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HomeMy WebLinkAboutRM 09-05-8010:00 A. Presidir. 1. ROLL 2. News Gues SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING 5, 1980 Officer: Mr. F. Jay Nimtz, President 1200 County -City Bldg. 227 W. Jefferson Blvd. South Bend, IN. 46601 Present: Mr. F. Jay Nimtz, President Mr. Lloyd E. Robinson, Vice President Mr. A. Peter Donaldson, Secretary Mr. Robert Cira, Assistant Secretary Ms. Paula N. Auburn, Member Counsel: Mr. Kevin J. Butler Staff: Mr. Carl Ellison, Executive Director Mrs. Ann Kolata, Deputy 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 city Development TAL OF MINUTES Mrs. Kathryn Baumgartner, Director, Bureau of Housing Ms. Anne E. Thompson, Reporter WNDU -TV Mr. Dick Nemeth, Photographer, WNDU -TV Ms. Jeanne Derbeck, Reporter, South Bend Tribune Ed Ballotts, Photographer, South Bend Tribune Ms. Deborah Domine, Reporter, WSBT -TV Mr. Steve Neher, Photographer, WSBT -TV Brent Speraw, News Director, WRBR Radio Honorable Mayor Roger 0. Parent Mr. Joseph Kernan, City Controller Mr. Richard Hill, City Attorney Mr. Gene Cavanaugh, Vice President, First Bank & Trust Mr. Pat McMahon, City Engineer Ms. Kathy Barnard, Manager, Substandard Ms. Denise Fleming, Secretary - Personnel Ms. Glenda Rae Hernandez, President, S.E. PAC On mo ion by Mr. Cira, seconded by Mr. R binson, and unanimously carri d, the Minutes of the Speci 1 Meeting of August 22, 1980 were .Droved_ MINUTES OF SPECIAL MEETING OF AUGUST 22, 1980 WERE APPROVED South Bend Redevelopment Commission Regular Meeting - September 5, 1980 3. APPR AL OF CLAIMS On m tion by Mr. Donaldson, seconded by Ms. Auburn, and unanimously carried, the claims totalling--$43,965.56 were allo ed and ordered to be paid. The authorized claims are: REDEVELOPMENT REVOLVING FUND Pay-r 11: 8 -09 -80 to 8 -22 -80 $ 75,970.85 Business Systems, Inc. 19.24 Emery Air Freight 55.12 Inte ational Business Machines Corp. 32.49 R.L. Polk & Co. 79.00 Schilling's Sales Co., Inc. 19.60 Univ rsity of Notre Dame 124.80 TOTAL $ 83,301.10 REDEVELOPMENT FUND lmore $ 265.00 Trav TOTAL $ 265.00 RED LOPMENT DISTRICT CAPITAL OF 1972 Slid craft Laboratories, Inc. TOTAL P.E.A. - MONROE - SAMPLE AREA John G. Pence Associates, Inc Richard E. Nichols Associates, Inc. TOTAL P.E.A. - EAST BANK AREA Tho G. Horka - First Realty Lang, Feeney & Associates, Inc. Lang, Feeney $ Associates, Inc. Ralp h D. Lauver TOTAL -2- $ 52.60 $ 52.60 $ 3,750.00 $ 4,650.00 $103-000.00. 2,681.50 68.00 15,000.00 $27,749.50 CLAIMS APPROVED South Bed Redevelopment Commission Regular Meeting September 5, 1980 3. APPR AL OF CLAIMS (continued) P.E.A. IND. R -66 Indi a & Michigan Electric Co. $ 23.02 Ray reden 120.00 TOTAL $ 143.02 P.E.A. - 312 LOANS Thomas Nawrot $ 15,118.49 Frederick Sheets 694.31 T. Gorge Podell & Co. & Robert Friend Jr. 480.00 Valley Insulation & Vincent Klees 289.80 Art J. Keil 221.74 TOTAL $ 23,804.34 GRAND TOTAL $435,965.56 4. COW NICATIONS a. letter to Mr. F. Jay Nimtz, from Mr. Carl Ellison, Executive Direc enartment of Re evelonment. date r. Ellison read his letter as follows: SeptembeA 4, 1980 t. F. Jay Nimtz, Rmsident edeve2opment Commission 11 W. Cotiax Avenue ouch Bend, Indiana 46601 eats MA. Nimtz: It .us with eoncuA&ent jeeti.ngs j tLemoue and happiness -s that I tender y &ezignat on as Executive DilteetoA 4 the Depatrtment o4 Redevelopment 44ective SeptembeA 30, 1980. I wiU eeome the GeneAa,2 Deputy Associate dmin-ustAa toA 4oA MinoA i ty SmaU u inezz and Capctat Cwneu hip Devetop- ent within the SmaU Bu3.i,nes s Adminiz - nation (SBA) on OctobeA 6, 1980. -3- LETTER OF RESIGNATION FROM MR. CARL ELLISON EXECUTIVE DIRECTOR TO MR. F. JAY NIMTZ South Be d Redevelopment Commission Regular teeting - September 5, 1980 4. COMMMICATIONS (continued) a. setter to Mr. F. Jay Nimtz continues..... Jay, p eeas e know that I d eepl y ppneciate the eon4.idence, zuppotrt, . and atcmth you and the Comm.imioneu have hown me dw i.ng my two yeau . with the. epaA,tment. No executive d tecton cowed 3h 4on a better. set vJ dedicated, citizen otu.nteeu 4on whom to worth. I have bene- itted ttcemendou,5t y 4&om contact with you. In depakting, I am proud o6 the d.icated and hand wo&king zstaJ4 that ma i n,s . Each o4 them hays "co ntAi:buted gni6 ieantey to the .impo rtant worth o4 the pattment. I am con4.i.dent that they WiU nti,nue to produce worth o4 the h..igghat al tti. My best wizhes to the department Jon tt.nued succros in achieving the economic etopment objectivea of the community. S.incete ey, S/ Cwtt EU ison Executive D.vicecton Ir. Nimtz: I think everybody knows I have een predicting this situation for some ionths. I believe when the Mayor was here ome weeks ago, (when we loaned Mr. Ellison o the Housing Authority to straighten out ome problems), I said then that Mr. Ellison s good and that it would be a matter of onths or weeks before someone recognized .is qualities, be it private industry or usiness. It has now happened. We want o congratulate Mr. Ellison on this osition and wish him very, very well. t will be good for his career and it s a great opportunity for him. We are ertainly going to miss him here. He has one a terrific job in this department nd he has been a trouble shooter in any epartment of the city where there have een problems. He just filled the bill or the department when Mr. Wayne Brownell eft us. The Chair would suggest that he letter of resignation be accepted ith regret. -4 South Be *d Redevelopment Commission Regular 0eeting - September 5, 1980 4. COWJNICATIONS (continued) a. Mr. Robinson made a motion that the etter of resignation be received rom Mr. Carl Ellison, Executive Director of the Department of Redevel- opment with regret and placed on file seconded by Ms. Auburn and the motion as unanimously carried.. [ayor Parent: I would like to add [y comments to yours Mr. Nimtz. Mr. llison has had major impact on city peration.s now for a-number of years, of only on redevelopment activities nd economic development activities, ut also in the community development rogram, which he headed for quite some ime. Equally important, he is a eader of this community, and we are oing to miss you a great deal. I feel hat I am losing a friend in South Bend. he only good thing about it is that we re gaining a really good friend in ashington, D.C. Mr Ellison you can est assure that we will be calling you ften for help. It goes beyond the usiness relationship Mr. Ellison, and t will continue being so. We are sorry o see you leave but we are very happy or you. I know that this position can ffer what you have been looking for or a little while and I can't think f anyone better to have been made the Nimtz: For the benefit of the public the press I might state that we had Executive Commission meeting at 8:30 a.m. s morning with the Mayor and discussed Ellison's replacement. Following that ting and the discussions °held the Chair's ommendation (and I believe that the mission will concur) is that Mr. Pat ahon be named as the Executive Director the Department of Redevelopment and mission at the salary that Mr. Ellison has. Donaldson made a motion that Mr. Pat hon be named Executive Director of the rtment of Redevelopment at the same .ry Mr. Ellison had, seconded by Ms. rn, and the motion was unanimously ded -5- MR. PAT MCMAHON NAMED AS EXECUTIVE DIRECTOR OF THE DEPT. OF REDEVELOP- MENT, TO REPLACE MR. ELLI- South Be4eeting d Redevelopment Commission Regular - September 5, 1980 4. CO SWICATIONS (continued) a. gontlnued..... ayor Parent: It is obvious to everyone hat we did not steal the Director of he Public Works without some input. r. McMahon has been with the City' ince 1972 and he was the Manager of he Bureau of Public Construction,for number of years. At that time and wring that period he supervised and oordinated the construction of the entury Center. He has input very trongly from the beginning of the first Bank Project and he is� now eading the Century Mall Projectefor he city administration. I feel that he appointment of Mr. McMahon is a .-finite plus for the City because f his experience in economic develop - ent obviously with public works, and - ith the business community generally. am most gratified that we are able D have a person of his calibre to accept his position. I have asked Mr. McMahon D retain his position and some of the oards in which he presently serves to ssist in the transition, certainly ritil the end of the year and perhaps ven a little longer than that. He will e serving-90% if not more 'than that ri the economic development activities rid the redevelopment department. am very pleased with the.appointment. t leaves me with the job of replacing r. McMahon which will be very difficult. r. McMahon would you care to say a few Ards? r. McMahon: I certainly appreciate the onfidence that the Commission and the ayor have expressed in offering this osition to me. I would hope that in ime that I give service in this egard that the job I do is as highly egarded as Mr. Ellison is. I feel hat those are some big steps to follow. r. Nimtz: Thank you Mr. McMahon. hank you Mayor Parent. 1011 South Bead Redevelopment Commission Regular Meeting - September 5, 1980 4. COMOICATIONS (continues) a. Mayor Parent: It has been a pleasure. want to thank the Commission for eat cooperation and the great work at you do. I never knew you that ell at the first of the year and I just amazed at the action you have o take and what you have to do. r. Ellison: I do want to say that I ppreciate all the warm remarks today.. did really mean that the relationship etween us has been a very, very warm ne. It is quite unusual for a director D establish a real friendship with the Dmmissioners who supervise him. We ave been able to cultivate a very Itisfying relationship that has left a impression on me of satisfaction hat cannot be achieved elsewhere. do want to say to the Mayor that he ad I have been friends for a number f years and I have been a supporter E his since his councilmatic days rid I.have also lived in his-district; district he represented well for a amber of years on the council. As iyor, he has provided the kind of aadership I think the community needs. give him very high marks for his first ine months in office. He has certainly mdled some very difficult situations --ry well... (the Blue Flu, the minority acruiting of the police and fire apartment) are just a few of the very ifficult issues that have been handled, a my estimation in the best manner )ssible for this community. It is my Tectation that Mayor Parent will Drtainly achieve a second term if he D desires and that the administration, acause of the talent that is in it, 4r. Kernan, Mr. Hill, and Mr. McMahon Long with others) will certainly rovide and continue to provide best aality governmental services that the itizens of this community need and -7- South Bead Redevelopment Commission Regular Neeting - September 5, 1980 4. a. Mr. Ellison continues..... would also like to remark about y own staff. We are a small but fficient staff. I owe to them a ebt of gratitude, particularly rs. Ann Kolata who has been a very trong right hand and who has done uch of behind the scenes work that often get credit for. That is he way it always is. The staff eally gets a lot of the work done. certainly want to say "thank you" o Mrs. Kolata and the rest of the taff for the support that they have iven me during my two years here. do need to mention another public fficial who has been involved in and ssisted me in the process of making he transition from here to Washington. hat is Congressman John Brademas. I ave found that he is a very Bandy refer- nce to use in pursuing a job. More mportant than that however, is that ongressman Brademas has-been a very trong supporter of small business n this community. He has supported mall business legislation and will e an invaluable contact for me as I egin to undertake the day -to -day anagement of the minority business nitiative program of the Small usiness Administration nationally. ongressman Brademas was very helpful n getting my application through he civil service process within a elatively short period of time two months). I owe him a debt of ratitude. do want to mention briefly about e job and some of the motivation r it. There is a great deal of tisfaction in working on the local vel, satisfaction that cannot be hieved at any other level of govern - nt because you have an opportunity see some things accomplished. South Be 4d Redevelopment Commission Regular Tleeting - September 5, 1980 4. a. Mr. Ellison continues..... obody is in public service for oney. Mayor Parent has often made he statement that public servants ave to like public service and have o be willing to sacrifice and be willing o give their all for the benefit of the ommunity. That satisfaction is best chieved at the local level. At this oint in my career I found the need to onsider broader needs. In my SBA osition I will have the opportunity o work directly within the agency to ry to influence the amount of capital, wnership in this country held by the ation's:m. norities. Beyond that, I ill try to make a reality President ixon's concept of black capitalism hich essentially called for - -- hrough the business process- -the ation to encourage and take appropriate ctions.to try to assure that minorities nd other socially disadvantaged persons nd organizations can indeed participate n our free enterprise system-so that he nation as a whole is strengthened hrough the process. The part of SBA n which I will be working annually sets side a billion dollars of non- competitive overnment procurement. The agency also ets aside or has available thirty to fifty million dollars for business develop - ent assistance and provides various forms f technical and management systems to irms. The job offers me an opportunity o contribute in a national way to the zhievement of a social good for the afire nation. Because of the opportunity D work directly in this area and the ossibility of making some contribution, he job offer was one.that I simply could A refuse. It offers me the opportunity D work more directly in some areas in hich I have had an interest locally and n which I have an interest nationally. t also gives me an opportunity to learn o work in a new environment which I think ill be beneficial to me. MIA South Be id Redevelopment Commission Regular eeting - September 5, 1980 4. a. XWINICATIONS (continues} r. Ellison continues... ne of this, of course, would have en possible without the opportunity d support that have been given me ring my years here in.South Bend. body provided a road map to describe at position or positions I might cupy in a local goverment. The ocess was more dynamic and happened .large part because of willingness leaders like Mayor Parent to take chance on people like me. In closing do want to again express my deepest preciation to Mayor Parent, and to ch and every member of the Commmission r all of your support and encouragement, d beyond that, for the opportunity serve. . Nimtz: Thank you Mayor and the rest the administration. 5. OLD BUSINESS Them Lmmission. was no old business to present to the CNI2 i a. ("omission approval requested for a e a ilitation grant`in the amount of 0,000.00 to the, Mental Hea1t sociation of St. Josep h County. Inc.. *nd improvements on :a house located at ungartn.er, Director l )ect to South Ben ral as applicable. s. Baumgartner: The Mental Health sociation of St. Joseph County, Inc. requesting a Non- Profit Group habilitation Grant to support repairs d improvements on Metclafe Halfway use located at 1217 S. Michigan. The reau estimates the cost of repairs to e house to be $14,953.96. As the cost rehabilitation exceeds the Non- Profit ant limit, the Mental Health Association 11 assume responsibility for any and all sts incurred over the $10,000.00 figure. -10- South Bead Redevelopment Commission Regular Meeting - September S, 1980 6. a. Mrs. Baumgartner continues... e Metclafe House represents the rst non - profit group grant given a congregate home. The Metclafe > a half -way house for people who ve come from a mental institution who have suffered a mental break - wn. It seems that although it is excellent repair it now has ,a mber of things that.need to.be done. Mr. Ellison: Mrs. Baumgartner, is he half way house a building that will provide shelter on a 24 hour asis? s. Baumgartner: Yes, and it does ovide housing to people who are igible. Ellison: Did the bureau make a rmination as to whether the al health has the capacity to ate the house assuming the non- 'it group grant is given? .Baumgartner: Yes, and they have epted the responsibility of re- ilitation costs over $10,000.00. . Robinson made a motion to approve rehabilitation grant in the amount $10,000.000 to the Mental Health sociation of..St. Joseph County, Inc., t for profit group for the repairs d improvements on a house located at 17 S. Michigan. Street, subject to uth Bend Common Council approval, conded by Mr. Cira, and the motion s unanimously carried.. b. Commission approval requested for the lcable. R -11- review al as South Ben4 Redevelopment Commission Regular M eting - September 5, 1980 6. NEW BUSINESS b. continued.... Name 1. Willie & Catherine Howell 814 N St. Peter 2. T. Ea les 812 Aimond Ct. 3. Bertha Kluszynski 2120 S. William 4. E. Leahy 519E Dubail 5. H. Th mas 522 S1 Meade Contractor Bid Amount Tri -State $14,211.00 Diedrich Const. Co. Aardvark Const. Co. Diedrich Const. Co. Charles Brown Maintenance Co., Inc. $ 8,320.00 $10,055.00 $17,345.00 $ 9,632.00 Mr. Cira: Were these additions on the bids added after they were turned in? Mrs. Baumgartner: Those are additional i ems the contractor spotted. . Cira: I just wanted it pointed out because the last time we eliminated a couple of contractors because they forgot to add some items. Mrs. Baumgartner: These are not addition errors, they are merely addendums to the contract, and they are verified by our spectors. . Robinson: I notice that your reason for not awarding the contract (T. Earles of 812 Almond Court for $8,320.00) to Aardvark or Stickler ' is because they are 20% under the cost estimate... I find that hard to believe. Where i the expertise to arrive at the Bureau of H using cost estimate? Nh s. Baumgartner: We use a cost estimating handbook that is used nationally. In addition, we have a cost book of local costs which we use as a reference book. 12 South Ben4 Redevelopment Commission Regular M eting - September 5, 1980 C+,N b. Mks. Baumgartner continues... e usually accepted figure for rejecting ds is 10% but since we have not updated is book as frequently as we should, use the 20% figure. For the last few aths Stickler has bid enormously low ices and I really don't know how he a come up with these prices and expect get the job done. We have had a number complaints from contractors who say ey don't know how he arrives at these ices. . Cira: He has done work for us before sn't he? Baumgartner: As a plumber, not a cal contractor. . Cira: Why have bids if you are not ins to award the contract to the lowest s. Baumgartner: If the bid is 20% wer than our cost estimate, then viously the contractor would have to t corners and we would not allow the rners to be cut in order to qualify. Cira: If you allow him to cut corners he does so, then he should be thrown but I think he is entitled to the rtunity. Mrs. Baumgartner: We have a responsibility to businessmen and if we can evaluate the fact that it is impossible to do the job at a certain price, then what iE the purpose of evaluating this? We would be letting them cut their oin throats and we have a responsibility to the contractor. We have had a number of contractors who have bid quite a bit under our cost estimate and have g ne bankrupt and have had disastrous b mess problems because we did not e aluate their bids. 13 South Beno Redevelopment Commission Regular M eting - September 5, 1980 6. NEW B6SINESS b. continued.... . Auburn made a motion to accept the 312 loan bid contracts and award them as follows: l) Willie & Catherine Howell of 814 N. St. Peter Street- - contractor: Tri -State for $14,211.00; 2 T. Earles of 812 Almond Court -- contractor: Diedrich Construction Company for $8,320.00; 3) Bertha K uszynski of 2120 S. William -- contractor: Aardvark Construction Company, for $10,055.00; 4) E. Leahy of 519 E. Dubail -- contractor: Diedrich Construction Company for $ 7,346.00; 5) H. Thomas of 522 S. Meade -- contractor: Charles Brown M intenance Company, Inc. for $9,632.00, s bject to legal counsel review and South Bend Common Council approval, seconded by Mr. Donaldson, and the motion was unanimously carried. c. Commission approval requested for the M lowwinL loan amlications: . Name Oscar & Kathryn Brookins 701 W. LaSalle South Bend, IN. 46601 Edward & Marilyn Leahy 519 E. Dulail Street South Bend, IN. 46613 Theodessa G. Earles 812 Almon Ct. South Bend, IN. 46617 Clara Kil` ski 438 S. Ha is South Bend, IN. Bertha K1 zynski 2120 S. William St.. South Bend. IN. 46613 Amount Loan No. $81,600.00 18 /OMC- 0011/92/1 $18,050.00 18 /OMC- 0011/104/1 $ 8,750.00 18 /OMC- 0011 /100 /1 V6,000.00 18 /OMC- 0011/116/1 $ 8,050.00 18 /OMC- 0011/101/1 14 312 LOAN BID CONTRACTS AWARDED TO CONTRACTORS PER BUREAU OF HOUSING South Benj Redevelopment Commission Regular M eting - September 5, 1980 6. NEW BUSINESS c. 312 loan applications continued.... Name Amount Loan No: Harriet omas 522 S. Me de South Ben j, Indiana William & Annie Catherine 814 N. St.1 Peter St. South Bend. Indiana $10,100.00 18 /OMC- 0011/97/1 $14,800.00 19 /OMC- 0011/98/1 4r. Nimtz: Ms. Oscar Brookins who is applying E r a 312 loan is a member of the school board d this involves a loan in which Southold is nnected. It is concerning the movement of the Dr. Holderman house which is owned by Scottish Rite of Lafayette and Madison, and I Chairman of the Board with Southold, so I ;v'll disqualify myself and put Mr. Robinson in the Chair. . Robinson: Before we get to the actual ssing of the business, I have a question. the application of William & Annie Catherine well, is this a loan to repair his own home d is he going to be the contractor? . Baumgartner: Tri -State is going to be contractor. Robinson: Is this the same individual w o owns Tri - State? E;. Baumgartner: No, Terry Brant owns i- State. Mr. Ellison: Mrs. Baumgartner, I have a number of questions on the Brookins loan. Is this a one unit building that they are moving or a single family dwelling? . Baumgartner: It is probably a mixed -use perty currently consisting of a doctor's ice, etc. 15 South Ben4 Redevelopment Commission Regular Moeting - September 5, 1980 6. NEW BUSINESS c. cdntinued... Mt. Ellison: Then they are going to place it on the site and rehab it into fur units? s. Baumgartner: Yes. . Ellison: Is the loan limit 90% of e after rehab value in this instance, J if so, has the property been appraised having rehab value that will exceed the loan 10 %? s. Baumgartner: Currently we don't have e appraisal in but we have had a preliminary praisal done. . Ellison: Do you expect the after rehab eraisal to be sufficient to cover the loan? . Baumgartner: Yes. Mr. Ellison: I notice that the information for the operations of the building indicate 1(0% occupancy. Is there a particular reason w y the rate wasn't more realistic like 9 % or 90 etc.? Part of the reason I ask is that the one - bedroom unit will have a rental of $260.00 and a two- bedroom will have • rental of $325.00 and the one bedroom with • den will have a rental of $300.00, and wile the structure will be placed at 7 1 W. LaSalle it just didn't strike me as r asonable to expect 100% occupancy over e course of the year. . Baumgartner: I agree. . Ellison: If net income is adjusted downward zause of the revision of occupany expectations, there any concern (given the other debts on house) that income minus the expenses 11 not work out? . Baumgartner: That would always be a stion. Questions remain on the neighbor ,d, how much money the lending institution ieves in that person to pay the debts off I whether or not it is reliable application not. They have some money in the bank and .te a few properties which they own.to k them. 16 South Ben4 Redevelopment Commission Regular M eting - September 5, 1980 6. NEW c. continues..... Mr. Ellison: I agree but I would probably recommend that it might be reasonable to look at the numbers again and particularly to re- evaluate t eir operating expenses. I notice f r instance that they show $100.00 for janitorial supplies for a year f r a.4-unit building. To me that is probably not sufficient. I t ink in some respect your operating e enses are slightly understated. personal opinion is that if in fact they could achieve 90% occupancy then the loan will probably rk financially. If they were to h ve a lower occupancy rate I believe t e loan would be marginal. . Cira: What is the length of the an Mr. Ellison? Mr. Ellison: It is for twenty (20) years. Actually Brookins is probably a very good customer and I am not raising these questions to in any w y discourage their capacity to do e loan. The loan paper presented at this time somewhat understates the o erating costs and does not include t e cost of taxes, and because of t e debt already associated with the house (because of the transaction with Southold where the house is being moved) when you look at their income from the property, minus their eypenses, I think it could get to a point where it is very close. Obviously, the nature of 312 dollars is that to a d gree you are permitted to take some risk. The 3% interest rate is designed to stimulate interest and to make it possible for people like the Brookins tc take on a very, very risky venture. I still think we have a responsibility at least to make sure that the numbers are r tional. . Cira: If the Brookins default on -ir payments what would happen? 17 South Ben4 Redevelopment Commission Regular M eting September 5, 1980 6. NEW c. Ontinued.... . Ellison: It is a whole compli ted process if that were to occur. ;ically, the property would become governments'. . Robinson: Is there a different fling for single family dwellings an there is for a commercial venture r a 312 loan? M i s. Baumgartner: It is $27,000 for a sngle family dwelling maximum. . Robinson: Mr. Nimtz, was this loan proved by Southold? . Nimtz: Yes. Mr. Robinson: Then you are speaking of the cost of this home being in excess of $100,000 when you include the cost of moving? Is this the actual loan ($100,000) or are we talking a out a lien on the property? Mr. Ellison: We are talking about two loans. An $80,000.00 loan and a $30,000.00 loan. The $80,000.00 loan would have first position, d the $30,000.00 loan would be subordinate d take second position. Mr. Nimtz: They have to pay off the Southold loan in one year. W. Ellison: Normally what happens is that a borrower in this situation would have a take out commitment from a bank. Once the house is r habilitated and once it is appraised, the bank can then lend on its after rehab value. They en take out the Southold loan which is a sort term interim loan. Butler: Do they have a take out in this e Mrs. Baumgartner? . Baumgartner: No they don't, but they do a number of properties free and clear. 18 South Ben4 Redevelopment Commission Regular M ehing - September 5, 1980 6. NEW c. cdntinued......... M�. Cira: You are going to have at least a first year payment of $35,000.00. Ellison: They do have enough assets other real property as Mrs. Baumgartner icated and they could in fact generate ficient dollars. Mr. Butler: You indicated that relative tc the contractor's bids that we have an o ligation to protect them against them- s lees, do you do the same thing in a situation such as this with the borrower? Dc you scrutinize this closely relative tc the debt obligation and debt service r lative to projected income and of course in this case you indicated that ey do have other assets, to help them m e a business determination? . Baumgartner: Yes. Ellison: I should correct one thing... aid the address had a property to be abilitated at 701 W. LaSalle, whereas it actually 617 W. LaSalle. The Brookins e at 701 W. LaSalle and they also own perty at 620, 713, 609 W. LaSalle, as 1 as 601 N. Scott Street. So, they eed have substantial holdings. Nimtz: I might say without trying to J udice the Commission that the LaSalle ple are forming a neighborhood organi- :ion and some of us who are on the toric Preservation Commission recommend them that there be historic district m Washington to Lincolnway as they ibine with Colfax to West Washington area r. So the next area of rehabilitation ,ement of rehabilitation is LaSalle ,nue but the LaSalle Avenue people may Lt to stay by themselves., I really don't w. It is the next neighborhood that being worked on by the Historic Preser- :ion Commission and by Southold, redevelop - .t and rehabilitation, so that the neigh hood is coming back. M` South Ben4 Redevelopment Commission Regular eting - September 5, 1980 6. NEW BjUSINESS c. c6ntinued... . Ellison: Mrs. Baumgartner, would it necessary for the appraisal and rtain other details to be available fore the application is sent to HUD? M *s. Baumgartner: Yes. Mr. Cira: Is there some limitation on a federal loan? (the amount of rent that can be charged) Mr. Ellison: I am not exactly sure but guess is that there is not, even though theoretically the 312 program is not targeted necessarily to low income. Its objective is to make more efficient use of the units which exist. The program is really targeted for people o own property, or are willing to vest in property. Communities do have flexibility to include in loans some kind of rent control provisions. Frankly the format that we have now is n t really effective, and secondly I don't really think that cities typically have the capacity to do the monitoring tc make sure the person is actually charging a certain amount of rent. What we wind up doing is looking at the r nts proposed to be charged and try tc make a determination as to whether they seem reasonable given the size o the property, its location, etc. y of the rents. for that area are based o4 the good rehabilitation job. -s. Baumgartner, would it be your pleasure have this 312 loan application tabled? Baumgartner: I the application -es are in order. would be happy to tabled until the Ellison: Are the balance of the loans single family occupants? 20 South BeO Redevelopment Commission Regular M eting - September 5, 1980 6. NEW BUSINESS c. cdntinued.... Mrs. Baumgartner: They are all single family homes except for one which may have a slight twist to it. Clara Kilinski has a combination grant and . Ellison: Does Mrs. Kilinski live herself? . Baumgartner: Yes she does. Ellison: Have you found any uctance on the part of the elderly ple to put another debt on their t especially since a loan tends to on a 20 year basis and she is years of age? Mrs. Baumgartner: No as a matter of fact, most people would rather put a debt on their property than to go through a mortgage company. Mr. Cira made a motion to approve a 312 loan to Edward & Marilyn Leady of 519 E Dubail Street, in the amount of $18,050.00, to Theodessa G. Earles of 812 Almond Ct., in the amount of $8,750.00, to Clara Kilinski of 438 S. Harris in the amount of $6,000.00, to Bertha Kluszynski of 2120 S. William Street in the amount of $8,050.00, to Harriet Thomas of 522 S. Meade in the amount of $10,100.00, and to William & Annie Catherine Howell in the amount of $14,800.00, s conded by Ms. Auburn, and the motion was animously carried. Mr. Donaldson made a motion to table the 31.2 loan application of Oscar & Kathryn Brookins of 701 W. LaSalle who requested a loan in the amount of $81,600.00, seconded b Mr. Cira, and the motion was carried. V( Nimtz abstained from voting). Ellison: I would like the Commission to ider Item 6d through 6i under Business on the agenda at the same time. read as follows: 21 312 LOANS APPROVED FOR BUREAU OF HOUSING 312 LOAN APPLICATION OF OSCAR & KATHRYN BROOKINS TABLED South B Regular 6. NEW 6d d. e. f. H h. i. and Meeting B Redevelopment Commission - September 5, 1980 SINESS 6i..... authorization requested for through Commission e ecutioh­bf amendment 'tb agreement or " ro essional`& Technical Services" tween the City of South Ben , Department F of Redevelopment, and Mr: John Pence, R,5-- Monroe -Sam le. authorization requested for Commission execution of amendment to agreement for "Professional & Technical Services" etween -f he City of South Bend, Department of Redevelopment, and Mr. Richard Nichols, Re: Monroe- Sample. authorization requested for Commission execution of amen ent to agreement for "Professional & Technical Services" between the City of South Bend, Department of an Mr. Ralph Lauver, Re: Redevelopment, East Race. authorization requested for of amendment to agreement for Commission ex,ecution " rofessional & Technical Services" between the City of South Bend, Department of Tedevelopment, and Mr. Ron Gettel, Re: st Race. authorization requested for E Commission execution of amendment to agreement for "Professional & Technical Services" b tween the'City of South Bend, Depart- ment. of Redevelopment-, and Mr. Thomas H r a; Re° East Race. authorization requested for of amendment to agreement r "Professional & Technical Services" Commission execution b tween the City of South Bend; Department o Redevelopment and Lang; Feene ; A sociates, Inc., Re: .-Monroe-Sample & Bank. Ellison: These items were on the agenda for its June 6, 1980 22 East Mr. Commission's meeting. South Ben4 Redevelopment Commission Regular M eting - September 5, 1980 6. NEW BZUSINESS 6d thihouQh 6i continued.... . Ellison continues... At that meeting the staff requested authorization to negotiate these various amendments to the contracts that had to do with work necessary for the declaratory process in the Monroe - Sample and East Bank development areas. The Commission authorized negotiations subject to an approval. We were to come back to the Commission for an approval. Somewhere in the shuffle we did not do that. These c ntracts were in fact executed and most of the services have been performed. In order to correct our error and not being cognizant that the Commission had simply just authorized negotiation stead of approval, we put these items on the agenda today to correct that o 'ssion. . Nimtz: Mr. Butler, have you gone E�r all of these? . Butler: I have reviewed them and ev are all in order. . Robinson: Have these people all rformed different services and as example, what was done on East Race, c.? In what way did their services ffer? Ellison: In the case of the Monroe - mple project we are required to have two dependent appraisals of all property we ght want to acquire. So we needed to end the contracts we previously had th Mr. Pence and Mr. Nichols to add th time and dollars to the contract. ose then are two independent appraisers o are producing information for the mission to ascertain what the redevelop - nt treatment will cost. For the East nk, there are three appraisers who are ployed ... Lauver, Gettel, and Horka. nally, the technical services that ng, Feeney provided with respect to nroe- Sample had to do with a map 23 South Bend Redevelopment Commission Regular Meeting - September 5, 1980 6. NEW BUSINESS Mr. Ellison continues .... (6d through 6i) that included actual indication of dimensions of parcels considered to be acquired. These are simply technical matters that are necessary to be done either inhouse or by consultants. . Nimtz: The staff suggested that I 1k to the real estate appraisers and Ue them submit their appraisals weekly. Mr. Robinson made a motion to ratify and confirm action of the President and Secretary of the Redevelopment Commission to execute the Agreements for Professional & Technical Services (requested at the June 6, 1980 Commission Meeting) between the City of South Bend, Department of Redevelopment, and the following: Mr. John Pence, Re: Monroe - Sample, W. Richard Nichols, Re: Monroe - Sample, Mr. Ralph Lauver, Re: East Race, W. Ron Gettel, Re: East Race, Mr. Thomas Horka, Re: East Race, and Lang, Feeney & Associates, Inc., Re: Monroe-Sample & East Bank, seconded by Mr. Donaldson, and the motion was animously carried. 7. PROGRESS REPORTS Mr. Ellison: The staff has a few reports. The test litigation for the tax incremental financing connected with the Century Mall Project has been filed. We have been served a summons indicating at we are being sued by the South B nd.Public Transportation Corporation which questions the constitutionality of the tax incremental financing technique. second item I want to mention is that t week a representative of the Depart- ,t of Housing & Urban Development was here monitor both the First Bank project and Century Mall Project., 24 AGREEMENTS FOR PROFES- SIONAL & TECHNICAL SERVICES RATIFIED AND CONFIRMED BY THE COMMISSION . DISCUSSION OF LITIGATION ON TAX INCREMENTAL FINANCING IN CENTURY MALL PROJECT RE: TRANSPO South Bend Redevelopment Commission Regular Meeting - September 5, 1980 7. PROGRESS REPORTS Mr. E lison continues.... As a result of that visit, we were able to prepare close out papers for the $2,126,000 Urgent Needs Grant which was used to pay some acquisition and relocation costs f r the twenty -one (21) Century Mall p rcels. e $2,126,000 had been expended by about late September or early January of this year and has been audited. We completed the close out papers in order to begin the process to get issued to the City what is referred to as a "Certificate of Completion" for t e project. It is expected that HUD will sign off on the certificate and tat the project will then officially ( he Urgent Needs Grant part of it) be c osed out sometime next week. . Nimtz: It has already gone in and e Mayor has signed it? . Ellison: Yes, the Mayor has signed e Certificate of Completion. . Nimtz: I met with Eleanor Granger ice while she was here from HUD, and had no criticisms or suggestions at ther meeting I had with her. She Lmd everything in order and as usual id we were in order and were doing a )d job. Nimtz: Mrs. Baumgartner, do you want tell us about your job this afternoon? . Baumgartner: This afternoon we are rding twelve homestead homes. Our estead program is our most successful gram. It will be held at 2 o'clock in Council chambers and the press is welcome. Nimtz: Do we still want to hold a i.al meeting on the 15th of September? . Baumgartner: Yes. 25 UPDATE ON MONITORING VISIT FROM REPRESEN- TATIVE OF HUD South Ben4 Redevelopment Commission Regular M eting September 5, 1980 7. PRO SS REPORTS continued Mr. N mtz: I am not sure who was present at the meeting but Mrs. Baumgartner has a deadline of Septenber 16th concerning 312 loans, and we want to submit as many appli- cations as we can to HUD because we may r ceive money that some other city does not use. If it isn't necessary the Commissioners will be notified that the meeting has been cancelled. Mr. Butler: I have one other item I wish to bring before the Commission. We no Ily handle the acquisition negotiations in executive session but there is really no need for this one. Forte Zondervan Bookstore site (the Benerc family are the owners) our appraisers have appraised the property at $91,500.00. It was our offers -and it was rejected. We filed a condemnation action. The court appointed appraisers came in with a figure of $82,920.00. The owners of the property have seen the validity of our original offer and we are recomending that the matter be settled at our appraisal of $91,500.00. The figure has been accepted by the sellers conti gent on Commission approval. Mr. C'ra: Mr. Butler, don't you feel that we sh uld given them the $82,920.00 for their ropertY? Mr. Butler: Mr. Cira, it is not a matter of giving them $82,920.00. If we go to trial on this, our appraisers are going to be testifying to the $91,500 figure. Mr. Cilra: I feel we should set an 26 SPECIAL MEETING TO BE HELD ON SEPTEMBER 15 TO SUBMIT BUREAU OF HOUSING'S 312 LOAN APPLICATIONS CONDEMNATION PROCEEDINGS ON THE ZONDERBAN BOOKSTORE SETTLED South Be d Redevelopment Commission Regular eeting September 5, 1980 7. PRO SS REPORTS (continued) Mt. Butler: We have to be testifying, to our appraisal figure and their appraisers are going to be submitting evidence at a higher figure. We are not using the $82,920.00 figure. That was simply the Tount that we had to deposit into the c urt. Those appraisers will not appear i court and testify. Nimtz: Quite some time ago, one praiser testified he had been appointed the court and that of course caused immediate mistrial and they had to start 1 over. The staff has discussed this th me and with Mr. Butler and it is my eling that the attorney's fees and the es you pay the appraisers including other penses, you might just as well pay the gure you began with. Butler: We start at the $91,500.00 figure. jury is going to at least award this ,unt because this is the amount our raisers are going to testify to. Of course W. Nimtz indicated,there would be the art costs, attorney's fees, etc. . Nimtz: It is the Chair's recommendation at we approve the $91,500.00 figure for e Zondervan Bookstore. The air recognized Mr. Gene Cavanaugh, Vice Presi ent of First Bank & Trust Company. M--. Cavanaugh: I came today to wish best wishes to Mr. Ellison. We are all going to miss him, the community will. He has been a tremendous asset as we all know to our community development, especially the First Bank Center in which we go back a few years. His hard work and dedication d spirit of cooperation from both lvb-. Ellison and his staff has meant a lot to all the developments in this community, n t just the First Bank Center. I again wish . Ellison best wishes on his new job. We a e sorry to see you go. Good Luck! 27 COMVMS OF CONGRAT- ULATIONS FROM MR. GENE CAVANAUGH OF FIRST BANK & TRUST South B Regular i Redevelopment Commission Feting - September S, 1980 7. PROGUESS REPORTS (continued) Mr. Ellison: Thank you. Mr. N tz: We appreciate you coming to the m eting and saying those kind words. 8. NEXT COMMISSION MEETING A Special Meeting of the South Bend Redevelopment Commission will be on September 15, 1980 at 11:00 A.M. The next regularly scheduled South Bend Redevelopment Commission Meettng will be held on September 19, 1980 at 10:00 A.M. There being no further business to come before the Commission, Mr. Robinson made a mot on that the meeting be adjourned, seconded by Ms. Auburn, and the motion was utianimously carried. The meeting was adjo ed at 10:58 A.M. NEXT COMMISSION MEETING 1 • ' ,1111: M President Carl E1 lson, Executive Director