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Home My WebLink AboutRM 08-18-781. ROLLI CALL Commissioners: News Guess SOUTH BEND REDEVELOPMENT COMMISSION County -City Building, Room 1200 227 West Jefferson Boulevard South Bend, Indiana COMMISSIONER'S REGULAR MEETING Friday, August 18, 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, Assistant Secretary ABSENT: Lloyd E. Robinson, Sr., Member Media: John McKnight, Reporter, WSBT -TV Frank Vellner, Photographer, WSBT -TV Pat Scanlon, Reporter, WNDU -TV Dick Nemeth, Photographer, WNDU -TV Jeanne Derbeck, Reporter, South Bend Tribune Louis Sabo, Photographer, South Bend Tribune ;s: m nity Development S aff: LPA $taff: 2. APPRgVAL OF MINUTES Mayor Peter J. Nemeth Carl Ellison Jon Hunt Cande Marin Kenneth Schaller John Davis Kathryn Baumgartner C. Wayne Brownell Jane A. Zimmerman On m�tion by Mr. Wiggins, seconded by Mr. Cira, and carried, the Minutes of Augu t 4, 1978, were approved as mailed. COMMISSIPNER'S REGULAR MEETING Friday, ugust 18, 1978 3. APPRQVAL OF CLAIMS On m tion by Mr. Wiggins, seconded by Mr. Cira and carried, the claims were appr ved as submitted, and were allowed and ordered to be paid, totalling $42, 63.89. The authorized claims are: REDEVELOPMENT REVOLVING FUND — I Payr ll: 7 -15 -78 to 7 -28 -78 The obbs Merril Company, Inc. Busi ess System, Inc. Cred t Bureau of South Bend- Mishawaka Doro by Z. Deane - Petty Cash I.B. . Corporation I.B.M. Corporation Project Expenditure Account Downtown Idea Exchange Smitl Petroleum Company C. Wayne Brownell REDEVELOPMENT DISTRICT CAPITAL Dorothy Z. Deane - Petty Cash James R. Meehan & Associates P. E.1 A. IND. R -66 Kevir J. Butler Edward A. Chapleau Proj ct Expenditure Account Rede elopment Revolving Fund Sout Bend Tribune Clyd E. Williams & Associates, Inc. Nich las C. Janotta & Associates, Ltd. 312 Barnes Electric Company Dorothy Z. Deane - Petty Cash R. A. Stickler Belleville Electric & Heating, Inc. River Bend, Inc. Huber L. Weaver Huber L. Weaver Sent Home Improvement Rod M rtinez TOTAL TOTAL TOTAL TOTAL GRAND TOTAL -2- $ 3,117.70 109.70 12.15 7.00 26.44 48.10 31.40 10,000.00 49.00 90.31 54.19 $13,545.99 $ 2.50 23.36 $ 25.86 $ 1,304.75 400.00 2,102.00 9,260.96 68.12 1,346.27 1,877.44 $16,359.54 $ 974.00 46.50 3,392.00 1,395.00 2,740.00 100.00 150.00 1,850.00 1,585.00 $12,232.50 $42,163.89 COMMISSIONER'S REGULAR MEETING Friday, ugust 18, 1978 The Chai now recognized the Honorable Peter J. Nemeth, Mayor of the City of South Be d. Mayor Peter J. Nemeth: I think we have a moment here that we all would like to enjoy. I was recalling this morning when I first took office. I recall that Ms. Jeanne Derbeck was there, Mr. McKnight wasn't around then, but some of the other pe ple weren't either. As you know, the Mayor used to make a speech to the Rotary Club each year at the Indiana Club. When I came into office, one of the first pe ple who knocked at my door, was Mr. Wayne Brownell, talking about how he Still OW Ed almost seven million dollars, and that was the central theme of my talk on the state of the City back in January of 1976. Now I am very pleased that we have, through a lot of hard work, and certainly through the cooperation of not only yourselves, but the Federal Government, and I think one of the "key" things that has happened, and that we were able to accomplish was getting that "urgent needs grant" of two and a half million. Without, which of course, we wouldn't be having t is joyous occasion today. But, I think you all deserve credit. This has been kinc of a "sleeper "; most of the public attention has been going to "super- block", the "hole ", "Century Mall ", and "Block 6 ", etc., and the work on this, nonetheless, has gone ahead, and I think that all of us should be proud of it, and that we are now paying off these notes. I think it is quite a feat to do that in two and a half years, and the City's Urban Renewal Program after today will not have any debts; and I think we can all be very pleased about that. I know that Mr. Wayne Brownell, who is retiring, deserves a lot of credit, as well as each and everyone of you Commissioners. I think that when we talk about cooperation, it certainl doesn't extend only to the paying off of these notes, but everything else we have been doing in the last two and a half years. So, why don't we bring the cake out here. Mr. Nimt We are indebted to you, your Honor, but I would like to return the compliment and say that it has been a pleasure to work with you, and with Mr. Carl Ellison, and the rest of the administration. I think this is one of the things that has been overlooked by many people; and that is the fine cooperation that we have had between the 14th floor and the 12th floor, because there has been no difficulty between us or rough spots. I think we have worked together, and we are appreciative of Mr. Brownell and Mr. Carl Ellison and the work you (the Mayor) have done in helping this get cleared up, so that we don't owe any money. Mayor Peter J. Nemeth: I might say that there is only one complaint that I have heard, and that is from the people on the 13th floor about the scuff marks because of the p ogle running up and down the stairs from the 12th and 14th floors. Mr. Nimt : It is a great day in the history of the Redevelopment Commission. Mr. Wiggins, you are the oldest member, do you want to add any laudatory words or phrases? Mr. Wiggins: We are keeping our track record clean. We start them and we finish them. The cake was then presented to the Redevelopment Commission d everyone present. -3- COMMISSIJ Fri day, ER'S REGULAR MEETING gust 18, 1978 The Mayo made a comment that he would like a picture of the cake kept in the files. t was answered that there were three pictures already taken of the cake, and that one of the pictures would be kept in the files. Mr. Brow ell mentioned that the photographer from the South Bend Tribune had taken a picturo of the cake and perhaps they could furnish a glossy print. Mr. Nimtz invited the Mayor to attend the September 1st Commission Meeting, because it would be the day that Mr. Ellison would be sworn in as Redevelopment Director, the day of Mr. Brownell's resignation as Redevelopment Director, and Mr. Wiggin's birthday. It should be quite a celebration. 4. COMM NICATIONS a. etter, signed by Albert G. Smith, Actin and Devel-o pment Division of the De artmen dated August 11, 1978, Subject: Financia outh Bend, Indiana, with carbon copy sen of Community Development. Mr. Brownell read the letter as follows: Director, Community Plannin of Housing & Urban Development Settlement Program No. Ind. R- to Mr. Carl Ellison, Director Dear Mr. Brownell: As per our telephone conversation on August 10, 1978, completion f the above contract will be accomplished on August 18, 1978, by our transmittal of a check in the amount of $26,009. This check will artially repay the outstanding principal of $2,195,000 plus accrued nterest of $51,089. This leaves a balance of $2,220,080, which will e paid per your request for final capital grant payment in the amount f $957,313, final Relocation grant amount of $445,978, surplus from -10 - $25,997, surplus from R -57 - $186,553, and $604,239, will be pplied from the $855,794.13 withheld from your 1978 Block Grant funds. This $604,239 will cover $144,649 of accounts receivable currently hown in the R -66 project, which, when received, should be used to eimburse your 1978 Block Grant and shown as other income for that rogram. You should submit an amendment to your 1978 Block Grant requesting he unused portion of the amount withheld for repayment of Urban enewal loans to be reinstated to your letter of credit. ($855,794.13 ess $604,239.00 - balance of $251,555.13) This excess in the amount of $251,553.13 was withheld due to the riginal submission of your FY '78 Entitlement application not utilizing he surplus from previous Renewal projects closed out (A -10 and R -57) to epay your outstanding Urban Renewal loan on Ind. R -66. Please forward your check, postmarked by or before August 18, 1978, n the amount of $26,009, to the U.S. Department of Housing and Urban evelopment, 300 South Wacker Drive, Chicago, Illinois 60606, Attention: averne Spinks. Sincerely, Albert G. Smith, Acting Director, Community lanning and Development Division. Mr. �rownell went to a chart and pointed out the following to all those present at the m eting: -4- COMMISSIpNER'S REGULAR MEETING Friday, August 18, 1978 4. COMM NICATIONS (Continued) Mr. rownell: On the chart we have listed the Project Notes starting in 1974 when the balance owed was $10,150,000, showing payments made and the source of finds. Today the balance of $2,195,000 was all paid. (A copy of the chart is b ing attached to the original minutes of this meeting) Mr. One thing further, Mr. Brownell. You might explain about the exce s in the amount of $251,000. Mr. Brownell: The Community Development personnel have a letter of credit, and between the Community Development personnel and HUD there is this constant relationship, because the Government, while they used to send out money and checks to us, we could put the money in the bank and collect interest on it, but the Government no longer does it that way. They just send you a letter of c edit now, and tell you that you won't receive any money until you need to s end it for something, at which time they will supply you with the money. You ake it "down" as we call it, from the Letter of Credit. The purpose behi d this is very interesting. Years ago the Government had two million in Souti Bend, and two million here and there, and everywhere, and they had to borr w this money and pay interest on it, and we had the money sitting in a bank account not being spent. Mr. Nimtz: Mr. Ellison, do you wish to add anything further to this? Mr. Ellison: Yes, just that we had argued with the people from the Housing & Urban Development over how much money we needed to reserve. We had estimated six hundred forty two thousand. Our estimate would have been more accurate and would have saved some paperwork, but we are not losing any money in the process. Mr. rownell: Well, it turns out you were forty thousand above what we needed, and hey were two hundred fifty thousand. Does that answer your question? Mr. �imtz: Yes, I believe so. 5. OLD BUSINESS Thero was no old business to bring before the Commission. 6. NEW BUSINESS a. Qommission approval eneral construction unsex review uested for award of the following bid contracts for lumbing, and heating, Contract Set #002, in accordance the South Advisory Board, with award subject to legal outh Bend Common Council approval, as applicable: Contract Set #002 Charles Brown Maintenance Co., Inc. (General construction contract) -5- $6,017.00 COMMISSIONER'S REGULAR MEETING Friday, August 18, 1978 6. NEW 13USINESS (Continued) (a) ontinued.... 3 Contract Set #002 R. A. Stickler Plumbing $ 878.00 (Plumbing contract) Owens Heating Company $5,000.00 (Heating contract) r. Wiggins moved for approval of the general construction contract to be warded to Charles Brown Maintenance Co., Inc. in the amount of 6,017.00, for the plumbing contract to be awarded to R. A. Stickler lumbing in the amount of $878.00, and the heating contract to be awarded o Owens Heating Company in the amount of $5,000.00, subject to legal ounsel review and South Bend Common Council approval, seconded by r. Donaldson, and it was carried. ommission rejection requested for the electrical bid received for ontract Set #002 on the basis of the high differential between the stimate and the bid, and the fact that no other bid was submitted o make comparison, in accordance with recommendation by the South. dvisory Board. r. Brownell: The estimated cost of this contract was $5,810.00. The my bid submitted was from F & F Electric, with a bid total of 11,490.00. The South Advisory Board recommends to the Commission that he bid be rejected and to have the contract rebid. r. Wiggins moved for rejection of the electrical bid received on ontract Set #002 from F & F Electric, on the basis of the high differential etween the estimate and the bid, and the fact that no other bid was sub itted to make comparison, seconded by Mr. Cira, and it was carried. C. QOmmission approval lectricaT, Southeas Of the South Advisor nd South Bend Como 1 uested for award of the followin ontract Set #12B, in accordance oard, with award subject to lega ouncil approval, as applicable: Contract Set #12B B. W. Electric Co. $5,084.00 (Electrical contract) bid contract for th recommendation counsel review r. Wiggins moved for approval of the electrical contract, Southeast Contract �t #12B, to be awarded to B.W. Electric Co. for $5,084.00, subject to ?gal counsel review and South Bend Common Council approval, seconded by Cira, and it was carried. 1:i COMMISS] Friday, 6. NEW e. f. NER'S REGULAR MEETING August 18, 1978 USINESS (Continued) C.ommissi6h approval requested for award of the following bid contract fo lectrical, FSW Contract Set #01A, in accordance with recommendation of he South Advisor Board, with award subject to legal counsel . review Ind South Bend Common Council approval, 1S 1 licdbl2: Contract Set #01A F & F Electric, Inc. $6,274.00 (Electrical contract) r. Wiggins moved for the approval of the electrical contract, FSW ontract Set #01A, to be awarded to F & F Electric, Inc. for $6,274.00, object to legal counsel review and South Bend Common Council approval, seconded by Mr. Donaldson, and it was carried. ommission approval requested for award of the following bid contracts Or general construction, electrical, plumbing, and heating; SW Contract Set #06, in accordance with recommendation of the South Advisory Board, with award subject to legal counsel review and South Bend Common Council q.pproval,*as applicable: Contract Set #06 Plaia Construction Company $24,721.00 (General construction contract) Barnes Electric Company $ 7,719.00 (Electrical contract) R. A. Stickler Plumbing $ 3,893.00 (Plumbing contract.) Builders Whitt, Inc. $ 3,339.00 (Heating contract) r. Wiggins moved for approval of the general construction contract to Le awarded to P1aia Construction Company, for $24,721.00, the electrical contract awarded to Barnes Electric Company for $7,719.99, the plumbing contract to be awarded to R.A. Stickler Plumbing for $3,893.99, and the eating contract to be awarded to Builders Whitt, Inc. for $3,339.00, of W Contract Set #06, subject to legal counsel review and South Bend Common Council approval, seconded by Mr. Cira, and it was carried. ommission approval requested for the following 31.2 Loan Applications: Name Amount Loan No. oyce M. Sarvari $9,000.00 18/SOU- 2/42/1 25 S. Carlisle Street South Bend, Indiana 46619 -7- COMMISSIONER'S REGULAR MEETING Friday, August 18, 1978 6. NEW BUSINESS (Continued) (f) 3112 Loan Applications (continued)... Name Amount Loan No. John D. & Margaret R. Jamison $14,700.00 18 /SOU- 2/44/1 1009 E. Milton Street South Bend, Indiana 46613 Hermon Owens, Jr. $15,400.00 18 /SOU- 2/47/1 406 E. Broadway Street South Bend, Indiana 46618 Edna Gillespie $10,800.00 18 /SOU- 2/43/1 1701 S. Taylor Street South Bend, Indiana 46613 Inez M. King $ 5,850.00 18 /SOU- 2/41/1 16 E. Pennsylvania Street South Bend, Indiana 46618 Betty M. Cassler $ 4,950.00 18 /SOU- 2/46/1 t1uth 8 E. Dubail Street Bend, Indiana 46613 r. Donaldson moved for approval of the 312 loan applications to oyce M. Sarvari, 725 S. Carlisle Street, South Bend, Indiana, in the mount of $9,000, to John D. & Margaret R. Jamison, 1009 E. Milton Street, outh Bend, Indiana, in the amount $14,700, to Hermon Owens, Jr., 406 . Broadway Street, South Bend, Indiana, in the amount of $15,400, to dna Gillespie, 1701 S. Taylor Street, South Bend, Indiana in the amount f $10,800, to Inez M. King, 516 E. Pennsylvania Street, South Bend, ndiana, in the amount of $5,850, to Betty M. Cassler, 618 E. Dubail treet, South Bend, Indiana, in the amount of $4,950, seconded by r. Wiggins and it was carried. 7. PROGRESS REPORTS Mr. 4rownell: There are no progress reports in writing, other than the pro report, which I have already shown the Commission. 8. NEXT�COMMISSION MEETING: September 1, 1978 — 1 - 9. ADJO Ther being no further business to bring before the Commission, Mr. Wiggins move for adjournment, seconded by Mr. Cira, and the meeting was adjourned at a proximately 10:30 A.M. PROJECT NOTES IND. R -66 December, 1974 Balance $ 10,150,000 Received 20% Capital Grant which had been held back by HUD. T11pey continued to hold back 5 %. 3,405,000 June, 975 Balance 6,745,000 June, 976 Increase in Notes sold of 206,000 June, 976 Balance $ 6,951,000 Septem er, 1976 Urgent Needs Grant $2,500,000 2,801,000 Sale of Land 301,000 2,801,000 Septem er, 1976 Balance $ 4,150,000 Proceeds Sale of Land $ 441,830 Relocation Grant 321,479 Capital Grant 113,861 Community Development 1,100,000 1,977,170 Payment made on (Votes 1,955,000 December, 1977 Balance " J $ 2,195,000 August, 1978 Interest 51,089 August, 1978 Balance $ 2,246,089 Capital Grant Balance $ 957,313 Surplus R -57 186,553 Relocation Balance 445,978 Surplus A -10 25,997 1,615,841 - 1,615,841 Balance $ 630,248 Deducted from Community Development Letter of Credit 604,239 Balance $ 26,009 Paid by check from R -66 $ 26,009 Total Credit HOW WILL COMMUNITY DEVELOPMENT RECOVER FUNDS ADVANCED TO PAY NOTES? Block 6 $134,000 Block 4 195,000 Block 4 - Mini Mall 450,000 Other parcels under consideration 64,025 TOTAL $843,025 CENTURY MALL (MINI -MALL) The funds for this project are all available as follows: Urgent Needs Funds - HUD Redevelopment Bond Funds $2,126,000 900,000 5th Year Community Development 914,220 BUDGET $3,940,220 U DAG URBAN DEVELOPMENT ACTION GRANT This is a grant program. HUD has granted $7,600,000 to pay for the public part of the development. Private investment of $21,096,000 is estimated. No project Notes An office and bank building and a Marriott Hotel. COMMISSIONER'S REGULAR MEETING Friday, 4ugust 18, 1978 eil, Lxecutive-w rector