth if they needed that much money to fix it up. . Nimtz: Are there any other questions? Mr. Harcus: There is one item sir. In the 312 loan, it is not just the rehabilitation or compliance with health and safety codes—the homeowner is permitted in the loan program to expense approximately 50% of his loan on what you would call cosmetics, making the kitchen nicer, etc., as long as the major codes are covered. . Robinson: Is there a maximum limit on how much income these ople, who get this type of loan can have? s. Baumgartner: Yes, they go by the 221D3 limits. Nimtz: So Robbie, you know better than I do when you get into modelling a kitchen or a bathroom, you can drop $5,000 real easily. s. Baumgartner: This house needs extensive electrical work, siding, d a lot of basics. Mr. W ggins moved for approval of all the 312 Loan Applicants, seconded by Mr. Donaldson, and it was carried. b. Commission approval requested for Change Order #1, Slatile Roofing and Theet Metal Co., Inc.., CS #11, at 818 East Indiana Avenue, for an increase i the contract price of $250.00 . . Brownell read the Change Order and the letter in its entirety. . Robinson: Is the rest of the house stuccoed? Schaller: No, the rest of the house is sided. an South Be Commissi Friday, Redevelopment Commission ers' Regular Meeting y 19, 1978 6. NEW BOSINESS (Continued) b. (�ontinued) M . Robinson: If all it needed was tuck pointing to begin with, what h peened that would create all this additional work of stuccoing. S uccoing basically is just cosmetics. Mr. Schaller: There was some deterioration of the brick. The chimney was painted when the inspection was made. I talked to the inspector and the tuckpointing was all that was required when he made the inspection, but with this winter that we went through, there was some damage to the chimney. I don't know what caused the damage to the chimney. . Robinson: What is the difference in price, even with the additional rk necessary? What is the additional price for tuckpointing and pairing that chimney, rather than stuccoing it? M . Schaller: They are going to do the tuckpointing as required on the s ecifications and in addition to the tuckpointing, they are doing $ 50.00 for stuccoing for the entire chimney. Mr. Harcus: As you probably know sir, stuccoing is just a phrase they use in the trade, but actually what they are doing is applying in a graded manner, from the roof up to the top of the chimney, another two to three inches of cement, reinforcing that chimney with concrete and making it a substantial unit, which will withstand the weather of future winters. It is not just stucco as you see on the outside of a house. M�. Wiggins: You mean the face of the brick has eroded? Mr. Harcus: Yes, that is the sort of thing that is really showing up. After the winter inspection, it showed additional deterioration, and to reinforce it, they take two or three inches of cement and build it up. Mr. Robinson: Are you talking about on top of the chimney or the total chimney? Mr. Harcus:. The whole chimney. Mr. Wiggins: Has this been a successful practice, rather than rebuilding t e chimney with brick? . Harcus: Yes, on the outside I have done that myself, in contract work, d it is more economical to do it that way, and it lasts innumerable years. -7- South Be Commissi Friday, Redevelopment Commission rs' Regular Meeting 19,1978 6. NEW BOSINESS (Continued) b. (continued) Mr. W ggins moved for approval of Change Order #1 to Slatile Roofing and Sheet Metal Company, Inc., for an increase in the contract price of $250.00, secon ed by Mr. Donaldson, and it was carried. c. Commission approval requested for authorization to execute contract for professional services with Nicholas C. Jannotta & Associates, Ltd., Indiana R -66. Mr. Brownell: What has happened is that the bank in Chicago has been ordered by the controller of the currency to divest themselves of the Real Estate Research business, and Mr. Anthony, who is the head of it, has left and become a "fellow" at the Brookings Institute. Mr. Jannotta, w o was the Executive Vice President, has left the firm, and on May 1st, entered into a plan to develop a firm under an Illinois Corporation name of Nicholas C. Jannotta Associates, Ltd., and so we have talked to him arid the proposal I am bringing to you today, is that we contract with Mr. Jannotta and his firm in the same manner, which we did with Real E tate Research. M . Nimtz: Mr. Brownell and I met with Mr. Jannotta two weeks ago and d scussed this. As you know, he has the knowledge (Mr. Wiggins indicated t at he had been working here for the past six or eight years), of our s tuation here, and of course, he is involved not only here, but in C ncinnati, places in Michigan, and so on; and I would hate to lose him b cause of his background and expertise in this thing; it would be my commendation this be approved. . Brownell: The rates are the same as they were in the Real Estate ntract. M Wiggins: I will be happy to make a motion to authorize execution of C ntract for professional services with Nicholas C. Jannotta & Associates, L d. , upon which the motion was seconded by Mr. Robinson and carried. d. Roal Estate Appraisals, Indiana R -66 Mall Project. Mr. Brownell: We have had the real estate appraised in the so- called mall project area by two M.A.I. appraisers, and we have also had the appraisals reviewed by an M.A.I. appraiser, who did the reviewing appraisal work. We have received all these reports, which I have shared with the commissioners, and I would suggest that we will need, in order to proceed w th this, the approval of the commissioners of the market value as deter - m ned by the reviewing appraisers. We have gone over these values with t e commissioners on the individual parcels this morning. -8- South Ber Commissit Friday, P Redevelopment Commission rs' Regular Meeting 19, 1978 6. NEW BOSINESS (Continued) d. (continued) Mr. Nimtz: I think the press is well acquainted with the fact that t ese cannot be made public because of the question of negotiation and Possible litigation. Therefore, they cannot be revealed; it's a standard practice. . Derbeck: The figures? Mr. Nimtz: Yes, the figures. The commissioners know what they are, but I'm sure all of you reporters are well experienced in this matter. You know we cannot reveal the appraisal figures at this time because of the question of possible negotiations when we get into buying these properties. Are there any questions? M3. Derbeck: Can you say whether you thought the figures were high? Mr. Brownell: I think we found the figures to be fair..we have had three vary fine appraisers doing this work. M3. Derbeck: Does this include the furnishing appraisal also? Mr. Brownell: No, this is purely land and buildings. Mr. Wiggins: We have used these appraisers in the past and their work i satisfactory; the appraisals have held up and we have no reason to q estion their work. M;. Derbeck: You haven't done this same appraisal work on the furnishings? Mr. Brownell: Yes, we have done it, but those appraisals can't be used in any way until somebody decides to move and they get a relocation benefit from that. Ms. Derbeck: Well but wouldn't you have to approve the figures like Y u are doing for the buildings? i r. Brownell: Well, the only thing you can do is to find out from the ?rson, who occupies the premises how much of it they want to move, and )w much of it they want to sell. We buy what they want to sell and we )ve what they want to move. There is no way we can do anything about t.... at this time. ME South Be d Redevelopment Commission Commissi ners' Regular Meeting Friday, .lay 19, 1978 6. NEW BUSINESS, Continued (d) continued) r. Dave Anderson: Wayne, you have completed the acquisition appraisals, nd this other thing is still under litigation - supposedly down at he Court of Appeals - what happens now, is this the last thing you can o? . Brownell: The next thing that happens after this is approved by the ommission, I will file a Proclaimer with HUD at the Area Office and hey will reply to the Proclaimer. Mr. nderson: How about the time table now? There was some concern about tetting these appraisals done within the time frame that you had. . Brownell: I think we are a little behind schedule with that, maybe month. r. Butler: The appraisals were done on time -but yes, we are behind schedule s we cannot proceed - do not want to proceed - with the lawsuit pend- ng and the various actions that have been taken. I haven't talked ith Ed Chapleau in the past ten days so.. . Anderson: Do you have any total figure on these appraisals? . Brownell: I don't have .... I could add it up I suppose. t this point Mr. Wiggins made the motion to approve passage of Resolu- ion No. 552, which sets forth appraisal acquisition figures as determined y the LPA appraisers for the Downtown Mall Project. Motion was seconded y Mr. Donaldson and carried unanimously. 7. PROGRESS REPORTS (a) Mr. Nimtz: Wayne and I have talked to Ruth Price as sort of an unpaid consultant in regard to the possibility of getting a grant from the National ark Service or the Department of Interior, relative to opening the East Race and somewhat in that regard, I have a letter from her (Ms. Price) to Mr. Brownell and myself ... Mr. Nimtz then proceeded to read the letter rom Ms. Price and mentioned by way of explanation that Carl Westmoreland, he speaker at the Rotary Club who was referred to in Ms. Price's letter, s a Professor at the University of Cincinnati. He has been very much nvolved in rehabilitating two neighborhoods in Cincinnati, one of which s residential - houses - and the other involved huge buildings, row ouses and such which would take considerable financing to rehabilitate. -10- South Beno Redevelopment Commission Commissio ers' Regular Meeting Friday, M y 19, 1978 7. PROGRtSS REPORTS (Continued) a. M-. Nimtz continues: He has been very successful in those two projects aid was brought here by the Historic Preservation Commission through a g ant from the National Trust. He is a Trustee of the National Trust f r Historic Preservation, and was very impressive. He almost received a standing ovation at Rotary... prolonged applause for his speech. M% Nimtz continued to read from Ms. Price's letter and ordered that tie letter be received and placed on file. He indicated that he would w ite to Mr. Richard Gantz in Indianapolis as suggested by Ms. Price. b. M-. Nimtz read a letter from Candace Peck, the Historic Preservation Planner, thanking him for his letter endorsing the grant application w ich the Historic Preservation Office submitted to the National Trust. T is Consultant Services Grant was awarded to the Historic Preservation Office by the National Trust for Historic Preservation. "This grant will match local funds to obtain the services of W. Galen Allsop to review o r existing historic preservation ordinances and procedures. Your e dorsement of our grant application is an essential ingredient in the aiding of our efforts..." This letter was received and placed on file. 8. NEXT POMMISSION MEETING The n xt commission meeting will be held on June 2, 1978, which will also be th public hearing, as advertised May 5, 1978 and May 19, 1978. The publi hearing is on the Plan Change for the "hole" development. FLOOR DISCUSSION Mr. Nimtz: Wayne and I were at the City Council Meeting the other night and about 10:30 the Plan Change Resolution went through without any question or discu sion. Ms. D rbeck: Did you expect anybody to appear in opposition? Mr. Brownell: I would hope not. We don't expect any difficulty. Mr. B ownell: There is one item here that I forgot to mention. It is in your packe It is an article by one of the reporters, Ms. Jeanne Derbeck, a Tribu e Staff Writer, regarding "buildings that failed historic test Ms. D rbeck: I believe the thing stops at the state level if they reject the a plication, but in the case of the Odd Fellows Building, as part of an envir nmental review, even though it was rejected at the state level, it had to go on to the national level for action,..—there are two separate ways of doing this. -11- South Be Comnissi Friday, Redevelopment Commission ers' Regular Meeting y 19, 1978 FLOORIDISCUSSION (Continued) Mr. Brownell: I think there is one more thing...under verbal. Mr. Slabaugh says that he is working on the repair contract to repair the lights on Plaza Park and he hopes to get that together by our next meeting. Ms. D rbeck: Then you really don't have any other word on the lawsuit, that is all that is in the way now... Mr. Brownell: I don't comment on the lawsuit. Mr. Nimtz: We keep hearing things like you do Ms. Derbeck. Ms. D rbeck: But that is the only thing standing in your way? Mr. B ownell: No, that is not true. The environmental review completion has to be made before the release of funds; that will probably take another thirty days r so, because they have to publish that. 9. A There being no further business to bring before the Commission, Mr. Robinson moved for adjournment, seconded by Mr. Donaldson, and the meeting was adjourned at ap roximately 10:28 A.M. t Presidl?nt C. W'rownell, Exec. Director -12-