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HomeMy WebLinkAboutRM 12-19-80December 19, 10:00 A.M. Presiding Of 1. ROLL SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING 1980 ficer: Mr. F, Jay Nimtz, President 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Members Present: Mr. F. Jay Nimtz President Mr. Lloyd Robinson, Sr., Vice President Mr. A. Peter Donaldson, Secretary Mr. Robert Cira, Assistant Secretary Ms. Paula N. Auburn, Member Legal Cc Redevelc nsel: Mr. Kevin J. Butler ent Staff: Mr. Patrick M. McMahon, Executive Director Mrs. Ann Kolata, Deputy Director Mr. Kevin Horton, Assistant Director Mr. Paul Falduto, Employment Targeting Asst. Mrs. Angela Coar, Executive Secretary Mrs. Hedy Robinson, Secretary Communi Development Staf : News Melia: Mrs. Kathryn Baumgartner, Director, Bureau of Housing Ms. Jeanne Derbeck, Reporter, South Bend Tribune Guests: Mr. James Cronk Mrs. Glenda Rae Hernandez, SEPAC 2. APPROVAL OF MINUTES On motion by Mr. Robinson, seconded by Mr. Cira, and MINUTES OF REGULAR unanimously carried, the Minutes of the Regular Meet MEETING OF DECEMBER 5, ing of lecember 5, 1980 were approved. 1980 WERE APPROVED 3. APPROM OF CLAIMS Mr. Nimtz: The Chair announces that he and the Director, Mr. Patrick M. McMahon, have gone over the claims prior to this meeting, which was necessary in order to close out the year, and have found them all in order. I need a motion to rati y and confirm the actions of the Presi- dent an .Director in approving the claims. CLAIMS APPROVED South Bend R development Commission Regular Meet ng - December 19, 1980 3. APPROVALIOF CLAIMS (continued) On motio by Mr. Cira, seconded by Mr, Robinson, and unanimou _by carried, the claims totalling $60,189.39 were all wed and ordered to be paid. The authorized claims at: REDEVELOPMENT REVOLVING FUND Payroll: 11-29-80 to 12-12,80 $ 6,582.90 Business Systems, Inc. 43.20 Osco Drug 10.18 Smith Petroleum 80.83 TOTAL $ 6,717.11 REDEVELOPMENT DISTRICT CAPITAL Patrick 11. McMahon $ 115.17 Travelmo e 594.00 Radisson South Hotel 134.25 TOTAL $ 843.42 P.E.A. - EAST BANK AREA Butler, Attorney $ 85.00 Kevin J. TOTAL $ 85.00 ]INKS. 0 Area Services, Inc. $ 22.50 Kevin J. Butler, Attorney 977.30 Jordan's Mishawaka Transfer, Inc. 408.14 Parker, Brunner & Hamilton 1,195.00 TOTAL $ 2,602.94 P.E.A. - 312 LOANS Shilling Carpet & Terrence Finney $ 844.58 Bartholomew's, Inc. & Terrence Finne 96.34 TOTAL $ 940.92 0 South Bend R development Commission Regular Meet ng December 19, 1980 3. APPROVALIOF CLAIMS (continued) REDEVELOPMENT BOND REDEMPTION St. Jose0h Bank U Trust Company TOTAL GRAND TOTAL 4. COMMUNICATIONS $49,000.00 $49,000.00 un_1P9..�9 There wee no communications to present to the Commissi n. 5. PUBLIC HARING a. Continuation of public hearing on East Bank De- velo ment Area continued from December 5, 1980. Mr. Mimtz: The Chair recalls everyones atten- tion that at the last meeting, December 5, 1980, we continued until today the public hearing on the East Bank Development Area. Mr. Butler: At this point if there is no addi� tion 1 comments to be made in conjunction with the public hearing, we can declare the public hear ng closed. Mrs. Kolata: I would like to enter into the reco d that there were no written remonstrances rece ved. Mr. �utl.er; I don't believe we had any rem Mr. limtz: The Chair finds that there were no written or oral remonstrances to the proposed East Bank Development Area. The Chair now calls for any further comments, remonstrances, sugges- tions, and statements. The chair hears none. The hair now believes it is in order to ratify and �econfirm Resolution No. 626. 9 NO COMMUNICATION PRE- SENTED TO THE COMMISSION South Bend Redevelopment Commission Regular Meeting December 19, 1980 5. PUBLIC HARING (continued) a. continued... Mr. utler; Under 5a we close the public hear- ing ormally and under 7a, I believe, the actu 1 action to confirm takes place. Mr. Nimtz: The Chair now declares the public hearing closed concerning the proposed East Bank evelopment Area. 6. OLD BUSINESS There was�no old business to present to the Commissio . 7. NEW BUSINESS a. Commission a No. 62 ment P Area t Plan a ments with a, dE be b cond proval requested for Resolution Eying and confirming Resolution respect to the East Bank Develop- claring the East Bank Development ighted and approving Development itions under which relocation oav, Sri i i be made. Mr. Mc Mahon; Under 7a, we have tt .,io items that YOU will find in your,packets. The first is the fo mal Finding of Facts that we would ask the Coy mission to adopt this monring, which lists he five primary reasons for the declara- tion of the East Bank Area as a development area. It states that 47% of the land within the boundaries of the East Bank Area is currently vacant; the entire area has been zoned "D" light industrial since 1922. and, in spite of this, indust ial use has declined; the declining in- dustrial use has had a deteriorating effect on residential and commercial property; since 1960 the population of the area has declined 78 %, from 262 to 57, and the number of households has decreased 84 %, from 130 to 21; there are 86 structures in the area, and approximately 25% are deficient requiring various amounts of structu al repair; and the current assessed valuation in the entire area is $1,701,730. 4 THERE WAS NO OLD BUSINESS TO PRESENT TO THE COMMIS- SION South Bend R developrient Commission Regular Meeting - December 19, 1980 7. NEW BUSINESS (continued) a. Mr. M�Mahon continues... The R solution further reads that the South Bend Redev lopment Commission finds that it will be of publi benefit to the public health and welfare to re evelop the East Bank Area. We would ask that his Finding of Facts be adopted by the Commi sion this morning. Mr. N�imtz: Mr. Butler, do you want to suggest the p oper motion? Mr. B�tler; The motion would be to adopt the Findi a of Facts. Mr. Nhmtz: Do I hear such a motion? Mr. R binson: Is the City Council going to re zone his from light industrial to multi -- -purpose or so ething like this? Mr. McMahon: Once we go through the entire process this morning, assuming that everything is recon firmed, then we enter into that process with them. We would have no authority to do that prior to that time. Mr. Robinson made a motion to adopt the Finding of Facts as outlined and set forth in this document dated December 19. The motion was seconded by Mr. Cira and unanimously carried. Mr. C ra: One question, Mr. McMahon, who owns most of th property over there (East Bank Area)? Is there any one corporation or any one individual? Mr. M Mahon: It is very diversified. When we sent out n tices to tenants and property owners for the meeti g we held over at the Park Department, we had sixty (60) to seventy (70) people. Mr. Ora: So it is not just one group? Mrs. Kolata: No. Mr. Mc ing it but tl Mahon; There are some groups that are operat -, the area that own various pieces of property, ere is no one large group that owns everything. 5 South Bend R development Commission Regular Meeting - December 19, 1980 7. NEW BUST a. continued... Mr. McMahon: Mr. President, that being adopted, we then have the formal Resolution No. 630 of the Commission which ratifies and confirms Resolution No. 626 with respect to the East Bank Development Area It declares the East Bank Development Area to be blighted and approves the Development Plan and conditions under which Relocation Payments can be made. The Resolution provides us with a lega description of the area; it states that the Comm ssion has found the area to be blighted; it talk about the zoning and the process that has been utilized in order to come to those conclu- sion.,; it lists all of the appropriate public hear ngs, the last of which was completed this morn ng, and it comes forward with the "there- fore' section, which makes the actual recon- firm ng decl.aration. Kevin, the proper motion would be? Mr. �utler: To adopt Resolution No. 630. Mr. imtz: Do I hear a motion that Resolution No. 30 be adopted, which ratifies and confirms the doption of Resolution No. 626? Mr. ira made a motion to adopt Resolution No. 630, which ratifies and confirms Resolution No. 626. The motion was seconded by Mr. Robinson and inanimously carried. Mr. dimtz: Do I hear any objections or remon- stra ces to the adoption.of this Resolution? e were no objections or remonstrances heard.) Ms. berbeck: What happens next? Mr. pert Plan to t gene acti 4cMahon: The City, through the Redevelopment ission, is now in a position to acquire pro - y, to relocate people as defined within the to initiate public improvements that relate its activity in the East Bank, and to perform rally all of the Redevelopment - related vities in that area. 2 South Bend Redevelopment Commission Regular Meeti g — December 19, 1980 7. NEW BUSINESS a. conti%ued... Ms. D rbeck: Would you say that your specific next' tep::would be that the Common Council approve the rezoning that you did? Ms. K lata: We will certainly be beginni:ng that at the first of the year, but I don't think our next action will be dependent on that. Our next action will be to make purchase offers to the owners of the properties we have on our list. Actually, the first think we have to do is proclaim the value for those parcels and then make a purchase offer. Ms. erbeck: You are concentrating on property in the Race? Mrs. Kolata: Yes, we will be acquiring the Race and adjacent parcels. Mr. McMahon: There are only three total lots that are involved, plus we have a number of small takes. Ms. erbeck: What is your schedule? Mrs. Kolata: Our timetable is to make purchase offers after the first of the year. Ms. erbeck: The way it now stands, does this plan have to be ratified by the City? Mr. McMahon: No. The action was completed this morning. Ms. erbeck: What about other properties in that area, is that up to private developers? Mr. McMahon: It is up to private developers. The Redevelopment Commission does have the option to add to, subtract from, or modify the plan as we go along. However, we have to go. through the same hearing process in order to make modifications. Ms. erbeck: Will it have to be as it was down- town where a Developer stated his intention to buy roperty or vacant land? Would they have to come to you for approval of the plans? 7 South Bend R development Commission Regular Meet ng - December 19, 1980 7. NEW BUSINESS a. continued... 1 Name Mr. McMahon: The plan makes provision for review of a 1 of the development in the East Bank Area, just like the downtown area. We will have a Design Review Committee to review the project. Mr. imtz: Mr. Butler, I believe this is the first Reso ution that has been adopted concerning any Re- development where there hasn't been any objections, is that right? Mr. Sutler: Since I've been here, that is correct. Comm ssion approval requested for awardi tracts in connection with the HUD Audit Actiflty Program, in accordance with rec tion of the Bureau of Housing. Nettie Murph 1417 E. Mine Street Shirley Walk6r 820 Diamond venue of con - ean -U menda- Contractor Amount Stateside Construction $833.00 Charles Brown Mainten- 210.00 ance Co. Mr. McMahon; Kathy, would you outline these please? Mrs. Baumgartner: I would like to make this clear. If you notice, there is only one estimate. This is not contrary to the Commission's request at their last meeting, this is the normal procedure that we follow with the HUD Clean -Up. These were items that contractors were scheduled to do at an earlier time under the initial contract a year or two ago. Sinc that time it has been determined that the cont actors were not responsible for those parti- cula items and they were deleted from the contract. We hive already done a clean -up contract on both of t ese homes, yet these items remain as code viol tions and need to be corrected. For that reas n we went back to the contractor who did the clea -up work and got an estimate from them. On M'ner Street it involves exterior painting of the ouse, and on Diamond Street we replace two exte for doors and a storm combination. South Bend Re evelopment Commission Regular Meeti g - December 19, 1980 7. NEW BUSIN SS b. conti ued... Mr. C'ra: Kathy, is it really that hard to get more than one bid? Mrs. Baumgartner: No, it would not be difficult to do that. The people's houses have been some- what Pessed up, initially by the contract of two years ago. Three weeks ago we went into the houses with a clean -up contract. At the same time we did the clean -up, letters went to the contractors specifying the items that were their resp nsibility to correct. If the contractor is able to bring evidence to the contrary, we then eliminate that from their responsibility. So inst ad of getting a third or a fourth contractor to come to the house, we just go back to the same person who did the clean -up. Mr. ira: Why wasn't all of this in the original contract in the beginning? You wouldn't have had this problem. Mrs. Baumgartner: Exactly. That is what the HUD Audit determined. Mr. ira: It reflects back to the inspector? Mrs. Baumgartner: That is right. Mr. obinson: Has the work already been completed? Mrs. Baumgartner The painting of the house has, the Joors have not. Mr. ira: What happens if we don't approve it? Mrs. Baumgartner: Then we are in big trouble. Mr. Robinson: Well, you know it does not make any sense for us to sit up here and come down here and put our time in and make motions on this floor and then, the very next meeting, they come back and say, "well, we are sorry about it, we know what you did last meeting, but now we still want to operate the same way as before." I know what it was last tiME and how much dissatisfaction it was for ap- pro al of some of the other claims we had, we made 9 South Bend R development Commission Regular Meeting - December 19, 1980 7. NEW BUSINESS b. Mr. Robinson continues... a motion and it was passed unanimously as far as I know, but from now on we will have two bidders. So I don't know what you are going to do, but I am not much in favor of passing the thing. There is no sense of us coming down here wasting our time. Mrs. Baumgartner: I can understand your posi ion. But they are two distinctly dif- fere t situations. Mr. Robinson: There are no differences as far as we are concerned. We made a motion and there was action taken, and to me that is what should be complied with. That is what you would have to do in any other organization. What makes this so different? That is why I say you are wast ng our time when we come down here if they are of going to pay any attention to what ac- tion we take. Mrs. Baumgartner: You mean the Bureau of Housing in g neral? Mr. Robinson: Anybody. If we are supposed to be the Commissioners of Redevelopment, and we take action at this meeting, then it should be complied with, whatever action the Commission takes. If it is not, what is the sense of us even having a Commission? Mr. ira: Why do the work before we approve it? Mrs. Baumgartner: In terms of painting the hous , this was a contract that was approved befo e it was determined that the Bureau of Housing had to bring all of the contracts here. Mr. 9cMahon: I sympathize very much with Mr. Robi son and Mr. Cira with respect to one bid. From what you are telling me, this is addi- tional work that is being performed by a con- tractor who already has a contract for this home. It is not a new contract. Mrs. Baumgartner: Right. 10 South Bend Re evelopment Commission Regular Meeti g - December 19, 1980 7. NEW BUSINESS b. continued ... Mr. McMahon: It is just a change order. I am not sure why you use a separate contract form, but in essence it is a change order. That I can under- stand. Mrs. Baumgartner: They actually completed the terms of their original contract. Mr. McMahon: This is additional work by the same man? Mrs. Baumgartner: Exactly. Mr. ira: How can an inspector miss painting a hous ? If a house has got to be painted, you can see it as soon as you walk up the steps. Mrs. Baumgartner: I understand that, but this was something that was determined two years ago and was then eliminated from the contract. We then contacted the contractor who was the general con- tractor. He showed evidence that this was deleted from the house and this was the contract that had subsequently been completed but was not presented to a yone for approval. Ms. Auburn: So this is still part of the HUD Clea -Up Activity? Mrs.lBaumgartner: Right. Ms. Auburn: We have made a determination to try to move ahead and get the clean-up activity done. This is similar to some of the other clean -up activities and contracts that were looked at, where the Bureau of Housing has gotten caught between a rock and a hard place. Things were not done properly the first time and now HUD is coming back through and saying you of to go back and comply. Mr. ira: Kathy, I will make a motion that we ap- prove these two. I will never do it again, I will vote it down. I want two bids, this is the last time I will make a motion to approve it. You have to do everything right. In other words, if we are goin to vote on a contract, we don't want the job done before we vote on it. 11 South Bend R development Commission Regular Meeting - December 19, 1980 7. NEW BUSINESS b. continued... Mrs.lBaumgartner: Certainly, I understand that. Mr. lira: You have to have more than one bid. Mrs. Baumgartner: On the HUD Clean -Up Activity and verything else, there will be more than one bid. Mr. Robinson: I understand what you are trying to do, you are trying to get it cleaned up and get it out of the way. Painting a house is not the same emergency as it is if the gas is off and you don't have any heat and residents of the house can freeze to death. That house, as far as I am concerned, could have waited until we made the decision about painting the house. Mrs. Baumgartner: I can understand that, except that we have told HUD that we will be out of these hous s by the middle of December. Mr. ira: There never would have been a problem if it w uld have been done right originally. Mrs.lBaumgartner: Exactly. Mr. ira made a motion to approve the HUD Audit Clea -Up Activity Program in accordance with re- commendation of the Bureau of Housing. The motion was teconded by Mr. Robinson and unanimously carried. c. Comm ssion approval requested for the following Sect on 312 Loan proposal in accordance with re- commendation of the Bureau of Housing. Name Contractor Amount Terrence M. Finney South Bend Electric $360.00 Company Mr. McMahon: This is not Clean -up Activity? Mrs. Baumgartner: No. I believe it is recommended to go to the lowest bidder. 12 South Bend Rldevelopment Commission Regular Meeting December 19, 1980 7. NEW BUSI c. contilnued... Mr. Robinson made a motion to approve the 312 Loan proposal in accordance with recommendation of the Bureau of Housing. The motion was seco ded by Mr. Cira and unanimously carried. 8. PROGRESSIREPORTS Mr. McMahon: We have only one progress report, and that is from the staff of the Commission. I wish you all a very Merry Christmas and Happy New Year. We hope to see you.on January 2, 1981. Mr. Nimt : We return the compliment and the best wishes. We hope that everyone returns safely after the New Year. Mr. Nimt : Any statements or comments from the public or press? Ms. Derb ck: We have been waiting and waiting to hear this report from Baird and Warner about Century Mall. Mr. McMa The enti lates to town Cen of the e slow or have com have rem would ha is now, City are would ho that tha now I th you are be, look as seein I don't to 20% i ion: Their report has not been completed. •e crux of the Baird and Warner report re- how one might finance and package the down - ;ury Mall. I think that the current state :onomy dictates whether or not that happens =ast. I think if the interest rates would down at the end of last summer, and would tined down for some period of time, it re greatly facilitated that work, but as it :he Investor and Baird and Warner and the struggling with that information. We )e that the economic conditions improve so t can be forthcoming sooner. But right ink it is safe to say that everyone, whether involved with the mall or.-whatever it might forward to some time in the near future a something happen that is going to change. think anyone has reconciled themselves yet iterest rates. 13 SECTION 312 LOAN PROPOSAL APPROVED South Bend R development Commission Regular Meeting - December 19, 1980 8. PROGRESSIREPORTS (continued) Mr. Nimt : We can say that there has been contact between aird and Warner recently and representatives of devel pers of the Mall within the last two weeks. Mr. McMa on: Yes, although they have not drawn con- clusions yet, and probably won't until sometime in early 19 1. Ms. Derb ck: What about the building currently in the Cent ry Mall area? Mr. McMahon: We anticipate to take action particularly with respect to the block on the west side of Michigan Street. The TRANSPO grant has been moving forward. I believe that they should be funded for that grant in 1981. The entire Mall Project is one which has to be designed and handled in a phasing concept, not every- thing is going to happen at the same time and that activity on the west side of the block, particularly, we would see moving ahead in 1981. Ms. Derb ck: The west side of Michigan, you are in that block where TRANSPO is going to be. That, how- ever, would be included in the Mall. Are you going to build the Mall in sections? Mr. McMa on: Yes. TRANSPO's activities will start out earl er. Ms. Derb6ck: How about the Odd Fellows Building? Mr. Nimt : I have not discussed that with the Mayor for some weeks. Mr. McMahon: You may wish to interview the Mayor. The Mayor is very much involved in every aspect of the Odd Fellows Building. As you recall, the Tribune reported _a month or so _ago that the Mayor was suggest- ing some Community Development funds, and possibly some 312 funds, be utilized to provide some low in- terest f nancial support to the Odd Fellows Project. Once tha is approved we are going to ask those develope s that have been negotiating to agree or step away from their proposals. The Common Council is prepa ing to approve or disapprove that funding request o there is something going on with respect to Odd F llows,and the Mayor's desire has been to provide ome assistance in the neighborhood of 14 South Bend RE Regular Meeti 8. PROGRESS Mr. McMah $200,000 Assuming appropria can resol velopment Commission - December 19, 1980 EPORTS n continues... o $300,000 for that financial package. hat the Common Council agrees that is e, then we will be in a spot where we e the Odd Fellows issue. 9. NEXT COMMISSION MEETING Mr. Nimtz: The Chair announces that the next meet- ing will te January 2, 1981, and unless there is some objection we will have the Annual Organizational Meeting first at 10:00 a.m., and then we will proceed into the Regular Meeting of the Commission immediately following the Organization Meeting. 10. ADJOURNMENT There being no further business to come before the Commission, Mr. Robinson made a motion that the meeting b adjourned. The motion was seconded by Mr. Cira and unanimously carried. The meeting was adjourned at 10:37 a.m. z, President 15 NEXT COMMISSION MEETING ADJOURNMENT ck M. McMahon, Executive Director