HomeMy WebLinkAboutSM 10-10-79October 10,
10:30 A.M.
Presiding
session dul
Commission
of South Be
President,
present:
1. ROLL
SOUTH BEND REDEVELOPMENT COMMISSION
SPECIAL MEETING
1979 1200 County -City Building
227 West Jefferson Boulevard
'ficer: F. Jay Nimtz, South Bend, Indiana 46601
President
ie Redevelopment Commission of the City of South Bend met in special
called in accordance with law and the rules of the Redevelopment
tt 10:30 a.m. in Room 1200 of the County -City Building in the City
id, Indiana. The meeting was called to order with Mr. F. Jay Nimtz,
+residing and the following members of the Redevelopment. Commission
L
Members
Present:
Mr.
F. Jay Nimtz, President
Mr.
A. Peter Donaldson, Secretary
Ms.
Paula N. Auburn, Member
Members
Absent:
Mr.
Lloyd E. Robinson, Sr., Vice President
Mr.
Robert J. Cira, Assistant Secretary
Legal Counsel:
Mr.
Kevin J. Butler
Redevelopment
Staff:
Mr.
Carl Ellison, Director
Mrs.
Ann Kolata, Deputy Director
Mr.
Timothy K. Eckerle, Assistant Director
Mr.
Kevin Horton, Real Estate Officer
Ms.
Ann Bathon, Acquisition Specialist
Mr.
Bill Fox, Relocation Specialist
Mrs.
Jane Zimmerman, Executive Secretary
Ms.
Denise Fleming, Secretary
Community
Development
taff:
Ms.
Shirley McCoy, Contract Compliance Officer
Mrs.
Theresa Ellett,'Labor Standards Monitor
Mrs.
Barbara Radican, Performance Standards Monitor
News Media:
Mr. Dave Anderson, Reporter, WNDU -TV
Mr. Dick Nemeth, Photographer, WNDU -TV
Ms. Jeanne Derbeck, Reporter, South Bend Tribune
Mr. John McKnight, Reporter, WSBT -TV
Mr. Isaiah Cooks, Photographer, WSBT -TV
Mr. Larry Ford, Reporter, WSJV -TV
Mr. Bill Hentch, Photographer, WSJV -TV
Guests: Councilman Walter Szymkowiak
Mrs. Janet Allen
Professor Ray Stuermer, (representative for
T. Brooks Brademas)
Ms. Mara Gelbloom
Mr. Ted Wasielewski, President, Historic
Preservation Commission
South Bend Redevelopment Commission
Special Me ting - October 10, 1979
1. ROLL CALL (continued)
Guests: Mr. Bob Nushaum
Mr. Bud Firth
Mr. Don Blandford
Mr. John W. Allegretti
Ms. Barbara Sue Schankerman
The Secretary of the Redevelopment Commission reported that notice of this
meeting, in the form attached to these minutes, had been given not less than
48 hours p for to this meeting, as follows:
1. by delivering a copy of the notice to each member of the
Re evelopment Commission;
2. by posting a copy of the notice at the main entrance of the principal
office of the Redevelopment Commission; and
3. by depositing in the United States mail with postage prepaid or by
delivery to all news media which have filed written requests for
su h notices with the Redevelopment Commission
The Pr sident concluded that the meeting had been duly called in accordance
with the r les of the Redevelopment Commission and Indiana Code 5- 14 -1.5 and
ordered a opy of the notice filed with the records of the Redevelopment Commission.
2. NEW BU IENSS
DEMOLITION BIDS
a. OpEning of bid proposals received for the demolition RECEIVED AND OPENED
of Disposition Parcel #4 -67, the Odd Fellows Building - FOR DISPOSITION
Contract No. 41. PARCEL #4 -67 -
ODD FELLOWS BLDG.
DEMOLITION BIDS RECEIVED
ontractor's Name
1. O'Rourke Construction Company
Cincinnati, Ohio
2. Cleveland Wrecking Company
Chicago, Illinois
3. Ri schard Brothers
So th Bend, Indiana
4. Do a and Associates
Mi higan City, Indiana
5. A. .C. Demolition
Arlington, Virginia
Amount of Bid
$102,200.00
$169,500.00
$219,500.00
$178,300.00
$191,400.00
-2-
Type of Guaranty
Bid Bond (5/)
Bid Bond (5%)
Bid Bond (5%)
Bid Bond (5%)
Bid Bond (5%)
South Bend edevelopment Commission
Special Mee ing - October 10, 1979
2. NEW BUS NESS (continued)
a. Op4ing of bid proposals received for demolition bids (continued) ...
DEMOLITION BIDS RECEIVED
tractor's Name
6. M &4 Sarko Contractors
Dea born, Michigan
Amount of Bid
$198,950.00
Type of Guaranty
Bid Bond but no
power of attorney
included with bid
The Char then directed that the bids be received and referred to the staff
and legal counsel for recommendation and report.
b. Opening of bid proposals received for the rehabilitation
of Disposition Parcel #4 -67, the Odd Fellows Building.
Mr. Ellison: Mr. Chairman,
bids are opened, the staff,
spe tive redevelopers, told
a period of five minutes to
We would recommend that the
bidi were received.
before the rehabilitation
in conversation with the pro -
them they would be allowed
summarize their proposal.
y do so in the order that the
1st Rehab Proposal Received
OPENING OF REHABILI-
TATION PROPOSAL FOR
DISPOSITION PARCEL
#4 -67
Mr. Ellison: The first bid was submitted by a local REHAB PROPOSAL FROM
dev doper, Mr. T. Brooks Brademas. Mr. Brademas is un- T. BROOKS BRADEMAS
abl to be here today. Therefore, I would ask the chair
to ecognize Professor Ray Stuermer, who is here
rep esenting Mr. Brademas.
The Chair recognized Professor Ray Stuermer, on behalf
of T. Brooks Brademas:
Mr. Butler: The first proposal is submitted by Heritage
Building. A bank money order is included in this package
in the amount of $10.00. This is a 10% deposit for acqui-
sit on of the property.
Pro essor Stuermer: (The professor handed out copies of a
det fled outline of the proposal for the Commissioners
and Executive Director to review). Our proposal suggests
tha the retention of the building in its present state is
ent rely possible and feasible from an economic point of
view. (Professor Stuermer presented some drawings to the
Commission, Redevelopment Staff and everyone present at
the meeting).
He then continued with the explanation of his proposal...
We ave made some assumptions that would show how this
bui ding would tie into the proposed mall, Transpo Center,
-3-
South Bend redevelopment Commission
Special Mee Ong October 10, 1979
2. NEW BUSINESS (continued)
b. Professor Stuermer continues....
and surroundings. Our essential plan is to retain the
exterior of the building, completely rehabilitate the
inside of it.putting in new heating and air conditioning,
removing all the,partitions, installing new elevators and
new stairs to make it conform to code, and in general to
rehabilitate the inside to become a Class "A" office
building in the urban area of South Bend. The most im-
portant change to the building, would be to set back
the existing windows into the building to make an arcade
clear around the building. We would have the entrance of
the building go completely through the building so that
it would go out the back side and tie in with the existing
oral and a Transpo System, whichever turns out to be a
part of the new mall plan. In any case, the idea that
what happens here ties into the old building, is quite
evident. It seems important that this kind of structure,
whi h is badly needed in the downtown area in terms of
office space, should be retained rather than torn down
and something else built to take its place.. We have
the ked out very carefully the economics of the build-
ing and in terms of the trend of today. It will support
a m rtgage of about two and a half million dollars.
Thi would be about what we would have to spend to bring
it Lck into this kind of condition, so that it is
eco omically sound. Physically, the building is very
sou id and has another fifty (50) years of life in it.
It is made of sound reinforced concrete construction.
The only problem with it, at this point, is a rather
serious leakage around the edge of the roof which
sho ld be repaired immediately before more damage is
don?, but otherwise it is a sound building both inside
and structurally on the exterior skin of the building.
We lave also proposed in the recess around the bottom
of the building, to have an atrium which would perhaps
tie into the architecture of the proposed mall and it
would become a public gathering space as you go through
the Odd Fellows Building and then project it into the
mall with the Transpo building. We have a letter from
a v ry important investor backer agreeing to finance
thi venture, and as you can see from our proposal, we
hav done a feasibility study to indicate that it is
eco omically viable. We have had some indication that
the -e is a viable tenant for the first floor from a
National Food Chain and all in all it looks like there
would be no problem in renting the retail space.. As
far as timing is concerned, we have no doubt that we
can complete our work ahead of schedule and ahead of the
cow letion of the mall.
-4-
South Bend edevelopment Commission
Special Mee in9 - October 10, 1979
2. NEW BUS NESS (continued)
b. con inued...
Mr. Ellison: Professor, your time has expired, but would
you indicate the total development cost, something about
the rent structure, and some indication of construction
tim period?
Pro essor Stuermer: The construction time period would
be less than 18 months, which I am sure would be completed
bef re the mall was completed. The rent structure was
tre ded forward for a year and would probably be $8.00 to
$9. O a square foot range on the office floors, and perhaps
sli htly higher than that on the first floor. The total
dev lopment cost would be about two and a half million
dol ars.
Mr. Nimtz Are there any questions by members of the
Commission? In the interest of time, the chair will
allow limited questions by the press and the fourth estate.
Ms. Derbeck': You mentioned there was an industrial bank
thalt was willing to back you, where is the bank located?
Ir
lei
Mr.
:essor Stuermer: The Stevens Company out of Little
c, Arkansas. It is an industrial banker. We have a
:er of intent included in our proposal.
Nimtz: Thank you professor.
2nd Rehab Proposal Received
Mr. Ellison: Mr. Chairman, the second bid received was
su mitted by Rosenburg, Freeman & Associates which
Operates out of Ann Arbor, Michigan. After Mr. Butler
ch cks this bid, I will summarize their proposal as
they do not have a representative present today.
Mr Butler: A check in the amount of $1,000, which
I resume indicates a bid of $10,000.
Mr. Nimtz: The Chair now recognizes the Executive
Di ector, Mr. Carl Ellison, from the Department of
Re evelopment.
Mr
pr
bic
i ni
ar(
Bu
Ellison: Members of the Commission, and others
sent, the Rosenburg, Freeman & Associates firm put
ether a rather extensive document aside from the
packet. The document contains a great deal of
ormation regarding the proposed development. They
�essentially proposing to redo the Odd Fellows
lding by converting it to luxury apartments which
,5
REHAB PROPOSAL FROM
ROSENBURG, FREEMAN &
ASSOCIATES
South Bend Commission
Special Mee �edevelopment
ing - October 10, 1979
2. NEW BUSINESS (continued)
b. Mr.lEllison continues...
would be marketed to professional workers, who are either
single, or couples without children. The firm put together.
a proposal letter which summarizes what they intend to do,
and I will read portions of it to you, ...
"Co tinental Wingate Company, Inc. and Rosenberg, Freeman
and Associates will convert the top nine floors of the Odd
Fellows Building into 77 apartment units for professional
peo le working in downtown South Bend, and rehabilitate
the ground level floor for appropriate commercial uses.
The believe their plan is in keeping with the goals of
the South Bend Urban Renewal Land. Use plan to provide for
the "intergration of existing structures.... into an attrac-
tiva and functional public, commercial and residential area."
They indicate that the economic feasibility of returning
hou ing to downtown development areas requires close coopera-
tioi and assistance from the public sector. They then identi-
fieJ key government actions that would be critical to achieve
their development plan. They are:
1. An option from the Redevelopment Authority to purchase
the property for $109000, which option would extend for
a reasonable time period necessary to accomodate FHA
approvals. Based on their investigation of the growth
of South Bend, they anticipate beginning construction
within one year of execution of the option.
2. Mortgage insurance through the Federal Housing Admini-
stration 221(d)4 program and FNMA /GNMA Tandem Plan
permanent mortgage funds at an attractive interest rate
available for rehab housing in UDAG cities. Based on
their experience, and supported by their attached letter
from Galbreath Mortgage Company, government processing
for this project could be.completed in approximately
120 days and the current interest rate on a 40 -year FHA
insured mortgage could be arranged at 72%.
3. The City must lease 80 parking spaces in the parking
deck next to the project for 40 years at an initial
rate of $20 per month. Reasonably priced residential
parking is necessary to attract professional people
to live downtown.
4. A zoning approval to allow residential use.
5. Tax abatement under Indiana Code 6- 1.1 -12 et. seq.
6. City assistance in using economic development tax -
exempt bonds to finance the project.
-6-
South Bend Redevelopment Commission
Special Meeting - October 10, 1979
2. NEW BUSINESS (continued)
b. Mr. Ellison continues...
They included'an analysis of their.cost and submitted
their FHA mortgage application. The essentials are that
the proposed development is at the amount of 2.9 million
dollars. They believe that amount is necessary to pro-
vide higher amenities. Their key floor plan shows typical
layouts for their one and two bedroom units. They plan to
gut rehab and to replace the elevators and use the existing
corridors, to the extent that they can, to build in the
living spaces. They plan to build anew stair case and
plan to.rehab the building from the top down. The ninth
and tenth floors would have a living room area on the
ninth floor and a bedroom on the tenth floor, so that
there would be loft apartments in the corners of the
building. They intend to ask rents that would run from
$300.00 for an efficiency, $365.00 for a one bedroom,
$405.00 for a one bedroom with a loft, and $450.00 for
a two bedroom unit. The firm does not have a market
feasibility study, but indicates their feeling that the
market can successfully develop the project here. They
have had previous experience with a number.of cities
around the country, including Atlanta, Gary, and Detroit..
We have done a great deal of substantial rehab work for
the conversion of properties from industrial or commercial
use into housing. They do have an indication of a firm
that will assist them in achieving the FHA financing
under the GNMA Tandem program in order to arrive at the
71-A rate. Their numbers are based on an 8% financing and
thus they have calculated their rents from that basis.
They want to begin construction by spring of 1980 and
hope to have the initial apartments on the ninth and
tenth floors open by Christmas 1980. They would continue
to rehab the building and allow occupancy of additional
space as floors were completed. Finally, there is some
consideration being given to doing something with the
roof; they indicate the possibility of providing a sun
deck as a recreational amenity to the tenants of the
building. It is their intent to use the commercial
space on the first floor to provide for uses that would
accommodate the renters of the building, and would encour-
age small minority entepreneurs to open business in the
building as it exists. They would tuck point the south
and east wall and would likely paint it in order to
improve its look. They may replace some windows but the
essential structure of the outside would remain as it
now is.
-7-
South Bend Commission
Special Mee �edevelopment
ing - October 10, 1979
2. NEW BUSINESS (continued)
b. continued... (2nd rehabilitation proposal discussed)
Mr. Nimtz: Any questions by the Commissioners?
Mr. Donaldson: What were the range for the rents?
Mr. Ellison: The rents range from $300.00 for an efficiency,
$365.00 for a one bedroom, $405.00 for 'a one bedroom with a
loft, and $450.00 for a two bedroom unit.. There would be
nine (9) efficiency apartments, fifty -three (53) one bedroom
units, six (6) one - bedroom units with a loft, and nine (9)
two bedroom units.
Ms. Auburn: They indicated that they have done no market
feasibility study and have not looked into rent figures?
Mr. Ellison: They have not done a market feasibility study
to insure that they can in fact attract off the market enough
people with the amount of income necessary to pay the rents
that they project.
Ms. Auburn: I assume that the eighty (80) parking spaces
would be free parking for renters.
Mr. Ellison: I believe they intend to add the parking cost
to the rent, somewhere around $20.00 a month. What they
want is a commitment from the City to lease them 80 parking
sp ces at a beginning rate of $20.00 a month.
Mr. Nimtz: I might add that the developers that Mr. Ellison
and I have met with in talking over these things were under
the opinion that they would have no demand for this type of
project, but that they would have no difficulty in renting
it. Secondly, these developers indicated that there would
have to be a provision for parking, because everyone would
want their parking close by and wouldn't want to walk three
blocks to park.
Thank you Mr. Ellison. If there are no other questions we
can resume opening the other bids.
3rd Rehabilitation Proposal
Mr. Ellison: The third bid received is from the American
De elopment Corporation, a suburban Chicago firm.
Am rican Development Corporation is represented by Ms.
Ma a Gelbloom.
Mr. Butler: The bid proposal is $1.00 for the building,
an the bid documents seem to be in order.
REHAB PROPOSAL
FROM AMERICAN
DEVELOPMENT
CORPORATION
South Bend redevelopment Commission
Special Mee ing - October 10, 1979
2. NEW BUSINESS (continued)
b. c*inued...(3rd rehabilitation proposal discussed)
The Chair then recognized Ms. Mara Gelbloom, representing
Ame ican Development Corporation.
Ms. Mara Gelbloom: American Development Corporation
has spent the last several months thoroughly investigating
rehab potential of the Odd Fellows Building. We propose
to convert the building into Class "'A" office space.
We will gut "rehab with all new mechanical, electrical,
and plumbing systems. The exterior historical value of
the building would be maintained in some way. The building
wou d, therefore, have all the amenities of Class "A " new
office space for the South Bend area and its excellent
location would make it highly marketable. Because of the
Department of Redevelopment's willingness to recommend
ind strial revenue bond financing for the building, should
it a retained, we have prepared a loan package for the
bui ding, and found a brokerage firm from Rolling Meadows,
Ill nois that is willing to place the bond for us. This
com any has actually given us a firm commitment for financing
the project, rather than what is normally called a "best
effort". Therefore, financing is virtually assured on this
project subject to tax bond issue. The total rehabilitation
cost would be two million, two hundred and fifty five thousand,
one hundred and seventy five dollars ($2,255,175.00). Figuring
at -82% interest, we found it necessary for the rent
stricture to be at $10.00 per square foot. We have consulted
witi the commercial brokerage firm of Cook Realty, here
in 3outh Bend, who will be our leasing agent, should we be
cho en as developers, and have a letter from their firm
as art of our packet, to show that the space can be leased
at hat price by the time the building is completed. The
rea on for the $1.00 bid is simply because we found that
$10,00 per square foot is an absolute ceiling for rent in
Sou :h Bend's market place. Therefore, as our bid, I would
lik to inform you that included in our proposal is a loan
pac age with a commitment from a lender, a complete break
dowi of construction plans, and a letter from a commercial
age t. I would briefly like to mention that American Development
Cor oration does have experience. The company has grown to
the fifth largest producer in multi-family housing in the
cou try, and the twenty seventh largest builder in the past
eig t years. We are one of the few developers in the
United States who have been successful in introducing large
i
sca a rehab. We have over three hundred (300) units n
Kan as City, and have just completed over 300 units in Chicago.
Under a special historic rehab program, which we hope to do
the Odd Fellows under, we can expand it into a commercial
reh b market. In Springfield, Illinois, we will begin
con truction on the Old St. Nicholas Hotel for leasing.
in
South Bend Redevelopment Commission
Special Meeting - October 10, 1979
2. NEW BUSIINESS
b. Ms .I Mara Gelbloom continues....
All of these projects will be financed through
industrial revenue bond issues. Our general
contractor has extensive experience in high rise rehab
and has submitted a letter of intent to utilize all local
contractors including qualified minorities in the South
Bend area. So, in conclusion, I would like to say that
we are very enthusiastic about the tenure of the project
and confident for its success as office space, and hope
that we can be actively involved in saving the building.
Mr.lNimtz: Are there any questions from the Commissioners?
Mr. Ellison: Ms. Gelbloom, what treatment will you
pro ide for the South and East wall?
Ms. Gelbloom: We have talked about the possibility of
rebe,icking. I don't think it would look good to have it
repainted. The exterior would be tuck pointed, terra cotta would
be repaired where necessary, and all new windows would be
installed.
Mr.
Mr.
Nat -
the
who
Beri
Nimtz: Thank you very kindly for being with this morning.
4th REHABILITATION PROPOSAL
Ellison: The fourth bid was received from the
Tonal Mobile Concrete Corporation. I will ask
Chair to recognize Mr. Donald W. Blandford,
represents the corporation located in
•Ten Springs, Michigan.
Mr. Butler: The bid is in the amount of $10,000,
the a is a 10% bid bond, and the documents are in order.
ThelChair recognized Mr. Donald W. Blandford.
REHAB PROPOSAL
FROM NATIONAL
MOBILE CONCRETE
CORPORATION
Mr. Blandford: Generally in our organization we would
like to give credit to those who have worked most fervently
on particular projects, and I have brought along with me
two assistants - -Mr. Frances Firth and our architect,
Mr. John W. Allegretti. These two gentlemen will answer
most of the technical questions. After much debate internally
within our organization in terms of working with the historical
aspects of the building, our approach is to take the existing
structure and attempt to interface it with the proposed
development of the Century Mall. I would like to present
at his time an architectural rendering of what our organization
pro oses to do with the structure. (Mr. Blandford presented
dra ing plans to the Commission and others present at the meeting) ...
area
South Bend redevelopment Commission
Special Mee ing October 10, 1979
2. NEW BUSIINESS
b. Mr.IBlandford continues...
We will maintain the existing physical dimensions of the
bui ding itself except with the addition of a stair tower
on the southeast corner, primarily to do two things...accommodate
a mechanical room per floor, provide stairs for the building to meet
code. The building, when complete would consist of ten floors
of ccupancy with a net leaseable space of 57,000 sq. ft.
The bottom, or lower level of the building would be opened
up to some extent and would house retail space. The
estimated time of completion on this particular project, would
be approximately a 14 to 16 month time period. We are
looking at a total cost, including soft cost, of approximately
3.7 million dollars. The amount financed on this particular
project (we look at it from an equity basis) would be up to
3 m llion dollars of EDC bond financing. We currently have
ten ative approval from the Continental Illinois National
Banl & Trust Company, Chicago, who also happens to be our
cor orate banker. Basically, in a synopsis form that is our
app oach to this particular project. Any technical questions
con erning the details of the interior refurbishing and
treatment of the exterior, I will attempt to answer myself
and or pass on to my two associates this morning.
Mr. Firth: Basically, what I would like to do is attempt
to enlighten you as to what our approach to the actual
ren ovation work itself would be. Obviously, we would
start out with demolition. It would be our intention to
demolish 100% of the existing interior walls with the
exc ption of the elevator shafts, the stair tower, and the
mec anical works. As far as the exterior demolition process
would be concerned, we would demolish large portions of
the east wall, the north wall, the south wall, relatively
all the wall areas, paying particular attention to save
certain areas of the substructure. Advancing to the
dev lopment of the project, our main feature of the building
would be the external usage. We have proposed to use
reflective glass products, manufactured by Pittsburgh
Glass Plate Company, which is their 550 -20 series (a
reflective solar band). We would use this particular
product in all of the viewing areas. We would then use a
matching product of spandalite glass in all areas which would
haVE the existing column lines and floor lines. As far as
the interior of the building is concerned, we would install
new partition walls throughout. These partition walls would
be Lasically vinyl covered. We would also install throughout
the building a new suspended ceiling system. The plumbing,
mechanical, and electrical systems throughout the building
would be completely reinstalled, and all new fixtures would
be used bringing them up to current code.
-11-
South Bend Redevelopment Commission
Special Me ting October 10, 1979
2. NEW BUSINESS (continued)
b. (Mr. Firth presented drawings, outlining the interior
fi tures of the building to members of the Commission and
of ers' present at the meeting):
As far as the heating system goes for the building, we will
also be installing a new system, which would be inclusive
in the water source, heat pump situation. We paid particular
attention to the cost of utilities which goes back and
interfaces with the glass to be used on the building. By
using the reflective glass and reducing the relative heat
gain, we reduce the BTU use by over 50%. All floors through-
out would be recarpeted and everything would be brought up
to a brand new building. In regard to the elevator shaft,
we ire proposing to put in brand new cars and completely
reh b them to bring them up to code, thereby making them
com letely automatic elevators.
The Chair recognized Mr. Allegretti, the architect for
Nat onal Mobile Concrete Corporation...
Mr. Allegretti: I would like to say that our corporation
has come up with a radically different concept than the
other three proposals. Our reasoning on this was that we
wou d like to work with Gruen & Associates to provide
a C ass "A" office space that would interface with the
new mall.
Mr.INimtz: Do the Commissioners have any questions?
Ms. Auburn: The ten floors are to be relegated as
Cla s "A" office space? Where does the housing and
ret it come in?
Mr. Firth: Floors two through ten would be Class "A"
office space. The main floor would be retail space, and
the basement would be basement for the redeveloper as
sto age, etc.
Ms. Auburn: Can you give me some idea as to what you are
thi king of for the office rental?
Mr. Blandford: We note that the basis for our interest
in the property was predicated upon the report that was
donE by Rouse Corporation. Also that the development of
Century Mall would be on -going concurrently with our
project, and with the structures going up in the First
Ban /hotel project. Our rents, when the building is
occupied, are projected at $10.50 per square foot.
Again, the construction is projected at a 14 -month period
of time. The start of construction would begin in early
spring of 1980.
-12-
South Bend redevelopment Commission
Special Mee ing - October 10, 1979
2. NEW BUSIIN
b. continued...
Ms. Auburn: There is a $3.7 million price tag on redoing
the building as you have it. Can you give me a comparable
fig re for building new construction?
MrJ Blandford: It would be similar costs.
Mr. Nimtz: Basically, what you are saying is that you
wouldn't use terra cotta on the outside, and you wouldn't
hav walnut paneling on the top floor, etc.
Mr. Blandford: You would have to be more definitive on
what,kind of building you are talking about. A concrete
building, a glass building, what kind of facilities does
it ave; what mechanical systems does it have, etc.
You could get into quite a variable area. A new
facility could cost anywhere from $65.00 a square foot
not including the site. In attempting to answer
Ms. Auburn's question, if we were going to build a
building today from scratch we would not build a building
like that.
Our approach is that we are at the threshold of
con idering demolishing the building entirely and submitting
a proposal for a new structure.
Mr. Butler: Have you accomplished any financing?
Mr. Blandford: As I have indicated earlier, Mr. Butler,
we ire utilizing our corporate banker on a tentative
bas s. I do not have a letter of commitment, a binding
leg l agreement that indicates they will indeed finance
tha project.
Mr. Nimtz: Thank you. The Chair will now recognize
Mr. Ted Wasielewski, President, Historic Preservation
Com ission.
Mr. Wasielewski: Ninety days ago I attended one of
you meetings when you reported the Rouse Corporation
Stu y. At that time, you said the Odd Fellows
Building only has a future if you get a concrete
pro osal within 90 -days. We now have four proposals.
The merit of those proposals are not the business
of the Historic Preservation Commission, however,
in <eeping in faith with the citizens of South Bend
I t ink that the Redevelopment Commission should take
a v ry adequate look at these proposals. I understand
you next commission meeting is on the 19th.
-13-
COMMENTS FROM
MR. TED WASIELEWSKI,
PRESIDENT, HISTORIC
PRESERVATION COMMIS-
SION
South Bend Redevelopment Commission
Special Meeting - October 10, 1979
2. NEW BUISINESS
b. MrI. Wasielewski continues....
First of all I would suggest that you throw away all
the demolition bids you have received, because I don't
think you need them any longer. I think we are going
to rehab this particular building. I think the City
wants it rehabed, and I think the voice of the people
has been heard through numerous letters received in that
regard. I would certainly like to see the Redevelopment
Commission take a new tack with downtown redevelopment.
In the past it has been demolition, one after another, and
I don't think we have had a chance, with the exception of
this particular building, to see what could happen if we
re abilitated a building. I think over the years we have
never given any building downtown a chance. I bless the
day when the City acquired this building because it took
off the smoke factors that were involved with the previous
ow ers, etc. Now I feel the City has a responsibility to
to k at these rehabilitation bids, ignore the demolition
bi s, and go ahead with saving this building.
Mr. Nimtz: Thank you. Now in defense for the Commissioners
who have gone on before, let me say that there has been a
change in the philosophy of Congress and with the Department
of Housing and Urban Development, through the years concerning
development, and there has been a greater emphasis as we
we 1 know, in the historic preservation movement, of which
So th Bend is a prime example.
Ms Auburn: I have one question to direct to National Mobile
Co crete. I would like to know if you have been involved
in this type of rehabilitation work in any other place in the
co ntry?
Mr Blandford: I think that is a very valid question. The
answer is unequivically... "no ". But, we feel we have a
track record with certain organizations and this is an area
of diversification for our firm. Being close to South Bend,
and myself being a resident of South Bend, we look upon this
as a method to carry out that plan of diversification.
Th ere
direct
be ref
Second
howeve
them o
next m
>eing no objections by members of the Commission, the Chair
?d that the rehabilitation proposals and the demolition proposals
?rred to the staff and legal counsel for investigation and report.
ly, the Chair directed that the documents be opened for inspection,
so that the Commissioners or members of the staff could review
withdraw them from 4 o'clock in the afternoon until 9:30 the
►rning.
-14-
South Bend Redevelopment Commission
Special Me ting - October 10, 1979
2. NEW BUSINE
b. continued...
Ms Derbeck: Now that you have received four
pr posals, are you 100% sure that one of these
pr posals will be chosen?
Mrs Butler: I don't think that can be presumed.
Mr. Ellison: Please bear in mind that the staff
has received demolition bids as well as rehabilitation
proposals. Until the staff has done an investigation
and report, I don't feel it would be appropriate to
as ume anything regarding the building.
Ms� Derbeck: Is it possible, after close study, that
no a of these proposals will survive?
Mr Ellison: That is correct, or we may find that all
th demolition bids are defective. We are uncertain what
we will find.
Ms Derbeck: Will you have your reports ready by the
net meeting?
Mr Nimtz: I don't think we can commit ourselves at this
time. We have a lot of reading to do and the staff has a
lor of work to do.
If we have no other questions, I would like to
mention that we are pleased to have the out -of -town people
he a today.
DISCUSSIONS FROM
NEWS MEDIA
3. NEXT C MMISSION MEETING
NEXT SCHEDULED
The net regularly scheduled South Bend Redevelopment Commission I REDEVELOPMENT
meetini will be held on October 19, 1979. COMMISSION MTNG.
4. ADJOURNMENT
ADJOURNMENT
There being no further business to come before the Commission,
Mr. Donaldson made a motion that the meeting be adjourned, seconded
by Ms. Auburn, and the motion was unanimously carried. The meeting
was adjourned at 11 :13 A.M.
The Ch it mentioned that the groundbreaking ceremonies for First Bank/
Rahn P operties II will be held at 11:15 A.M. on October 19, 1979 at
the "h le ", and the Board of Public Works has approved it.
-15-
South B�nd Redevelopment Commission
Special Meeting - October 10, 1979
z, P esident Carl Ellison, Executive Director
-16-