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HomeMy WebLinkAboutRM 06-02-781. ROLL _JUTH BEND REDEVELOPMENT COMMISS�_.4 County -City Building, Room 1200 227 W. Jefferson Boulevard South Bend, Indiana 46601 COMMISSIONERS' REGULAR MEETING Friday, June 2, 1978, 10:00 AM PRESIDING OFFICER: F. Jay Nimtz, President CALL issioners: F. Jay Nimtz, President Donald A. Wiggins, Vice President A. Peter Donaldson, Secretary Robert J. Cira, Asst. Secretary Legal Counsel: Kevin J. Butler Media: Dave Anderson, Reporter WNDU -TV J. Scott Brink, WNDU -TV Jeanne Derbeck, South Bend Tribune Reporter Larry Ford, Reporter, WSJV -TV Jim Robinson, WSJV -TV Photographer om unity Development St ff: James M. Harcus Kathy Baumgartner Kenneth Schaller LPA Staff: C. Wayne Brownell Gertrude E. Barth Marc Brammer Others present: E. L. Cavanaugh, Jr., First Bank & Trust Co. Chair: Pursuant to legal notice given in the South Bend Tribune on May 12 and May 19, 1978, and in the Tri County News, Free Press Publishing Co. on the same dates, we will open a public hearing concerning the advertised land use change for Indiana Project R -66 and related activities for land acquisition. Unless there is opposition or objection from the Commission or any of the public who are present, we will recess this public hearing pending the regular meeting of the Commission and con- tinue the public hearing following the Commission regular meeting. Do I hear any objections? Hearing none, the public hearing is recessed until the conclusion of the regular meeting of the Commission. We will now open the regular meeting of the South Bend Redevelopment Commission and, as previously stated, we do have a quorum. 2. APPROVAL OF MINUTES On motion by Mr. Wiggins, seconded by Mr. Cira and carried, the Minutes of the Regular Meeting of the 19th of May, 1978, were approved as mailed. 3. APP TVAL OF CLAIMS On motion by Mr. Wiggins, seconded by Mr. Cira and carried, the claims in South B nd Redevelopment Commission Commissioners' Regular Meeting and Public Hearinq - June 2, 1978 3. APPROVAL OF CLAIMS, Continued the amount of $7,564.13 were submitted and were allowed and ordered to be pai . The authorized claims were as follows: PROOECT EXPENDITURE ACCOUNT INDIANA R -66 Ronald E. Gettel Rath D. Lauver 3121 LOANS National Homes Acceptance Corp. (Norman) National Homes Acceptance Corp. (Gilkey) REDEVELOPMENT REVOLVING FUND Pay oll: May 15 to May 26, 1978 Sch'llings Sales Company Tri County News Van e RefrigeratorService 4. C a. b. ICATIONS $ 2,000.00 2,000.00 Total $ 4,000.00 $ 61.00 188.00 Total $ 249.00 $ 3,243.00 Total Grand Total 21.27 35.28 15.00 $ 3,315.13 $ 7,564.13 Letter dated May 24, 1978, from Albert G. Smith, Acting Director, Community Planning and Development Division, HUD Area Office, re: Central Downtown Project IND R -66, Disposition Parcel Block 6, St. Joseph River Bend Development Corporation. After Mr. Brownell read Mr. Smith's letter, it was observed that this matter of approval for Lowes' Inc. as a redeveloper is purely academic since the building has been built and is occupied by Lowes' Inc. at the present time. This letter was ordered received and placed on file. Letter dated May 19, 1978, from Donald J. Napoli, Director, South Bend Public Library, concerning extension of deadline to begin con- struction on the parcel of land south of the Main Library. Mr. Brownell read this letter and since no action is necessary at this time, the Chair directed it be received and placed on file. -2- South B nd Redevelopment Commission Commissioners' Regular Meeting and Public Hearing Friday, June 2, 1978 4. COMMUNICATIONS, Continued c. Letter dated May 17, 1978, from Thomas A. Oesterling, of Clyde E. Williams & Associates, Inc., re: Inspection of Urban Renewal Project Indiana R -66, Phase III Contract #5, as part of Contract 3 year guarantee against defective material or workmanship. Hickey letter dated May 5, 1978. Mr. Brownell read this letter and Mr. Wiggins inquired if it was necessary - in compliance with this letter - to make a formal motion to release Clyde E. Williams from any future obligation. Mr. Butler replied that such a motion should be made if that is indeed the desire of the Commission (to release the Hickey Co. from the 3 year guarantee). Mr. Brownell recommended that such a motion be made. Mr. Wiggins then moved that the Hickey Company be released from their 3 year guarantee against defective material and workmanship concerning Indiana R -66, Phase III, Contract #5 - motion was seconded by Mr. Donaldson and carried. 5. OLD BUSINESS a. Commission approval is requested for the following contract awards for General Construction, Electrical Construction and Plumbing Construc- tion, Contract Set #04A. This is a re -bid of Contract Set #04 since there was a discussion and recommendation at the regular meeting of April 20, 1978 to table these bids until a subsequent meeting. Contract Set 04A Jurtin's Construction $21,723.00 to F & F Electric Company 4,810.00 " to R. A. Stickler Plumbing 2,463.00 Mr. Wiggins: Have the problems that arose in the last meeting (in regard to these contract bids) been resolved? Mr. Brownell: We are in compliance with the letter we received from HUD as I understand it. Mr. Harcus: Correct sir. Mr. Wiggins: Then we have no jeopardy here in terms of liability for non - compliance? OK. Mr. Donaldson moved for approval of contract awards as set forth above, seconded by Mr. Wiggins and carried. 6. NEW BUSINESS a Commission approval requested for Change Order No. 1 to Northwest Contract Set No. 6 awarded to Charles Brown Maintenance Co., Inc., -3- South B nd Redevelopment Commission Commissioners' Regular Meeting and Public Hearing Friday, June 2, 1978 6. NEWIBUSINESS, Continued b. for an increase in contract price of $641.00, dwelling is located at 1017 Lawnaale Avenue, South Bend. Mr. Brownell: This Change Order is before you with a letter from Mr. Schaller and it indicates that they had to install ceiling tile in the kitchen and wallboard, for ;a total of $943.00 and deleted two items for a total of $292.00, leaving a net increase of $641.00 in the contract price. It is our understanding that this problem arose because they were unable to match the tile so they are going to use the tile they salvaged from the kitchen to match it. Mr. Butler: How much is the ceiling tile that is to be added, I don't see that included here in the letter. Mr. Schaller: That item is something that is to be added to the kitchen. Mr. Wiggins: Is this a drop ceiling? Mr. Schaller: No, it will be ceiling tile that is put up with f rring strips. Mr. Cira: Evidently installing that tile from the kitchen to the dining room would be strictly a labor cost, is that right? How many hours does that figure out? Mr. Schaller: I don't have the figures for the man hours. Mr. Wiggins: You have it both ways, first the tile must be removed, then put back up in the dining room. That sounds reasonable, I move for approval. Motion was seconded by Mr. Cira and carried for approval of Change Order No. 1 to Northwest Contract Set No. 6, for a net increase in contract amount of $6.41.00. Commission approval requested for Section 312 Loan Applications for the following: Name Robert & Margaret Adams 806 E. Indiana Avenue Willie & Terry Smith, Jr. 1015 E. Dubail Avenue -4- Amount Loan Number $ 2,900 18 /SOU- 2/29/1 -77 -78 10,000 18 /SOU- 1/28/1 -77 -78 South Bend Redevelopment Commission Commissioners' Regular Meeting and Public Hearing June 2, 1978 6. NEW BUSINESS, Continued John & Earlene Fitzpatrick 10i Woodward Avenue David Allen & Deborah Thorn 701 Cottage Grove Avenue Mary Ann Woodham 910 Stanfield Frederick A. & Mary R. Bradley 7171 N. Francis St. Amount Loan Number $ 8,650 18/7MC- 0011/26/1 15,750 18 /7MC- 0011/28/1 5,700 18 /7MC- 0011/27/1 11,400 18 /7MC- 0011/29/1 Mr. Wiggins: Do you,have all the documentation there? Mr. Brownell: I have it all here. Mr. Wig ins then moved for approval of all six 312 Loan Applications, seconded by Mr. onaldson and carried. 7. PROGRESS REPORTS Mr. Brownell: There are no progress reports this morning. Chair: We should make note of the fact that the $100 filing fee has been paid to the Supreme Court....Kevin, you might explain what that is. Mr. Butler: This is a transfer fee from the Court of Appeals to the Supreme Cou t. Ms.�Derbeck: That means then that you are moving the case to the Supreme Cou t? Mr.l Butler: We are trying to. Mr. Nimtz: Trying to transfer the case from the Court of Appeals to the Sup reme Court, that would be the correct cognomen and nomenclature? Ms. Derbeck: You paid a $100.00 filing fee charge today, that was approved? You are bypassing the Court of Appeals? Mr. Nimtz: We are trying to, we have asked the Supreme Court to take jur- sdiction over the matter—The $100 is the fee paid to the clerk of the Supreme Court. -5- South Bend Redevelopment Commission Commissioners' Regular Meeting and Public- Hearing June 2, 1978 7. PRO( Ms. Mr. Ms. Mr. Ms. Mr. and to Y 'RESS REPORTS, Continued Derbeck: For filing this request? Nimtz: Correct. Derbeck: Any idea when you will get an answer? Butler: Within thirty to sixty days. Derbeck: What usually happens? Butler: I am sure that the Supreme Court will look upon the request act quickly because generally the reason for asking for the bypass is educe the time of the appeal. That is obviously our intention here. Ms.lDerbeck: It is up to the Supreme Court to decide? Mr.. Butler: To decide whether it is a matter of significant nature to acc pt direct jurisdiction. Lary Ford: Kevin, isn't there an express time table built into this anyway for these kinds of matters? Mr. Butler: Simply "expeditiously" - but after the Court of Appeals makes its determination, that decision can then be appealed to the Supreme Court. So we are anticipating whatever their determination would be, the losing party would appeal it to the Supreme Court so this action bypasses the Court of Appeals and takes it directly to the Supreme Court. Mr. Mr. Ms. Kev- Ms. a pi thi! Ford: Why hasn't the Court of Appeals already acted on this? Butler: "Expeditiously" means something less than two or three years. Derbeck: I don't think all the papers have been filed, have they? n Butler: No, all the briefs have not been filed. Derbeck: I have one more question: the other day Tom Brademas brought -oposal to the City Council, shouldn't that proposal have been brought to Commission? Mr. Brownell: I would think so if he wants to go ahead with it. If he doe$n't bring it here, it won't ever go. Ms. Mr. Derbeck: Then you have not heard from him on it? Brownell: Not officially. r.2 South Bend Redevelopment Commission Commissioners' Regular Meeting and Public Hearing June 2, 1978 7. PRO IORESS REPORTS, Continued: Mr. Nimtz: It has been discussed with us unofficially, let's say with cer ain members of the Commission. Ms. Mr. Ms . on, Derbeck: But he hasn't come as he did with the other body? Brownell: No. Derbeck: But that is Redevelopment -owned land that he wishes to build is it not? Mr. Wiggins: However, he has other conditions and other problems that he will have to have satisfied by the city before he would even want to be- com a bidder so I suppose that is the reason why he went to them first, wit out approval and help from the city to cover the request for the fed ral help based on the financing of the housing that he proposes in that, he wouldn't have a viable package so he's go to be sure that the citt is willing to ask for the Section 8 Housing that he wants and seek the granting of that before he's even in the market for the land, this is a kind of speculative—thing—it could go either way and until or unless he 's in that kind of position, he's not really asking us to put the land on he market so that he might bid on it and at this point we don't have oth r people who are asking that they might bid on it either—it's kind of hopeful sign at least. Ms. Mr. Ms. ins muc Derbeck: He did not get formal approval then? Wiggins: No, I don't think he put a formal request before the council. Derbeck: What I meant is now and then I hear people, Chris Murphy for :ance, saying that they don't think it is a good idea to have very i subsidized housing downtown. Mr. Wiggins: I think everyone is entitled to their own opinion, Brademas obviously thinks otherwise. Ms. Derbeck: Well, questions are being raised, is this the best us of the lan .. Mr. Wiggins: Apparently none of the developers have found a market at this point, this may change a year from now, but they have not found a signifi- cant market for housing that is not subsidized - that is luxury type housing, at least they don't feel they have, to propose building them. Ms. Derbeck: Well, perhaps it is because you do get the subsidy for this type of housing.. Mr. Wiggins: Well, there are limitations in that, so far as occupancy is con erned, but even in the housing that Tom is talking about, he quoted I_b lieve an expected price figure of $342.00 monthly rental costs per unil and that comes out a little salty for the ordinary run of housing. If 3ou are talking about luxury housing, you would expect more luxury than -7- South Bend Redevelopment Commission Commissioners' Regular Meeting and Public Hearing June 2, 1978 7. PROGRESS REPORTS, Continued he is building,:at that figure, plus added security costs and other things that go with the type of luxury housing that comes to mind when you speak of it - like the sort of thing that is along the Chicago lake front, etc. ..you are talking anywhere from $700 to $1500 a month per unit, how much market there is fo.r that kind of housing in this area, I don't know. I am not in that business. No one is going to go out on a limb and build apartments at those kinds of figures unless they have some pretty good expectations of customers for Ms. Derbeck: But I said that piece of land doesn't have to be devoted to housing at all. Mr. Wiggins: No, but at the same time we do not have other customers knocking on our door to build anything else there. Mr. Brownell: I think it is only fair to say that one of the reasons that he is talking about housing is because he can get financing that way. Mr. Wiggins: This is part of what Tom appears to have built in in the thi gs that he has proposed so far. It is one of his avenues to finance his program. Ms. Derbeck: Shall the decisions about what is to go in downtown be made on the basis of a developer being able to get Federal subsidies? Mr. Nimtz: Jeanne I think we need a mixture, I think this has been the feeling of the Commission through the years, we need a mixture . of commercial enterprise and living accomodations for people downtown. I think the point Don is trying to make is that when you say "subsidized housing" - when you get into this program where the possible top rental would be something in the neighborhood of $320 - $340 per month, this is good rental and of ourse it.depends on your income as to whether you are going to get sub idized on that or not. It is possible I think the lowest rate is abo t $88 per month ?? Mr. Wiggins: The subsidy operates on the basis of 25% of the income of per on renting the apartment and if their income is high enough, they wouldn't get any subsidy at all. There are also some other conditions in- volved. This is all keyed to upper age levels, you must be 62 or older or :ome under some other disability provisions that would allow you to be a tenant and qualify for this subsidy. If you are not being sub- sidized, I assume you can pay the rental and I assume these other factors would not matter but I really wouldn't see many young families with chip dren being interested in that kind of accomodations in that kind of an irea. I think the market will develop and as far as I personally am con erned and from the consultants I have listened to, it seems to me ME South Bend Redevelopment Commission Commissioners' Regular Meeting and Public Hearing June 2, 1978 7. PROGRESS REPORTS, Continued that the idea of having people living downtown is a good idea and that within some kind of frame of reasonable numbers there ought to be some place for this. I would hope so, it would help support the other things that are important -in this. Ms. Derbeck: But if it is a rent subsidy, and it will be mostly people who do not have a whole lot of money to spend.. Mr. Wiggins: Well, you can obviously fill the apartments under a sub- sidized program a whole lot easier because.you are working with a la ger segment of the population. Ms. Derbeck: I want to ask one more question—yesterday Terry Miller ga a a_speech to the architects' association, talking about architectural selections for Century Mall and some other things and mentioned that there is a lot of talk going around in the city offices about doing so e kind of promenade thing from Century Center out West Washington, wa3 out ... doing something there to link the river and downtown with We t Washington. Have you heard..or are you involved in this? Mr. Wiggins: I'm not. Mr. Brownell: I don't know anything about it. Mr. Wiggins: I certainly do feel that the improvement of the central bu iness district will have an enhancing.effect on all the surrounding arE.a. But there is no tie -in that I know of, it might be part of Terry's hopes and dreams.. Chair: (to Ms. Derbeck) but you don't believe us, honestly Jeanne I haven't heard a thing about it. 8. NEXT COMMISSION MEETING Th next Commission Meeting will be Friday, June 16, 1978 at 10:00 A.M. 9. AD OURNMENT Th re being no further business to bring before the Commission, Mr. Wiggins mo ed for adjournment, seconded by Mr. Cira, and the regular meeting wa adjourned at approximately 10:25 A.M. %%21.r� •fir. �.� - Execlutive Director 31