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Home My WebLink AboutRM 10-20-78October 20, 10:00 A.M. Presiding 0 1. ROLL Members Legal SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING 1978 1200 County -City Building 227 West Jefferson Boulevard ficer: Mr. F. Jay Nimtz, South Bend, Indiana 46601 President Present: Mr. F. Jay Nimtz, President Mr. Donald A. Wiggins, Vice President Mr. A. Peter Donaldson, Secretary Mr. Robert J. Cira, Assistant Secretary Mr. Lloyd E. Robinson, Sr., Member el: Mr. Kevin J. Butler Mr. Edward Chapleau News Melia: Mr. Mike Stevens, News Director, WJVA Radio Mr. John McKnight, Reporter, WSBT -TV Mr. John Strauss, Reporter, WNDU -TV Ms. Jeanne Derbeck, Reporter, South Bend Tribune Commun4y Development Staff: LPA Staff: 2. APPROVAL OF Mr. James Harcus, Director, Bureau of Housing Mr. John Davis, Project Director Mr. Carl Ellison, Director, Redevelopment Dept. Mr. Timothy K. Eckerle, Asst. Director Mr. C. Wayne Brownell, Consultant Mr. Kevin Horton, Administrative Assistant Ms. Jan Peterson, Real Estate Officer Mrs. Jane Zimmerman, Executive Secretary On moti n by Mr. Wiggins, seconded by Mr. Cira, and unanimously MINUTES carried, the Minutes of the Regular Meeting of September 15, APPROVED 1978 welre approved as mailed. Redevelopme t Commission Regular Mee ing October 20, 1978 3. APPROVAL OF CLAIMS On moti n by Mr. Wiggins, seconded by Mr. Donaldson, and unanimo sly carried, the claims (for October 6, 1978 meeting in whici there was no quorum) -- totalling $695,236.11, and the claims for October 20, 1978 meeting) -- totalling $45,112.50 were al owed and ordered to be paid. The authorized claims are: CLAIMS OF OCTOBER 6, 1978 REDEVELOPMENT REVOLVING FUND Payroll 8 -26 -78 to 9 -9 -78 $ 2,988.18 Payroll 9 -9 -78 to 9 -22 -78 3,788.16 Amoco Oil Co. 19.55 Bethel Business Machines 176.40 Kevin J Butler 400.00 Nationa Council for Urban Economic Development 175.00 Dorothy Z. Deane - Petty Cash 24.12 Indiana Bell Telephone Co. 162.20 Postmaster 31.09 South Bend Tribune 15.00 Xerox Corporation 55.56 Xerox C rporation time 79.59 Coffee Service 28.00 TOTAL $ 7,942.85 REDEVELOPMENT DISTRICT CAPITAL Dorothy Z. Deane - Petty Cash $ 2.50 TOTAL $ 2.50 DISTRICT CAPITAL OF 1972 Colip E ectric Corporation Crescent Electric Supply Company PROJECTIEXPENDITURE ACCOUNT R -66 Richard Zeisler-- Parcel 9 -23 South B nd Federal Savings & Loan Association (Par el 8 -7 -8 & 8A, Parcel 9 -27 & 27A) -2- $ 1,873.00 3,822.00 $ 5,695.00 $ 95,938.00 501,509.00 CLAIMS APPROVED Redevelopme t Commission Regular Meeting October 20, 1978 3. APPROVAL OF CLAIMS PROJECT EXPENDITURE ACCOUNT R 6 (continued) Kevin J Butler Edward A. Chapleau I.B.M. Corporation Redevelopment Revolving Fund Redevelopment Revolving Fund Value House Value House Ronald E. Gettel Orville E. Basil & Patsy J. Basil, Ralph E. P awat & Kathleen Prawat, Parcel 9 -19 312 Abstract Company of St. Joseph County, Inc. Alexian Brothers Area Services, Inc. Barnes Electric Co. Belleville Electric & Heating, Inc. Cricle Lumber, Inc. Color Tile Supermarts Dorothy Z. Deane - Petty Cash Owens Heating Co. Plaia Construction Co. South Bend Hardware Treasurer of St. Joseph County St. Joseph County Treasurer R.A. Stickler, Plumber United States Treasury Wickes Lumber Co. Midwest Aluminum Siding Co., Inc. Charles Brown Maintenance Co., Inc. Charles Brown Maintenance Co., Inc. Charles Brown Maintenance Co., Inc. Mr. Ray Bockaj Dusty's Plumbing & Heating Co., Laplace ' Electric Co., Inc. Tri-State Home Improvement, Inc. National Homes Acceptance Corp National Homes Acceptance Corp. Inc. 511 2,257.60 241.27 287.37 7,116.66 9,730.05 89.97 38.34 1,500.00 IRWI l TOTAL $618,718.26 $ 643.60 1,100.00 50.00 510.00 66.40 180.85 198.01 11.00 1,125.00 2,894.50 166.61 164.36 607.21 192.00 3,500.00 461.71 2,420.00 10,648.00 4,591.00 4,604.00 775.00 1,456.70 1,730.00 7,749.00 7.17 7.17 Redevelopme t Commission Regular Mee ;ng- October 20, 1978 3. APPROVAL OF CLAIMS 312 LOOS (Continued) Premier Floor Coverings Rzepka Aluminum Siding Contractors River Bend Remodeling, Inc. River Bend Remodeling, Inc. Price Right Construction Price Right Construction Hepler- mith Insurance, Inc. Robert 1. Adams Americam Aluminum Siding & Roofing Co. $ 100.00 3,707.00 1,759.38 562.00 5,430.00 1,140.00 102.00 106.83 4.111.00 TOTAL $ 62,877.50 GRAND TOTAL $695,236.11 CLAIMS OF OCTOBER 20, 1978 REVOLVING FUND Payroll 9 -23 -78 to 10 -6 -78 Business Systems, Inc. Business Systems, Inc. Timothy K. Eckerle Timothy K. Eckerle Gallery Communications Government Information Services I.B.M. Corporation Schilli gs Sales Company, Inc. Standard Automotive Supply, Inc. Smith Petroleum Co. Coffee time Service DISTRICT Curly'sjSales and Service P.E.A. IND. R -66 Edward . Chapleau St. Jos ph County Treasurer St. Jos ph County Treasurer -4- $ 3,788.16 69.63 28.50 42.87 18.20 14.50 195.00 231.60 6.04 36.10 49.27 TOTAL $ 4,507.87 $ 108.00 TOTAL $ 108.00 $ 1,520.00 13,796.81 2,566.82 TOTAL $ 17,883.63 Re.developmeiit Commission Regular Mee ing October 20, 1978 3. APPROVAL OF CLAIMS (Continued) 312 The Abstract and Title Corp. Abstract Company of St. Joseph County, Inc. Abstract Company of St. Joseph County, Inc. Barnes Electric Co. City Awning of South Bend Project Fence Co. Sears Roebuck & Company Midwest Aluminum Siding Company, Inc. Midwest Aluminum Siding Company, Inc. National Homes Acceptance Corporation National Homes Acceptance Corporation National Homes Acceptance Corporation Riverbe Remodeling, Inc. Floyd FlIowers Robert J1ohnson 4. COMMUNIC Letter $ 98.60 194.00 130.00 1,039.00 639.14 150.84 319.60 5,621.80 5,818.29 53.17 763.71 68.40 7,116.16 287.00 217.29 TOTAL $ 22,613.00 GRAND TOTAL $`45,112.50 ted September 22, 1978, from Howard L. er of the Department of Housing & Urban subject:) Memorandum of Agreement, Project Ind. R -66. bell t, Mr. Ellison: We had previously received HUD approval to close out the roject. The importance of the letter is that it does provide written evidence that the final audit for R -66 was waived. This is Lhe last action necessary to close out R -66 from a financial standpoint. Mr. Wigg ns made a motion that this letter be accepted and placed on file, seconded by Mr. Cira, and the motion was unanimously carried. 5. OLD BUS IVESS There no old business to come before the Commission. -5- LETTER FROM HUD WAIVING FINAL AUDIT IND. R -66 Redevelopme t Commission Regular Meeting October 20, 1978 6. NEW BUSINESS a. Conimission .a the following: Name requested for 312 Loan Applications for Amount Loan No. Mary Jane Belmarez $13,900.00 18/7MC- 0011/36/1 753 S. Falcon Street South Bend, Indiana 46619 Rob rt & Jane Fesler $ 2,500.00 18 /SOU- 2/51/76 -77 -78 321 LaMonte Terrace Sou :h Bend, Indiana 46619 Law ence & Deborah Dwyer $12,100.00 18/7MC- 0011/37/1 727 W. Washington Street Sou -h Bend, Indiana 46601 Rob rto & Soledad Duron $12,000.00 18 /7MC- 0011/39/1 454 S. Harris Street South Bend, Indiana 46619 Frank, Jr. & Margaret Dixon $17,000.00 18 /7MC- 0011/35/1 1211 E. Madison Street South Bend, Indiana Tormnie & Ressie Dean $ 7,050.00 18/7MC- 0011/36/1 2105 Bertrand Street South Bend, Indiana 46618 Verna Dorn $ 6,500.00 18 /SOU- 2/52/77 -78 741 S. Kaley Street South Bend, Indiana 46619 Lu13 G., Jr. & Alicia Zuniga $10,100.00 18 /7MC- 0011/32/1 740 N. Diamond Avenue South Bend, Indiana 46628 Mr. Wiggins made a motion for approval of all the above stated 312 loan applications, seconded by Mr. Donaldson, and the motion was unanimously carried. Ms. Derbeck: I have a question concerning the loan application for Mr. & Mrs., Dwyer of 727 W. Washington Street. I believe they are located in the historical district, is this your first loan in ithe historical district? W1� 312 LOAN APPLICATIONS APPROVED Redevelopme t Commission Regular Meeting October 20, 1978 6. NEW BUSINESS (Continued) a. (continued) ... Mr. Harcus: Yes, this is the first time that a 312 loan has been enacted in the historical preservation area. Mr. Dwyer was unable to acquire a historical preservation loan. The home, by the way, is appraised at $30,000. Mr. Ellison: There probably will be additional loans in the District, because HUD has given us two 312 allocations. One in connection with Section 8 -10, homesteading, and one based on a Congress Action Program, to hike up the 312 loan program. The 312 dollars are to be spent in community dev lopment target areas, since the District is included in that we refer to as the "near westside target area ".' Mr. Wiggins: There has been a lot of private activity and int rest in that area. It is very encouraging. b. Commission approval requested by the South Bend Home - own rs of the Near Northwest, Inc., a not-for-profit organization, fora grant of $8,000 for the rehabili- tation of the property located at 1142 Blaine. Avenue, South Bend, Indiana, subject to South Bend Common Cou cil approval. Mr. Harcus: In accordance with the recommendation of the North Advisory Board request is hereby made for an $8,000 application for a rehabilitation grant. The company expects the rehabilitation to come to $8,700, and the neighborhood association has signed an agreement to repair that amount whi h exceeds the $8,000 figure. Mr.�Nimtz: This is also subject to South Bend Common Cou cil approval, is that correct? Mr. Ellison: Yes, that is correct, and under the current gui elines, the maximum they can receive for a not -for- pro it grant is $8,000. Mr. Wiggins made a motion that the $8,000 grant requested by South Bend Homeowners of the Near Northwest, Inc., for rehabilitation be approved, seconded by Mr. Donaldson, and the motion was unanimously carried. -7- GRANT APPROVED PER REQUEST OF SOUTH BEND HOMEOWNERS OF NEAR NORTHWEST FOR REHABILI- TATION Redevelopment Commission Regular Meeting October 20, 1978 6. NEW BUS NESS (Continued) C. Coupission approval requested by the North Advis for a grant of $8,000 to RENEW, INC., a n6t-for- organization, for the rehabilitation of the ro located at 921 Cleveland Avenue, South Bend, Ind sub ect to South Bend Common Council approval. Board GRANT APPROVED it PER REQUEST OF RENEW, INC., FOR REHABILI- TATION Mr. Harcus: This grant is the first one, according to the new guidelines, in which we are permitted to give assistance in acquisition of the property. The grant of $8,000 was bro en into two segments. Rehabilitation cost of $5,541.74 and the acquisition assistance $2,458.26 subject to them acq firing clear title in a standard mortgage fashion. Mr. Ellison: I should explain to the Commission that previously, HUD did not allow the City to provide dollars to a not - for - profit to acquire property. That was specifically prohibited by the regulations last year. With the passage of the community development act of 1977, which amended the Co unity Development Act of 1974, HUD, and the Congress allowed a broad range of activities. One of those included the capability for a not- for - profit to acquire property to be rehabilitated for the provision of housing. Consequently, when the Common Council appropriated fourth year Community Development money, for not- for - profit rehabilitation, the Council did so cognizant that a portion of the dollars could be used for property acquisition so that the property can subsequently be rehabilitated. I am calling this to your attention because I believe this is the first instance in which a combination of a grant for rehabilitation and acquisition has come before you. Of ourse, the $8,000 ceiling still applies. Mr. Wiggins made a motion that the $8,000 grant requested by REN W, INC., for rehabilitation and acquisition, be approved, sec nded by Mr. Robinson, and the motion was unanimously car ied. Jur con tot Sou Mr. .ission approval requested for Change Order #1, fin's Construction Company, for an increase in ract price of $256.30, for an amended contract 1 of $21,979.30, at the address of :h Bend, Indiana, as set forth in letter from James Harcus, Director of Bureau of Housing. 1453 Rockne Drive Mr.IHarcus: I will read from the letter as follows: The original rehabilitation specifications call for shingling of roof. While servicing that requirement and from the vantage point of the roof, the contractor judged that gutters may not me CHANGE ORDER APPROVED FOR JURTIN'S CONSTRUCTION COMPANY Redevelopme t Commission Regular Mee ing October 20, 1978 6. NEW BUSINESS (Continued) d. (continued) ... last more than a couple of heavy winters. The Bureau inspector rev sited the site, concurred with contractor's observation and req eited a cost estimate including downspouts which were reappraised as also having questionable longevity. It is requested that you look favorably on this Change Order. Mr.lRobinson: How many homes are we talking about with this tot 4l figure of $21,979.30? Mr -1 I am going by memory, and I believe there are around ei. t or nine homes. Mr. Donaldson made a motion that Change Order #1 with Jurtin's Cont truction Company for an increase in contract price of $256.30, be pproved, seconded by Mr. Wiggins, and the motion was unanimously car ied. e. Co ission approval requested for Change Order X61, Charles CHANGE ORDER Bro Maintenance Company, for an increase in contract rice #1, CHARLES of 768.00, for an amended contract total of $22,931.00, BROWN MAINT. at he address of 1504 S. Kendall, South Bend, Indiana CO., APPROVED as et forth in letter from Mr. James Harcus, Director of ureau of Housing. f. Mr. Harcus: The original contract specified replacement of South and rear porch roofs. Since time of original inspection, home developed a leak in the main structure. Our Bureau Inspector visited the site, judged the leak to be severe, and immediately requested a cost estimate to shingle overlay main roo . In consideration of the prevailing weather, the Bureau of Housing immediately issued a Proceed Order. It is hoped that the Redevelopment Commission views favorably the expeditious handling of the issue. Mr. Wiggins made a motion to approve Change Order #1, with Charles Brown Maintenance Company, for an increase in contract pride of $768.00, seconded by Mr. Cira, and the motion was unanimously carried. for ission approval requested for Change Order #2, Jurtin's truction Company, for an increase in contract price of .00, for an amended contract total of $22,154.30, at the ess of 1202 South Bend Avenue, South Bend, Indiana, as set h in letter from Mr. James Harcus, Director of Bureau of CHANGE ORDER #2 WITH JURTIN'S CONSTRUCTION CO., APPROVED Redevelopme t Commission Regular Mee ing October 20, 1978 6. NEW BUSINESS (Continued) f. (continued) ... Mr. Harcus: After a heavy rain storm, contractor servicing 1202 South Bend Avenue observed some basement wall water seepage. A Bureau Inspector was called to the site and upom investigation, confirmed observation and requested cost quotation for remedy. We request that the Redevelopment Co ission view this change order favorably. Mr. Wiggins moved for approval of Change Order #2, Jurtin's Construction Company, for an increase in contract price of $175.00, seconded by Mr. Donaldson, and the motion was unanimously carried. g. Commission approval requested for award of the following bid contracts for general construction, electrical plumbing, and heating, Contract Set #7, in accordance with recommendation of the North Advisory Board, subject to legal counsel review, and South Bend Common Council avp oval. as applicable: Contract Set #7 Jurtift's Construction $47,277.50 (General construction contract) F & F Electric, Inc. $11,595.00 (Electrical contract) B & B Plumbing $ 3,855.00 (Plumbing contract) Area Services, Inc. $ 6,379.00 (Heating contract) Ms. Derbeck: How many homes are included in this contract set Mr.IHarcus: Thirteen homes are included in this contract. Mr. Robinson moved for approval of the general construction contract, electrical, plumbing and heating contract, in Contract Set X67, subject to South Bend Common Council approval, seconded by Mr. Wiggins, and the motion was unanimously carried. -10 APPROVAL OF BID CONTRACTS FOR CONTRACT SET #7 Redevelopme t Commission Regular Mee Ling October 20, 1978 6. NEW BUS MSS (Continued) h. Coimnission approval requested for a cancellation of Contract SWCD- 2 /PR /CS -5A with Tom Ford Home Improvement Co. Inc. per advice of attorneys and the Advisory Board. Mr. Harcus: Tom Ford Home Improvement Company, Inc. has apparently filed a bankruptcy petition. Certain work on this contract is not proceeding and the terms of the contract have not been fulfilled. On the advice of attorneys and with the approval of the Advisory Board,. a notice of contract cancellation was dispatched on October 16, 1978. Anticipating your approval of the above action, the Bureau of Housing is requiring bids for the work remaining on this contract. He has completed some houses, others are partially finished and the remainder of he homes have not had work started. Mr. Mr. Nimtz: Then a bankruptcy petition has been filed? Harcus: Yes. Mr. Robinson made a motion that the Commission ratify and con irm the cancellation of Contract SWCD- 2 /PR /CS -5A with Tom Ford Home Improvement Co., because of his filed bankruptcy petition, seconded by Mr. Wiggins, and the motion was unanimously car ied. i. Co fission appr SEC /2 /PR /CS -11 advice from att Board. ,al requested for cancellation of Contract with Slatile Roofing & Sheet Metal, per •neys and with the approval of the South Mr. Harcus: On the advice of the attorneys and with the approval of the South Advisory Board a notice of contract cancellation was mailed to "General construction" contractor, Slatile Roofing & Sheet Metal, Incorporated. Slatile has had this contract outstanding for some months. Because of previous exc llent service on other Redevelopment Commission contracts the Advisory Board responded considerately to Slatile's apparent personnel problems by granting them three (3) extensions, the last of which concluded August 31, 1978. Be advised that the last cancellation notice dated October 10, 1978, set a final completion date of October 20, 1978, at 5 p.m. Mr. inson: Did he get paid first? -11- CANCELLATION OF CONTRACT WITH TOM FORD HOME IMPROVE- MENT COMPANY CANCELLATION OF CONTRACT WITH SLATILE ROOFING & SHEET METAL, INC. Redevelopme t Commission Regular Meeting October 20, 1978 6. NEW BUS NESS (Continued) Mr. Harcus He has received partial payments from some of the homes that were completed, but we are having reserved soma of the money which was due to him, and we also have his performance bond. Mr. Wiggins: Just one other question, since you gave him unt'1 October 20th, to get the job done, has there been any activity? Mr. Harcus: Yes, he has been working very hard, but, he wil not meet the deadline. I do not have any assurance wha soever that if we gave him another extension, that he wou d continue to have the same problems. I am soliciting you support by asking that we have the contract cancelled, and have other contractors finish the work. Mr.lRobinson: I feel he should receive some kind of cash pen lty so that it will break him of the habit. Mr. Harcus: We have also advised every homeowner, in writing, that the Redevelopment Commission, and the Bureau of Housing will not be responsible if they permit Slatile to do any work after 5 p.m. this afternoon. Mr. Robinson made a motion that the Commission ratify and confirm the cancellation of Contract SECD /2 /PR /CS -11, with Sla ile Roofing & Sheet Metal, Inc., due to the incompletion of work in the allotted time allowed, seconded by Mr. Wiggins, and the motion was unanimously carried. 7. PROGRES$ REPORTS Mr. Ellison: I have just two items. One is that the Board of Public Works recently approved an agreement with the City and C. F. Murphy of Chicago, to do a conceptual design for the Urban Development Action Grant Project. Secondly, I want to repeat briefly what was announced two weeks ago, with respect to the entury Mall Project, that six of eighteen parcels have been ac uired and that is the extent of the project at this time. Mr. to to Nim z: The Chair, at this time, will ask Mr. Chapleau give us a report on the progress of the lawsuit, in regards the appeal. -12- BOARD OF PUBLIC WORKS' APPROVAL OF AGREEMENT WITH CITY & C.F. MURPHY PROGRESS ON CENTURY MALL PROJECT REPORT FROM MR. CHAPLEAU ON PROGRESS OF LAWSUIT - CENTURY MALL Redevelopme t Commission Regular Mee ing October 20, 1978 7. PROGRES$ REPORTS (Continued) go 0 Mr. Cha leau: The brief is due by the end of this month, and I will be sending it in today or Monday; and then Mr. Woods can file a reply, after which a hearing will be set. I anticipate that the Supreme Court will assume jurisdiction, although I haven't received notification concerning this. I have received a notice informi g me of an extension to file the brief, because they didn't have tht transcript, and because of this action, I feel that the Supreme Court is assuming jurisdiction. Ms. Derteck: I presume this would make things happen faster? Mr. Cha leau: Yes, generally. I think overall, everything has been going rather well, assuming the Supreme Court has jurisdiction, because if we are in the Court of Appeals, and went through the process of filing briefs, we wouldn't be any further than we are right now anyway. But then if we are in the Court of Appeals and they decide the case, and if we were successful, he is goin to continue fighting anyway. Mr. Woods would have gone from thE Court of Appeals to the Supreme Court, which would have then put us into the next year; but by the route we took here, assuminE they take jurisdiction, we are cutting out the time of delay f om being in the Court of Appeals. Everything looks fine right now and we want to get this determined by at least March or April so that we might meet the comittments of your contract. MISSION MEETING The nexti regular Redevelopment Commission Meeting will be held on November 3, 1978. There bE Mr. Rob by Mr. � meeting Cng no further business to bring before son made a motion that the meeting be Cggins, and the motion was unanimously vas adjourned at 10:42 A.M. -13- the Commission, adjourned, seconded carried. The NEXT COMMISSION MEETING ADJOURNMENT Redevel Regular October Commission 0, 1978 , PrNsident Carl Ellison, Director -14-