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HomeMy WebLinkAboutRM 08-17-79August 17, 10 :00 A.M. Presiding 0 SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING 979 1200 County -City Building 227 W. Jefferson Boulevard 'ficer: F. Jay Nimtz, South Bend, Indiana 46601 President 1. ROLL CAU Members Present: Members Absent: Legal C unsel: Mr. F. Jay Nimtz, President Mr. Lloyd E. Robinson, Sr., Vice President Ms. Paula N. Auburn, Member Mr. A. Peter Donaldson, Secretary Mr. Robert J. Cira, Assistant Secretary Mr. Kevin J. Butler Redevelopment Staff: Mr. Carl Ellison, Director Mr. Timothy K. Eckerle, Assistant Director Mr. Kevin C. Horton, Real Estate Officer Mrs. Jane Zimmerman, Executive Secretary Ms. Denise Fleming, Secretary Community Development Staff: Mr. James Harcus, Director, Bureau of Housing Mr. Thane Wilson, Project Dir., Bureau of Housing Ms. Kathy Baumgartner, Proj. Dir., Bureau of Housing Ms. Theresa Ellett, Labor Standards Monitor News Melia: Mr. Mr. Mr. Mr. Mr. Ms. Guests • Ms . Mr. Ms 2. APPROVAL OF MINUTES Dave Anderson, Reporter, WNDU -TV Scott Rink, Photographer, WNDU -TV John McKnight, Reporter, WSBT -TV Larry Ford, Reporter, WSJV -TV Jim Skwarcan, Photographer, WSJV -TV Jeanne Derbeck, Reporter, South Bend Tribune Shelley Heger, Downtown Council John Kagel, Downtown Council Glenda Rae Hernandez, President S.E. PAC On moti n by Mr. Robinson, seconded by Ms. Auburn, and MINUTES OF unanimo sly carried, the Minutes of the Regular Meeting REGULAR MEETING OF of Augu t 3, 1979 were approved. AUGUST 3, 1979 APPROVED South Bend edevelopment Commission Regular Mee ing - August 17, 1979 3. APPROVAL OF CLAIMS On moti n by Ms. Auburn, seconded by Mr. Robinson, and una imously carried the claims-.-totalling $98,484.48, were allowed and ordered to be paid. The aut orized claims are: REDEVELOPMENT REVOLVING FUND Payroll: 7 -28 -79 to 8 -10 -79 Kevin J Butler I.B.M. Corporation Peter J Nemeth R. L. Polk & Co. Postmaster St. Joseph Bank Travel Agency Amoco 0-1 Company Coffee Time Service Litho -P ate Litho -P ate Indiana Association of Cities & Towns REDEVE Marvin REDEV DISTRICT CAPITAL io IPMENT DISTRICT CAPITAL OF 1972 Gruen A$sociates, Inc. P. E. Al IND. R -66 Kevin J Butler Indiana Bell Telephone Company Redevel pment Revolving Fund Slidecr ft Laboratories Inc. Ray Bre en James S ott Hauling Roger G y, Attorney at Law Roger G y, Attorney at Law Philip R. Skodinski, Attorney Frank A Fogaras Frank A Fogaras Frank A Fogaras B. J. C ark B. J. C ark Phil Ko ski James L Rose, Bookseller 2 TOTAL $ 4,673.05 200.00 22.72 150.91 142.00 78.03 189.00 61.49 25.22 21.00 17.00 45.00 $ 5,625.42 $ 125.00 TOTAL $ 125.00 TOTAL TOTAL $21,551 .25 $21,551.25 $ 1,554.00 42.66 13,705.97 8.56 24.00 24.00 630.00 301.67 733.20 9,831.50 170.00 910.00 2,095.00 1,266.22 1,196.19 rr nn $32,547.97 CLAIMS APPROVED South Bend redevelopment Commission Regular Mee ing -,August 17, 1979 3. APPROVAL: OF CLAIMS (continued) 312 Abs trac Renew, Kissell Kissell T. Brool Wayne Gi Kissell Kissell Kissell Kissell Kissell Kissell Kissell Kissell, Kissell Kissell Kissell Kissell Kissell Kissell Kissell Kissell Kissell Kissell Kissell Kissell Kissell Kissell Kissell Kissell Kissel l Kissell Kissell Kissell Kissel l Southhol David Gi Weather R. A. St Liberty � Company of St. Joseph County, Inc. inc. Corp. - Luis Zuniga (Loan Fund Balance) Corp. Madeline Bogart s Brademas bbard & Georgia Kourlas Corp. - Ernest & Peggy Brock Corp. - Karolyn Brooks Corp. Kathryn Eichler Corp. - John & Earlene Fitzpatrick Corp. - Owens & Doris Garner Corp. - Winifred Grayson Corp. - Aloysius & Ann Humphrey Corp: - Rick & Molley Kenney Corp. - Frank & Marie Laskowski Corp. - Frances Lewallen Corp. - Lewis M. & Jacqueline Lough Corp. Joyce Meader Corp. - James & ILA Meehan Corp. - Walter & Martha Mikolajewski Corp. - Paul S. & Rebecca Morse Corp. Fred & Lorine Pearson Corp. - Michael & Eleanor Swanson Corp. - Mary Alice Thomas Corp. - Harry Thompson Corp. - Joseph & Billie Wesley Corp. Larry & Rosemarie Yoder Corp. - John Balint Corp. - Edna Gillespie Corp. Matthew Ivy Corp. - John Kenney Corp. James Meehan Corp. - Reah Nice Corp. - Elsworth Perkins Corp. - Mary Ann Woodham d Heritage Foundation, Inc. bney & Lawrence Dwyer Seal of South Bend, Inc. 'ckler & Joni Ladewski lectric Co. & Frank Baniki TOTAL GRAND TOTAL 3 $ 130.00 5,264.87 43.50 9.50 16,739.00 4,824.00 4.73 54.00 49.00 2,549.70 7.50 167.50 292.24 6.75 53.10 5.50 72.00 400.00 26.00 174.50 81.42 390.50 10.00 145.50 12.40 9.40 327.50 113.30 165.44 5.50 15.19 26.00 308.53 294.32 53.16 1,061.62 2,208.67 1,126.00 250.00 1,157.00 $38,634.84 $98,484.48 South Bend Commission Regular •Mee �edevelopment ing - August 17, 1979 4. COMMUNICATIONS NO COMMUNI- CATIONS There w re no communications to present to the Commission. PRESENTED 5. OLD BUSINESS There was, no old business to present to the Commission. THERE WAS NO OLD BUSINESS TO COME BEFORE THE COMMISSION 6. NEW BUSINESS a. Commission approval requested for the follow in( 312 loan applications: Name Amount Carlean B. Parker $10,050.00 726 S. Warren South Bend, Indiana 46619 Willa _M Logan $15,950.00 1416E. Corby South Bend, IN. 46617 Jack & Deborah Sherwood - $10,650.00 533 Cleveland South Bend, IN. 46628 Gatson 8, Ruth Mincy $10,350.00 502 E. Dubail South Bend, IN. 46613 Paul J. Hayden $ 8,000.00 113 Sou h Laurel South Bend, IN. 46601 Gregory A. Hargus $ 5,000.00 1023 Ca ifornia South Bend, IN. 46628 Richard R. & Brenda Ferguson $ 5,000.00 1612 Florence South Bend, IN. 46628 BeverlylFissette $13,150.00 1824 S. Columbia South B nd, IN. 46613 4 Loan No, 18 /SOU -2 /70/1 18 /SOU- 2/69/1 18 /SOU- 2/72/1 18 /SOU- 2/73/1 18 /SOU- 1/74/1 18 /SOU- 1/75/1 18/SOU- 1/76/1 18 /SOU- 2/77/1 312 LOAN APPLI- CATIONS APPROVED South Bend edevelopment Commission Regular Mee ing - August 17, 1979 6. NEW BUSINESS a. 31211oan applications (continued) Name Dennis Tinnin 225 Sou h Walnut South B nd, IN. 46625 Aphrodite, Mary & Anna c/o 512 W. Madison for 419­421 N. Taylor South Bend, IN. Amount Loan $16,650.00 18 /SOU- 2/78/1 Pappas $14,100.00 18 /SOU- 2/79/2 Mr. Ell son: The 312 loan application c/o 512 W. Madison for 419 -421 N. Taylor, to Aphrodite, Mary & Anna Pappas is an investor loan. hey will have to sign a rent control agreement. It is an acceptable method of providing housing for low income tenants. Ms. Aub�rn: Do the tenants then become eligible for any kind of rent su sidies or can they rent to anyone? Mr. Ell son: HUD is currently discussing at the national level the policy question of whether a 312 loan and rent subsidy should be allocated in tandem to achieve rehabilitation. Currently HUD's position is that they cannot allow this policy because it would be considered a double subsidy. But, under special circum- stances (if, for example, a double subsidy is necessary to achieve a commu ity's housing strategy), a locality may request approval from th Secretary of HUD and may receive it. Ms. Auburn: If we are not concerned with the rent subsidy on that house, why is there any kind of agreement on what the rent is going to be at all? Why is this not left up to the private party? Mr. Ell son: A 312 loan should not result in displacement. If you don t have a rent control agreement with the investor /owner, you have no method of assuring that they won't obtain a low- interest loan and then raise rents to the point beyond which a lower income family can afford to pay. Therefore, without rent control, the '312 loan could result in the displacement of a lower income household. Ms. Deroeck: Does a person have to be under a certain age to obtain dn investor's loan? Ms. Bau gartner: The investor loan is looked upon totally differe t than an ordinary residential loan. The property has to go to t e benefit of the low- and - moderate income people. Mr.. Nim z: Ms. Baumgartner, do we have any records to compare how wel we are doing with obtaining 312 loan applications in compari on with other cities? 5 South Bend jedevelopment Commission Regular Mee ing — August 17, 1979 6. NEW BUSINESS a. 3 31211oan applications discussed..... Ms. Baumgartner: We were recently monitored by HUD, and I believe the last quarter which ended in June we exc eded our HUD established loan target by $9,000. Mr. Harcus: It should be noted that last year our allocation was $200,000, and the Bureau of Housing exp nded in excess of this figure, and was awarded additional funds from other cities that had not pro essed their allocations. So, we received another $10 ,OOO last year over and above our allocation. On 1he basis of the expansion of our homesteading pro ram into other target areas, we were awarded $W,000 this year.- We went to HUD in the spring of his year and requested another $204,000 and so far we have received a verbal approval of this addition. Mr. Ellison: Obviously, we are very concerned about 312 loans, because as we look toward the future it sees that 312 loans can be very useful tools in bot commercial lending, and also in approaching the multi - family area. The app 312 $10 to to to Gre Ric $5, $13 $16 512 sec car fo Con of cou e being no further questions concerning 312 loan ications, -Ms. Auburn made a motion to approve a loan to Carlean B. Parker, 726 S. Warren for 050, to Willa M. Logan, 1416 E. Corby for $15,950, ack & Deborah Sherwood, 533 Cleveland for $10,650, atson & Ruth Mincy, 502 E. Dubail for $10,350, aul J. Hayden, 113 South Laurel for $8,000, to ory A. Hargus, 1023 California, for $5,000, to and R. & Brenda Ferguson, 1612 Florence for 00, to Beverly Fissette, 1824 S. Columbia, for 150 to Dennis Tinnin, 225 South Walnut, for 650, and to Aphrodite, Mary &Anna Pappas, c/o W. Madison for 419 -421 N. Taylor for $14,100, nded by Mr. Robinson, and the motion was unanimously i ed. ission approval requested for award of the Wing bid contracts for heating, plumbing, tri'cal, and general construction, Southeast race Set #14, in accordance with recommendation dvisory Board "A ", with award subject to legal sel review and South Bend Common Council approval. N HEATING, PLUMBING, ELECTRICAL, AND GENERAL CONSTRUCTION CONTRACTS AWARDED FOR S.E. CONTRACT #14 South Bend Redevelopment Commission Regular Me ting - August 17, 1979 6. NEW BUSINESS b. cortinued.. . Southeast Contract Set #14 Area Services, Inc. ...... $ 2,275.00 (heating contract) R. A. Stickler Plumbing ... $ 3,185.00 (plumbing contract) & F.Electric, Inc ... $ 5,027.00 electrical contract) harles Brown Maintenance Co., Inc. .... $41,464.00 general construction contract) Mr. Robinson .made a motion to approve and award the heating contract to Area Services, Inc. for $2, 75.00, the plumbing contract to R. A. Stickler Plu Bing, for $3,185.00, the electrical contract to F & F Electric, Inc. for $5,027.00, and the gen ral construction contract to Charles Brown Mai tenance Co., Inc. for $41,464.00, for Southeast Contract Set #14, seconded by Ms. Auburn and the motion was unanimously carried. c. Com rontr7act wit in tot roval requested for Change Order #1 Construction Company, for a decrease ira of 450 00 for an amended contract as et forth in 1E Bur au of Housinq. at the address of 741 S. Kaley St. er from Mr. James Harcus, Director Mr. Harcus: The Commission is requested to approve Change Order No. l deleting from the rehabilitation grant contract specifications the scraping and painting of the roof trim and porch ceiling on the structure located at 741 South Kaley Street. These items will be serviced under a separate Section 312 loan contract spe ifying the installation of aluminum siding which wil incorporate the covering of the roof trim and the porch ceiling with aluminum also. Ms. Auburn made a motion to Approve Change Order No. 1 witf Jurtin's Construction Company, deleting scraping and painting of roof trim and porch ceiling of structure located at 741 S. Kaley St., decreasing contract price by $45C.00, for an amended contract total of $9,198.00, sec nded by Mr. Robinson, and the motion was unanimously car ied. 7 CHANGE ORDER #1 WITH JURTIN'S CON- STRUCTION CO. APPROVED FOR A DECREASE IN CONTRACT South Bend Redevelopment Commission Regular Meeting August 17, 1979 6. NEW BUSIINESS d. Com ission approval requested for Change Order #1 witi B & B Plumbing, for an increase in contract ri a of $235.00, for an amended contract total of $815.00, at the address of 728 N. Cleveland. as set forth in letter from Mr. Bur au of Housinq. rector Mr. Harcus: Prior to rehabilitation contract for 728 N. Cleveland commencing homeowner reported that her hot water had broken. Bureau Inspector confirmed claim and to verify his finding that a new unit was nec ssary, so professional counsel was obtained. The Commission is requested to approve Change Order #1, specifying the replacement of water heater at a cost of $235.00. Mr. Robinson made a motion to approve Change Order #7 with B & B Plumbing, specifying replacement of water heater for an increase in contract price of $235.00, for an amended contract total of $815.00, at the address of 728 N. Cleveland, seconded by Ms. Auburn, and the motion was unanimously carried. e. Commission approval requested for Change Order #2, witl Charles Brown Maintenance Co., Inc. for a decreas in contract price of 500.00, for an amended contract total of '0.00, at the address of 533 East Indiana, as set forth in letter from Mr. James Harcus, Director Bur au of Housinq. Mr. Harcus: When rehabilitation of 533 East Indiana Ave rue was about to commence, homeowner refused entry of ontractor stating that she was in default of mortgage and property was about to be repossessed. Bureau attempted to contact owner, but could not. In accor- dan a with normal procedure a letter was mailed to owner on ul y 31, 1979 requesting discussion of the problem, fre dom of entry for contractor, and notice that unless response was received within five (5) days, the Bureau would take steps to cancel contract. On the afternoon of August 10, 1979, Bureau Director visited property intending to make a final appeal and to determine whether or not the Bureau had avenues which could mitigate plight of residents. The property gave the appearance of being empty and a neighbor confirmed its vacancy. In light of the foregoing, the Commission is requested to approve Change Order No. 2 deleting 533 E. Indiana from the contract. This action reduces cost of $500.00. CHANGE ORDER #1 WITH B & B PLUMBING APPROVED FOR AN INCREASE IN CONTRACT PRICE CHANGE ORDER #2 WITH CHARLES BROWN MAINTENANCE CO., INC. TABLED South Bend R development Commission Regular Meeting - August 17, 1979 6. NEW BUSIINESS e. (con1tinued) ... f. Ms. uburn: The woman was the homeowner and was living in he house when you went through the house and did the ini ial inspection ?. Mr. Harcus: Yes, she was. First we went through the house and did the initial inspection, then a few months later when the contract had been awarded, and the con- tractor appeared to do the work; she refused him entry into the house. On two or three occasions the contractor att meted to enter the house but she said she was about to lose her house. We tried to contact her and slip by her house but, unfortunately, could not make contact wit her. As is normal procedure, we mailed a letter to her asking for her response, but received none, so three weeks later, we tried again to enter her house, but the house was vacant, The only other thing I have tri d without success, is to contact the people who we understood were the mortgage holders, but we were unable to dbtain any helpful information. Mr. Butler: Why don't you check with one of the abstract com anies, or give them the address, and they can tell you very quickly what the history is on the house. Mr. Nimtz: Mr. Harcus, would it help in this situation if we would just table this change order for about a mon h? Mr.lHarcus: Yes sir, that would be all right. Mr. Robinson made a motion that Change Order #2, with Charles Brown Maintenance Co., Inc. for a decrease in contract price of $500.00, at the address of 533 East Indiana, be tabled, seconded by Ms. Auburn, and the motion was unanimously carried. wi co to as Di ission Plaia ract 1 of et for approval requested for Change Order No. Construction Company, for a decrease in rice of 19.00, for an amended contract 8,335.00, at the address of 1513 Kendall th in letter from Mr. James Harcus, tor, Bureau of Housing. 9 6, CHANGE ORDER #6 WITH PLAIA CON- STRUCTION CO., APPROVED FOR A DECREASE IN CONTRACT PRICE South Bend edevelopment Commission Regular Mee ing - August 17, 1979 6. NEW BUSINESS f. continued..... Mr. Harcus: While servicing the rehabilitation contract for 1513 Kendall the plumbing and general construction contractors ran into problems with the bat room floor. After some investigation they deter- min Ed that a portion of sub-flooring and a supportive cross brace were rotting. The Bureau confirmed this condition. While viewing the problem, the Bureau Director analyzed general construction specifications for bathroom and came to an agreement with all parties that provided for all bathroom repairs, including sub - flooring, without increase to costs. The Commissioners.are requested to approve Change No. 6 c nfirming that agreement. 'A net cost reduction of 119.00 results. Mr. Robinson made a motion to approve Change Order No, 6, with'Plaia Construction Company for a decrease in ontract price of $19.00, for an amended contract total of $8,335.00, at the address of 1513 Kendall, seconded by Ms. Auburn, and the motion was una imously carried. g. Commission approval r No 1, with F & F Ele Of 50.00, for an ame at the address of 725 letter from Mr. James Houdina. uested for Chanqe Order ric', Inc., for an increase ed contract total of $862.00, alnut Street, as set forth in arcus. Director. Bureau of Mr. Harcus: While the rehabilitation contract for 725 Walnut Street was being executed homeowner reported that a particular switch and light had become defective following an electrical storm. Although the Bureau cannot positively correlate the relationship between the storm and the defective electrical units, it as been confirmed that a safety hazard now does exist. To correct the above condition the Commission is requested to approve Change Order No. 1, authorizing a $0.00 increase to contract. Mr. No. con,,, to ti s ecc care Robinson made a motion to approve Change Order 1 with F & F Electric, Inc., for an increase in Tact price of $50.00, for an amended contract 1 of $862.00, at the address of 725 Walnut Street, nded by Ms. Auburn, and the motion was unanimously ,i ed. 10 CHANGE ORDER #6 WITH F & F ELEC- TRIC, INC., APPROVED FOR AN INCREASE IN CON- TRACT PRICE South Bend Commission Regular Mee �edevelopment ing -- August 17, 1979 7. Ms. Jeanne Derbeck: When are you going to board up the Odd Fellows Building? Mr. Ellison: The boarding will likely take place next we k. The building isnow vacant, but there are som items that belong to displaeees which have not yet been removed from the building. We have receivei some bids on the Odd Fellows Building, and we are urrently reviewing them. The bids concern the boa ding up of the building It appears that the cost will be under $2,000. We have also consulted with the police and fire departments and the insurance carriers with respect to questions on the manner of securing the building. Currently, they are involved in a consultation process with the sta f to determine how to handle it. Ms. Der eck: Have you heard anything concerning the ads in he papers? Mr. Ell son: I am uncertain if there were any people interes ed in this property in relation to seeing the ads in he papers, but there are five or six people who are interested in rennovating the building. They are cur ently working on their proposals and we are still having discussions with them. I am also uncertain if any of these proposals will be acceptable or not. We are interested in their rennovation ideas, and we would like to see their preliminary plans in relatio to costs, some evidence on how they intend to finance the project, timing, etc. "The Chair announced that a Special Meeting of the South Bend Redevelopment Commission will be on October 10, at 10:30 A.M. to open and review bids concerning demolition and /or rehabilitation of the Odd Fellows Building. The bids will not be awarded at this me ting, rather they will be awarded at the Regular Meeting of the South Bend Redevelopment Commission which will be held on October 19, 1979 at 10:00 A.M." Mr. Da 4 Anderson: Any progress on buying the remaining propertM in Century Mall? Mr. Butler: No. We have obtained all the necessary condemnation resolutions. It seems that the remaining properties are about to be settled without any problems. We should have all the properties by early October. 11 PROGRESS REPORTS AND DISCUSSIONS CONCERNING THE ODD FELLOWS BLDG. ANNOUNCEMENT OF A SPECIAL MEETING OF THE REDEV. COMMISSION TO BE HELD ON OCTOBER 10, 1979 PROGRESS REPORTS ON THE CENTURY MALL PROJECT South Bend Commission Regular Mee �edevelopment ing - `August 17, 1979 7. PROGRES$ REPORTS (continued) Ms. Der eck: Do you expect demolition to begin by early 0 tober? Mr. Ell! control We have them. son: I would say that we certainly expect to all the properties by the end of the year. to own all the properties before we can demolish Ms. Der�eck: next summer? Do you expect construction to begin by Mr. Ellison: I would certainly hope so. There is no questior that in light of the events that have occurre ( over the last several months, there clearly will be substantial effort to get construction under way for the project. 8. NEXT COMMISSION MEETING The nex regularly scheduled South Bend Redevelopment Commission Meeting will be held on September 7, 1979, at 10 :0 A.M. 9. ADJOURNMENT There be Commissi meeting motion % adjourne ing no further business to come before the )n, Mr. Robinson made a motion that the )e adjourned, seconded by Ms. Auburn, and the is unanimously carried. The meeting was i at 10:43 A.M. NEXT COMMISSION MEETING ADJOURNMENT �...., President Carl Ellison, Executive Director 12