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HomeMy WebLinkAboutRM 12-21-79SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING December 21 1979 1200 County -City Building 10:00 A.M. 227 West Jefferson Boulevard Presiding 0 ficer: Mr. F. Jay Nimtz, South Bend, Indiana 46601 President 1. ROLL Members Present: Mr. Mr. Mr. Mr. Ms. Legal C unsel: Mr. F. Jay Nimtz, President Lloyd E. Robinson, Sr., Vice President A. Peter Donaldson, Secretary Robert J. Cira, Assistant Secretary Paula N. Auburn, Member Kevin J. Butler Redevel pment Staff: Mr. Carl Ellison, Director Mrs. Ann Kolata, Deputy Director Ms. Ann Bathon, Acquisition Specialist Mrs. Jane Zimmerman, Executive Secretary Ms. Denise Fleming, Secretary Communi y Development St ff: Mr. James Johnson, Project Director, Bureau of Housing Ms. Joan Varga, Loan Specialist, Bureau of Housing Mr. William C. Kenney, Bureau of Housing Ms. Shirley F. McCoy, Contract Compliance Officer News Me 1i a: Mr. Mr. Mr. Mr. Mr. W. Ms. Guests: Hon Mr. Ms. 2. APPROVAt OF MINUTES Dave Anderson, Reporter, WNDU -TV Les Howard, Photographer, WNDU -TV Frank Vellner, Photographer, WSBT -TV John McKnight, Reporter, WSBT -TV Bill Hentsch, Photographer, WSJV -TV Larry Ford, Reporter, WSJV -TV Jeanne Derbeck, Reporter, South Bend Tribune orable Peter J. Nemeth, Mayor, City of South Bend V. LaMar Wilson, Director; Neighborhood Housing Services Maria Tondreau Glenda Rae Hernandez, S.E. PAC Mr. Ke n J. Butler read the corrections to the minutes of the Regular Meeting of the Redevelopment Commission held on November 16, 1979, as follows: Before ghange: Page 43 - 3rd Paragraph Mr. Rob nson made a motion that the motion previously passed y the Commission to delay be reconsidered, seconded by Ms. uburn, and the motion was unanimously carried. APPROVAL OF MINUTES OF REGULAR MEETING OF NOVEMBER 16, 1979 AS AMEMDED South Bend development Commission Regular Mee ing - December 21, 1979 2. APPROVAL OF MINUTES (continued) After Corrections: (page 43 -3rd paragraph) "Mr. Robinson made a motion that the motion previously passed by the Commission to delay action on the Odd Fellows building be reconsidered and rescinded, seconded y —Mt.-Auburn, and the motion was unanimously carried." b) Before Chan e: Page 43- 6th paragraph Mr. Rob - -nson made a motion authorizing the staff to negotiate with the bidders and any other interested developers with respect to renovation of the Odd Fellows Building and directing the Staff to contact the Keeper of the National Register of Historic Places regarding a determination as to whether the Odd Fellows Building is eligible for inclusion in an expanded West Washington Historical District, seconded by Mr. Cira, and the motion was unanimously carried. After Corrections: (page 43 - 6th paragraph) "Mr. Robinson made a motion authorizing the staff to negotiate with the bidders and any other interested develop rs with respect to renovation of the Odd Fellows Buildin and directing the Staff to contact the Keeper of the ational Register of Historic Places regarding a determ' ation as to whether the Odd Fellows Building is eligible for inclusion in an expanded West Washington Historical District, and to provide a comprehensive report-to the Commission not later than its meeting on January 18, 1980, with interim progres s re its as apprOpTlate, seconded by Mr. Cira, and the motion was unanimously— carried." Mr. Rob' on made a motion to approve the Minutes of the Regular Meeting of November 16, 1979 as amended, seconded by Mr. ira, and the motion was unanimously carried. On moti n by Mr. Donaldson, seconded by Mr. Robinson, and unanimo sly carried, the Minutes of the Regular Meeting of Decepber 7, 1979, were approved. 3. APPROVAL OF CLAIMS There w�re no claims presented to the Commission. -2- APPROVAL OF MINUTES OF REGULAR MEETING OF DECEMBER 7, 1979 NO CLAIMS PRESENTED TO COMMISSION South Bend edevelopment Commission Regular Mee ing December 21, 1979 The Chair r cognized the Honorable Peter J. Nemeth, Mayor, City of South Bend. Mr. Nimtz: Your Honor, this will come as no surprise to you. I received a letter from the Mayor telling me that he had read the resolution in the minutes concerning him. Several weeks ago we did, in fact, pass the following resolution so that we would have time to frame it for the Mayor. It reads as follows: RESOLUTION #595 WHEREAS Ptwgtcesz and achievement in a putt is agency atce mea6u/ted not in dtcamat is announcements otc times o J ctutsis but ,n the day to day eJ4otrtt6 o4 competent peopte who bused cate4uUy and we-U; and WHEREAS o4 such am o4 the down WHEREAS, on the patet WHEREAS the City o4 South Bend hats bene6itted 4nom the good o44.iee�s . who hats dedicated hi-6 taeents to the imptovementls wn atcea; and this dedication has .invotved a total commitment o4 this man and hits .6 taJ 6; and he had teat W .impkint on the tcedevetopment of South Bend; NOW, THEREFORE, BE IT RESOLVE that the South Send Depatrtment of Redevetopment in a meet i.n a6 s embted on thus nineteenth day o4 Oe tobeA, 1979, hetceb eommendts Mayo& Pete —T. Nemeth. 4otc Ma totr ious Se vice and expu/sses its gtcatitude 4an a job weU done. S F. Jay Nimtz, Ptcets- S Ltoyd E. Ro ,rots an, Vice Pusid ►tit S Pete& Da on, SecicetaAy (SEAL) Mr. Nimtz: have diffez rubber stair together, b and I know S Ro etrt a, Atsts.ustant SecAetoAy -- S PauEa N. AubuAn Memb etc Your Honor, as I have stated before, you and I �d many times before, as. this has not been a Commission. We have settled our differences it I have certainly appreciated working with you, :he Commission has. -3- PRESENTATION OF RESOLUTION #595 TO MAYOR PETER J. NEMETH South Bend edevelopment Commission Regular Mee ing - December 21, 1979 Mr. Nimtz (continues).... I feel you ave done a really good job. And as I have said before, publicly, you could have just rested on the oars this list eight or nine months; but you didn't do it. We are where we are today because of you. I feel the City of South Bend owes you a great deal of thanks for what you have done. We have appreciated the leadership you have given us. It gives me great pleasure to present this plaque to you and I hope that you will remember the association we have all had together. Honorable or Peter J. Nemeth: Thank you Mr. Nimtz. I would lika to say thank you very much for this plaque. I have appr ciated the cooperation that you have given me during the past four years. We had a few "dark" days when I first began my administration, but we persevered md it wasn't a job done by one person, but by all of u3 and of course, by many people who aren't with us thi3 morning. I will accept this as a symbol of the hard work that was done by all of you as well as all of t e people who aren't here today, to help rebuild our downtown area and make redevelopment a success. I am aware that ou have taken a lot of "slings and arrows" over the years to why you are doing a particular project and why there h n't been any progress; but it is a long and difficult job and it takes time. I believe you are starting to see some of the fruits of your work in the groundwork that has occurred over the past few years. I have thoroughly enjoyed working with each and every one of you, and wish you the best success in continuing the job. I hope that four years from now we can pass out even more plaudits as more things come to pass in our beautiful City. So once again, I thank you very much! L�O[Caiuli�7 There wire no communications to present to the Commiss on. S. OLD BUS There w4s no old business to present to the Commission. -4- NO COMMUNICATIONS PRESENTED South Bend�Redevelopment Commission Regular Me ting - December 21, 1979 6. NEW BUSINESS a. Commission approval requested by.Advisory Board "B' for a non-profit gra nt in the amount of _8,000:00, to Nei hbo -hood Housing Services of a Mr. Johnson: Neighborhood Housing Services of South Bend, Inc. (NHS) is requesting a Non- Profit Group Rehabilitation Grant to support repairs and improvements on a house located in the Northwest area of the City. (740 N. Blaine- Bureau of Housing Estimated Cost: $19,369.13) The availability of a Non - Profit Group Grant reduces the effective cost of repair to NHS, and in turn makes it possible to not only put back into use a property which has stood abandoned for five years, but at the same time allows them to create a homeownership opportunity for a low- income family. Advisory Board "B" of the Bureau of Housing recommends that the Redevelopment Commission award to DES a Non - Profit Group Rehabilitation Grant in the amount of $8,000 for the house listed above, subject to customary presentation of evidence of own rship to the Bureau. The Char recognized Mr.. V. LaMar Wilson, Executive Directo , NHS of South Bend, Inc. Mr. .ilson: We are a private non - profit corporation representing a partnership between local financial institutions, the City of South Bend, and local resi ents throughout the community. We incorporated in March of 1979, and have been operational about 2 -22 months. This project at 740 N. Blaine is pret ty significant in that we are concentrating our services and activities in the 700 block of Blaine. We are talking about technical and financial services. 740 is somewhat pivital in turn ng around the 700 block of Blaine because it has been vacant and abandoned for five years. What we would like to do is rehabilitate the house and put it back into use. Our office is based in the neighborhood and we are proud of the commit- ment we -have received from the three partners we are involved with. We would like to use the house at 70 N. Blaine as a demonstration to show what we are capable of achieving in terms of what we can do for the neighborhood. -5- A NON - PROFIT GRANT IN THE AMOUNT OF $8,000 AWARDED TO NEIGHBORHOOD HOUSING SERVICES OF SOUTH BEND, INC. A NOT FOR PROFIT ORGANIZATION South Bend development Commission Regular Mee ing - December 21, 1979 6. NEW BUSINESS a. (continued) ... Mr. Nimtz: What is the particular nucleus of your group - is it a religious group, a neigh- bor ood group, etc.? Mr. Wilson: No, actually,. it is a partnership and it reflects the broad base of participation among financial institutions in the City of South Bend. A nun er of departments are cooperating as well as neii,rhborhood residents. Mr. Cira: Is the house worth $19,369.13 or is it a total estimated cost to renovate the house? Where does the other $11,000 come from? Mr. Wilson: We intend to make a "high risk" revolving loan for a lower income family to take care of the balance. Mr. Robinson: The people who the house is being renovated for, are they the people who are the ten is now? Mr. Wilson: The house at this point is not in sha e for occupancy. As soon as the house is reh bilitated to a point where someone can move in, they will, in fact, become the owners of the ho e, Right now NHS owns the property as it is vac mt. Mr. Donaldson: Their intentions are to renovate the house and the people that you are referring to now will go back into the house. Mr. Wilson: Actually, they have never been in the ho e. This is a new opportunity for them. The house is now vacant, and as soon as a number of the repairs are made, to a point where it can be occupied, then the lower income family will buy the house from NHS Mr. Donaldson: Who determines who the lower income family is? Mr. Wilson: Neighborhood Housing Services of South Bend, Inc., does based on the income, family size, employment, etc. We have a loan conkittee which has acted upon the loan request, so it is not a matter of one person making the decision. South Bend edevelopment Commission Regular Mee ring - December 21, 1979 6. NEW a. (continued) ... Mr. Cira: What kind of payments are you ex cting them to make on that $11,000? Will it e paid over a period of ten years or twenty Yea s? Mr. Wilson: Under our loan program we are able to adjust the term and interest rates, so it will not be a hardship for the person who would assume the loan. Mr. Nimtz: I might mention to the Commission that one of the criticisms that HUD has had and that the Department of Redevelopment has had about Southold Heritage, Inc. and their loans in the West Washington Area is that the area has come back so much that the people who are asking for the loans are not of the lower-economic strata. That they are not really lower income people, but that they are middle income people. This is one of the criticisms tha HUD has, that the area has jumped ahead so fast that the people are not lower income people. Mr. Ellison: I would like to point out that I haven't made any comments on this matter because I represent the City on the Board of NHS and am the org ization's Treasurer. Mr. Robinson: Who performs the work in renovating this property? Mr. Wilson: We intend to contract it out. Mr. Robinson: Does this new organization realize whe their money comes out of this Commission, that the e is a prevailing wage rate which must be co lied with? Mr.lWilson: Yes, we do realize this. Mr. Robinson made a motion to approve a non - profit grant in the amount of $8,000 to Neighborhood Housing Services of South Bend, Inc. (NHS), a not- for-profit organization for the rehabilitation of property located at 740 N. Blaine, seconded by Mr. Donaldson, and the motion was unanimously car ied. -7- South Bend edevelopment Commission Regular Mee ing — December 21, 1979 6. NEW BUS b. Commission a pproval requested for Change Order No. 9 Plaid Constructin C n , or an 39 increase in contract rice o 4 9:00, or an amended contract total of 5,435:00, at e address of 1305 E. Sotin, as set forth in letter fro Mr. James Johnson,,_ Project Director, 'Bureau of Housim. Mr. Johnson: The initial inspection dated 4/12/79 at 1305 E. Sorin called for installing marlite on he bathroom walls and to box in the bathtub. During construction it was noted by the general contractor that the lavatory is pulling away from the wall and should be braced before the installation of the wall covering can begin. The linoleum on the dining room floor is torn in portions and should be replaced. The new bathtub has been deleted from the contract by prior change order wi the plumber. The Bureau is requesting this cha,ige order for the bracing of the lavatory and the installation of underlayment and tile in the dining room for an increased contract amount of $420.00. Mr. Robinson: Mr. Johnson, what was the lapsed time between the inspection, when the work was actually being performed and when the contractor first became aware of the condition which existed? Mr. Johnson: I'm not sure, but the contractor should have know since the time of his bid as he has an obligation to inspect each home he is bidding on. The Bureau is finding that there have been mistakes made and we are aware of the time fa or. Mr. Nimtz: I have talked with the Commissioners and with Mayor -Elect Roger Parent about the inspections with the Bureau of Housing and I think he is hoping, as well as the Commissioners, that we can tighten up these inspection processes and cut down on the time la . Mr. Johnson: We have received some word from our HUD au 't about the inspections, and we have worked cl sely with personnel, etc. to do this. CHANGE ORDER #9 WITH PIAIA CONSTRUCTION CO., FOR AN INCREASE IN CONTRACT PRICE WAS APPROVED South Bend fZedevelopment Commission Regular Meeting - December 21, 1979 MRIKON b. continued... Mr. Cira: I am not sure if this is possible, but instead of having all of these amended change orders eve several weeks, why don't we have the job that was supposed to be completed, and didn't get com le ed, be re- contracted out. Say anything over 20 .00. Mr.lRobinson: That is cost - prohibitive. Mr. Cira: Can't we cut down on the time from initial inspection date to the time the job is co leted? A1r. Johnson: These contracts have to go through quite a few boards, such as the Advisory Board, through the Redevelopment Commission, Common Council, attorney, etc Mr. Ellison: Mr. Cira, there are some problems in the Bureau of Housing, in that a number of the programs and procedures need to be revised. Currently, there is effort underway to look in great detail, at all the various programs and try to streamline them. For some reason it has become a habit of over- regulating, and over - proceduring our programs. A lot of these have occurred for reasons that are un- related. For instance, nobody anticipated in 1975 when we received community development funds that the Common Council would want to approve by resolution every contract over $5,000. In addition, nobody anticipated that as a result of changing rehab programs a number of years ago where we went to bidding large blocks of units by rehab category, in some situations we would receive only one bid or no bids at all. Conseqently, we would have to go through a rebidding process, etc In any event, this frustration of lag time and the problems it creates, which potentially lea&s to change orders, will probably exist until the next year because I feel it will take that lon to go through an overall process for all the e programs. Mr. Cira: The only thing I was concerned about is that I don't know if the $200.00 is too low or too high, or what, and if I have three estimated bids in front of me I have an idea of what the other con ractors are bidding on the job. I can get a bal park figure. sox South.Bend edevelopment Commission Regular Mee ing - December 21, 1979 6. NEW b. continued..... Mr. Cira made a motion to approve Change Order No. 9, with Plaia Construction Company, for an increase in contract price of $429.00 (for the bra ding of the lavatory and the installation of and rlayment and tile in the dining room) at the add ess of 1305 E. Sorin Street, seconded by Mr. Robinson, and the motion was unanimously car ied. c. Coni4iss ion ease of �61U.0 I of 6,082 :OC , as set forFh ect Director, nested for Change Order emodelin , Inc., an r an amen e 'contract au of HouslnQ. Mr. Johnson: Riverbend Remodeling discovered an error in one item, which was to be specified in their bid, that was overlooked and now would like to he reimbursed $310.00. The Bureau voluntarily spot checks all bids and, where discrepancies exist, a contractor can either retract their bid or accept a loss. The Bureau, by past practice, would never allow any contractor to increase their bid because of a mistake. Legal counsel has been obtained and we are not com idered to be obligated to increase this contract. Riverbend Remodeling, Inc. requests your approval for this change order. Mr. Ellison: To clarify what I believe Mr. Johnson is saying, the Bureau of Housing is not recommending thiE change order, but rather, Riverbend Remodeling, the contractor is in order to recover costs. The Bureau of Housing elected, pursuant to the terms of our contract, to bring the issue to the Commission. Mr. Robinson made a motion to reject Change Order No. 2, with Riverbend Remodeling, Inc. in which they asked for an increase in contract price of $310.00, seconded by Mr. Donaldson, and the motion was unanimously carried. d. CO fission approval request with Plaia Construction Con contract price of 10.00, f tot ,.1 of 4,514.00, at the as set forth in letter fron Pro ect Director. Bureau o for Change Order No. 7 y, for an increase in an amended ct ress of 946 E. James Johnson -10- CHANGE ORDER #2 WITH RIVERBEND REMODELING, INC. REQUESTING AN INCREASE IN CONTRACT PRICE WAS REJECTED South Bend edevelopment Commission Regular Meeting December 21, 1979 6. NEW BUSINESS d. con inued..... Mr. Johnson: The initial inspection of 4/20/79 at 946 E. Sorin called for scraping and painting the gutters on the west side of the CHANGE ORDER #7 WITH stnicture and for replacing siding and painting PLAIA CONSTRUCTION CO. the soffitt. Since that time the.homeowner has REQUESTING AN INCREASE repaired and painted the damaged siding and IN CONTRACT PRICE WAS sof itt and the gutters have fallen down. There- REJECTED fore, this change order is to replace a forty foot gutter on the west side of the structure, for an increase in contract amount of $10.00. Mr. Nimtz: I don't know how the Commissioners are going to vote on this particular change order, but I feel we should have an informal agreement or policy that anything under $25.00 should not come before the Commission. There is too much time and paperwork involved in it. Mr. Cira made a motion to reject Change Order No. 7, to P1aia Construction Company, who requested an increase in contract price of $10.00, seconded by Mr. Robinson, and the motion was unanimously carried. e. Commission approval requested for Change Order No. 8, with Plaia Construction Co an , for an CHANGE ORDER #8 WITH increase of $303.00, or an amended contract total PLAIA CONSTRUCTION CO. of 3,471.00, at the address of 513 North Art ur WAS APPROVED (AN as set forth in letter from Mr. James Johnson, INCREASE IN CONTRACT Protect Director; Bureau of Housinz. PRICE OF $303.00) Mr. Johnson: This initial inspection of 4/12/79 specified the installation of a new bat tub and to box in the tub area. After construction began it was determined the bathtub did not need to be replaced, but the walls in the bat room (tile /plastic) are deteriorating and should be eplaced, therefore, I am requesting approval of thi change order for an increase of $303.00. Mr.�Cira: You have an eight months time lapse with thi change order. Mr. Ellison: Mr. Johnson, can you please give us more det it on this change order? -11- South Bend edevelopment Commission Regular Mee ing - December 21, 1979 6. NEW e. (continued ... Mr. Johnson: Obviously a mistake has been made. It ould mean two things; l) it was missed in ins ection, or; 2) the contractor didn't fulfill his obligation to through and inspect each and every item. Mr. Ellison: The result then is that we have a contractor, who has an obligation to perform an inspection at every house, but who did not, and the efore, did not recognize this situation. Because he Jid not do his job we then have a beneficiary whol will suffer. 1 Robinson: Since they didn't have to put in a tub, where is the original change order or del tion? Mr. Johnson: That was done by a previous change ord r. This would be for the general contractor, and the deletion of the tub would be for plumbing. Mr. Robinson made a motion to approve Change Order No. 8, with Plaia Construction Company, increasing con ract price by $303.00,.for replacement of bathroom walls (tile /plastic), at the address of 513 North Arthur, seconded by Mr. Cira, and the mot on was unanimously carried. f. Co fission approval requested for Change Order No. CHANGE ORDER #2 2, idth Charles Brown A1a.intenance Com Inc. for WITH CHARLES BROWN no ,ppy, change in t e contract price, at the address of MAINTENANCE CO., INC. 202 West Sample Street, as set forth'in letter from APPROVED (NO CHANGE Mr. James Johnson, Project Director; Bureau of IN CONTRACT PRICE) Hous in g. Mr. Johnson: The initial inspection for 2021 W. S le dated 5/23/79 called for the installation of m interior door to the southwest room, and a (13 ) .foot base cabinet. The homeowner no longer uses the southwest room as a bedroom, does not want a new base cabinet because it will not match the rest of her cabinets, and the plastic tile on the kitchen wall is beginning to fall. Therefore, a change order is requested to repair and paint all existing cabinets and doors and install marlite four feet high on the kitchen walls for no change in contract price. -12- South Bend RE Regular Mee i 6. NEW BUS r f. con i elopment Commission - December 21, 1979 Mr. Robinson: On this contract price for labor and materials, is that the original price which was submitted in their bid for the deletion? Mr. IJohnson: Yes it is. Mr. Robinson made a motion to approve Change Ord r No. 2, with Charles Brown Maintenance Company, Inc. for no change in the contract price, at the address of 2021 West Sample Street, sec nded by Mr. Donaldson, and the motion was una iimously carried. There were no progress reports to present to the commission. FLOOR DISCUSSIONS Ms. Der beck: During my absence from the City I underst d that the Department of Redevelopment has received a model of Century Mall but was there an official acceptance of the model? What was officially done? Mr. Nim z: It is a proposal, I don't think there is a pr cedure which says we accept or reject it. This is one concept of the designers and developers. Mr. E14on: Yes, the model is part of the services for whits we contracted. Ms. Der�eck: Well, I would like to know if you are satisfi d with this concept? Mr. Nim z: Some of the comments I have heard such as from th bus company, and the other people, are that they like where they are going to be, including GSA (where they are proposed to be). The only comment or criticism I have heard f om some people is that they didn't see the Odd Fellows Building included in this concept. Ms. Der beck: I have heard people who have looked at the model c osely, say that it looks to them that when you enter from the courthouse side, the main entrance I presume, that you are going to have to walk across the bus terminal at grouid level. Right? -13- NO PROGRESS REPORTS WERE PRESENTED DISCUSSIONS RELATIVE TO THE MODEL OF CENTURY MALL South Bend edevelopment Commission Regular Mee ing December 21, 1979 FLOOR DISCU SIONS (continued) Mr. Ell son: You can go across the terminal at the econd level also. Ms. Der eck: Are you going to cross the bus terminal on a kind of bridge which is glass enclosed? Mr. Ellison: That is correct. :r. Ellison showed Ms. Derbeck a picture of the Century Mall Model) Ms. Der eck: Secondly, it has been reported that people vho are walking on the sidewalk will have to cross the place where they have to dodge the busses. Mr. Nim #: They do that right now on the bus parking lot. Ms. Der eck: Another comment, is that on the Century Center side YOU are going to have a parking garage and very little scenery. Mr. Ell son: It is very difficult to see unless you have looked 4t the model itself, but there will be landscaping and an Ontrance to the mall. 8. NEXT a The nex Meeting by stat be swor date. There b Commiss meeting motion adj ourn ION MEETING regularly scheduled Redevelopment Commission ill be held on January 2, 1980, which is set e for reorganization of the Commission. We will in and reorganize the Commission as usual on that g no further business to come before the Mr. Donaldson made a motion that the adjourned, seconded by Mr. Cira, and the unanimously carried. The meeting was at 10:43 A.M. -14- NEXT COMMISSION MEETING ADJOURNMENT South B Regular Redevelopment Commission sting - December 21, 1979 t Carl Ellison, Executive Director -15-