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Home My WebLink AboutRM 02-15-80February 1! 10:00 A.M. Presiding 1. ROLL 2. SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING 1980 1200 County -City Building 227 W. Jefferson Boulevard fficer: Mr. F. Jay Nimtz, South Bend, Indiana 46601 President Members Present: Mr. F. Jay Nimtz, President Mr. Lloyd E. Robinson, Sr., Vice President Mr, A. Peter Donaldson, Secretary Ms. Paula N. Auburn, Member Absent: Mr. Robert J. Cira, Assistant Secretary Legal Counsel: Mr.. Kevin J. Butler Redevelopment Staff: Mr. Carl Ellison, Director Mrs. Ann Kolata, Deputy Director Mr. Kevin Horton, Real Estate Officer Ms. Ann Bathon, Acquisition Specialist Mr. Bill Fox, Relocation Specialist Mr. Paul Falduto, Employment Targeting Assistant Mr. Willie F. Middlebrook, Business Development Asst. Mrs. Jane Zimmerman, Executive Secretary unity Development St ff: News Mddia: Guests; L OF MINUTES Mrs. Marzy Bauer, Director, Community Development Mrs. Kathryn Baumgartner, Acting Director, BOH Ms. Jeanne Derbeck, Reporter, South Bend Tribune Mr. John McKnight, Reporter, WSBT -TV Mr. Frank Vellner, Photographer, WSBT -TV Mr. John Winey, Photographer, WSJV -TV Mr. Larry Ford, Reporter, WSJV -TV Mr. Dick Nemeth, Photographer, WNDU -TV Mr. Dave Anderson, Reporter, WNDU -TV Mrs. Janet Allen Mr. John Kagel, Downtown Council Mr. T. Brooks Brademas, Architecture /Developer Ms. Glenda Rae Hernandez, President, SE PAC On motion by Mr. Robinson, seconded by MINUTES OF REGULAR Mr. Ci a, and unanimously carried, the MEETING OF FEBRUARY 1, Minutes of the Regular Meeting of Friday, 1980 WERE APPROVED Februaiy 1, 1980 were approved. South Bend Redevelopment Commission Regular Me ting - February 15, 1980 3. APPROVAL OF CLAIMS On motion by Mr. Donaldson, seconded by Mr. Ro inson, and unanimously carried, the claims totalling - $47,810.91 were allowed and or ered to be paid. The authorized claims are: REDEVELOPMENT REVOLVING FUND Payroll:. 1 -26 -80 to 2 -8 -80 $ 5,405.81 Action Business Equipment Co., Inc. 854.56 Coffee Time Services 26.65 TOTAL $ 61,287.02 REDFVE1OPMENT DISTRICT CAPITAL OF 1972 Inc. $ 2,832.56 Gruen Associates,- TOTAL $ 2,832.56 P.E.A. - MONROE- SAMPLE AREA and Title Corporation $ 500.00 Abstract TOTAL $ 500.00 P.E.A. - EAST BANK AREA Larry E. Vanosdol, L.S. TOTAL P.E.A. 1 IND. R -66 Indiana & Michigan Electric Co. Redevelopment Revolving Fund Nicholas C. Jannotta & Associates, Ltd. Hilda S rvari Herman Newsome, Attorney -at -Law Robert Otephan, Attorney -at -Law TOTAL 2- $ 2,342.75 $ 2,342.75 $ 57.02 12,010.67 4,093.81 35.00 99.00 1,956.00 $18,251.50 CLAIMS APPROVED South Bend Redevelopment Commission Regular Me ting - February 15, 1980 3. Im OF CLAIMS (continued) 312 Kissel Corporation $ 1,169.50 Southold Heritage Foundation 514.08 Douglas Way 116.76 Art Ke 1 59.85 Pyramid Mechanical Contractor, Inc. & Thomas Nawrot 1,400.00 Rick's Electric Co. & Frederick Sheets, 465.00 Crane Roofing & Siding Inc.,.& Linda Mason 4,630.00 Jack Frost Co., Inc. $ Rick Ferguson 292.40 C.E. Lee & Vincent Klees 135.52 C.E. Lee & Mattie Valentine 144.93 R.A. Stickler & John Jamison 185.00 Dell OlTens Heating & Leona Fleming 1,050.00 Electric Construction & Gatson Mincy 15,101.00 T. George Podell $ Jeff Gibney 333.00 Tri-State Home Improvement & Gatson Mincy 840.00 Color Tile & Mary Hankins 89.54 Donald Wilson $ B&B Plumbing 728.48 Big "C" Lumber & Douglas Way 270.78 Cloud Brothers, Inc. & Richard & Brenda Ferguson 644.80 The South Bend Supply Co., Inc. & Richard & Brenda Ferguson 153.24 Sherwim Williams & Vincent Klees 62.97 Vincent Klees & Stephen J. Eddy 520.00 Unites Consumers Club & Vincent Klees 522.04 Jeanne Ann Welsh 174.25 Midwest Aluminum & Michael Bankowski 1,720.00 Big "C" Lumber & Vincent Klees 273.94 TOTAL $17,597.08 GRAND TOTAL $47,810.91 COMMUN CATIONS Mr. Ni z: The Chair was delivered a letter this morning from the St. Joseph Circuit Court Judge. I will ask the Director of Redevelopment to read it. Mr. Ellison read the letter as follows: Febnua,�y 14, 1980 F. Jay Nimtz, Phesidevrt South 13end Redeve opmevit Cumm-u zion 511 WeAt Cotjax Street South Send, Indiana 46601 -3- LETTER RECEIVED FROM JUDGE JOHN W. MONTGOMERY ST. JOSEPH CIRCUIT COURT RE: JUDGE RAKESTRAW APPOINTED AS INDEPENDENT COUNSEL FOR REDEVELOPMENT (POSSIBLE CONFLICT OF INTEREST -KEVIN J. BUTLER) South Bend Redevelopment Commission Regular Me ting - February 15, 1980 4. COMMUNICATIONS Letter1from Judge John W. Montgomery continues... T " tespond6 to youtr tcequest that as Judge �j the St. Joseph Cit suit Coutrt 1 seek independent counset to advise the Redevelopment Commit lion conceuxng a con4tict o� intetce/st alleged by othe&6 to exivst between Kevin Bu &A and hil dut%ets as counsel to the Commission. F detick B. RakelsV aw o4 Rochestet, TnAan4 has consented to act in this capacity. M. Ra atAaw, a3 I am .5utce you know, tis not only a tawyetc very highly ne�spected thtcoughout Indiana, but a6s o tis a 4oAmen Judge o4 the Fulton C-iAcuit Court, a 4oAmek Ju6ti.ee o� the Sup&eme Court o�j Indiana and in addition 4oA many yeau acted as ChaivLman o4 the Committee on Ptw /szionat Re/s pon/sibZUty o4 the Indiana State BaA Association. Mr. Ni and th This 1 althou that i of tin Judge 5. OLD There very ttcut y yours, S/ John W. Montgomehy tz: The Chair will respond to that letter nk the Judge for his action in this matter. tter was just delivered to me this morning h the Judge advised me yesterday afternoon would be coming. Because of the shortness there has been no contact yet between akestraw and myself. no old business to present to the Commission. NO OLD BUSINESS PRESENTED 6. NEW BUSINESS a. Co onission approva with Area Services price of $99.00, f 1 108.00. at the equested for Change Order No. 1, nc., for an increase in contract an amende contract total of ress of 807 E. Dubail, as per rvn Baumgartner. Acting Director -4- South BE Regular 6. NEW a. 9 C. -nd Redevelopment Commission Meeting - February 15, 1980 it inued... -BUSINESS coi Mrs. Baumgartner: This change order calls for an increase in contract price which involves the replacement of the.blower motor in the furnace at the home of Raymond Williams, 807 E. Dubail. As this was deemed an emergency repair, a notice to proceed was given to Area Services on February 8, 1980. The item was not included in the original contract dated November 8, 1979. Mr. Robinson made a motion to approve Change Order No. 1, with Area Services, Inc., for an increase in contract price of $99.00, at the address of 807 E. Dubail, seconded by NIsl Auburn, and the motion was unanimously carried. Commission approval requested for Change Order No 2, with Area Services, Inc., for an increase in contract price of 53.00, for an amended total of 1,161.00, at the address of contract 730 E. Broadway, as per letter from Mrs. Kathryn Baingartner, Acting Director, Bureau of Housing. Mrs. Baumgartner: This change order calls for an increase of $53.00, which involves the replace melLt of the fan and unit in the furnace at the home of Arnie Powell, 730 E. Broadway. As this was deemed an emergency repair, a notice to proceed was given to Area Services on February 8, i980. The item was not included in the original contract dated November 8, 1979. Mr. Robinson made a motion to approve Change Order No. 2 with Area Services, Inc., for an increase in contract price of $53.00, at the address of 730 E. Broadway, seconded by Mr. Donaldson, and the motion was unanimously carried. Co 'ssion a roval requested for Resolution #602, authorizing the execution of Redevelopment Agreement for disposition of land and the executi of quit -claim deed(s) for the transfer of title th reto in connection with land to be dis sed of in the LaSalle Park Project, Ind. R -57. # Name Amount 31 -6 Rodolfo Trejo $48.00 Parcel N 1 -5- on CHANGE ORDER NO. 1 WITH AREA SERVICES, INC. WAS APPROVED FOR AN INCREASE IN CONTRACT PRICE OF $99.00 CHANGE ORDER NO. 2 WITH AREA SERVICES, INC. WAS APPROVED FOR AN INCREASE IN CONTRACT PRICE OF $53.00 South BendlRedevelopment Commission Regular Me ting -- February 15, 1980 6. NEW BUSINESS c. continued.... Mrs. Kolata: You will recall at the last meeting we sold the south half of this parcel, and we have now discovered the file which indicates that the north half of the parcel had also been sold without an authorizing re olution. We would appreciate Commission ap roval of the resolution so that we can ha ye the quit -claim deed executed and sent ba k to the person who has paid for this pa cel of land. Mr Robinson made a motion to approve Resolution #602 authorizing the execution of Redevelopment Agreement for disposition of lad and the execution of quit -claim deed(s) for the transfer of title thereto in cojmection with land to be disposed of in the LaSalle Park Project, Ind. R -57, and that the President and Secretary be authorized and directed to sign the quit -claim deed, for Parcel No. N 2 31 -6 to Rodolfo Trejo, in the thunt of $48.00, seconded by Ms. Auburn, and motion was unanimously carried. d. Commission approval requested to amend a contract for professional services wit G en Associates, Inc. entered into on Jtuie 6, 1979, relative to land disposition activities in Ind. R -66 (Century Mall). Mr Ellison: What is requested is that the Coi,mission permit an amendment to Gruen's contract., which currently is virtually e ended, to allow to additional services th t are outlined in a letter from Mr. Beda Zwicker of that firm. These additional services basically have to do with dictating or recommending to us exterior treatments for the Odd Fellows Building. In addition there is a need to review the overall project design. There is then the need to increase the compensation and to extend the time for performance for these additional services by ninety (90) days. I might add that the City Administration is currently negotiating with Gruen for a second phase of the contract to continue in the refining of the Century Mall design. 6 RESOLUTION #602 APPROVED FOR THE SALE OF PARCEL #N 2 31 -6 IN LASALLE PARK, IND. R -57 CONTRACT FOR PROFESSIONAL SERVICES OF GRUEN ASSOCIATES, INC., EXTENDED FOR NINETY (90) DAYS South BendlRedevelopment Commission Regular Me ting February 15, 1980 6. NEW BUSINESS d. continued... Mr. Donaldson made a motion to approve an amended contract for professional services with Gruen Associates, Inc. entered into on J e 6, 1979, relative to land disposition activities in Ind. R -66 (Century Mall), se onded by Ms. Auburn, and the motion was un4nimously carried. 7. PROGRESS REPORTS a. Od4 Fellows Proposal Progress -T. Brooks Brademas Mr. Ellison: Mr. Brademas has requested an opportunity to address the Commission regarding progress on his proposal submitted to us earlier for the Odd Fellows Building. Mr. Nimtz: Mr. T. Brooks Brademas it is a pleasure to welcome you here this morning. Mr. Brademas: Thank you Mr. Nimtz . Many members of the Redevelopment Commission have e )q)ressed their concern as to whether there is a market for space which could be made available in the Odd Fellows Building. I can report to you today that the answer is a resounding answer of Tyes ". We have carried out a market survey which consisted of sending over 200 letters along with descriptive information to a randomly selected list of attorneys, accountants, advertising agencies and others who would have an opportunity for a location in a central area. We had an excellent return of over 10 %. The survey shows a potential demand for over 26,000 sq ft. of office space and 16,000 so. ft. for other commercial uses. The fact of the matter is that it leaves us only two floors left to market, if these potential renters when they can rent or specifically at what prices etc, because we do not have control of the building, and we have not been authorized to go forward. I o want to indicate to the Commission that one of the concerns which they expresses... "is there in fact a market." was refined in more general terms than it was in the Rouse Report. We believe that we have now refined that specifically with the building itself with some very positive responses from local businesses and others interested in leasing at this time. 7- ODD FELLOWS PROPOSAL PROGRESS FROM MR. T. BROOKS BRAD04AS South BendlRedevelopment Commission Regular Me ting - February 15, 1980 7. PROGRESS REPORTS a. Mr.I Brademas continues... We have previously documented the economic feasibility of rehabilitating the building with our architects and engineers, and we have previously documented to the Commission th fact that we have arranged the financing for the project. We believe now that we have documented the very strong market for the space being made available and that there could be no reason for any continued delay in permitting us to proceed. Recent state- ments to the news media suggest that potential developers of Century Mall may not find the exterior teracutta facade of the Odd Fellows Building to their liking, As one who has been trained in the field of architecture and urban design, such an idea that the building surrounding thE proposed Century Mall must be in keeping with thE mall design is nonsense. The essence of an exciting urban fabric is diversity which is evident in all dynamic cities and their centers. Ap arently, those individuals, whomever they may be who are now suggesting a need to coordinate thE Century Mall with surrounding area, would have us relate to the dirty brown building blocks of thE new hamburger stand at Jefferson and Main, or.possibly these architectural critics believe thE eloquence of the aluminum and glass County- City building should be emulated or possibly the white painted concrete block building constructed in the downtown area in recent years should be the motif to be followed. We completely reject this non - thinking. As experienced architects, urban designers, and developers we believe we know our business. We are ready to fully cooperate with the Redevelopment Commission; we are frankly growing a little tired of these t Tes of negative comments by persons who obviously don't know what they are talking about. I hope to end on a positive note, that the Od Fellows Building is in great demand. Mr. Nimtz: Thank you. The Chair might add that we have had other inquiries concerning thE Odd Fellows Building, as has the Mayor; however, the Chair has not yet met with the Mayor in the past ten days so I have no V they word ... as you recall we delayed this jision per the Mayor's request, South Bend Redevelopment Commission Regular Me ting - February 15, 1980 7. PROGRESS REPORTS a. conitinued... Mr. Ellison: The Mayor is still committed to taking a period of up to three months to become personally involved with the determination co erring the building. One problem that Mr. Brademas commented on is the exterior of the building, particularly the brick walls on the south and east sides of the building. There has been some question as to the Gruen Mall design and the need to have the mall redesigned to accommodate the building. There has been a great deal of interest on my part in seeking to settle the Odd Fellows question by addressing the exterior question. Thus, the contract addendum that the Commission authorized earlier, sees advice on what to do from a design stand- poi it with those exterior walls. We will sub- seq ently select an option and dictate that to i developer. They would then have to refLect our imposed exterior treatment and mat rial usage in the cost of the building. As ou may recall from the previous proposals, each developer wanted to approach the ext rior in different ways, and it was difficult for us to sort out the impact of particular mat rial usage and whether in fact those materials wer reflected in the cost of the proposals as giv n. It seemed to us that this process will all 3w the Odd Fellows to move along at a more rapid pace. Mayor Parent has been involved wit these matters to try to get the questions settled. Ms. Derbeck: In reference to Mr. Brademas' mar eting survey, you said that you sent the que tionnaire out to about 200 people, and a o t loo were received. That is only twenty answers you received. Mr. Brademas: In terms of the universe that we wera selecting... the universe being attorneys, CPA's and others who may want a downtown location, that is an excellent return. Obviously, it wouldn't have made sense to make a random selective samAe through the phone book because they would not be people who have an incentive for a downtown location; but attorneys, CPA's, advertising agencies, and insurance agencies are the type of firms who are in the downtown area or would like to come back intb the downtown area. South BendlRedevelopment Commission Regular Me ting February 15, 1980 7. PROGRESS REPORTS a. continuea.... Mr. Brademas: We also provided Mr. Ellison copies of our letter, along with two or three drawings for his review so he would have sufficient information as to what our id as and plans were. Ms. Derbeck: Were you asking them whether th y would be interested in renting? Mr. Brademas: Yes, we asked them if they would be interested in renting space in a renovated Odd Fellows Building and we outlined our basic concept of the renovation including the installation of two high speed elevators, central air conditioning, a modern lighting system, carpeted floors and all the various things that we had outlined previously to show yo what we would do. They could then have a View of what that space would look like. We asked the people to indicate their potential in erest in leasing space and the amount of sp ce they might be interested in. Ms.1 Derbeck: Would you not say it was true that these people answered the questions on thE basis that there would be other office sT) ce available? Mr. Brademas: You assume that it is the case, but that is not in fact the case. Certainly it would not be available within the year. Ms. Derbeck: These people are looking at the survey with the context of it as being available today, and at the rents you are probably quoting today, and at the rents you are probably quoting now, but after all is said and done, you may have to charge mo . This whole thing is very "iffy ". It is not on the.basis of what may happen by the time the Od Fellows Building is renovated. Mr. Brademas: I didn't realize that I was going to have to come here to the Commission meeting this morning and defend my survey to the news media. The survey was in much more detail than what was cayried out in the entire Century Mall itself. Ob iously the surveys that were carried out by the Ro e Company had to take a look at the entire met opolitan area and then they had to get down -10 South Bend Redevelopment Commission Regular Me ting - February 15, 1980 7. PROGRESS REPORTS a. Mr1 Brademas continues,.. to the central area. They did not get down to the individual buildings themselves. We refined that considerably. We did that at the insistence of the Redevelopment Commission who said, "Is there a market for this space ?" I on't want to quote Tor. Ellison out of co text, but I do believe that he said to me after he had reviewed the survey form (c nsisting of a letter and various material), anc. commented plausibly on it, that he thought it was the proper approach to take. I don't kn w how else you would do it outside of outlining what the plans were, giving dr wings and descriptive information to the potential clientele that you are trying to reach,- and then when the potential clientele responded, to summarize that; and that is exactly what we have done, I was ecstatic because it showed a very, very strong demand,, There are obviously people out there who want space, but don't think it will happen and therefore don't bother to respond. If they take the time to read a three page letter and to look at the drawings as I hope most of them did, because their responses indicated that they had, and then to fill out the form, sign it and put it back in the mail, it did take some effort on their part. This indeed indicates to me that there is a very strong demand for office space. Ms Derbeck: I am not questioning what you would do for your own information, but I have to explain this to my editors because they are veiy cautious about printing results about something that proports to be a survey, that is not scientifically done, because it gives th4 public a certain impression which may or maV not be true. Mr Brademas: I would be very happy to make co ies available to you of those which were se t out. Ms Derbeck: No, I only asked you to explain. Mr. Nimtz: Commissioner Auburn has a question she wi hes to ask. -11 South BendlRedevelopment Com. fission Regular Me ting - February 15, 1980 7. PROGRESS REPORTS a. corktlnued. . Ms. Auburn: I have a question on the to ation of the addresses that you mailed to. I would like to know if you can give me some kind of break down on the 200, how many of them are located in the central area already, such as the Sherland Building, or the American National Bank Building? How many of them were addresses which were located outside of the central business core, and out of that 100 re ponse rate, can you give me some feeling fo how much of it was the central city co e response versus exterior? Mr. Brademas: The survey was done by an independent entity, and that brings me to thE Gruen plan, which I think needs to have a lot more discussion. I have known the Victor Gruen firm for many years, and their major type of work is in the design of surburban shopping centers. It is a very large firm and with any assignment they receive you don't know who will be coming in from their organization. From my kncwledge of the downtown, and what I believe needs to be done, I think that the Gruen corcept leaves much to be desired. What the Ro se report said was that the market for commercial uses in the Century Mall will be local specialty shops, botiaues, and that type of thing. What has been indicated in the Century Mall Model is a complete lack of understanding of what the Report suggests. As a. developer we are very much interested in eing involved in the development of Century Mall. It may be that there are already people sta ding in line to develop Mr. Gruen's plan, but I can tell you without any fear of contra- diction that no developer worth his salt is goi g to let any outside group, even as well meaning as it is, have some outside architect de lop a set of plans and give these plans to hem and say... go ahead and build. No develloper in his right mind is going to do that. Any developer who knows what he is doing has a c ncept of what he wants to accomplish, is goi g to get his.own architect and do all that. I ink rather than to be adding additional contracts to Mr. Gruen that you ought to decide to get somebody locally and lets get 12 South Bend Redevelopment Commission Regular Me ting February 15, 1980 show on the road rather than go on on. Mr Ellison: Mr. Brademas, I have to say in response that obviously with this project the public sector is acting as the major de eloper. If there are local groups who want to come in and hire the architects and perhaps commit themselves to do the development, I think you will find that th s Commission and the City historically wi 1 respond to that. We did not have that sif,uation with the First Bank project and we do not have that situation with the mall. The public sector has taken the initial risk of causing concepts to be articulated and run by everybody who is involved. One value of G en's work so far is that at least we have a concept from the standpoint of linking the nevr heart of town with the surrounding areas. It is appropriate that we have spent the $1 2,000 for Gruen so far, and that we continue to spend more money to continue the process. There are no indications that there will be a ceveloper who will walk into town and who will simply say.. "Okay, I will do the mall anc I will do the office building." We arE not in that circumstance yet. If we we e in that circumstance it would make our job a lot easier and I would be the first person to applaud the developer or group of developers who would do it. We simply don't have that circumstance yet and that is why we are taking these non - traditional roles- - to al government wants to cause something to happen. Mr. Brademas; Mr. Ellison you are not su gesting are you, that the First Bank and thE Marriott people had no role at all in thE designation or selection of the architect? Mr. Ellison; No, I am suggesting that they ha a very substantial role. The difference is that neither the bank nor the Marriott acted as a developer would in a normal sense. Th y had an intimate part of making that whole pr cess possible, -13- South Bend Redevelopment Commission Regular Me ting February 15, 1980 7. PROGRESS REPORTS a. contlnuea... Mr Ellison: I think the same thing is true in the mall project in that typically, you have a developer who wants to absorb the up front costs, and make sure the project functions, because if it doesn't function from a pedestrian standpoint, and retail standpoint, etc. it won't work for anybody, including the City. It is obvious that in today's wo ld, central cities are declining and. have to take non - traditional roles. Mr Nimtz: Der. Brademas, I might say to compliment what you have said in regards to office space, the predictions of Mr. Wiggins are probably coming true in that I have had a number of merchants talk to me in regard to plans and to what the future is because they are concerned about the energy b. Metry Avenue Development Plans Mr. Ellison: The picture behind you was di played at a press conference held a week or two ago by Mayor Parent, Robert Batteast, a local minority contractor, and Dennis Carter of the Urban League, when the Mayor announced plans on Mr. Batteast's part to construct a 4, 00 - 4,500 sq. foot office facility on the eastern portion of the site near Grant Street, to be leased wholly to the Urban League. We are not yet prepared to recommend to the Commission any specific action, but the Commission will of course, have to approve the project and be aware of the details before the project can happen. The staff is involved with Mr. Batteast in trying to move the project forward, but I felt it was important to point this out to th Commission today because this will be a historic project. It will be the first time a Ainority entrepreneuer will have done commercial development on urban renewal land, an secondarily, since it is black history month, it is appropriate that we mention it.at this meeting. -14- PROGRESS BEING MADE IN PLANS TO CONSTRUCT A NEW OFFICE FACILITY FOR URBAN LEAGUE South Bend Regular Me 7. PROGRE b. co edevelopment Commission ing - February 1S, 1980 REPORTS Mr.l Ellison continues... The project is very exciting, as the Commission may recall the controversy that occurred when we sold the site to Bob Hepler for construction of a facility to house his construction equipment sales company. There was some expression that peihaps the Commission should withold selling the parcel at that time and make an effort to secure a light industrial complex as originally planned which would employ about 150 neighbor- hood people. I think the announcement from AIr. Batteast about his plans certainly suggests to the community that the Commission was wise in disposing of the land to Hepler, because without Hepler, this particular pr ject would not be possible. It is the staff's expectation that the Commission, du ing the month of March, will be requested to take certain actions to make this project happen and construction will begin by early sp ing, and be completed by late summer. I think it is a very good project, and something which I think we can be proud of. c. Jots Targeting and Business Mr. Ellison: The Department is beginning to expand in new areas. About eight months ago the City made application for something called a "Targeted Jobs Demonstration Pro- gram." As a result of the President's urban policy a need exists for greater coordination between agencies who are in olved in funding various programs. The job targeting program was essentially designed to solicit proposals from communities who had some sort of track record in economic development areas. The idea is to try to target lower income jobs which are created as a result of federally assisted economic development projects, such as the :First Bank Center, to CETA eligible, economically disadvantaged pe sons. The second part::of the targeted jo s demonstration program was to try to as re that there might be some spin -off -15 DEPARTMENT OF REDEVELOP - P.IFNT EXPANDS INTO NEW AREAS - "JOB TARGETING AND BUSINESS DEVELOPMENT" South Bend Redevelopment Commission Regular Me ting - February-lS, 1980 7. PROGRESS REPORTS c. Mrl Ellison continues... of economic opportunities that could be identified and linked to small and minority entrepreneurs who might get involved in business. The job targeting approach appears to be a new federal issue which is going to be with us for a while. It is becoming clear that the private sector is beginning to get invited into more partnership arrangements across the spectrum. With CETA, for instance, a private industry co cil (PIC) has been created, and one of our Commissioners is a member of South Bend's PI'., The PIC is designed to facilitate on th job training, the targeted job tax credit, ani other incentives which are available to the private sector to address the needs of the economically disadvantaged. In any event, the City made application to partici- pate in the'demonstration program and although we were not funded, we are starting the process of implementing a job targeting program anyway. There are several reasons for that. One is that it is obvious with the pace of develop- ment potentials in South Bend that we will undoubtedly be submitting future urban development action grant applications. Those applications will require that we speak to these areas. There is a need that we develop our own capabilities in these areas and demonstrate a capacity to target jobs as part of the negotiation pr cess and also to target spin -off business opportunities which may exist. la result I am taking some initiative atthe staff level to begin a process developing this capacity. d. NeW Staff Ellison: To the extent which I have tioned previously, I have added two staff members to specifically address se areas. We expect, as a result of s to try to achieve some new progress South Bend both from a job targeting .business development standpoint, Paul Falduto has been added as a job geting specialist. -16- INTRODUCTION OF NEW REDEVELOPMENT STAFF AND THEIR ROLES IN THE DEPARP ENT South Bend Redevelopment Commission Regular Me ting - February 15, 1980 7. PROGRESS REPORTS d. continued... Ellison continues... We are currently working with CETA on a restaurant project over on the East Bank which is currently in the process of being rehabilitated, and we expect to have some progress in the job targeting ar a. With respect to the business development area, I have added Mr. Willie F. Middle br ok, who will be involved with Mr. Batteast's project and certain other pr jects that we will bring to the Commission's attention in the future. I olaced this item on the agenda to specifically indicate to the Commission that this is a new area which you can expect to hear a lot about over the next several years. Frankly, it is an appropriate area, because finally the Federal Government is giving the cities those tools that are ne essary to bring everybody into the pr gress of the community, not just the private sector, but the public sector as well. The poor are theoretically the reasons we have the UDAG programs. I think our job targeting and business devrelopment experience will be very su cessful in this new area. I am proud th t we are taking some initiatives to get involved in a development where our ca abilities are used. Ms. Derbeck: Basically, your job targeting pr gram is to target some jobs in con - st uction projects where people have been ec nomically disadvantaged? Mr. Ellison: That is correct. They are not construction jobs but new permanent jo s that are created as a result of a pr ject, Conceptually, the idea is that a roject such as the First Bank Center c ates S00 jobs, and of those jobs about 325 are lower income jobs by definition. 17- South Ben4 Redevelopment Commission Regular M eting February 15, 1980 7. PROGRESS REPORTS d. continued- . . Ellison continues... That is, they will pay wages at about 80o median or below ($12,000 or less), The question, and part.of the reason for federal initiative, is that there is some fear nationwide that those jobs that have been created don't reach people who need th m most. As a result, primarily because of the urban policies, cities are now being en ouraged to develop capacities to insure that those jobs being created as a result of federally assisted activities do reach th people who need them the most. What is happening then in terms of implementation is that redevelopment and community develop- met agencies and CETA programs are going to have to develop new institutional I' ages so that they can all be part of th process. For instance, in the case of the Marriott Hotel, if they need a sp cific kind of training for people th y are going to hire, the idea is to pre-negotiate with Marriott about their available positions and then to do a training package so that CETA eligible clients are not only identified but also trained and are then prepared to take a ob when that job becomes available. Ms Derbeck: Would you have a percentage in mind? Mr. Ellison: I think with our First Bank Project our target is going to be about 14 jobs to CETA eligibles, about half of th se to be created that are within the to er income category. Ms Derbeck: On a general basis, how can you make the potential employer do this? Mr Ellison: You can't make him. It is simply that in the past local governments hate not historically negotiated for these ki ds of benefits for the poor. ,18_. South Ben4 Redevelopment Commission Regular M eting - February 15, 1980 7. PROGRESS REPORTS d. cohltinued... . Ellison continues... The federal initiative these days is saying that local government should do that, and there are a number of incentives to cause private employers to want to target jobs. For instance, CE TA could offer OJT contracts where CETA would pay half the employee's wages for a period of up to a year, In addition to that, there are several tax advantages available to employers who hire economically disadvantaged employees under the targeted jobs tax credit program. In addition there is a private industry council which is made up of members of the private sector. The council is designed to implement all the on the joD training type activities for the CETA pr gram. Previously localities were not re uested to do these sorts of things, P1 s were announced quite some time ago by Anchor Sales to convert the old St. Joseph Waterworks Bar to an office faccility. The restaurant would have to have someone to clean it. We would like to link the entrepreneur with a minority business so that they can talk among th mselves and determine whether a business relationship could then exist, It is a new role for local governments to be involved with that kind of negoti- ation and involved in facilitating potential beriefits both from a business standpoint I from a job standpoint. I feel s program has been necessary for a a time. Nimtz: I believe the Mayor has ressed that as his administration gresses he would like the Redevelopment artment to get involved in the economic elopment field along with Redevelopment ause it goes hand in hand, -19- South Bend Redevelopment Commission Regular Me ting -T February 15, 1980 7. PROGRESS REPORTS Mr. N r tz: Last year the Governor had a conference on downtown development which proved to be more successful than anybody DISCUSSIONS CONCERNING had anticipated. He is now having a second 2ND ANNUAL GOVERNOR'S conference and Mr. John Kagel is on the CONFERENCE BEING HELD Steering Committee of that conference, IN INDIANAPOLIS, IND. Mr. Ka el, please make an announcement for us. Mr. Ka el: This program is terribly important to the State because our efforts are surported by the Presidents urban policy which requires federal agencies to tar et resources to areas where existing facilities investment will result in reducing urban Eprawl and energy consumption. This conference is very interesting because South lend has been selected to be one of the featured cities. As a matter of fact, the Honorable F. Jay Nimtz is a moderator of one of the four panels. The conference will be held March 5 and 6 in Indianapolis. Four tables have been set aside for South Bend's display and exhibit, That means models, handout materials, maps, charts, etc. Last year there were over 400 people present, and this year they anticipate a much larger attendance because we found out, upon conclusion of the two day conference last year, that we had to get into the real nuts and bolts of the situation. This conference is very e citing because it covers both downtown South Bend and one of South Bend's neighborhoods. It is ite an honor that the Governor's Steeri g Committee would select this community. Ms. Auburn made a motion that the Redevelopment staff, and members of the Commission desiring to attend the 2nd Annual Governor's Conference in Indianapolis, Indiana, be permitted to do so, and if feasible, that any displays be sent down fore ibit, seconded by Mr. Donaldson, and the mo ion was unanimously carried. 8. NEXT COMMISSION MEETING The ne t regularly scheduled South Bend Redevelopment NEXT COMMISSION Commission Meeting will be held on Friday, March 7, MEETING 1980 at 10:00 A.M. -20- South BendIRedevelopment Commission Regular Me tins _. February 15, 1980 a There tieing no further business to come before ADJOURNMENT the Commission, Mr. Robinson made a motion that the me ting be adjourned, seconded by Ms. Auburn and the motion was unanimously carried. The meeting was adjourned at 10:55 AX. z, president -21- Carl Ellison, Executive Director