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HomeMy WebLinkAboutRM 07-07-78SOUTH BEND REDEVELOPMENT COMMISSION County -City Building, Room 1200 227 W. Jefferson Boulevard South Bend, Indiana 46601 COMMISSIONERS' REGULAR MEETING Friday, July 7, 1978 - 10:00 A.M. PRESIDING OFFICER: F. Jay Nimtz, President 1. ROLL ALL Commi sioners Present: Absent: Legal Counsel: News F. Jay Nimtz, President Donald Wiggins, Vice President Lloyd Robinson, Sr. Member Robert Cira, Asst. Secretary A. Peter Donaldson, Secretary Kevin J. Butler ia: Dave Anderson, WNDU -TV Reporter Isaiah Cooke, WSBT -TV Photographer Jeanne Derbeck, S. B. Tribune Reporter Les Howard, WNDU -TV Photographer John McKnight, WSBT Community Development Staff: LPA Staff: 2. APPROVAL OF MINUTES Note: This by Mr 3. APP James M. Harcus Kathryn Baumgartner Fritz Kilbury Kenneth Schaller C. Wayne Brownell Gertrude E. Barth Marc Brammer Mr. Brownell read a letter from Kenneth Schaller, Project Director, dated July 5, 1978, which corrected the address of a structure to be rehabilitated by Renew, Inc. Approval of this rehab fund allo- cation was given by the Commission on June 16, 1978. The original request for fund allocation listed the address as "1615 S. Douglas Street" and it should have read "1805 South Douglas Street ", South Bend, Indiana. :hange duly noted and motion was made to accept the corrected minutes Wiggins, seconded by Mr. Robinson and carried. (Minutes dated 6- 16 -78). AL OF CLAIMS On motion by Mr. Wiggins, seconded by Mr. Cira and carried, claims in the amount of $284,768.83 were submitted and were allowed and ordered to be paid South Bend Redevelopment Commission Page 2 July 7, 1978 3. APPROVAL OF CLAIMS. Continued The aluthorized claims were as follows: REDEVELOPMENT REVOLVING FUND Payroll : 6 -3 -78 to 6 -16 -78 Bruning Division, Addressoqraph Multigraph Kevin J. Butler Busin ss Systems, Inc. I.B.M. Corporation Schil ings Sales Company, Inc. REDEVELOPMENT DISTRICT CAPITAL Abstr ct Company of St. Joseph County, Inc. PROJECT EXPENDITURES ACCOUNT IND. R -66 Kevin J. Butler Kevin J. Butler Indi na Bell Telephone Co., Inc. Redevelopment Revolving Fund S. M. Dix Associates, Inc. 11 11 0 it It 312 LOANS $ 3,131.45 39.63 200.00 28.86 85.73 15.98 Total $ 3,501.65 $ 57.50 57.50 Total $ 115.00 Total Abst act Company of St. Joseph County, Inc. Circle Lumber Company Richard A. Muessel, Jr. St. Joseph County Treasurer II 11 11 11 R. A Stickler Plumbing Co. Hube t Weaver Alfr d R. Belardes & T & T Cement Contractors Asso iates Financial Services Total Grand Total 4. COMMUNICATIONS $ 1,188.25 577.85 249,997.00 7,620.04 7,650.00 1,995.35 $269,028.49 $ 98.50 265.28 7,339.07 49.59 503.54 1,900.00 50.00 765.00 1,152.71 $ 12,123.69 024-79A _ RR a. L tter from Keneth Schaller which was the basis for the correction in 4t e Minutes of June 16, 1978, as outlined in Item 2 above. South Bend Redevelopment Commission Page 3 July 7, 1978 4. COMMUNICATIONS, Continued b. etter from Edward A. Chapleau, dated June 27, with attachd copy of letter from Mary Borr of Mary Borr Toyota, dated June 20, 1978, oncerning the twenty -six foot strip of land running north and south be- ween Monroe Street and Western Avenue, which is currently being used y the employees of Mary Borr Toyota to park automobiles. Ir. Brownell pointed out that there were copies of these letters in the ackets but since the letters were received he has met with Mr. Borr nd negotiated a month -to -month lease agreement with a rental of 75.00 per month and has asked Mr. Chapleau to prepare a Commercial ease and submit it to Mr. Charles Boynton, attorney for Mr. Borr. hair: ince there is no action needed then, we shall receive the letters nd place them on file, pending receipt of the lease. r. Brownell: I just wanted you to know about, yes, that's right. Pr. Cira: Is that a month -to -month lease? Mr. Brownell: Yes, thirty days. c. L.etter from Mayor Nemeth to Robert W. Dew, Labor Relations Specialist f the HUD Area Office, dated June 26, 1978, concerning the Davis-Bacon age Rates. r. Brownell was requested to read the letter which he did and Mr. imtz commented that it was a good letter. Mr. Robinson: I only have one comment, I appreciate the letter that the ayor sent to Mr. Dew..I. have received copies of all kinds of corres- ondence from various people and the organization. I am affiliated with, to Ms. Raymond, to the Congressman's office, from my International President, etc., etc., but I still don't have the letter that I really ant telling Mr. Dew that he will mind his own business. Mr. Brownell: I think they thought the place to start was with him and he as to answer one way or the other and then his answer will either put im on the spot or!'off.the spot. I thought it was a very good letter and I was interested in the fact that a copy of the letter went to Ron atton, Regional Administrator, Choice Edwards, Acting Area Manager nd back to Elizabeth Raymond and Robert Georgine. Chair: Unless there is further comment, the Chair will direct that the letter from Mayor Nemeth to Mr. Dew be received and placed on file. 5. OLDIBUSINESS a. ommission approval is requested for negotiated settlement of reloca- ion claim of Indiana Bell Telephone Company, Inc. and authorization o make payment in the sum of $249,997.00. . Brownell: In your packet you will find a letter from Bruce Cray- South Page 4 Julv 7 nd Redevelopment Commission 1978 5. OLDI BUSINESS, Continued craft, Vice President and General Counsel and you will find a release and settlement of claim. Kevin, I think you have a copy of the release in our packet for review. We would like you to authorize us to issue this check, as you have on the claims, and also to approve the release they have signed and furnished to us. Chair: As I recall the situation, this is a negotiated settlement with S. M. ix as the ..it is some $13,000 below what the original amount was. Mr. Brownell: Yes, they have been very helpful - on the I & M claim, S. M. Dix got the claim down to $319,000 from $379,000 and this one they have got down to $249,997 from $263,000. Cha -r: Kevin, do you have any comment on this thing now? Kevin: No. Cha r: We are legally bound to pay it and its the lowest amount we have bee able to arrive at. Yes, we have the money. Mr.lBrownell: We got the money from the city. Mot on was made by Mr. Robinson that the negotiated settlement with Indiana Bel" Company concerning the relocation of utilities when the Mal was constructed between Jefferson and Wayne Streets and the other area, be illowed and ordered paid, in the amount of $249,997.00. Mr. Wiggins sec nded the motion and it carried. Mr. Brownell: As an aside to this, I might also point out that the city is paying us this money which clears up the problem of the funds.that wer used out of R -66 for E -3 and E -5. Repayment of this money clears up the city's obligation on this. Mr. Brownell: The next item that I would like to bring up at this point under old business, though not listed on your agenda, is the lease for the bus company. We usually rent to them for a six month period on a $1.00 lease. We have had a Commercial Lease prepared doing just that and it will run from July 1, 1978 through December 31, 1978, if you approve it. Chair: The same terms and conditions, $1.00. Motion was made by Mr. Wiggins, seconded by Mr. Cira and carried that the lease with the South Bend Transportation Corporation be continued for a period of six months from July 1.,_1978 through December 31, 1978 for the sam terms and conditions previously agreed upon and that the President and Sec etary be -aUthori zed ,to enter into this 1 ease _ for $1.00. 6. NEWIBUSINESS a. Commission approval requested for Change Order No. 2 to Contract Set #11, Southeast, for $125.00 to Slatile Roofing and Sheet Metal, Inc. South B nd Redevelopment Commission Page 5 July 7, 1978 6. NEWIBUSINESS, Continued Mr. Brownell: The letter of July 6, 1978, signed by Kenneth Schaller, in- dicates that the bid specs specified replacement of the front porch. When the contractor removed the old deck he discovered a heavy infestation of termites. This office verified the condition after bids were accepted, and contracted for extermination of the structure. The change order called for replacement of box sill, (20 ft), replacement of floor joists (24 fee ) and replacement of air bracings, for a total increase in contract pri e of $125.00. Mr. Robinson: I have a question: it says the bid specs call for replacement rof the front porch and now we get an addition because he has to replace the sill. Shouldn't that have been included in the original bid if he was goitig to replace the front porch? Mr. Mr. Schaller: Perhaps that was misleading, it actually was the front porch deck. Robinson: That is not what it says. Mr, Schaller: I understand what you are saying but the bid specs say "re lace the deck ". Mr. Robinson: In other words, if we added the word "deck" after your "re- pla ement of front porch" would that make it correct? Ken; Mr. the Mr. Mr. of i Mr. Mr. for Mr. take If you add that, sure. Robinson: Then the $125.00 is to replace the rest of the materials for front porch? Schaller: As listed on the Change Order. Robinson: Plus the labor - my next question is: was the extermination termites in the original bid specs anyway? Schaller: For the structure, no. Robinson: Then where did that money come from, there is no Change Order that. Schaller: We contracted separately for an extermination company to care if this work. Mr. Wiggins: But what he is saying is "where is the cost of that work, you did 't get the extermination done for nothing did you? Mr. Mr. Schaller: No. Robinson: Where did that money come from? Mr, Schaller: From our contractual services budget - in the past, as long as I h ve been with the Bureau, for work such as extermination we have been all wed to accept bids from several extermination firms and proceed with the extermination work. South Bend Redevelopment Commission Page 6 July 7, 1978 Mr. Robinson: So in other words, whenever you have an extermination job, it dust comes through here on a current bill that we sign every couple wee s then? Ken S: The claim is submitted through our regular procedure to Community Dev lopment. Mr. Brownell: It doesn't come through this Commission, it is paid by C.D. Mr. Robinson: That is really what I'm trying to find out where the money is coming from. Mr. Harcus: Also, when extermination inspectiohpis�*nown to be required prior to contracting on the house, then that is included in the bid. If it comes up after the fact; it is handled in the manner that Ken just explained. Mr. Robinson: I just wondered where he was getting the money, then you finally got to it, thank you. Motion was made by Mr. Wiggins, seconded by Mr. Cira and carried for Com ission approval of Change Order #2, Contract Set #11, Southeast, for $12E.00, to Slatile Roofing and Sheet Metal, Inca b. Commission approval requested for Change Order No. l to contract Set #5. Southwest, for $65.00, to R. A. Stickler Plumbing Company. This change order called for replacement of a valve below the water meter for an increase in contract price of $65.00 Motion was made by Mr. Wiggins, seconded by Mr. Robinson and carried, for app oval of Change Order No. 1 to Contract Set #5, Southwest for $65.00 to R. A. Stickler Plumbing Company. c. Commission approval requested for award of the following bid contracts for general construction, plumbing, and heating, Contract Set #1, Bureau of Housing Far Southwest, with award subject to legal counsel review and South Bend Common Council approval, as applicable: Contract Set #1 General Construction - Charles Brown Maintenance $22,163.00 Plumbing Contract - R. A. Stickler Plumbing 2,553.00 Heating Contract - Builders -Whitt Inc. 3,394.00 Mr. Brownell: As I recall from our committee meeting, there was no elec- tri al bid received so that will have to be rebid. Chailr: Robbie, are all the electrical contractors so busy? Mr.lRobinson: Not really, if they are they are fooling me because I still Soi Pa( Jul N.N ith Bend Redevelopment Commission ie 7 y 7, 1978 BUSINESS, Continued men available. I imagine I know what the problem is - when you took NEW have off the Davis -Bacon rates, people are not going to waste their time. Mr. Brownell: One company took out a bid packet but did not bid - I believe it was F & F Electric Company. Chair: Can you proceed without any electrical bids? Mr. Brownell: They would like to get these approved as I understand it and then rebid the electrical. Mr. Robinson: There is only one bidder on the plumbing then? Mr. Brownell: Yes. Motion was made by Mr. Wiggins and seconded by Mr. Robinson to approve the bid contracts as set forth above. Motion carried. d. Commission approval requested for Resolution No. 557, authorizing the execution of redevelopment agreement for disposition of land in the LaSalle Park Project, Indiana R -57 - with approval of execution of Quit Claim deed as follows: Parcels Rosetta Fleming & Ernest Williamson 28 -25, 28 -26 $770.00 Mr. Brownell noted that of the $770.00 due for the parcels, $700.00 has been paid to date and when the balance of $70.00 is received, deed will be issued to the purchaser. Moti n for approval of Resolution No. 557, with issuance of Deed upon receipt of payment in full, was made by Mr. Wiggins, seconded by Mr. Cira and carried. e. C mmission approval requested for Resolution No. 558, authorizing the execution of redevelopment agreement for disposition of land in the La alle Park Project, Indiana R -57 - with approval of execution of Quit Claim deed as f lows: a Pope Parcels 17 -8 and 17 -9 $795.00 E1 Mr. leaving 3rownell noted that of the $795.00 sale price, $200.00 has been paid, a balance due of $595. When the balance has been paid, deed will be i sued to the purchaser. Moti n for approval of Resolution No. 558, with issuance of Deed upon receipt of payment in full, was made by Mr. Wiggins, seconded by Mr. Cira and arried. f. C mmission approval requested for Resolution No. 559, authorizing the South Pend Redevelopment Commission July 71 1978 Page 8 6. NEWIBUSINESS, Continued exe ution of redevelopment agreement for the disposition of land, and the exe ution of Quit Claim Deed, in the LaSalle Park Project, Indiana R -57: reddie S. Aldridge Parcel 17 -33 $260.00 Mr. Brownell noted that $100.00 has been paid by the purchaser, leaving a b lance due of $160.00. When that balance has been paid in full, Deed wi.l be issued to him. Mot on for approval of Resolution No. 559, with issuance of Deed upon rec ipt of payment in full, was made by Mr. Robinson, seconded by Mr. Wig ins and carried. g. Commission approval requested for Resolution No. 560, authorizing the execution of redevelopment agreement for the disposition of land, and the execution of Quit Claim Deed, in the LaSalle Park Project; Indiana R -57: rtha Norman Parcel 13 -7 $200.00 Mr. Brownell noted that $200.00 purchase price, $100.00 has been paid and, again, Deed will be issued when the balance has been received. Mot on for approval of Resolution No. 560, with issuance of Deed upon rec ipt of payment in full, was made by Mr. Robinson, seconded by Mr. Wiggins and carried. h. ommission approval requested for Resolution No. 561, authorizing the exe ution of redevelopment agreement for the disposition of land, and th execution- of Quit Claim Deed, in the LaSalle Park Project, Indiana R -57 illie Boatman Parcel 7 -7 $350.00 Mr. Brownell noted that of the $350.00, $200.00 has been received leaving a b lance of $150.00 on the parcel. When that has been received in full, Dee will be issued. Mot on for approval of Resolution No. 561, with issuance of Deed upon rec ipt of payment in full, was made by Mr. Wiggins, seconded by Mr. Cir , and carried. i, ommission approval requested for Resolution No. 562, authorizing the execution of redevelopment agreement for the disposition of and, an the execution of Quit Claim Deed, in the LaSalle Park Project, Indiana R -57: trick & Beverly helton Parcels 12 -23, 12 -24, 12 -25 & 12 -26 $2,000.00 Mr. Brownell noted that $170.00 has been paid on these parcels, leaving a b lance due of $1,830. When that balance has been paid in full, Deed will be issued for these parcels. South Bend Redevelopment Commission Page 9 July 7 1978 6. NEWIBUSINESS, Continued Mr.lCira: How much time do they have on these? Mr. then we c Mr. Mr. Ms. Mr. Ms. Mr. Ms. Brownell: We don't have a specified time contract with them, we let i make a down payment then come in and pay as they are able to but lon't give them title to the property until it is fully paid. Robinson: How big a parcel of land is this? Brownell: This is 334' of frontage, 120' deep on Bendix Drive. Derbeck: Are these all vacant lots? Brownell: Yes. Derbeck: Are they buildable? Brownell: Yes, they are buildable lots. Derbeck: Isn't this kind of cheap for a buildable lot? Mr. Brownell: Well they were appraised and, yes, it is cheap, but that is the app aised price. Mr. Cira: They can't build on them without the deed though, right? Mr.lBrownell: That's right. Motion was made for approval of Resolution No. 562, with issuance of Deed upo receipt of payment in full, was made by Mr. Wiggins, seconded by Mr. Robinson and carried. Kevin Butler: Are the individual lots that are being sold, are they usually for building purposes... as a rule, or as side lots? Mr. Brammer: Out of all of these, Mr. Shelton is the only one who is going to Luild. The rest are for gardens, The Minority Encouragement group is wor ing with Carl Ellison on a HUD participation neighborhood grant for a possible day care center and other services out there. Those two might build but everyone else is going to use the property for gardens. They hav homes next to the parcels, etc. Ms- .Derbeck: So they are on different streets? Mr. Mr. queE Mr. Brammer: Right, they are all on different streets. Wiggins: A big part of the land available out there is land that is tionable as far as building is concerned because it is muck land. Brownell: These are not lots they are parcels. South Bend Redevelopment Commission Page 1 July 7, 1978 6. NEWIBUSINESS, Continued Ms. Derbeck: Are they big enough for a house? Mr. Brownell: Some of them are. Mr. Brammer: Some of them would have problems because there is foundation and r the soil and it would be too expensive to remove the foundation in rder to build. Mr. Wiggins: Or if they are into muck, they would have to sink the footings way down. (Mr. Brownell indicated that these are not muck land). Mr. Nimtz: The whole LaSalle Park area is part of Beck's Lake.. j. ommission approval requested for Resolution No. 563, authorizing the execution of redevelopment agreement for the disposition of land, and the execution of Quit Claim Deed in the LaSalle Park Project, Indiana R -57: inority Encouragement & Parcels 20 -5, 20 -6, Counseling Services Assn, Inc. 20 -7, 20 -8, 20 -9, & 20 -10 $2,000.00 Mr. Brownell noted that this is on Lake Street and they have paid $50.00 dow on the lots with a balance due of $1,950. When that balance has bee paid in full, deed will be issued. Mot on for approval of Resolution No. 563, with issuance of deed upon re- ceipt of payment in full, was made by Mr. Wiggins, seconded by Mr. Cira and carried. k. Commission approval requested for 312 Loan Application for the following: ffrey R. Clark Amount Loan No. 6 E. Dubail Ave. uth Bend, IN $10,350.00 18 /SOU- 1/33/1 -77 -78 Mot on for approval of 312 Loan Application as set forth above was made by ;r. Wiggins, seconded by Mr. Cira and carried. 7. PROGRESS REPORTS Mr. Brownell: You will recall you authorized an audit of R -66 previously. I t lked to Ms. Eleanor Granger yesterday and she said Ms. Meggs still thi ks the Regional Office will waive the audit and therefore we should not proceed with an audit. Second, I..have filled with HUD a revised budget of R -66. In the appraisals the ye is some increase in the costs of acquiring land and we have reduced SOME other items in our budget to add money in that line item and we have sent this to HUD for approval. They have not yet reviewed it and we need their approval before we can proclaim the values. On gloseout, they are expected to take our funds and give them to the South Bend Redevelopment Commission Page 11 July 7, 1978 7. PROGRESS REPORTS Com unity Development Department of the City, all except one item. There is $6,000 in an ordinance which I will speak about in a minute. Redevelop- ment will be without funds except for the funds covered in that ordinance. The Department of Community Development is expected to appropriate the money back to us. It will probably take from thirty to sixty days to get that done because they have to go back to the Council and all of tha . Meanwhile, we will have to live on that $6- 7,000, actually it is 6,686, which will be up on second reading Monday nite. Mr.INimtz: This has all been discussed with Carl Ellison? Mr. Brownell: Yes, and he has made a comment to the Council and the Mayor has made comment on the other ordinance which is for an amount of $2,126,000 whi h is on first reading Monday night and will come up on second reading on the 24th of July. Furthermore I have no information on the lawsuit - ant'cipating that question. I think that is the end of my progress reports. Mr. Nimtz: To get back to the other itemk from what you know and the Council and rstand, this is purely a book transaction? Mr. Brownell: I believe they do, I have not talked to the Council but Carl Ellison said he had. Cha r: Are there any questions? Dave Anderson: One question: about this $6,000 plus balance, is this a ser ous situation in meeting the payroll and things like that? Mr. Brownell: I don't think it is - that is being submitted to the Council on econd reading Monday night, to be appropriated for our use - to live on for the month of July. Mr. Wiggins: That is the transition. Mr. Brownell: The transition funds..it is the balance that was not appro- pri ted by the Council when they went through last fall. Mr. Anderson: So there is no problem with that then? Mr. Brownell: I don't think so, I think it is just the balance of the mon y Community Development has assigned to us and that was not appropriated. Mr. Anderson: Second question: with the receipt of that $2.1 million dollars of yrgent needs money for Century Mall, will the Commissioners decide to pro eed with those aspects of land clearance, or acquisition... Mr. is on rev, so, Brownell: It isn't a matter of receipt of the money. The $2,126,000 letter of credit that has been sent to the City with the stipulation t that you can't take anything down from it until the environmental ew is completed - which has now been completed I understand. That being Mr. Ellison and the Mayor have presented this to the Common Council South Band Redevelopment Commission Page 12, July 7, 1978 7. PROPRESS REPORTS, Continued to 3e appropriated, which is the normal procedure. After it is approved and appropriated by the Council, we then have the right when we wish to spe d some money, to file a takedown - we call it - with the Community Dev lopment Department - to take down from them the money from this letter of credit for the purpose that we want to use it for. Mr. Nimtz: I think we went through this some five or six weeks ago - it get involved with the national debt in that in order to keep the debt fron rising spectacularly - although I think it is - they issue a letter of :redit. They do not send us a check, because once they issue us a the k, that is a debit to the Treasury of the United States and it in- creases the national debt. So we get a letter of credit. Once we take the money down, then the check is issued and so when you consider all of these programs in the entire U.S., the thing is enormous. Ours is not too much but when you consider - I don't know how many cities might be participating in this program, it keeps them from issuing a huge amount of money to the cities and the cities then hold the money. They hold it and we get the authorization - or takedown - to request a check for a certain amount of money. Mr. Wiggins: Somebody wised up to the fact that when we got the whole bundle of oney, we could reinvest it and make money on the money. Now they (th Federal Government) are going to do that. Mr. Anderson: My question is, will the project proceed in those areas that are not affected by the lawsuit, prior to the decision from downstate regarding the appeal? Mr. Brownell: There isn't any area that is not affected by the lawsuit is the e? Mr. Butler: You mean with respect to Century Mall? Mr. Wiggins: What he is saying- is "will we proceed to buy property ?" Ms. Derbeck: Which you could, very shortly... there is no injunction. Mr. Butler: There is no formal injunction, however the court has asked the ..in effect, Redevelopment or South Bend's cooperation so that they do not have to face that issue. We will have to decide for how long we can cooperate I guess. Mr. Anderson: So in other words.. Mr. Butler: We are getting up against the cutter - we've got an April dead- line, we are supposed to have property available for sale in April (1979). Ms. Derbeck: Available for sale or demolished? Mr. Butler: No, available for sale. But the demolition can come some time South Band Redevelopment Commission Page 13 July 7, 1978 7. PROGRESS REPORTS, Continued aft r that Jeanne. Which means that we should have the property acquired by pril. Mr. Anderson: So what you are saying is that you really aren't going to pro eed once you receive this money - the takedown., you aren't going to roceed with the project until this court case is settled. Mr. Brownell: May I interrupt you - there is no..we don't take down $2,)00,000. We don't take any of it down until we have a need for it for a s ecific purpose. If we have a bill for $150, we put in a bill for $150 and we are allowed only a three days supply of money out of that letter of :redit so there is no.. Ms. Derbeck: So you mean the letter of credit will rest with Community Dev lopment, is that right? Mr. Brownell: The letter of credit goes to them, but the money stays in the ban(. Ms. Derbeck: OK, but Redevelopment as a separate entity does not get the letter of credit, it goes to Community Development? Mr. Brownell: Yes, it came to and I sent it up to Carl Ellison. Ms. Derbeck: And you say the environmental review has been completed ..and app oved? Mr. Brownell: I assume so - I assume they would not have it before the Cou cil for appropriation if it wasn't approved. Ms. Derbeck: I believe someone said on TV - or somewhere - that the Mayor sal they were going to go ahead. Mr. John McKnight: That is true, the Mayor said he hoped that they could go ahead with the acquisition immediately upon appropriation but there was some question, as you said, as to whether or not it would be appropriate to go ahead with other properties than those involved in the lawsuit. Yesterday, I talked to Ed Chapleau and he said it was his opinion that there wou d be no problem going ahead with the other properties. Ms. Mr. Mr. I di Mr. sit Derbeck: You mean everything but the Book Store and Berg's? McKnight: Yes, everything but the Book Store and Berg's. Brownell: Well I presume that decision rests with this Commission and n't believe any decision has been made that I know of. Nimtz: To answer your question specifically here, as I understand the anon, we can proceed to acquire property now. Several people have South Bend Redevelopment Commission Page 14" July 7, 1978 7. PROGRESS REPORTS, Continued approached us and they want to sell but I understand there is no formal agreement but the court has asked us not to proceed, pending the decision on this appeal. There is no injunction against us and as Kevin says, we are very soon going to come up against the deadline where we must proceed if we are going to begin acquiring property in order to meet that dead - lin . That is basically the situation. Mr. Anderson: In other words, what you are saying is that you are going to adhere to this - what for want of a better term you almost have to call a gentleman's agreement with the State Court of Appeals..by not getting into a land acquisition until you reach a time when you just have to proceed whether the court has ruled or not. Mr. Brownell: I think that is a little too specific because the court did not mention the acquisition of real estate. They just mentioned that until there was some action that indicated irreparable injury to one of the parties, they would not pass on that motion and if something like that came up the party could renew their motion. Mr. Wiggins: Let's put it this way, we are still treading water but we are getting short of breath. Mr. Nimtz: To answer your question, we will depend on Kevin and Mr. Chapleau to recommend to us whether to proceed or not, that is where we are right now Ms. Derbeck: What "motion" are you talking about? Mr. Brownell: The plaintiffs' in this case - when they _made their appeal, the also filed a motion for an injunction and the Court of Appeals re- fus d to hear it. Ms. Derbeck: Oh they did file with the Court of Appeals - to stop you from any activity on the Mall.. Mr. Butler: You will recall Jeanne - locally they had filed their motion for an injunction and the court said "Fine, if you put up a bond" and they did not put up a bond so then, in effect, with the filing of the appeal they alsc filed a motion for an injunction, a restraining order with the Court of Ippeals. Then as Wayne said, the Court of Appeals said, in effect, "we are not going to act upon it until we feel that one of the parties is taking action that wou d result in irreparable damage to the other party. Then you can renew your motion or the City can ask for injunctive relief ... Ms. Derbeck: If you proceeded to acquire nearby property, even if it is not the r property, I would think they could construe that as. Mr. Butler: I really don't know what they or their attorney would think - that wou d involve strategy. South Bend Redevelopment Commission Page 15 July 7, 1978 7. COMMENTS FOLLOWING PROGRESS REPORTS, Continued Mr. Mr. act! deac fal l Mr. Anderson: As a matter of clarification then, the Commission will await Butler and Mr. Chapleau to recommend before you decide to take any on whether to proceed with the project or hold off longer. What Iline would you be looking at, say if the court has not ruled by early Butler: I don't know Dave. Ms. Derbeck: Maybe it is possible in some of these cases where people are wil ing to sell and have approached you and you have everything ready to go.. Mr. Brownell: No comment. I think we might explain that the case is pending on motion in _a different court. Mr. Butler: A motion has been filed with the Supreme Court to, in effect, byp ss the Court of Appeals. Ms. Mr. Derbeck: You've heard nothing on that? Butler: So far as I know - I have not talked to Ed. Ms. Derbeck: I thought about two meetings ago this was brought up.and I believe you said you would look for an answer in about thirty days. You said it houldn't take too long to decide whether they will take jurisdiction or ot. Mr. Brownell: We are still looking. Mr. Wiggins: It has been too long, they o Jeanne Derbeck: I know but in a case like makE a decision at least as to whether to Mr. Butler: I have not talked to Ed in a don't know anything specific. As you are Aerate on a different time.schedule. this it would seem they would accept jurisdiction or not. couple of weeks so I really aware, Ed is handling that. Mr. Brownell: I think I might report one other matter - in connection with progress reports, I sent a letter to the Regional Office regarding this surplus we had available for payment of the Project Notes, which come due August 18th in the amount of $2,195,000, and the Regional Office sent back a copy of a letter to the bank in New York, the paying Agent, saying tha they would send funds for the paying Agent to pay off the notes and the interest, based on these surpluses that we have. We have a Grant surplus, a sur lus from Relocation, and; a surplus from Projects R -57 and A -10. 8. NEXT MEETING The Chair announced that the next meeting would be Friday, July 21, 1978, at 10:00 a.m. South Bend Redevelopment Commission Page 16 July 7, 1978 9. ADJOURNMENT The ting was adjourned at 10:52 A.M. :z:� ent C. Wayn nell, Executive Director