HomeMy WebLinkAboutSM 07-25-80July 25, 19 0
10:00 A.M.
Presiding Off
1. ROLL CAIL
Members P
Members A
Legal C u
Redevel to
Communit
Staf
News Mec
Guests:
2. APPROVAL
SOUTH BEND REDEVELOPMENT COMMISSION
SPECIAL MEETING
1200 County -City Bldg.
227 W. Jefferson Blvd.
Mr. F. Jay Nimtz, South Bend, Indiana 46601
President
..t: Mr. F. Jay Nimtz, President
Mr. Lloyd E. Robinson, Sr., Vice President
Mr. A. Peter Donaldson, Secretary
Mr. Robert Cira, Assistant Secretary
ent: Ms. Paula N. Auburn, Member
el: Mr. Kevin J. Butler
t Staff: Mr. Carl Ellison, Executive Director
Mrs. Ann Kolata, Director
Mr. Kevin Horton, Assistant Director
Ms. Ann Bathon, Acquisition Specialist
Mr. Bill Fox, Relocation Specialist
Mr. Paul Falduto, Employment Targeting Asst.
Mrs. Jane Zimmerman, Executive Secretary
Mrs. Hedy Robinson, Secretary
Development
OF MINUTES
Mrs. Kathryn Baumgartner, Director, Bureau of Housing
Ms. Jeanne Derbeck, Reporter, South Bend Tribune
Ms. Cathy Ray, Reporter, WNDU
Mr. Les Howard, Photographer, WNDU
Honorable Mayor Roger 0. Parent
Mr. John Kagel, Downtown Council
Mr. Thomas Abell
Mr. Conrad Damian
On motion by Mr. Cira, seconded by
Mr. Robinson, and unanimously carried,
the Minutes of the Regular Meeting of
Friday, July 11, 1980 were approved.
3. APPROVAL OF CLAIMS
On motion by Mr. Donaldson, seconded by
Mr. Cira and unanimously carried, the
claims totalling -- $54,633.10 wree
allowed and ordered to be paid. The
authorized claims are:
MINUTES OF REGULAR
MEETING OF JULY 11, 1980
WERE APPROVED
CLAIMS APPROVED
South Bend development Commission
Special Meet'ng - July 25, 1980
3. APPROVAL OF CLAIMS (continued)
REDEVELO M.ENT REVOLVING FUND
Payroll:
6 -14 -80 to 6 -27 -80
$ 5,998.21
Business
Systems, Inc.
4.85
Business
Systems, Inc.
37.57
Emery Air
Freight
20.33
Mishawaka
Enterprise
5.00
TOTAL $ 6,065.96
of i.71P
LjLia I Qjj p KQ NUT i;1►M �►n
Community Development $ 1,074.00
TOTAL $ 1,074.00
REDEVELOPMENT DISTRICT CAPITAL OF 1972
Gruen Associates, Inc. 12,754.39
TOTAL $ 2,754.39
P.E.A. - MONROE- SAMPLE AREA
John G. Pence Associates, Inc. $ 21050.00
Craig Hill, Contractor 130.00
TOTAL $ 2,180.00
P.E.A. -1 IND. R -66
Redevelopment Revolving Fund $17,614.49
Ray Breden 140.00
Parker, BrLumer & Hamilton, Attorneys 1,300.00
Dave's Lock Service 20.00
TOTAL $19,074.49
P.E.A. -1312 LOANS
Tri-State Home Improvement Inc. & Mincy Gatson $ 395.00
Mrs. Mullins F L.L. Geans & Sons 81:62
Ray Bockaj Construction & Dennis Tinnin 10,943.00
Housing & Urban Development 9,900.00
B.W. Electric & Dennis Tinnin 1,492.00
Bartholo ew's Inc. & Thomas or Cinderella Nawrot 465.64
Weather- eat of South Bend, Inc. & Thomas or
Cinderella Nawrot 270.00
TOTAL $23,484.26
GRAND TOTAL $54,633.10
2
South Bend ?development Commission
Special Mee ing - July 25, 1980
The Chair r cognized Honorable Roger 0. Parent who was present
to discuss qn item on the agenda which was listed as 6h. under
New Businessi as follows:
6. NEW
h. Comnkissioh discussion and decision
the lr6ciu6st to hermit its Executive
to
of
ve Director
on an inter
basis.
Mayor Parent: As you are aware, there has been
considerable discussion recently about the
Hous,ing.Authority and its director. The Housing
Authority Commissioners have asked the adminis-
tration to help during the interim period before
a new Housing Authority Director is hired.
Discussions began as to who the interim director
would be. It very quickly came down to
Mr. Ellison who has a lot of experience and
knowledge about housing and the rules, regulations,
etc. Mr. Ellison and I discussed the situation
and he is agreeable to serve as interim director.
Mr. Nimtz and I also talked and he is agreeable
to this arrangement. We had anticipated
rec iving a request from the Housing
Authority Commissioners to appoint
Mr. Ellison as interim director. This
morning I am here to make official the
request that was made to allow Mr. Ellison
to serve at the Housing Authority for a
period of no more than 60 days for
approximately 75% of his time. I
would like to preface this request with
just a brief discussion of what we
have been doing in the area of economic
dev lopment and how we have organized
it zdministratively.
Since the beginning of the year
Mr. Ellison and I have talked often
about how to handle the increasing
workload for economic development.
It is very difficult for me to make
visible to you the very large workload
we have generated. In order to share
this workload I have divided responsibility
for economic developrnent projects among
members of the administration.
South Bend edevelopment Commission
Special Mee ing July 25, 1980
6. NEK BUS
h. Mayor Parent continues...
Mr. Kernan ' will be in charge of the
Ethanol Project; Pat McMahon will
head the Century Mall project, Carl
Ellison is taking care of the East Bank;
Mar y Bauer is handling Monroe- Sample;
and Mr. Hill and Mr. Brunner are in
charge of the First Bank project.
We fbund that it was almost impossible
for one person to be able to do all
the work required since most of those
pro ects require ten to fifteen hours
of 4ork a week every week.
I believe Carl can handle the workload
associated with the Housing Authority
as irell as his regular workload and I
wotdol request that you do allow him time
to take on this additional responsibility.
Mr. Nimtz: Thank you Mayor. As the
Mayor has mentioned, he and I had a confer-
ence about this matter. I have'always
tried to be cooperative with the administration
in helping them solve the various problems
that arrive and the Mayor has certainly
had his share of problems since the first
of the year. The understanding that I
have with the Mayor, subject to the
approval of the Commission, is that
this will be on a loan basis, and
Mr. Ellison will still be based and
quartered here. He would be paid out
of our payroll, he would be in charge
of 4he Redevelopment Department, and
thi4 job would be on a part -time basis.
Nay or Parent: I have ignored one thing.
T,Ir. Ellison will have access to the staff
here to assist in any way that we can (such
as Ihe City Attorney's office, Bureau of Housing,
Co unity Development, etc.) .
Mr. Nimtz: The other issue the Mayor and I
discussed was that I hoped he would put
the heat on the Housing Commissioners
to find a Director without delay because
I think it would be helpful for the new
per on coming in to learn the problems that
hav existed there and help solve them, rather
11
South Bend edevelopment Commission
Special Mee ing - July 25, 1980
6. NEW
h. Mr.INimtz continues...
thar coming in after Mr. Ellison
has solved it all. I feel it would
be helpful for the new person to come
in and get an idea of the problems that
are there. I would suggest and recommend
to the Commissioners that we approve this
arrangement of loaning Mr. Ellison on a
to racy basis to the Housing Authority
to assist them in solving their problems,
but to still remain as our Director with
app ximately 600 of his time spent at
the Housing Authority.
Mayo Parent: I am saying that he spend
75 % lof his time.
Mr. imtz: Also, that eventually we would
be reimbursed for his time. The other
thing is this. As I have told you, I
know that W. Ellison is good and I don't
know how much longer he is going to be
with us. I am sure someone is going to
grab him off one of these days. I think
this is an excellent opportunity for
Mrs. Kolata to assume more responsibility
while Mr. Ellison is out of the office,
becaase when he is out of the office the
questions have to be answered, and decisions
have to be made and I think it is good for
Mrs. Kolata to do this. Are there any
questions the Commissioners may have?
Mr. onaldson: Is it necessary for
Mr. Pllison to spend 750 of his time at
the "ousing Authority and 25% in Redevelopment?
Mayo Parent: It may not be. It depends upon
the irctunstances .
Mr. Ellison: Mr. Donaldson, it is like any
two jobs. You don't know necessarily what
will occur day to day, and you have to
adju t your time accordingly. The estimations
the Mayor gives will probably come about
accu ately.
5
South Bend edevelopment Commission
Special Mee ing July 25, 1980
6. NEW
h. continued....
Mayor Parent: By the same token,
Mrs Kolata and Mr. Ellison will have
access to a lot of people here. It
is an unusual request since it requires
cooperation not only within the City
Government itself, but also between
the two different commissions. In order
to have a successful operation everyone
must pool their resources.
Mr. Kagel: Mayor, as I understand it,
the Housing Authority is in effect a
cre ture of the City of South Bend,
is That not so?
Mr. Ellison: It is a special purpose
bod under State Law like a redevelopment
co ission.
Mr.�Kage1: But it is still much like other
components of the City?
Mayor Parent: It is an independent commission.
Onc the commissioners are appointed they are
the ones who go and do the work. It is a little
unusual for a Mayor to have to intervene in a
situation the way that I did, Obviously, what
I did was to assist in making decisions.
Whe the Housing Authority was established
yeas ago, the City of South Bend had very
few housing programs, and in the years since,
the City of South Bend, through the Department
of qomTity Development, has been involved
in ;ionship, using programs, so I envision a closer
rel in the future.
Mr. gel: I think you are to be commended
Mayor in this regard because everything is
within the confines and boundaries of the
City of South Bend. I think it is so very
important that the right hand knows what
the left is doing in this case. It is
more than just a matter of communication,
I think there is the real working together-
ness in this area.
92
z: Thank you Mr. Kagel.
z
South Bend edevelopment Commission
Special Mee zing - July 25, 1980
6. NEW BUS
h. continued....
Mr. Robinson made a motion to permit
the Redevelopment Executive Director
(Mr. Carl Ellison) to concurrently
se e as the Executive Director of the
South Bend Housing Authority on an
int rim basis, seconded by Mr. Cira,
and the motion was unanimously carried.
Mr. Nimtz: Congratulations Mayor.
While you are here I am wondering if you
might want to say anything about some of
the items you and I discussed the other
day relative to future plans?
the
we
Gov.
We ;
muc]
we
disc
wit]
pl e-
wit.
to
sta:
are;
Dir
tha-
his
coo:
act:
Very
Odd
we l
the
pro;
we
pro]
tax
fin,
Mr.
UDN
for
beg:
for
r Parent: Well we discussed briefly
kind of administrative arrangements
re proceeding to use within the City
rnment and plan to continue using.
re using the task force approach as
as possible, because the projects
et involved in require different
iplines. Mr. Kernan will be working
the Ethanol Project until its com-
ion, and in a few years perhaps we
working on another project similar
his. I am trying to get as many of the
f members versed in economic development
s. The Redevelopment Executive
ctor is becoming sort of a person
has jurisdiction over more than just
own staff but in fact, sort of
dinates a wide range of
vities that other people are doing.
briefly, we talked about the
Fellows Building, the fact that
ave reopened the discussions with
other developers, we are making
ress and I am optimistic that
an have it rehabilitated. We are also
ressing on the Century Mall project,
abatement, the issue of tax incremental
cing and the ethanol project. -
Ellison is. currently writing a
application as part of our commitment
certain activities. We are now into the
nning stages of developing the bond
the East Race project.
COMSSION APPROVAL
GIVEN FOR MR. CARL ELLISON
TO SERVE AS SOUTH BEND
HOUSING AUTHORITY'S
EXECUTIVE DIRECTOR ON AN
INTERIM BASIS
South Bendl Redevelopment Commission
Special Me ting - July 25, 1980
6. NEW
Gf
h. Ma *or Parent continues...
I am. very pleased at the progress
that we are making. We would like
to hold an evening meeting with the City
Coinicil members and the Redevelopment
Coiinissioners and others to simply bring
everyone up to date on every one of
these projects. I think it is a more effic-
ient way of doing things rather than
taking up more of your time today.
Anytime that you do have questions
on one of these projects, and would
1i e assistance from anyone of the
pe ple I have suggested, we will certainly
ha e them assist you.
Mr. Nimtz: Thank you Mayor.
Ma or Roger 0. Parent: Thank you very
mu .
There ere no communications to present to
the Co fission.
5. OLD
There *s no old business to present to the
Commission.
6. NEW BUSINESS
a. e ing of bid proposals offered and
re c ived on the evelo ment'o Disposition
Par el #8= Project In . R -6 .
The Chair announced that publication of
leg 1 notices concerning the bids for
Dis sition Parcel #8 -9 (Project Ind.
R -6) were published in the South Bend
Tri une on June 26, and July 3rd, and
in the Tri- County News on June 27th and
Jul 4th.
Mr. Nimtz: Mrs. Kolata, would you check
to e sure that there are no other bids
ly. g out in the reception area?
NO CONI MICATIONS
PRESENTED
NO OLD BUSINESS PRESENTED
South Ben0edevelopment Commission
Special Me ting - July 25, 1980
6. NEW BUSINESS
h. continued......
. Kolata: There are no other bids.
Mr. Nimtz: We have received one bid which
Mr. Butler is now proceeding to open. Would
you please read the name of the bidder and
the necessary data?
Mr Butler: The bid is from the Diocese
of Fort Wayne -South Bend, and the amount
of the bid is $14,501.00. They have
included a check in the amount of $1,450.10,
which is the 10% bid security. All of the
do uments are properly executed.
Per Nimtz: Is the bid sufficient for
the sale?
Mr Butler: Yes. Our minimum bid price
was $13,900.00, so it does exceed that
figure.
Mr Nimtz: Are there any questions by
members of the Comission, press or public?
Ms Jeanne Derbeck: Was there any mention
ab ut what type of building they would have?
Mr. Ellison: They are required to submit
plans; which will appear before the design
re 'ew committee and the redevelopment
coinmission for approval.
Mr Robinson made a motion that the bid
received from the Diocese of Fort-Wayne-
South Bend in the amount of $14,501.00 on
Disposition Parcel #8 -9 (Ind. R -66) be
re eived and reviewed by the Redevelopment
Staff and legal counsel, seconded by
Mr. Cira, and the motion was unanimously
carried.
b. Commission approval requested for the
fo 16wing 312 loan:
. .. Nane Amount Loan No.
Joseph J. Kuzmits $11,300.00 18 /OMC- 0011/78/1
2101 S. Franklin
South Bend, Indiana
9
BID PROPOSAL ON
DEVELOPMENT OF DISPOSITION
PARCEL #8 -9 RECEIVED
FROM THE DIOCESE OF
FORT WAYNE -SOUTH BEND
TO BE REVIEWED BY REDEVEL-
OPMENT STAFF & LEGAL
COUNSEL
South Bend
Special Me
Redevelopment Commission
ting July 25, 1980
6. NEW BU INESS
b. co tinued....
Mrs.
Baumgartner: We need a recision on
a previous
approval made by the Commission
on
June 4th in the amount of $19,150.00.
The
reason for the reduction is that
Mr.
Kuzmits does not technically qualify
for
refinancing because of a number of
new
requirements by HUD.
Mr.
Donaldson made a motion to rescind a
previous
approval by the Commission for
a 112
loan to Joseph J. Kuzmits on
June
4, 1980 in the amount of $19,150.00
an
that the new application in the
amount
of $11,300.00 be approved,
seconded
by Mr. Robinson, and the motion
was
unanimously carried.
c. Cmimission
approval requested for the
Tol
lowing grants in actor c6-with
re
6 miendation of the Bureau of Housing,
sti
'ect to legal counsel review, an
Sbtth
Bend Common Coiuicil approval as
ap
lica. le:
Nante
& Address Contractor
Bid Amount
1. Beatrice
Collins Jefferson Builders
$10,343.00
710 E.
Indiana
2. Angela
Werwas Stickler Plumbing
$ 5,607.00
806 S.
Meade
3. Estellz
McFadden Jefferson Builders
$ 9,393.00
3501 W.
Huron
4. Anasta
is Mrozinski Craft Builders
$ 4,409.00
513 S.
Liberty
5. Linda rzan Aardvark Construction $ 83-453.00
743 S. Meade
6. Leo 'Stella Niezgodski Diedrich Const. Co. $10,193.00
421 S. Phillipa
7. Edwin 4 Sophie Aardvark Construction $ 6,328.00
Str zewski
531 S.
10
312 LOAN APPROVED
BY THE COWISSION TO
JOSEPH J. KUZMITS
AND A PRIOR LOAN
APPROVAL RESCINDED
South BendlRe
Special Me ti
6. NEW
C.
elopment Commission
- July 2S, 1980
Mr. Ellison: For each one of these items
there is a sheet included in your packets which
shcws bids received and the Bureau's deter-
mination. Mrs. Baumgartner, the Commission
is not party to the contract between the
co tractor and the 312 recipient, right
or ronR?
Mr . Baumgartner: These are grants not
312 loans.
Mr. Cira: Mrs. Baumgartner, are all of
th se contractors of equal quality?
Mrs. Baumgartner: There are three contractors
new to us: Aardvark Construction,
Jefferson Builders, and Craft Builders.
They have not done previous work for the
Bureau of Housing. We have investigated
th it financial statements and they seem
to check out.
Mr.l Cira: I never knew that Sticker did
an construction work.
Mrs. Baumgartner: He has just begun to be
a general contractor. He is doing a few small
clean up jobs currently as a trial, and if in
fact he cannot perform the job to our satis-
faction, he will then become ineligible to
bid as a contractor. Currently our cost
estimates are running about 14% to 170 off.
For that particular reason we have changed our
staff around and, once it is approved by the
Common Council, we will have a part time
cost estimator to keep up our cost books
so that we have accurate files. We recognize
that has been a problem, and we want to
eliminate that.
W. Cira: Are the construction companies
who bid on these jobs aware of the cost
estimates?
Mrs. Baumgartner: No they are not. It is
a comparison to us to make sure that the money
is spent correctly and wisely.
11
South Bend Redevelopment Commission
Special Me ting - July 25, 1980
6. NEW
c . corit inued.....
Mr. Donaldson made a motion to approve
grants, subject to legal counsel review
and South Bend Common Council approval
to, (1) Beatrice Collins, 710 E. Indiana- -
Jefferson Builders in the amount of
$10,343.00; (2) Angela Werwas, 806 S.
Meade--Stickler Plumbing in the amount of
$5,507.00; (3) Estella McFadden, 3501 W.
Huron--Jefferson Builders in the amount
of 9,395.00; (4) Anastasia Mrozinski,
513 S. Liberty - -Craft Builders in the
amount of $4,409.00; (5) Linda Chrzan,
743 S. Meade -- Aardvark Construction in the
amoimt of $8,453.00; (6) Leo & Stella
Nie godski, 421 S. Phillipa -- Diedrich
Construction Company, in the amount of
$10,193.00; (7) Edwin & Sophie Strozewski,
531 S. Warren -- Aardvark Construction in
the amount of $6,328.00, seconded by
Mr. Robinson, and the motion was
unanimously carried.
d. Co fission approval requested for Resolution
6T -authorizing the execution of Redevelop-
ment Agreement for the disposition of land
an the execution o c{uit- claim ee s or
the transfer of title thereto in connection
wit land to be disposed of in the LaSalle
Park Project-, Ind. R-57.
Parcel # Name Amount
3 -5 Andrea Fites $1.00
117 N. Kaley
Pt. f
28 -2 Elva $ Eugene Williams $1.00
126 N. Illinois
Mr. Ellison: This resolution authorizes the
sale of two lots under Phase I of our LaSalle
Park Disposition Plan. We had previously
rej ted Andrea Fites as not being an adjoining
prop rty owner. Subsequently we learned he was
a laid contract buyer and was, therefore, eligible
to buy Parcel #3 -5. The other sale is for a strip
of 1 md which no one bid on and we have negotiated
with Mr. & Mrs. Williams to purchase the land for
$1.0 .
12
GRANTS APPROVED FOR
RECIPIENTS THROUGH
BUREAU OF HOUSING BY
THE COMMISSION
South BendlRedevelopment Commission
Special Me ting - July 25, 1980
6. NEW
d. continued.....
Mr. Cira made a motion to approve
Res lution #619 authorizing the
execution of Redevelopment Agreement
for the disposition of land and the
execution of quit -claim deed(s) for
the transfer of title thereto in
coniection with land to be disposed
of in the LaSalle Park Project,
Ind R -57, Parcel 3 -5 to Andrea Fites
of 117 N. Kaley for $1.00, Part of
Parcel 28 -29 to Elva & Eugene
Williams of 126 N. Illinois for $1.00
seconded by Mr. Robinson, and the
motion was unanimously carried.
e. CqjAission apx
ted for ancilla
bositioi Parcel
No( J 4 =1; '4 =31, and 4 =32 in the IND. R -66
pro ect area.
Mr. Ellison: These relate to the First
B Center. By way of presentation I
need to report to the Commission that the
Urb Design Review Committee met this
morning to review the plans for the First
Bank Center Project. Under the renewal
plan and the Commission's by -laws, the
Design Review Committee functions as a
first stage body to approve plans. The
Design Review Committee then reports
its findings to the Commission for con-
cur ence. It was the unanimous opinion
of the review committee this morning that
the plans be approved, and we now need the
Co mission to concur with this. It is a
technical action which is necessary
because of the transactions related to
the land lease and our requirements for
renewal activities to take place on
land, sale or lease.
Mr. Butler: These plans have been reviewed
and ipproved and as in the past our review
co 'ttee has relied upon the City Engineer's
offi e, with respect to the technical expertise
which is necessary.
13
RESOLUTION #619 APPROVED
FOR SALE OF LAND IN LASALLE
PARK (IND. R =57) TO ANDREA
FITES PARCEL #3 -5 AND
ELVA & EUGENE WILLIAMS- -PART
OF PARCEL 28 -29
South BendlRede
Special Me ting
G'
lopment Commission
July 25, 1980
e. continued....
Mr. Robinson made a motion to approve
the plans and specifications based
upon the recommendation of the Urban COMMISSION APPROVAL GRANTED
Design Review Committee relative to FOR THE URBAN RENEWAL PLANS
Dis osition Parcel No(s) 4 -1, 4 -31, OF DISPOSITION PARCELS 4 -1,
and 4 -32 in the IND. R -66 project 4 -31, AND 4 -32 (FIRST
are (First Bank Center) seconded by BANK PROJECT)
Mr. Cira, and the motion was
un imously carried.
Mr. Butler: We are asking you to approve
Assignment
of Rights & Agreement
among
Rahn Properties II, and other
parties.
This includes the Joint
Development
Agreement which provides
for
the basic development of the First
Bank
Project; the Agreement for the
Conveyance
of Public Improvements,
the
conveyance by the Civil City to
Rahn
Properties of a portion of the
public
improvements; and the Operation,
Maintenance,
and Easement Agreement
which
is an agreement between FBT and
Rahn
Properties. Rahn has to assign
its
rights under these documents to the
trustee
on behalf of the bond holders
and
we are asked as a party to some
COMMISSION APPROVAL
of these
agreements to consent to that
GRANTED FOR ANCILLARY
assignment.
AGREEMENTS RELATIVE TO
DISPOSITION PARCELS 4 -1,
Mr.
Cira made a motion to approve the Assign-
4 -31, AND 4 -32, (FIRST
ment
of Rights Agreement, seconded by
BANK PROJECT) IN THE IND.
Mr.
naldson, and the motion was unanimously
R -66 PROJECT AREA
car
ied.
Mr. Butler:
the
to
(1)
and
cons
(3)
req
The second document is a Certificate
the Department of Redevelopment as
Landlord or "lessor" (with respect
ie ground lease). We are asked to
:ertify that the lease is in full force
effect and all rents have been
in full, (2) to certify that Rahn
-rty has duly and timely commenced
:ruction of the improvements,
to certify that Rahn has obtained
wal of the construction plans as
_red by the documents,
14
South Bend edevelopment Commission
Special Mee ping - July 25, 1980
6. NEW
e. con inuea......
Mr. Butler....
(4) to certify that we have sufficient
evidence with respect to their equity,
capital and financing, (5) to certify
that the agency has received and approved
all policies of insurance required to be
sub fitted under the lease agreement.
Mr. Cira made a motion to approve the
Lessor's Certificate, subject to the
receipt, review, and approval of legal
coulsel of evidence that construction
coixienced as required by the agreement
and that the insurance coverage is in
eff ct, seconded by Mr. Robinson and
the motion was unanimously carried.
f. Co ission arov
of 4greement I with
to ct as financi
ment Commission i
r!wested for termination
connection with 'a
Mr. : Ellison In your packets under 6f- -New
Bus ness is a letter from me to Mr. F. Jay
Nim z, dated July 24, 1980 which reads as
fol ows:
W. F. Jay N"emtz, Ptee/sident
Red ve eo pment Commission
Co -City Bu f -ding
Sa h Bend., Indiana 46601
RE: ContAact 4o& Pko4es/sionat
SeAvices Between the South.
Bend Redevetopment Commission
and K.it chnen Mootce. 6 Company
Mn. N.i.mtz:
In &e�sponse to my tettett a6 June 27, 1980
inq ng o4 KiAchneA Mome and Company as to
theLt intent to pnaeeed in the p&ov.c�sion o6
.sen ice3 to the Redevetopment Comm. 6zion and the
City o6 South Bend, Mtc. James D. K&e cV-e o6 the
15
South Bend Pedevelopment Commission
Special Me ting July 25, 1980
6. NEW
f. continued....
JiAn met with City Attorney, Richard Hitt
City Engineer. Pattiich McMahan and myset4 to
dis mzs whether the 4i&m eou2d continue to
pna Ade the neceszary s env ices in the ab4 ence
o6 . Jahn Goemanz . Mr. Go emans had pnev.ious t y
be the .investment banker Oar the City jon
the rej.inanaing a j the Cd ty's paA ing garages
and the band ussue necessatr:y jot the consttuation
o4 Centwaj Centteti..
Based on our dusewss.ions with the
rep e,sentative o4 Kitchnen Moore which were hetd
on Juty 15, I recommend that the Commission teAminate
.ct6 contract with the 4dvcm. This Aeeommendation
>%s based on the exhibited Zack o4 4am 2i,atrity
witA the Centutiy MaU Project and the statu6 o4 the
,Ste ,s being taken to initiate the necusary test
titIgation. tdh t e Mn. Ktei dte o4 the K, Achnen
Move 4Zum - indicated that the 4itm .intends to
cam tete the s etcvices as set out in the agreement,
I betieve it woued be inadv"abZe 4an the Redevetop-
ment CommZsz ion to owo&k with an undeAwAiting 4itm
th does not have eomptete knowtedge and invotve-
m in the process tead.ing up to the a ti.mate.
,us s e o4 the b ondz . Mn. Hitt and Mn.. McMahan
can un with my tecommendat-i.onz to the CommZss.ion.
Ad ona ty, Mayon PaAent has been eomutted
an W matter and jutQy consents to the
nee mmended tetrm.inati.an.
Richard Hitt has d is ewsz ed with W. Kne.idte
o he K.utehnen Moore 4i&m whether the j tcm wou-d
,seeft reimbu u ement 4on s env.ices ptov.ided to date
4&oni the Redevetopment Comrrii z ion. W. Kne.idte
has indicated that no -6ueh teimbutrsement woutd be
,sought Jnom the City. I theneb y recommend that
the Commission tennu.nate -r is agreement with KiAchneA
Mooh,e and Company u.nde% the pnov.us.ions o4 PaAt IT-
Tevz,s and Condi t iom o4 the Agreement.
SinceAe t y,
S/
Calit ELU s on
Executive N eeton
The Chair recognized Mr. Richard City Attorney.
16
South Bend Redevelopment Commission
Special Me ting - July 25, 1980
Cpl
f. conitinued....
Mr. Hill: We spent a day with a
representative from Kirchner
Moore and on the basis of that visit
(concerning the complexity of incre
men al tax financing) we have arrived
at i decision whereby we feel that
we annot proceed on this project with
an derwriter who is not familiar
witi all of the aspects of the
project. Because of the parties involved,
and also in light of the fact that other
cit es around the State such as
Indianapolis and Fort Wayne are
referring to South Bend for the
initiation of the litigation and moving
through the whole process to get the
tax incremental bond financing
pro deeding, we felt it very important
that we have an investment banker
willing to spend the time, make the
timE commitments to the City, and not
a firm that felt they were interested
in just following through on the basis
of the contract, and weren't able to
provide the initiative that this project
needs. Based on that, we thought we
should explore other alternatives.
Mr. Fira: How long did the contract call
for?
Mr. Ellison: Essentially it was through
the issuance of bonds and it was an
"at risk" contract; it did not cost
us liars and cents save for underwriting
cost 3, through bond issue.
Mr. Pra: In other words, this contract
can broken without any repercussion?
Mr, llison: Kirchner Moore, while
Mr. Goemans was employed with them did
indeed provide services and did cost
them time and money. It is a question
of w ether Kirchner Moore would want
re' ursement for that. They have
indicated they do not expect compensation
therefore, there would appear to be no
problem to terminate.
17
South BendlRedevelopment Commission
Special Me ting - July 25, 1980
6. NEW
f.' continued...
Mr-1 Cira: Wouldn't it be necessary to
ha e something drawn up and signed so
th# they don't come back in the future?
Mr. Hill: No. I feel comfortable with
the representation made: Mainly because
of what happened. They really did just
drop the ball in the opinion of the staff.
There was a month to a month and a half
lag which was a very critical period in
getting together the steps needed on the
boni issue and to make sure that we did not
miss any step which would invalidate the
boni issue. We had no communication at all
WiO them during this critical period.
Mr. Ellison: I might add, Mr. Cira that
we did not receive communication until after
the Commission authorized me to write
Kirchner Moore a letter. The letter was
written to them about six weeks after they
had dropped all contact with us. It was a
little bit disconcerting to be in a
position where the client had to write
the underwriting firm and say that we were
not aware of what was going on.
Mr. Butler: Especially at such a critical
timo as indicated.
Mr. Robinson made a motion to terminate
the agreement with Kirchner Moore and
Co any in which they acted as financial
advisor to the Redevelopment Commission
in connection with a proposed program of
urb redevelopment financing (tax incre-
men al financing), seconded by Mr. Cira,
and the motion was unanimously carried.
g. Comn ission`a
the ExecutiV
rieg date 'a
Colloi ion I in c
o an redeve
fin cing 'and
)val requested to authorize
_rector and Legal Counsel to
tract fnr professional services
BOFF, & SAIFORD, INC. to act
visor to the Redevelopment
innection With a roposed program
.opment iriancing tax incremental
urther authorizing the Commission
'cretary to execute said contract.
18
MOTION PASSED BY
COMMISSION TO TERMINATE
CONTRACT WITH KIRCHNER
MORE -RE: TAX INCREMENTAL
FINANCING (IND. R -66)
South Bend edevelopment Commission
Special Me ing July 25, 1980
6. NEW BUS
f. continued...
Mr. Ellison: There is a second letter in
your packet marked 6g -New Business which
reads as follows: (The new firm of
Han fen, Imhoff, & Samford, Inc. employs
Mr. Goemans who previously worked with
Kirchner Moore).
Mn. F. Jay N.cmtz, Pners.ident
Red vetopment Commis4ion
Co y -City Building
SotqA Bend, Indiana
RE: Pnoposed Contract Jon Pro -
6esz ional Senv.ieez Between the
South Bend Redevelopment Commri,s-
,sion and Hanijen, Imho46 6 Samford,
Inc.
Mn. Nimtz:
As you know, the Redevelopment Commission and the
civit City of South Bend have pnev-iou�sly been
azzociated with the KcnchneA Moone 4i&m through
John Go emams . Mn. Goemans pnev.iously adv 6 ed the
City and was involved a3 .investment banker in the
,%egviancing o4 the C-rtylz panfiing gaAage�s and in
the 3ond Zszue needed bon the construction o4
Cent Ay CewteA. Mn. Goemans .initiated contracts
with the prior City admiw%strat ion concerning
tax "ncAementa2 J.inane ing now being ut-i.2ized bon
the evelopment of Century Matt.
In early June, Mr. Goemans lest the employ o6
the i&chnen Moone 6i&m to join the 6i&m o6 Hani6en,
Imho 6, and Sam4ond, Inc. as vice- pnez,idewt
and municipat bond undemtitm Subsequent to our
dizciasions with a nepne�sentati,ve o4 the Ki&chneA
Moote 6i&m on Juey 15th, and alter determining it
woutd be in the best .interests o6 the Redevelopment
Commi6zion and the City to terminate its relati.on-
zhip with the 6i.rm based on thee& tnab-i.Q.ity to
eo nue the pnovis.ion o6 necessary z env im ,
contact was made with Mn. Goemans to explore the
poszs b.cX.ity o6 W retention on beha 6 o6 Hani6en,
Imho J and Sam6ond, Inc. Ak. Goemans has agreed
to p ov ide z eAvt ees to the City. Thene6one, I
uco mend that the sta46 and legal counsel be
authkized to negotiate a cone act simi2an to the
4o&meA one with Ki&chnen Moone bon execution by
the T&ezident and SecAetany.
19
South BendlRedevelopment Commission
Special Me ting - July 25, 1980
6. NEW BU INESS
g. co tinued....
bo
.cn
1b
z mo
on
M
b eer
and
The u#,i,P,izati.on o4 the new tax .inctcementat
i 4inanc i-ng statute involves exeepti:ona ty
of ex pko ees s in which Mn. Go emaws hays been
)tved zince mid -1979. Mn. Goemanz advised
City on the neee zatry amendmentz to the
)n statute and " active thtoughout the
Fe in c6zisti.ncg otheh communities in the
:izati,on o4 the .inetcementat tax bond ztatute.
:tieve it .us ,impetcati,ve Ooh the continued
ith deveto pmevr t o4 the Centutcy Matt Pnoj eet
Mn. Goemanz continue to .s etcve the Commi6 lion
`W Pno?eet ass investment banheA and udv,i.�so&.
.n the =e o4 the teAminati>on o4 the aguement
. Ki&chnen Moore, Mayon Parent, City Atto).ney
.and Hitt and City Engineer PatAick McMahon have
eowsutted in tW matter and butt y s uppott
cbncutc with my ucommendati.on.
S<i.neetcet y,
S/
Catt E.2Won
Executive Di&ectotc
Mr.�ira: Is this Mr. Goemans vitally
imp tant?
Mr. llison: Mr. Geomans has been the
"bred and butter" man on this very
comp ex bond issue, and he has been
inst^Lnental and extremely important
tote passage of the amended law.
Mr. ira: Is the contract basically
about the same?
Mr. llison: There may be a few modifi-
cations we may want to make, but
essentially it will be another "at risk"
contract, and the compensation would
come in the form of underwriting bonds
in w ich they would receive a percentage.
Mr. ill: The investment banking business
relates very much to the individual that
a community is dealing with. I think the
trac record of this particular individual
with the City is very good, going through
the arly days of the Century Center development.
20
South Bend Redevelopment Commission
Special Me ting - July 25, 1980
6. NEW BW INESS
g. continued...
He also likes dealing with the City
and will be involved with the City of
Indianapolis on their tax incremental
issue and is willing to make this
particular project his number one
pri rity.
Mr. Butler: Mr. Hill in your discussions
wi Mr. Goemans, did you determine that
the e is no non - compete problem?
Mr.IHill: We addressed that and there
is riot.
Mr. Donaldson made a motion that the
Executive Director and Legal Counsel of
the Redevelopment Department negotiate
a contract for professional services
with Hanifen, Imhoff, $ Samford, Inc.
to act as financial advisor to the
Redevelopment Commission in connection
with a proposed program of urban
redevelopment financing (tax incre-
mental financing) and further authorize
the Commission President and Secretary
to execute said contract, seconded
by Mr. Robinson, and the motion was
unanimously carried.
7. PROGRESSIREPORTS
Mr. Ellison:
The staff wishes to report to
the Commission
that the Common Council did
pass the
ordinance related to controlled use
exemption
in the East Bank. The staff was
rather heavily
involved in seeking to get
the East
Bank exempted from controlled use
to encoin,age
more intensive development.
I might
ay that Mrs. Kolata and the
staff really
carried the "ball" and I owe
her a de
t of gratitude for the superior
fine se
ice in getting that most difficult
ordinanc
through the Area Plan and the
Common Council.
21
COMMISSION APPROVAL
GRANTED FOR EXECUTIVE
DIRECTOR AND LEGAL COUNSEL
OF REDEVELOPMENT TO NEGO-
TIATE A CONTRACT FOR
PROFESSIONAL SERVICES WITH
HANIFEN, IMHOFF, & SAMFORD,
INC. TO ACT AS FINANCIAL
ADVISOR IN CONNECTION WITH
TAX INCREMENTAL FINANCING
IND. R -66
South Bend edevelopment Commission
Special Me ting - July 25, 1980
7. PROGRESS REPORTS (continued)
Mrs. Ko ata: I would like to mention
that on Wednesday night at 7 o'clock LASALLE PARK (IND. R -57)
at the LaSalle Fillmore Center we are DRAWING TO BE HELD FOR
going t be having a drawing for the sale PHASE II OF LASALLE
of lots in LaSalle Park. This is the PARK DISPOSITION PLAN
last da for residents of the area to
enroll for the remaining 48 lots. We
expect that we will be out of land by the
next co fission meeting, so we don't feel
Phase III will be necessary.
8. NEXT COWISSION
Mr. Nim z: Under our regular schedule the.
Commission would meet next Friday, August 1,
1980 bu I don't believe there would be
enough business to warrant such a meeting.
The Chair would recommend to the Commission
that fo the month of August we meet the
second d fourth Fridays, and then we
can res e our regular schedule in
Mr. Robinson made a motion that the
Redevelopment
Commission would meet the
COMMISSION MEETING DATES
second
d fourth Fridays of August, and
CHANGED TO SECOND AND
would resume
regular schedule the first
FOURTH FRIDAYS FOR THE
and third
Fridays in September, seconded
MONTH OF AUGUST AND TO
by Mr.
Donaldson, and the motion was
RESUME REGULAR SCHEDULE
unanimously
carried.
IN THE MONTH OF SEPTEMBER
"PUBLIC HEARING"
The Scheduled Public Hearing
as Advertised
Re:
Designation of Certain Areas Within the
Central
Downtown Project Area (Ind. R -66) to be
Allocation
Areas and Approving an Allocation
Plan
for the Financing of the Urban Renewal
Plan
Pursuant to Indiana Code 18 -7 -7 -39.1
Mr. Ell
son: There are a number of Exhibits the
staff wishes
to present to the Comission which
are as
ollows:
22
South Bend 4edevelopment Commission
Special Mee ing July 25, 1980
PUBLIC 1"NG (continued) ....
1: .An Affidavit of Doris L. Woodruff, Credit Manager
of the South Bend Tribune, that Notice of Public
Hearing was published in the Daily Newspaper on
June 26, and July 3, 1980.
The Char announced that the Legal Publication would be
receive and placed on file.
2. An Affidavit of Albert W. Snyder, owner of the
Tri- County News that Notice of Public Hearing was
published in that weekly newspaper on June 22nd
and July 4, 1980.
The Char announced that the Affidavit of Publication would
be rece ved and placed on file.
The
and
3.
im
The Ch
and pl
S.
The Cha
Council
on file
An Affidavit of Jane A. Zimmerman that Notice of
Public Hearing was delivered to the Area Plan
Commission, Mr. Richard Johnson, to the Board of
Public Works, Mr. Pat McMahon, to the Board of
of Zoning Appeals and the Building Commissioner,
Mr. James Markle, on July 21, 1980. The Affidavit
further states that Notice of Public Hearing was
delivered to the Park Board, Mr. James Seitz,
on July 22, 1980 and that a copy of the Notice
was posted on the Bulletin Board of the Board of
Public Works, on the 13th Floor of the County
City Building.
_r announced that the affidavit would be received
:ed on file.
An original copy of the Area Plan Commission's
Resolution #52, which deals with the subject of
Public Hearing.
announced that Resolution #52 would be received
on file.
A certified copy of Resolution #787 -80 of the Common
Council of the City of South Bend relative to the subject
of the Public Hearing.
Lr announced that Resolution #787 -80 of the Common
of the City of South Bend, be received and placed
23
South Bend
Special Me(
PUBLIC
W
The Ch
Commis
receiv
opment Commisssion
July 25, 1980
(continued)
A copy of Resolution #615 of the Redevelopment
Commission with a Certificate of its Recording
Officer attached, with Attachment "A ".
r announced that Resolution #615 of the Redevelopment
on and the Certificate of its Recording Officer be
and placed on file.
Mr. Kevin Butler: The Redevelopment Department is
authorized by Indiana Statute to issue its bonds for
the pu ose of acquisition, demolition, the construction
of public improvements, and other redevelopment costs of
the department. The Department in effect is a special
taxing unit. The authorizing legislation permits the
depart ent to issue its G.O. bonds and then by new
provision we are authorized to issue what is known as
incremental tax financing bonds. The Declaratory
Resolution #615 adopted by the Commission on
June 6, 1980 is to be reconfirmed at this meeting at
which the public has the opportunity to make state-
ments and to ask questions of the. Commission. That
resolution established an allocation area for
purposes of the incremental tax financing process, and
it is outlined in the heavy brown tape (points to map).
The declaratory resolution provides, after its
confirrnation, that any increase in real property
taxes which are levied for the various taxing units
on real property within that allocation area, will
be collected and paid into a special fund of the
Departzent of Redevelopment and will be used to
pay the principal and interest on Redevelopment
Department obligations for purposes of redevelopment
within the allocation area. This can also be used
to reiiTburse the City of South Bend for expenditures
which it has made for public improvements within that
allocation area and for rentasl which the City pays
for buildings and off - street parking facilities
within the downtown area. I don't believe that the
latter provision is really pertinent in this case.
The Co fission then today, following the hearing
of the public, will be asked to confirm Resolution
#615 which amended the original declaratory resolution
to establish the incremental tax financing process
and designating the allocation area.
Mr. Ni z: The Chair opens the meeting for any
public omments, discussions or recommendations.
'24
South Bend edevelopment Commission
Special Meeting July 25, 1980
PUBLIC HEAR$NG (continued)
a
There :ingnone....
re no public comments.
There
Mr. Cira made a motion to adopt
Resolution #620 confirming Resolution
#61 passed by the Redevelopment
Co fission on June 6, 1980 and that
Resolution #615 be ratified and reaffirmed
by he Commission, seconded by
Mr. Donaldson, and the motion was
Mahimouslv carried.
Mr. Nim z: Let the records show that during
the en re hearing a quorum of the Redevelopment
Commission was in attendance.
There being no further questions or business to
come before the Comission, Mr. Donaldson made a
motion that the meeting be adjourned, seconded by
Mr. Cir , and the motion was unanimously carried.
The mee ing was adjourned at 11 :08 A.M.
ADOPTION OF RESOLUTION
#620 RATIFYING AND
REAFFIRMING RESOLUTION
#615
1 ' I I
c
Z,, President Carl Ellison, Director
25