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HomeMy WebLinkAboutRM 10-17-80SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING October 17 1980 10:00 a.m. Presiding fficer :. Mr. F. Jay Nimtz President 1. ROLL CALL Members Present: Member Absent: Legal ounsel: Redevel 1200 County -City Building 224 W. Jefferson Boulevard South Bend, Indiana 46601 Mr. F. Jay Nimtz, President Mr. A, Peter Donaldson, Secretary Mr. Robert J. Cira, Assistant Secretary Mr. Lloyd E. Robinson, Sr., Vice President Ms. Paula N. Auburn, Member Mr. Kevin J. Butler opment Staff: Mr. Patrick H. McMahon, Executive Director Mrs. Ann Kolata, Deputy Director Mr. .Kevin Horton, Assistant Director Mr. Bill Fox, Relocation Specialist Mr. Paul Falduto, Employment Targeting Asst. Mr. Jeff Rush, Job Targeting Coordinator Mrs. Jane Zimmerman, Executive Secretary Mrs. Hedy Robinson, Secretary Commun ty Development Sta f: News Media: Guests 2. APPROVAL OF MINUTES Mrs. Kathryn Baumgartner, Director, Bureau of Housing Mr. David Daren, Assistant Director, Bureau of Housing Ms. Jeanne Derbeck, Reporter, South Bend Tribune Mr. Charles Roemer, Attorney Mr. William York, Abstract & Title Corp. Mr. John Hill, Executive Director, Renew, Inc. Mrs. Angela Coar Mr. J. Cronk On mot on by Mr. Donaldson, seconded by Mr. Cira MINUTES OF REGULAR and unanimously carried, the Minutes of the MEETING OF OCTOBER 3, Regula Meeting of October 3, 1980 were 1980 WERE APPROVED approved. South Bend Redevelopment Commission Regular Me ting - October 17, 1980 3. APPROVAL OF CLAI On mot on by Mr. Donaldson, seconded by Mr. Cira, and unanimously carried, the claims totall ng $58,856.57 were allowed and ordered to be taid. The authorized claims are: REDEVELOPMENT REVOLVING FUND Payrol : 9 -20 -80 to 10-03 -80 Business Systems, Inc. Dictaphone Corporation Federa Express Corporation Government Marketing Service Indiana Bell Telephone Company Osco Dug Superintendent of [bcuments Smith Petroleum, Inc. Coffee Time Services Ann E. Kolata Univer ity of Notre Dame Essex �otel TOTAL REDEVELOPMENT DISTRICT CAPITAL OF 1972 Borger�Jones & Associates P.E.A. I- EAST BANK Lang, Feeney & Associates,. Inc. S. M. Dix Associates, Inc. Ronald E. Gettel Craig Hill, Contractor P.E.A.I- IND. R -66 $ 7,161.88 204.75 85.30 19.00 57.00 434.06 5.06 17.49 92.65 26.65 90.57 104.00 60.56 $ 8,358.97 $ 140.00 TOTAL $ 140.00 $ 496.00 1,620.00 15,000.00 500.00 TOTAL $17,616.00 Redevelopment Revolving Fund Ray Br den Parker Brunner & Hamilton, Attorneys TOTAL 2 $15,431.15 120.00 735.00 $16,286.15 CLAIMS APPROVED South Bend�Redevelopment Commission Regular Me ting - October 17, 1980 3. APPROV�L OF CLAIMS (continued) P.E.A.I- 312 LOANS St. Joseph County Treasurer Frederick or Aravini Sheets Charles & Movita Stewart and Joe Plaia Construction Mary H nkins and J. W. Werntz & Son Inc. Francis Roberts and Charles Brown Mai tenance B & B Ilumbing and Dennis Tinnin St. Joseph Valley Finance Corp. TOTAL GRAND TOTAL 4. COMMUNICATIONS $ 79.32 2,624.79 3,172.00 36.67 3,620.00 1,305.00 5,617.67 $16,455.45 $58,856.57 There Vre no communications to present to the Commis on. 5. OLD BUSINESS a. Commission approval requested for Resolution No 628 authorizing the purchase of Acquisi- tion Parcel No. 22 -4A, Ind. R -66 in the amount of 1.325.00. Mr McMahon: This is a very small parcel of property located behind Inwoods that I under- stand was overlooked or by- passed during the initial acquisition in the R -66 process. Mr. Kevin Butler has been involved in this and I wi 1 ask him to gi.ve the Commissioners some ba kground information. Mr. Butler: Originally we were acquiring these properties by condemnation, and the,)acquisition parcels were 22 -4 and 22 -3. A decision was made that we did not need those parcels for the Re- development program, and so acquisition activity waj stopped. Then it was decided that the 3 THERE WERE NO COMMUNICATIONS TO PRESENT TO THE COMMISSION South Bend Redevelopment Commission Regular Me Ling - October 17, 1980 5. OLD BUSINESS a. Mr.l Butler continues... se vice drives would be continued all the way th ough the southern part of the project and roughly 20 foot strips along the alley on Pa cels 22 -3 and 22 -4 were to be acquired. ThE Department subsequently made a determine ti n that those service drives would not be co tinued back through that alley, at least to porarily. We had, by that time, already ac uired Parcel 22- 3A,.the 22 foot strip off of the east end of Parcel 22 -3, but had not yet concluded our acquisition of 22 -4A:, so we terminated our activities with respect to th t acquisition. Now the decision has been mace to proceed with that acquisition of that pa cel. This resolution, then, will author- iz the taking and establishes the purchase pr ce. Mr. Donaldson made a motion to adopt Resolu- tion No. 628, authorizing the acquisition of Parcel 22 -4A, IND. R -66 for $1,325.00. Mr. Ci a seconded the motion and it was unaimously carried. Ms Derbeck: Do you mean that you are simply pu chasing a strip along the alley? Mr McMahon: That is the only impediment at this point. Ms Derbeck: You just figure that you might as well acquire the land, it doesn't mean that th service drive will be constructed. Mr McMahon: The actual decision to construct th service drive would have to be made at some la er date. Ms Derbeck: 'Nothing else other than the ser- vi e drive will be acquired? Nr McMahon: This is the only parcel that we wo 1d need to construct the service drive. 2 RESOLUTION NO. 628 APPROVED BY THE COMMISSION AUTHORIZ- ING PURCHASE OF PARCEL NO. 22 -4A, IND. R -66. South Bend Redevelopment Commission Regular Me ting - October 17, 1980 5. OLD BUSINESS a. continued... Mr. Nimtz: I:think all of the plans I have seen in the last five or six years have shown this service drive. I think everybody is well ac- quainted and apprised of the fact that it is the intention to construct the service drive. 6. NEW BUSINESS a. Commission approval me t request relati re erred to as 305" La avette . ted for a tax abate- ve to an area commonly. W..Jefferson or 133 South Mr McMahon: The staff has reviewed the re- quest for tax abatement and you have in your fi e a three -page summary of our review of that matter. The second page summarizes our review of the tax abatement and states that the area in question has been by- passed or underutilized due to economic circumstances which have deterred normal development. On the second page our finding is that the area in question, highlighted behind No.. 1 and indented, reads, "the area in question has been by- passed or underutilized due to economic circumstances which have deterred normal development." Al hi as be fo ma ha th al De is to or pr low me to highlight a few points. The >tory of the property shows that the ;essed value has increased 16% in the period :weep 1962 and 1979, and that the increase the City, as a whole, has been approxi :ely 51% , which shows that the property demonstrated that it has lagged behind it increase in assessed valuation. I would ;o like to note that on page three the (elopers have indicated that they feel it necessary to rehab the building substantially, the tune of between $80,000 to $100,000, in ier to stimulate adequate reinvestment in the )perty. Mr. Roemer is here this morning E South Be* Redevelopment Commission Regular Me ting - October 17, 1980 6. NEW BUSINESS a. Mr.l McMahon continues... re resenting the owners, and I would ask him for ad itional comments. Mr. Roemer: Mr. McMahon, I think, has properly pr sented our position. One -half of the property is vacant, the other half has a non - paying occu- par t. The property has been vacant and rent fr e for more than one year. Mr, and Mrs. York are willing to purchase the build- ing if they can secure tax abatement and economic development bond financing. Without abatement they can't go ahead. They have a firm bid in excess of $90,000 to rehabilitate the building, including in erior and exterior work. We feel it is an ur an development area and request your approval. Mr Nimtz: This building has had very hard wear through the years. I can remember when it was the bus depot during the war. It has had very very hard wear through the years, and it does need rehabilitating. I am pleased to see that there is a movement to do do something with it because it is the poorest building around in that area. Mr, th- Mr be Coy gi, Cil cai Ms Mr Ms va McMahon: In summary, the staff does recommend is receive favorable consideration. Donaldson made a motion that the staff report approved and recommendation be made to the City incil that the property at 305 West Jefferson be COMMISSION RECOMMENDS fen Urban Development Area designation. Mr. URBAN DEVELOPMENT AREA •a seconded the motion and it was unanimously DESIGNATION FOR PROPERTY •ried. AT 305 WEST JEFFERSON. , Derbeck: What is in that building now? Nimtz: Reagan Headquarters. , Derbeck: I presume that it is basically a :ant building. 0 South Benq Redevelopment Commission Regular Meting - October 17, 1980 6. NEW BUSINESS a. cdntinued... Mr. Nimtz Yes, most political headquarters do n t pay any rent, except the Brademas Headquarters is paying rent to us. They are usually allowed to use the building for nothing to keep it occupied. Mr. Derbeck: But it was vacant before that. Mr. Nimtz: Yes. Mr. Butler: As a matter of fact, I think that the east part of that building is still vacant, is it not Bill? Mr. York: Yes. Ms. Derbeck What was in these before? Mr. McMahon: Slidecraft was in the back and there was an art sales outfit in the front. Ms. Derbeck: Didn't you say it used to be the bus company? Mr. Nimtz: Years ago, during the war, it was the bus depot. Mr. York: We have hopes of being able to utilize some of the unique architectural structure, the arched doorways and the inset doorways. We hope to emphasize those in the remodeling process, and I can't tell you exactly what it is going to look like at this point, but I do have hopes that it will look like an artis -t's renderina that is hanging in our office, if you would like to come over and see it. The one firm bid I have, the fellow went so far as to actually give me a draw- ing of the way it might look. If it looks any- thing like that, it will be a very attractive ad ition to the downtown. I am sorry that I di nit bring the drawing along. 7 South Benc Regular ME Redevelopment Commission ,ting - October 17, 1980 6. NEW BU$INESS b. Commission approval requested for the followin Grant program bid contracts in accordance with recommendation of'the Bureau of Housing, su je t to legal counsel review, and South Bend Common Council approval at applicable: Mr McMahon: As you know, anything over $5,000 goes to the Common Council. We have seven dif- ferent locations and contracts before the Commission this morning. I will read down the entire list of them and then we will ask, if the Commission would agree, to come back and discuss those which may merit further discussion. Name Contractor Amount Pamela Jer igan 1149 E. Mitier Anastasia r1rozinski 513 S. Liberty C. Kilinsk 438 Harris Gwen Lax 1115 W. Oal, Street Esther Pas iet 1305 W. Grace Street William Mn chowski 2414 W. Gr ce Street Michael & ickie Eitler Ray Bockaj $ 9,975.00 Diedrich Construction 5,857.00 Wilton Construction 16,670.00 Co. Charles Brown Main- 4,713.00 tenance Co. R. A. Stickler 8,311.00 Plumbing Joe Plaia Construction 8,333.00 Bud Wilton Construction 8,928.00 I would ask Mrs. Baumgartner to highlight for us those particular properties where we are receiv- ing the recommendation of a contractor that was not the low bidder and the reasons for the recommendation. South Benj Redevelopment Commission Regular Meting - October 17, 1980 6. NEW BUSINESS b. continued... Mrs. Baumgartner: I believe that on the first one, Pamela Jernigan, 1149 E. Miner, you will note that there was an original cost estimate and a revised cost estimate. The bid is based on a revised cost estimate. R. A.'Stickler is 20% below that, and for that reason is not recommended by the Bureau of Housing as that is our rule of thumb for elim- inating a contractor. Ray Bockaj, in the amount of $9,97.5.00, did present a complete bid and it is not either 20% under the cost estimate nor 20 o above. Mr Cira: This is the first time in a long time that we went on this 20% under estimate, Kathy. I aven't seen this before on these bids. Mr;. Baumgartner: We have done that consistently anJ I believe that at the last meeting, as a matter of fact, the Commission overruled one pa ticular case in favor of R. A. Stickler. Mr Butler: Bob, this was discussed in full at th one meeting that you did not attend about a mo th ago. We had a number of those underbids. Mr. Cira: Stickler is a legitimate contractor, and if he has everything down there like every- body else has and he is willing to do it for $8,200, why don't you let him have it? Mrs. Baumgartner: We feel that we ought to pro- tect the money that we are going to invest in a property. We know that Dick Stickler is a reputable contractor, however the cost estimate is there for a purpose and it is for the proper USE of federal funds. For example, if a new co tractor came in without any experience, he may not know the ropes of the program and he could easily underbid the job. Mr. Cira: Yes, but he is not a new contractor. He has done a lot of work for us. 9 South Bend Redevelopment Commission Regular Me ting - October 17, 1980 6. NEW BUSINESS b. co W nued... Mrs. Baumgartner: Fine, but we have to maintain a co sistent approach to our contractors, and this 20 is our cut-off point. It would be a cut -off point for an old or a new contractor. The premise for that is that if you get too far below the cost es imate, the contractor must cut corners in some pa ticular work. Mr � Cira: You have follow-up people to make sure he doesn't, don't you. Mrs. Baumgartner: Of course we do. Mr Cira: Well, if he is willing to do it, I would le him do it. Mr Nimtz: Bob, we were in a quandry really what to do on these, and the thing got down to the poor property owner sits there while you are having a fight to get the guy to complete it and do it right. Mr . fe' we Mr in Cira: I realize that, Mr. Nimtz, but if this low is a legitimate contractor, I don't know why can't give it to him. McMahon: Has Stickler ever failed to perform the paste Baumgartner: No, he has not. Mr McMahon: Are you having problems with him on pr sent jobs? Mr;. Baumgartner: No, we are not. We may say, however, that Dick Stickler is new in the general co tracting business. Formerly he appeared with thR Bureau as a plumber. He is in the process of tw jobs, and I could not tell you whether or not he will handle these large jobs properly or not. He has handled the clean -ups very well. 10 South Bend Regular Me edevelopment Commission ing - October 17, 1980 6. NEW BUSINESS b. coHtinued... Mr. McMahon: Since I certainly have a great deal of respect for the need for a general policy in re iewing bids as they come in, particularly when YOL are dealing with a large number of contractors on repetitive work and in the case of a program l e the 31Z'Program where we have a number of di ferent households that are benefitting, I think onE thing that the Commission might like to look at is whether or not any modification of the policies that the Bureau of Housing has been using should be modified. I would think that when we receive a low bi from a contractor that does have an established re utation in this area, and if it is the case that thE Bureau of Housing has no conflict with him on an3 current job or on any past job, and if the low bi and the difference between the estimate and hi bid has been pointed out to the contractor, he ha an opportunity to review it and he still feels that that bid is legitimate, then I would think that under those circumstances the Commission might consider that contractor and allow the 312 Program and the homeowner to benefit from the lower cost. In absence of any type of a conflict or.problem wi h the contractor, I personally feel uncomfortable wi h rejecting that type of a bid. Mr Nimtz: I believe that 20% is a HUD regulation or recommendation, isn't it? Mr;. Baumgartner: The HUD recommendation is a 10% fi ure above or below the cost estimate figure for rejection. We have spoken to them and have.settled on a 20% figure as our cost estimate. Our cost estimate book is not as sound as we would like it to be. We have just recently added a cost estimator to our staff to update that book. I might also point out, in regulations which will become effect- iva in February for the 312 Loan Program, any esti- mate that is chosen that exceeds the 10% level, particularly 10% higher, that contractor then has to deposit into the 312 Loan Account the difference between the 10% figure over the cost estimate and the amount of the loan. So, in that particular case, 11 South Bend Redevelopment Commission Regular Me ting - October 17, 1980 6. NEW BUSIINESS b. Mrsj. Baumgartner continues... now we.�are talking about an overage, not an under, a , so it seems that in the future 312 Rules they ar stinking fairly close to the 10 %. Mr. Nimtz: The HUD thing is 10 %, the Bureau of Housing is 20 %. If you Urant to go ahead with Stickler, the Chair will vote that way. It is up to Pete, then. My understanding of the Par lia entary regulations, we need three votes to do anything this morning. Mr. Donaldson: I have to agree with Bob. Mr. Sti kler has been very good as far as we are concerned. Mr. Nimtz: To refresh your memory, Kathy says Mr. Stickler has been a plumber, and he has gotten into the general contracting business and we have given him seven general contracts, two of which he as begun working on. None of them have been com leted yet, and we have not received any com- plaints on the ones he is working on. Let's han le this contract separately. Mr. Cira made a motion that the bid contract for Pamela Jernigan, 1149 East Miner, be awarded to GRANT BID R. . Stickler. Mr. Donaldson seconded the motion AWARDED and it was unanimously carried. (1149 EAST Mrs. Baumgartner: I have a question regarding our pro edures. Would you like for us then to main- tai our 20% recommendation to the Commission, or would you prefer us to take under advisement what has happened here. Mr. Nimtz: The tenor I get of the Commission is that you should go ahead and follow the 20 %. Where you get a contractor that is established, with whom you have had no difficulty, let him go ahead even tho gh he is under the 20 %. Mrs tha tha do Baumgartner: Do you want the Bureau to make recommendation or the Advisory Board to make recommendation, or did you wish that recommenda to come from the Commission? 12 CONTRACTS MINER) South Bend Redevelopment Commission Regular Me ting - October 17, 1980 6. NEW BUSINESS b. co6tinued.. Mr Cira: I think you should handle it just like yo did, Kathy, and let the Commission make the de ision. Mr Donaldson: We don't want to set a precedent he e where you waive that 20 %. Mrs. Baumgartner: Next is Anastasia Mrozinski, 513 South Liberty. On this particular case, I be ieve, the Commission will have to rescind a previous approval to Kraft Builders in the amount of $4,409, and I will explain what happened -here. There was a one -page addendum which Plaia ConW st uction and Kraft Builders did not complete as part of their bid. When we were talking to Kraft Builders in getting the subsequent document si ned, he became aware of the fact that one page wa not bid on and said he would not do the job fo that amount of money. Therefore, he did sub- mi a bid on that particular page along with Joe P1 is who then also submitted it. They were the on y two contractors who did not bid on the ad endum. Upon reviewing the contracts then, Di drich Construction is the low bidder. Mr Nimtz: So we need to rescind the action pre- vi usly taken on Kraft and award it to Diedrich, is that right? . Baumgartner: Yes. Mr, Donaldson made a motion to rescind the action previously taken and award the bid to Diedrich Con- struction. Mr. Cira seconded the motion and it was unanimously carried. (513 SOUTH LIBERTY) ne $1 ap wi Baumgartner: Clara Kilinski, 438 Harris is ;t. As you will note, the amount of the grant is ),670. This is a grant -loan combination 1,000 is the grant maximum). The loan has been )roved by the Redevelopment Commission and that 1 make up the difference in the $11,000 figure. 13 South Bend Redevelopment Commission Regular Me ting October 17, 1980 6. NEW BUSINESS b. Mrs. Baumgartner continues... As you will note, the bid was $19,711. Once the lowest bidder was determined, we then negotiated wi h him to cut off items that were not, in fact, co (e items so that we could obtain a loanable fig- ur to this woman, and that figure came in at $1 ,670, so that is what he has agreed to do. The am unt of the work has been changed. Mr Butler.: Were the bids from Bockaj Construction Co pany and Jefferson Builders rejected because they we e 20% below the estimate? Mr Baumgartner No. As a matter of fact they bo h were incomplete bids. Mr Cira: Do they have the opportunity to complete th it bids, Kathy. Mr Baumgartner: No,they do -not. If they present an incomplete bid at bid opening it is then dis- qu lified. Mr Donaldson made a motion that this contract be aw rded to Wilton Construction. Mr. Cira seconded th motion and it was unanimously carried. (438 HARRIS STREET) Mrs. Baumgartner: Gwen Lax, 115 West Oak Street is next. This contract has a 20% under figure and that was for Bud Wilton who thought that he could do the jot) for $3,070.60. We recommend Charles Brown in the amount of $4,713. Bud Wilton is a new contractor with the Bureau of Housing. All of the work that he has done has been completed to our satisfaction and one of his jobs, I believe, was for $7,000, so it was a contract of substance, it was not merely clean-up activity. Mr McMahon: Did he have any opportunity to review hi bid for $3,070.60 and still felt that it could be done for that amount. Mrs, Baumgartner: We haven't talked to him speci- fically about this home, but he has talked to us about the fact that he felt his prices were.legiti- ma a and he could do the job for the price. 14 South Bend Redevelopment Commission Regular Me ting — October 17, 1980 6. NEW BUSINESS b. continued... Mr, Butler; This is about 45% below, isn't it, Pa , as opposed to 20 %. Mr.l McMahon: Yes. Mr.I Donaldson: He has done work for us before? . Baumgartner: A minor job. Mr. McMahon: On the other hand, Ray Bockaj, whc does a number of them for us is almost that mu (h high. There is a spread. I don't think you car look at the bids, just on the basis of four of th m, and determine exactly where that range is, Has Mr wilton done a number of projects in the community ou side of the 312 process. Has he been in the busi- ne s in the community? Mrs. Baumgartner: Yes, he has. As a matter of fact he was the consultant for the work the County Commis- si ners did through their County Community Develop- me t Program. Mr. McMahon: I would suggest that the Commission might consider, based on the way in which he has per- formed for the Bureau on the previous ,job, and the fact that he is a substantial businessman in the community and has demonstrated that he is knowledge - ab e in the field, that he be considered even though it is below that 20 %. Mr Nimtz: Robert, do you want to make a motion th t this be awarded to Bud Wilton? Mr Cira made a motion that this bid be awarded to Bu Wilton. Mr. Donaldson seconded the motion and it was unanimously carried. (115 WEST OAK STREET) Mr Butler: Pat, do you think Bud Wilton should ha e the opportunity to review his bid? UR South Bend Redevelopment Commission Regular Me ting -- October 17, 1980 6. NEW BUSINESS b. co►tinued... Mr. McMahon: Yes, I would think it should be policy that when a man does submit a low bid th t he have the opportunity to review that, in li ht of the fact where the other bids are, to de ermine whether or not he would like to state th t he made an error in his bid or miscalculated in order to withdraw it. If he wishes to pursue it though, I think that he should have the oppor- tur ity to do the job. Mr Baumgartner: That is an option for all awarded co tracts at this time. Mrs. Baumgartner: Esther Paskiet, 1305 West Grace St eet is next. This was awarded to the lowest anc best bidder, which was Dick Stickler, for $8,311. Mr.l Nimtz: Are the rest of these all routine now? Mr Baumgartner: The other ones are all 20% under co t estimate, but in addition, he also submitted an incomplete bid so that would throw it out. Mr Nimtz: Kevin, can we just go through the rest of them then and take them all at one time? Mra Butler: Yes. Mrs. Baumgartner: William Mnichowski, 2414 West Grace Street, Michael and Vickie Eitler, 1010 East FoX, Street, The contract for Eitler was recommended to go to Bud Wilton, but in this particular case we do have a valid bid from R. A. Stickler for $6,909, wh ch was not recommended to you because it was 20% un er the cost estimate. Mr. Cira made a motion that the contract for Paskiet be awarded to R. A. Stickler Plumbing; that the con- tract for Mnichowski be awarded to Joe Plaia, and the contract for Eitler be awarded to R. A. Stickler. Mr. Donaldson seconded the motion and it was unani- mo sly carried. 16 (1305 WEST GRACE) (2414 WEST GRACE) (1010 EAST FOX) South BE Regular 6. NEW a c. !nd Redevelopment Commission Meeting - October 17, 1980 BUSINESS tinued... co Ms. Derbeck: Is Wilton Construction Company and Buc Wilton Construction one and the same? Mrs. Baumgartner: Yes, they are one and the same. Co mission approval requested for a rehabilitation grant in the amount of $9,,924 to Renew, Inc.,.a not-for-profit group for re airs and improvements on a house located at 525 East Dubail, as aer'letti from Mrs. Kathryn Baumgartner, Director, Bureau Of Ho sin . McMahon: Kathy, I will refer this to you for Mr. co ments. Mrs. Baumgartner: Renew, Inc. is perhaps our prim mo er in our non - profit grant group program. They ha e reauested a non - profit grant in the amount of $9,924, the maximum being $10,000, to repair the ho Re at 525 East Dubail. I might add that Mr. Johi Hill, who is Executive Director of Renew, Inc., is here and perhaps he would like to say something. Mr. Hill: This is a home on the south side. As yi know, we have done a lot of work over there. The Bureau Inspectors have seen the house and it is of ve y good construction and we want to work with Ro ald Griffin and his family, who will be purchas, inc this house eventually, after it has been re- ha ilitated through Renew, Inc, Renew now -has a recorded Warranty Deed on the house. Mr. Cira: How do you base the selling price on the hones? Mr. Hill: The selling price is based on a lot of things. It is based on the income of the family. ThE people go out and look for a house. This fa ily selected this house. They know what they car afford. Usually we tell them that they have to look for something that would require slightly less than a fourth of their monthly income, becaus we don't want them to strain at all to make a montl pa,ment. In this case, after it has been rehabil t to ed, the house will be sold to the family for 17 �r )u ?se Ily South BendlRedevelopment Commission Regular Me ting - October 17, 1980 6. NEW BUSINESS c. Mr.1 Hill continues... $12,500. The profit that is made on this (Renew paid cash for it at $8,500) will be program in cone and will be kept in a special account as the Co e of Federal Regulation requires. Mr.1 Butler: What are those monies then used for? Mr. Hill: They are used for the same purpose as the grant - whatever the line items are in the grant. Thy have to be kept separate from the general funds that we use. Mr. Butler: You can use those monies to purchase an ther property? Mr. Hill: We are able to use those funds to purchase other houses. Mr. Butler: And also to renovate? Mr. Hill-.' That is right. Mr. Nimtz: To refresh the Commission's memory, this is the first time Renew has been before us for a num- ber of months. Their record with us is excellent in the restoration business. You have done some work on Jefferson Street, haven't you? Mr.1 Hill: That is right. Mr. Cira made a motion that the request for a rehabili tation grant in the amount of $9,924 to Renew, Inc. for repairs and improvements on a house located at 535 COMMISSION APPROVAL East Dubail. Mr. Donaldson seconded the motion and it OF NON- PROFIT GROUP was unanimously carried. GRANT TO RENEW, INC. d. Co fission approval requested for awarding of contracts in connection with the HUD Audit Clean-Up Activity Pro - gra , in accordance with recommendation of the Bureau of Housina. Mr. McMahon, I believe that all Members of the Com- mis ion are familiar with the program. It is in ord r to correct code items from the 312 Program 18 South Send Redevelopment Commission Regular Me ting - October 17, 1980 6. NEW BUSINESS d. Mrj McMahon continues... that were previously missed, and these improvements ar based on Bureau of Housing re- .inspections of these properties. In all cases, I am informed, the low bid is represented by these figures. Is it necessary to read two pages of these into the re ord, Kevin? Mr Butler: No, Pat. I think that the motion mi ht include reference to the items as listed on the agenda. Mr McMahon: What would your pleasure be, Mr. Ni tz? Mr. Nimtz: HUD has asked us to do this to clear up problems remaining from the audit. Mr.1 Cira: I have one question. Kathy, were these it ms in the original bids? Mrs.. Baumgartner: No, they were not. These are grant contracts and loan contracts, but there were still code items remaining in the homes when we re- inspected them. Any items that were ori- gi ally on contract and were not taken care of pr perly, for whatever reason, the contractor is being called back. Items that have fallen into disrepair through no fault of the contractor and arE not of a code violation, are not being cor- re ted by us. Mr. Cira: All is this then Mrs. Baumgartni thE HUD audit. Mr. Donaldson: am unt that it co e. right. No fault of the contractor any fault of the inspector? ar: Yes. That was the findings of Then these figures reflect the is going to cost to bring it up to Mrs. Baumgartner; Right. 19 South Bend Redevelopment Commission Regular Me ting - October 17, 1980 6. NEW BUSINESS d. continued... Mr. Donaldson: In other words, some of these figures, I/ e this $20, is all that it takes on this particular pr perty. Mrs. Baumgartner: Yes, that is all it takes on that pa ticular house. Mr, Cira: How did you determine who was going to do this. Were these contractors one and the same? Mrs. Baumgartner::, On each letter you will find a number of contractors. What we asked them to do was submit competitive proposals and since these were not formally bid we were not obligated to formally bid these. In all cases, the lowest bidder has bee selected, unless, of course, someone has sub- mit ed an incomplete (bid) proposal. Mr. Cira: Have you done anything in your Department so this won't happen again? Mrs, Baumgartner: Certainly. Mr. McMahon: The record should probably note that there are thirty -three (33) different contracts listed. Do you have a total sum? Mrs. Baumgartner: No. Mr. McMahon: These contracts are in varying amounts fro $20 to, I believe, $3,000. Mr. Nimtz: This has to go back again to the quality of the inspectors. Mr. Cira: That's the whole thing, that's what we havo been fighting for a whole year. Mrs Baumgartner: Just as a note, in terms of the 312 Loan Program, which you all had an enormous jurisdiction over. We inspected 55 properties and of those 55 only 13 had remaining code violations, as )pposed to the Grant Program which of the 92 that we inspected all had code violations. So I 20 South Bend Redevelopment Commission Regular Me ting October 17, 1980 6. NEW BU INESS d. Mrs. Baumgartner continues... think that that is encouraging just in terms of what you all were watching closely in terms of approval of the loan. Ms Derbeck: Have I got it clear then that these arE to correct code violations that were missed in the initial inspections? Mrs. Baumgartner; Right. HUD says that vie deter- mire that these were missed, and has approved that we use Community Development funds to pay for the corrections, Mr McMahon: At no cost to the property owner. Mr. Nimtz: But these are not items that the or ginal contractor was supposed to do. He is be ng called back on those items to re -do those it ms. These were things that were missed by the inspector to bring it up to code. Mr. Nimtz: Do I hear a motion that is suggested by the Chair. Mr. Butler: A question. Are all of the con- tractors to whom you are recommending the bids be awarded, have they been doing work with the Bureau, an has their work been acceptable? Mrs. Baumgartner: Yes. We have done approximately 40 of these contracts already for which the Bureau has contracted. Just recently the Legal Depart - me t has been doing a review of the contract pro - ce ure and has determined that the Bureau cannot sign co tracts, therefore all of these are coming to you no , and you will be seeing home improvement loan co tracts, etc., since we can no longer sign more co tracts. Mr. McMahon: Kathy, how many more properties would th Commission expect to see in this regard, or is this the last? 21 South Bend Redevelopment Commission Regular Me Ling - October 17, 1980 6. NEW BUSINESS d. co6tinued... . Baumgartner; Sixty three additional. Just for the Commission's benefit, I would like to introduce David Daren. Dave is the Assistant Director of the Bureau. Dave has come to us very qualified and is helping us with our Field Staff and is, in essence, whipping them into shape so th t we have the proper perspective and we are en orcing code as it should be enforced. Ms Derbeck: You have 33 contracts here and you ca expect 63 more, right? Mr$. Baumgartner: Right. Ms Derbeck: How many instances were there where you had to call the contractor back? Mrs. Baumgartner: In those cases, on every house we are calling them back. As you recall, we had four contractors for each job because we bid in component parts of electrical, plumbing, heating, and general construction. So for the most part there are problems with some component on each house. However, with the 312 loans, we did have 20 homes that there was no problem with. Ms Derbeck: Could you estimate how many there ar ? Mrs. Baumgartner: I would say all of them. Not to make it sound like the contractors were con- certed on a big rip -off of one sort or another., A number of times there were additional items also done in the house, and so it was a lack of the proper paperwork being processed by the Bu eau. There should have been a corrected change or er either for money or not for money, or at least an equal exchange change order. So there may not be one item done but, perhaps, the con- tractor did another item. However we noted that th t item was not completed and we did have to cite the contractor. He can then counter us say - in , however I did this, and that is a satisfactory an wer. 22 South Bend Redevelopment Commission Regular Meeting - October 17, 1980 6. NEW BUSINESS d. cohtinued... Mr. Cira: Do you have a sufficient amount of inspectors for your Department, Kathy? Do you really follow up on these jobs? Mrs. Baumgartner Yes, we do. Right now the inspection component is broken doyen into two parts. We have the inspectors who do the initial inspection of the home. The home is then transferred to a program and is rein- spected by a rehabilitation specialist who wo ld then evaluate what the inspector said, pl s follow the progress of the job. P^r.l C ra: So you shouldn't have these problems. Mrs. Baumgartner: No. As a matter of fact, thE first couple of jobs we have gone on, contractors have been made to correct things as substantial as tearing off a roof that they have out on. So I think that they are being ve strict in their interpretation of what is going on. Mr. Donaldson: Then that will eliminate a lot of �hange orders. Mrs. Baumgartner: Yes. Also, the general con- tractor is now responsible for the -whole job where as before he was only responsible for one portion. Mr. Cira: It seems to me that we are getting many more contractors to bid on these jobs now. We used to have problems getting contractors. Mrs Baumgartner: Yes. We have gone out and cultivated quite a fete contractors. We had a contractors meeting where a number of contractors did show up, I believe we had 53 attend. Dave has been visiting with the contractors and explaining our procedures to them. We are really trying to acc mmodate them in a lot of ways also so that we ill have enough contractors to do the job. 23 South Bend Redevelopment Commission Regular Me ting -- October 17, 1980 6. NEW BUSINESS d. co6tinued... Mr Donaldson: Aren't some of these figures enormously high for this type of activity? Here is one for $3,500. He didn't do anything to this house, did he? Mrs. Baumgartner: I believe he did $9,000 worth of work. I think what we are finding out is that there are a number of houses which iae should not touch because the amount of rehabilitation ex- ceeds what we are able to service through our programs. What the Bureau did was to service $9 000 worth of work when in essence we should have said, I am sorry, we cannot complete this house. That is what we are doing now and so yo will see, perhaps, some figures even higher th n this, but that is just what the house takes. It was in a very bad state of repair. Mr, th( bu- Butler: Kathy, are you still going back to Common Council, not on these necessarily, on the new bids in excess of $5,000? Mr Baumgartner: Yes, and any of these that are in excess of $5,000 we will have to also. Mr Butler: How about any of these that would ha a been under $5,000 initially, is it necessary? Mr . Baumgartner: I will have to check that out, bu I would imaoine since they are separate con - tr cts that we will not have to. However, all the in -tial contracts did go through the Council. Mr. Donaldson moved that the contracts be awarded in connection with the HUD Audit Clean -Up Activity Pr )gram as listed on the agenda, beginning with Th mas C. Anders, 2101 South Kendall, through Edna Gi lispe, 1701 South Taylor. Mr. Cira seconded th motion and it was unanimously carried. 24 COMMISSION APPROVAL GRANTED FOR AWARDING OF CONTRACTS IN CON- NECTION WITH THE HUD AUDIT CLEAN -UP ACTIVITY PROGRAM South BE Regular 6. NEW e. f. !nd Redevelopment Commission Meeting - October 17, 1980 BU INESS mission approval requested for a No Lien Co Co tract between the Redevelopment Commission a'nJ Area Services, Inc:; for the rehabilitation of real property situated at 742 South Grant, as per letter from Ctrs: Kath!�Xn Baumgartner, Director, Bureau of Housing, McMahon: This is the first emergency repair Mr. co tract that we have seen that is for the repai of a furnace and there will be some 312 activity which will follow. But, because of the emergenc nature, that will lag behind this particular act if you choose to go ahead with it this morning. Ka hy, would you like to summarize this? Mr;. Baumgartner: No, that is fine. Mr Donaldson roved that the No Lien 'Contract fo re air of a furnace at 742 South Grant Street be ap roved. Mr. Cira seconded the motion and it wa unanimously carried. Commission approval requested for Resolution No. 62 authorizing the execution of Redevelopment Act eement for the disposition of land and the execution of quit -claim deeds for the transfer of title thereto in connection with land to be disposed of in the LaSalle Park Project, Ind. R-57. McMahon: There are two properties listed, Mr. Parcel 8 -1 and Parcel 7 -14 at $181.20. Kevin Horton has done some work in this regard. Kevin would you please give us some information. Mr Horton-, This is a case where some six month! ago Mr. Davis had placed a deposit on the proper prior to our $1 per lot sale, We were going to refund that deposit but Mr. Davis preferred to p it outright and we gave him a certain period of ti e to obtain the money and he is now ready to cl se on the property. 25 V ion, ty ay COMMISSION APPROVAL GRANTED FOR NO LIEN CONTRACT ON EMERGENCY REPAIR AT 742 SOUTH GRANT. South Bend�Redevelopment Commission Regular Me ting - October 17, 1980 6. NEW BU$INESS f. cob tinued... Mr Cira moved that Resolution No. 627 be ad pted. Mr. Donaldson seconded the motion an it was unanimously carried. 7. PROGRE$S REPO Mr. McMahon: We have a request to set a public hearino for the November 21, 1980 meeting of the Redeve opment Commission for the purpose of con- sideritig the changes in the R -66 land - -use plan. I would request that the Commission consider set- ting t at public hearing. Mr. B Iler: We have the advertising requirement which equires us to take action at this time. Mrs. K lata: Yes. The earliest we could hold a hearing is about the 10th or 11th of November and this would give us plenty of time to get the notice published. Mr. Ci a moved that a public hearing be set for November 21 to discuss land -use changes in R -66. Mr. Dorialdson seconded the motion and it was unanimously carried. Ms. De beck: You set a hearing on land -use changes requested by the Common Council? Mrs. K lata: The land -use change on the downtown plan was requested by us. It was considered by the Counci on Monday and they approved our recommended change . This is the public hearing to be followed by the reconfirming resolution. Mr. McMahon: In order to make changes in the plan, it is vitiated here then goes to the Area Plan Commission, Common Council, and then has to come back to the Redevelopment Commission. 26 COMMISSION APPROVAL OF RESOLUTION NO. 627 AUTHORIZING SALE OF PARCELS 8 -1 AND 7-14 IN IND. R -57. PUBLIC HEARING ON IND. R -66 LAND -USE CHANGES SET FOR NOVEMBER 21, 1980 South Bend Redevelopment Commission Regular Me ting - October 17, 1980 7. PRO (continued) Mr. McMahon: I have two people that I would like to introduce to the Commission. I would like to intro- duce Jeff Rush who is going to be serving us as the Targeted Jobs Coordinator, pursuing a program which is very similar to one which the Commission, I be- lieve, sought to be funded a year or so ago. Although that wits not funded, the need exists and Mr. Rush is going to be pursuing the incorporation of eligible partic pants into businesses that will be expanding or com ng into our community utilizing Federal Funds, Mr. Rush has worked with CETA previously and has a great eal of background and really brings a good deal of experience to us in that regard. He cer- tainly knows the ins and outs of the people that he is going to be placing and the abilities of the pro- gram arid the type of situations into which they best fit. I "d also like to announce that Jane Zimmerman will be leavind the Redevelopment staff after this morning and will be going up into the Public Works end of the City operation. That will be effective later today. I would like to introduce Angela Coar who is making that change with her and will be coming down and serv- ing as a secretary in this office. Mr. Ni tz; We welcome the new addition and we are pleased to have him. Jane, already told you we are sorry to see you leave. You ha ,,e done a great job here. I say we have the reputation of having the best minutes of any body in the City, and you have helped to maintain that tradi- tion, and so we thank you for all of your effort and activity in that regard. I know that sometimes it hasn't been too easy to put these minutes together, but you have done a great job and we wish you well in your new position, Mrs. Car, we welcome you to come with us. We aren't too hard to net along with, so I hope you will like it here. 27 South Bend Regular Me( , edevelopment Commission ;ing - October 17, 1980 7. PROGREIS REPORTS (continued) Mrs. Zimmerman: I would like to thank you for your kind r marks. Working with Redevelopment, as I ex- plaine to'Mr. Horton this morning, is the only depart- ment I have ever worked in really in all my years of experience that I have been able to come up to some- one on the street and they will say, where do you work, and I can exactly explain what I do, because I can see what is going on in day to day activities. I am cer- tainly going to come down and visit and see the con- tinuous activity and excitement that is going on in Redevelopment. Mr. Ni tz: Thank you. I might report that Pat, Jeanne Derbeck and I attended the Architects State Convention here. We were very diligent in attending everything, and T on't know what Jeanne heard, but everybody that came u, to me said, my gosh, I wish we had this going on in cur city - what is going on downtown, and what they t ought of Century Center .. they thought it was a great tuildinq and that we got value received for what is there. I think you know all the architects that have b en involved with our situation - Century Center, First ank /Marriott, and the Mall were in attendance and sp ke as a part of the agenda there, so we were really in the limelight. I had numerous people from out of the city come up to me and talk to me about what is going on and how they wished they had the same situation. Jeanne, I don't know if you have anything that you picked up on your contacts down there. Ms. De beck: There were some comments on the mall. I heard zrchitects say that the speakers who are the archit cts for South Bend were really the vanguard of what i going on in that particular field, and that we were w y at the cutting edge of what is going on. Mr. Ni tz: Another thing along that regard, people said we really had quality in what we did down here, that we really picked top quality to do the job. Mr. McMahon: I heard a number of comments particularly in that regard. Other communities across the State that may have built convention centers in the last ten or fifteen years have basically a box doors going in and doors going out - and really no aesthetic features South BendlRedevelopment Commission Regular Me ting - October 17, 1980 7. PROGRE$S REPORTS Mr. McMahon continues... or highlights that really focus in on it as being in the heart of their downtown. I don't think that any- one can ever confuse Century Center with a warehouse or with just another building downtown, It speaks for itself physically and very dramatically, and a number of people expressed disappointment that their com muniti s did not take the same position that South Bend did in that regard when South Bend chose to do someth ng more than just put up four walls. Ms. De beck: In addition to the modern architecture, some of those architects were really impressed with the jot) that was done on Tippecanoe Place. They thought that was another asset to downtown. Someone told m that there were a lot of Romenesque mansions around the country, but they thought that this was one of the best Romenesque mansions. 8. NEXT COMMISSION MEETING The ne t regularly scheduled South Bend Redevelopment Commis ion Meeting will be hald on November 7, 1980 at 10: 0 a.m. 9. ADJOURVENT There teing no further information to come before the Commission, Mr. Donaldson made a motion that the meetinc be adjourned, seconded by Mr. Cira, and the motion was unanimously carried. The meeting was adjourr ed at 11:10 a.m. NEXT COMMISSION MEETING ADJOURNMENT President Pa rick M. McMahon, Executive Director 29