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HomeMy WebLinkAboutRM 06-06-80June 6, 1 80 10:00 A.M. Presiding Officer: 1. ROLL SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING Mr. Lloyd E. Robinson 1200 County -City Bldg. 227 W. Jefferson Blvd. South Bend, IN. 46601 Present: Mr. Lloyd E. Robinson, Sr., Vice President Mr. A. Peter Donaldson, Secretary Mr. Robert J. Cira, Assistant Secretary Ms. Paula N. Auburn, Member Absent: Mr. F. Jay Nimtz, President Legal Counsel: Mr. Kevin J. Butler Redev lopment Staff: Mr. Carl Ellison, Executive Director Mrs. Ann Kolata, Director Mr. Kevin Horton, Assistant Director Ms. Am Bathon, Acquisition Specialist Mr. Bill Fox, Relocation Specialist W. Paul Falduto, Employment Targeting Asst. Mrs. Jane Zinmerman, Executive Secretary Mrs. Hedy Robinson, Secretary Mr. Derrick Campbell, Work Study Student ity Development Mrs. Kathryn Baumgartner, Director, Bureau of Housing Mr. Thane Wilson, Bureau of Housing Mr. Rick Gushwa, Bureau of Housing Mr. William Ryan, Bureau of Housing Mr. Rick Carey, Community Development News edia: Mr. Mr. Ms. Mr. Mr. Mr. Guests: Mr. 2. APPROVAL OF MINUTES Dave Anderson, Reporter, WNDU Jim Holloway, Photographer, WNDU Jeanne Derbeck, Reporter, South Bend Tribune Brent Speraw, News Director, WRBR Radio Larry Ford, Reporter, WSJV Bill Hentsch, Photographer, WSJV Bill Neal, President, ACE Association On motion by Mr. Cira, seconded by MINUTES OF REGULAR Ms. Auburn, and unanimously carried, MEETING OF MAY 16, 1980 the Minutes of the Regular Meeting of APPROVED Friday, May 16, 1980 were approved. South Bend Redevelopment Commission Regular Me ting - June 6, 1980 3. APPROVAL OF CLAIMS On motion by Mr. Cira, seconded by Ms. Auburn and unanimously carrie , the claims totalling $78,81).31 were allowed and ordered to be baid. The authorized claims are: REDEVELOPMENT REVOLVING Payroll: 5 -03 -80 to 5 -16 -80 $ 5,604.15 A.B. Dick Products Co. 556.54 Action Business Equipment Co., Inc. 30.88 Charles Brunning Company 144.08 Busine s Systems, Inc. 29.10 Business Systems, Inc. 49.44 Carl Ellison 25.00 Carl Ellison 43.13 Forbes Typewriter Co. 18.50 Grants anship Center News 50.00 I.B.M. Corporation 18.88 National Council for Urban Economic Dev. 40.00 Schilling's Sales Co., Inc. 4.40 St. Joseph Bank Travel Agency 992.00 St. Joseph County Board of Commissioners 79.77 St. Joseph County Board of Commissioners 74.44 Hyatt egency Washington on Capitol Hill 132.57 Nation 1 Urban Development Services 175.00 St. John Business Machines 289.35 TOTAL $ 8,357.23 REDEVELOPMENT DISTRICT CAPITAL OF 1972 Borge Jones and Associates $ 5,412.28 TOTAL $ 5,412.28 P.E.A.1 MONROE- SAMPLE AREA Richa E. Nichols Associates, Inc. TOTAL P.E.A. EAST BANK AREA Abs and Title Corporation TOTAL $ 2;550,00 $ 2,550.00 $ 200:00 $ 200.00 2 CLAIMS APPROVED South Bendy Redevelopment Commission Regular Meeting — June 6, 1980 3. APPROVAL OF CLAIMS (continued) P.E.A. - IND. R -66 Kevin J. Butler $ 200.00 Community Development 411589.75 Indiana & Michigan Electric Co. 22.94 Redevelopment Revolving Fund 16,539.89 Redevelopment Revolving Fund 125,096.53 O.L. Momas Key & Lock 65.56 Ray Br den 120.00 TOTAL $33,634.67 P.E.A. - 312 LOANS Jurtin's Construction Co. & Carlena Parker $ 4,398.60 Richarl D. Kazmierczak & Douglas Way 616.70 Dan Ho ine 175.07 L.L. G ans & Sons & Thomas Nawrot 650.00 Aphrodite Pappas & Statewide Construction 3,987.40 Mary Hankins 13.98 Plaia onstruction & Leona Fleming 1,551.40 Aphrodite Pappas & R.B. Painters 1,654.00 Pepin Builders & Laura Pettit 75.00 Southold Heritage Foundation & South Bend Roofing Company 187.00 Mid We 3t Aluminum Siding Co. $ Dennis Nolan 4,510.00 Eliza Jaynes & F.F. Home Improvement 8,942.14 Willie Smith & J.E. Walz, Inc. 255.84 Ray Bo kaj Construction & Dennis Tinnin 12'648.00 TOTAL $28,665.13 GRAND TOTAL $78,819.31 4. COW NTCATIONS a. Letter from Judge Frederick E. Rakestraw Mr. Robinson: The Redevelopment Commission ha3 received a letter from the Honorable Judge Frederick E. Rakestraw. This letter is to advise th Commission of the Judge's decision concerning th question of possible conflict of interest of KeLrin J. Butler, Attorney for Redevelopment Commission. (C )pies of this letter were made available to the Co, issioners, Redevelopment staff and the public). Th conclusion of the Judge's decision was read as follows: 3 South B Regular 4. COM Mr. 5. OLD Redevelopment Commission ting - June 6, 1980 CATIONS on continues.... CONCLUSION In a22 honesty, as I neview the t ngthty discuzziows, news aAtic2es, bni.e6s, a d other materr t ab , it gives the impne�ssion o being a huge tempest in a .smaU teapot. I voutd be .cnct ned to say that judging by the ztandoAA which 16ee e Zawyeu shoutd Got thems etve�s, there were some m.c staW made. However, I have not seen anything to ens abtiz h intenti.o nab. m.cs co nduct on di6,te- gatd bon proiessionat standands. In my pion, the action o6 the Commizzion on NovembeA 16, zhoutd have eonctuded the matteA. Very Vudy yourus, S/ FnedeAi,ck E. Rakestnaw Chair announced that this letter would received and placed on file. There as no old business to present to the Commis ion. 6. NEW BUSINESS a. Cotission ^aP 1. 2. wi Name & Address Frances Roberts 820 Almond Ct. Albert Yerga 742 Grant guested for the Loan bid contracts Contractor Brown Jurtin 4 LETTER FROM JUDGE FREDERICK E. RAKESTRAW RE: DECISION CONCERNING CONFLICT OF INTEREST MATTER REGARDING KEVIN J. BUTLER, ATTORNEY FOR REDEVELOPMENT COMMIS- SION NO OLD BUSINESS PRESENTED TO THE COMMISSION Bid Amount $3,515.00 $14,707.00 South Beno Redevelopment Commission Regular Mc ting - June 6, 1980 6. NEW BUSINESS a. Section 312 loan bid contracts (continued) Name & Address Contractor Bid Amount 3. Sammie Brooks Brown $13,172.00 801 Milton 4. Joe Kuzmitz Stickler $10,827.00 2101 S. Franklin S. Robert Duron Jurtin $28,213.60 454 S. Harris 6. Bernadette Way Stickler $ 8,236.00 2013 S. Swygart 7. Vanilla Dixon 1 31 .N. Allen M s. Baumgartner: This is the first time wE have competitively bid 312 loans. We did it for a number of reasons: 1) the Bureau of Housing is in a time crunch. Our past experience is that when we allow homeowners to obtain a contractor it takes a proximately 1? to 2 months; and 2) we are also trying to standardize contractor r quirements for work which comes out of the Bureau in terms of EEO requirements, wage p ovisions, and type of documentation the contractors need to provide. The grant p ogram is obviously the most safe program in terms of procedures. We decided to go along with that procedure and have a similar 312 procedure. Therefore, this is the first seven of the 312 bids that we have opened. Section 312 bids do not go before the Advisory Board since the 312 loan program does not have an advisory board. W. Cira: Is there a limit on the amount of the loans? Mrs. Baumgarther: The amount of the loan is at a limit of $27,000.00. On the loan for Vanilla Dixon we had two bidders: Jurtin's Construction for $20,532.00, and Brown Con- struction Company for $18,538.00 Mr. Charles Brown i the lowest bidder. 5 South Ben4 Redevelopment Commission Regular M eting - June 6, 1980 6. NEW a. Suction 312 loan bid contracts (continued) . Baumgartner continues.... However, Ms. Dixon cannot afford the amount of that loan in terms of her refinancing. Therefore, we have negotiated the lowest bidder down to $11,893.00 -- cutting items that were not code related. Therefore, Jw ask your approval for Mr. Charles Brown i the amount of $11,893.00. . Robinson: Is there going to be any added sponsibility upon the Commission other than F.t you have just explained now - - -in other rds, is the Commission going to be held 3pons ib le any more than what we were in past? . Cira: What type of follow -ups do you have ce the job is completed? . Baumgartner: We follow up to check on gress, and the substandard inspector does final inspection; we then have a 60 -day tract. . Donaldson: All this is done before they e paid? s. Baumgartner: No. This occurs 60 -days a ter the job is done. . Robinson: How much is set back in escrow? . Baumgartner: One percent. We hold ten gent as a performance bond. After the is completed, then we hold back one percent. 3e protections were not in the program Uiously, and we think it is to our mtage to have this. Ellison: Mrs. Baumgartner, are we ding these contracts, or are we mmending that they be awarded? M s. Baumgartner: I think the contracts a e being awarded, pending legal counsel -review, and South Bend Common Council a royal. 3 South Be*d Redevelopment Commission Regular Meeting - June 6, 1980 6. NEW a. continued..... [s. Auburn made a motion to approve the 'ollowing Section 312 loan bid contracts n accordance with recommendation of the ureau of Housing, subject to legal counsel -eview, and South Bend Common Council pproval as applicable, (and that a copy f these contract bids be kept in a orresponding project file pending ompletion of the project) to; 1) Frances Dberts of 820 Almond Court -- Charles rown Maintenance Company in the amount f $3,515.00; 2) Albert Yerga of 742 Grant treet -- Jurtin's Construction Co., in he amount of $14,707.00; 3) Sammie Brooks f 801 Milton -- Charles Brown Maintenance ompany in the amount of $13,172.00; Joe Kuzmitz of 2101 S. Franklin -- A. Stickler Plumbing in the amount of 10,827.00; 5) Robert Duron of 454 S. Harris - Jurtin's Construction Co., in the amount f $28,213.60; 6) Bernadette Way, of 2013 . Swygart to R.A. Stickler Plumbing in he amount of $8,236.00; 7) Vanilla Dixon f 1031 N. Allen -- Charles Brown Maintenance ompany, in the amount of $11,893.00, econded by Mr. Donaldson, and the motion as unanimously carried. b. Commission rejection requested for the Jb1lowing 312 loan bid contracts, in accordance with recommendation of the Address Essa Azar 1059 Portage Paul Aldape 712 W. Colfax rs. Baumgartner: The reason the Bureau acommended rejection was because these ids were ten or twenty percent above or below he cost estimate. In that particular case, can assume that the person who bid twenty °rcent lower than the cost estimate would have cut corners in some particular way in order make the appropriate amount of profit acessary to remain in business. This is the ame with the person who bid a twenty percent igher than the cost estimate. 7 CONMISSION APPROVAL GRANTED FOR SECTION 312 LOAN BID CONTRACTS SUBJECT TO LEGAL COUNSEL REVIEW AND SOUTH BEND COMUN COUNCIL APPROVAL South Bead Redevelopment Commission Regular Meeting - June 6, 1980 6. NEW BUSINESS b. Mrs. Baumgartner continues.... ibviously, there is something inflated nvolved which the Bureau doesn't feel is ustified. . Cira: Mrs. Baumgartner, when you compare ese bids what are you actually concerned with? [rs. Baumgartner: The only problem is that our xperience has been that if someone considerably nderbids the job, they are not able to finish t half -way through because they cannot afford he rest of the materials. . Cira made a motion to reject the following 12 loan bid contracts, in accordance with the recommendation of the Bureau of Housing to Essa Azar of 1059 Portage and to 2) Paul dape of 712 W. Colfax, seconded by Ms. Auburn, d the motion was unanimously carried. c. Commission a roval requested to award a rehabilitation contract in connection with he YWCA Rehabilitation Project of e �onmmity Development program I subject to legal counsel review and South Bend Common Midland Engineering - -- $26,788.10 s. Baumgartner: Again, this comes under e jurisdiction of the Redevelopment mmission. The Bureau of Housing will be tering into a sub- contract with the mmLmity Development Department for the habilitation of the YWCA building, and this Phase I. The only bidder we had was Bland Engineering and it was somewhat ose to our cost estimate. Their reputation excellent and we contemplate no problem th them completing work. Therefore, we e recommending your approval. Cira: How do you know they are going to lete the job efficiently? You only have bid. COMMISSION REJECTION OF A 312 LOAN BID CONTRACT TO ESSA AZAR AND PAUL. ALDAPE South Ben4 Redevelopment Commission Regular Meeting - June 6, 1980 6. NEW BKJSINESS c. cbntinued.... . Baumgartner: We did a cost estimate and did the specifications; they bid on the cifications provided by the Bureau of sing. Cira: Is it difficult to receive ther estimate on the roof? Can't you get e than one bidder? s. Baumgartner: We had four people pick bid packets and three people returned e packets without bidding on it. They It it was too large of a job for anyone her than a company of large range. It s advertised and I would assume that all o wanted to bid would have come forth. can rebid if that be your wish. 1. Ellison: Mr. Cira, under normal rcumstances I would agree. But part of the oblem with the YWCA is that the roof has en a problem for quite some time and I think time is a problem. I understand .at Community Development has set aside me $60,000 this year and I believe there another similar amount for next year try to put the YWCA back in shape. mmunity Development funds are involved .this project because the YWCA provides using for lower income women. In light the closeness of the bid amount to the ,st estimation, it may make sense to proceed rely because this is the first step in the quential rehabilitation of the YWCA. If do go through another bid process, we ,viously lose time. Donaldson made a motion to approve a habilitation contract in connection with e YWCA Rehabilitation Project of the mmunity Development program subject to gal counsel review and South Bend Common uncil approval to Midland Engineering in .e amount of $26,788.10, seconded by W. Cira, d the motion was carried. (Ms. Auburn abstained -om voting as she is on the Board of Directors r the YWCA). E COMMISSION APPROVAL GRANTED FOR MIDLAND ENGINEERING TO REHAB THE YWCA PROJECT OF THE COMMUNITY DEVELOPMENT PROGRAM South Be4d Redevelopment Commission Regular Meeting - June 6, 1980 C d. mmission approval requested for an e Order No. 2, with Riverben emodelin , Inc. for a decrease is ontract rice of $214,00, at the ress of 1 bhermn Avenue, as letter from Mrs. Ka Baumgart: Director. Bureau of Housing. e. frs. Baumgartner: The decrease involves he deletion of the repair and painting of wo bedroom ceilings at the home of ohn J. Burke, 911 Sherman Avenue. These terns were included in the original ontract dated September 7, 1979, nd are not necessary in order to bring he home up to standard. Redevelopment omission approval is requested for his change order. This is the last of he old contracts remaining from last ear with Riverbend Remodeling. Y. Cira made a motion to approve Change rder No. 2, with Riverbend Remodeling, nc. for a decrease in contract price of 214.00, at the address of 911 Sherman venue, for the deletion of repairing nd painting of two bedroom ceilings, econded by W. Donaldson, and the motion as unanimously carried. (commission approval requested for Change Order No. 3. with River end Reocdel'injz, . for an increase in contract Urlce of 50.00 at the address of 514 N. per letter from Mrs. Kathryn -F rector. Bureau of Housing. s. Baumgartner: The increase with Riverbend modeling, Inc. involves the installation of a ar porch roof, a door and the rebuilding of a rtion of the foundation at the home of ria Carmona, 514 N. Cushing. These items were itted in the original contract dated ptember 7, 1979, and are necessary in order to ing the home up to standard. Redevelopment mmission approval is requested for this change der. 10 CHANGE ORDER NO. 2 APPROVED FOR A DECREASE IN CONTRACT PRICE WITH RIVERBEND REMODELING, INC. IN THE AMOUNT OF $214.00 South Bed Redevelopment Commission Regular eeting - June 6, 1980 e. continued... Robinson: Are we back at our same old lem that it was inspected, part of the was done and then there was a lapse of and now they got around to it and something else 'happened before they leted the job? . Baumgartner: Yes. Also we gave a .tract to a contractor who did not have resources to be able to carry this through a timely manner. This is something we trying to avoid in the future, not only complications of the Bureau of Housing, the complications with the contractors mselves. . Robinson: Is this the same contractor D had the original contract? . Baumgartner: Yes it is. . Auburn made a motion to approve Change der No. 3 for Riverbend Remodeling, Inc. for increase in contract price of $550.00 at .e address of 514 N. Cushing to install a gar porch roof, a door and the rebuilding of portion of the foundation, seconded by Donaldson, and the motion was unanimously f. �ommission�approoval requested for Change Order No. 4. with River e� nd Remodeling, Inc. tor _an etter rs. Baumgartner: Change Order No. 4, with iverbend Remodeling Inc. is an increase in ontract price which involves the replacement f the utility room sillplate, a porch roof nd the rebuilding of a portion of the basement all at the home of Zoe Batalis, 81S Cottage rove. These items were omitted in the original ontract dated September 7, 1979, and are ecessary in order to bring the home up to tandard. Redevelopment Commission approval is equested for this change order. 11 CHANGE ORDER NO. 3 APPROVED FOR RIVERBEND REMODELING, INC. FOR AN INCREASE IN CONTRACT PRICE OF $550.00 South Be *d Redevelopment Commission Regular Meeting - June 6, 1980 6. NEW $USINESS f. continued..... Robinson: I would hope in the future that r department has improved on the inspections I would hope that this kind of business angement would be improved upon because I It feel that anything with that magnitude that many items could be missed so frequently.. Auburn made a motion to approve Change Ier No. 4 with Riverbend Remodeling, Inc. ° an increase in contract price of $925.00 the address of 815 Cottage Grove to dace the utility room sillplate, subfloor I two risers, and the installation of a .ch roof and the rebuilding of a portion the basement wall, seconded by Donaldson, and the motion was mi.mously carried. g. Commission a roval requested for Order No. 5 with RiVerbend Remodel Or an increase in contract price is Kathryn Baumgartner, Director Baumgartner: This change order involves increase in contract price for the instal- ion of two storm windows, the removal of a tion of the kitchen cabinets and the air of the walls where the cabinets were owed at the home of Shirley Love, 728 N. veland. These items were omitted in the ginal contract dated September 7, 1979, are necessary in order to bring the home to standard. Redevelopment Commission roval is requested for the change order. r. Donaldson made a motion to approve Change rder No. 5 with Riverbend Remodeling, Inc. or an increase in contract price of $479.00 t the address of 728 N. Cleveland, for the nstallation of two storm windows, the removal f a portion of the kitchen cabinets and the epair of the walls where the cabinets were emoved, seconded by Ms. Auburn, and the otion was unanimously carried. 12 CHANGE ORDER NO. 4 APPROVED FOR RIVER - BEND REMODELING, INC. FOR AN INCREASE IN CONTRACT PRICE OF $925.00 CHANGE ORDER NO. 5 WITH RIVERBEND REMODELING, INC. APPROVED FOR AN INCREASE IN CONTRACT PRICE OF $479.00 South Bead Redevelopment Commission Regular eting - June 6, 1980 6. NEW BUSINESS h. Commission approval requested for Change Order No. 6, with B&B Plumbing for an crease in contract price of $45.00, at he address of 514 N. Cushina. as Der Director; Bur6 u'of Housin . Mrs. Baumgartner: This increase involves he cleaning of a kitchen drain in the home f Maria Carmona, 514 N. Cushing. This item was omitted in the original contract COMMISSION APPROVAL ted September 7, 1979, and is necessary GRANTED FOR AN INCREASE in order to bring the home up to standard. IN CONTRACT PRICE OF edevelopment Commission approval is $45.00 WITH B&B equested for the change order. PLUMBING . Cira made a motion to approve Change Order No. 6 with B &B Plumbing for an increase in contract price of $45.00 at the address of 14 N. Cushing to clean a kitchen drain, seconded by Mr. Donaldson, and the motion as unanimously carried. i. Commission a roval requested for the TTowin 312 loan applications: e Amount Loan No. Bernadette J. Way $ 8,650.00 18/OMC- 0011/75/1 2013 S. Swygart South Bend, IN. 46613 Vanilla Dixson $26,500.00 18 /0MC- 0011/76/1 1031 N. Allen South Bend, IN. 46616 Joseph J. Kuzmits $19,150.00 18 /OMC- 0011/78/1 2101 S. Franklin South Bend, IN. 46613 Albe T. & Anna Yerga $16,850.00 18 /OMC- 0011/79/1 742 S. Grant Street South Bend, IN. 46628 Roberto & Soledad Duron - $26,950.00 18 /OMC- 0011/81/1 454 S. Harris South Bend, IN. 46619 Sanmi C. & Vanette Brooks 801 E. Milton SOU0 Bend, IN. 46613 $14,250.00 18 /OMC- 0011/80/1 13 South BOd Redevelopment Commission Regular �beting - June 6, 1980 6. NEW BUSINESS i. continued..... Amount Loan 'No. Fran es L. Roberts $ 4,250.00 18/OW-0011/85/1 820 mond Ct. Sout Bend, IN. 46617 irs. Baumgartner: I think I should note hat in comparison to previous years, , ehabilitation loans are substantially higher. here are a couple of reasons for that. Since ur audit from HUD we found that we were not ringing the structures up to code nor were e bringing the accessory structures and yards p to code standard. All of these have now een included and therefore results in higher oan prices. Also we are trying to refinance omes where low - moderate income families ould find themselves in a financially ifficult position if the 312 loan payment ere added to existing indebtedness. It is ur hope that by refinancing the entire mount (mortgage plus rehabilitation) that e can obtain total rehabilitation in an ffordable way. I think the only aestion is where is the market value in hese particular homes? The only thing I an promise you concerning this is that ur programs will not necessarily deal ith market value. We are trying to a.ke an impact on these people and on he neighborhood. . Butler: Mrs. Baumgartner, do these 11 relate to the items mentioned under 6a concerning bid tabulations? Mrs. Baumgartner: Yes. . Butler: The difference between the 1 an amounts and the contractor amounts are going to be used for what? Mrs. Baumgartner: Refinancing, also related costs to rehabilitation. .Ellison: Mrs. Baumgartner, some of these loans have previously been through the C mmission for approval. I presume that y u have rescinded all the previous loan • provals for anybody who is now seeking • loan for the second time? 14 South Bed Redevelopment Commission Regular Meeting - June 6, 1980 b. NEW 3USINESS i. ontinued...... Mrs. Baumgartner: Roberta & Soledad Duron s the only applicant. Mr. Ellison: Did we at one time approve loan for that particular applicant? Mrs. Baumgartner: Yes we did. I believe e loan was approved twice and each time e realized that something was amiss on the ome. However, the Duron's have been aying on a loan for a year of which they ave used no funds; so they have ery good intentions. Their other loan has of been cancelled to date. Zr. Ellison: Are we really amending then their previous loan? Mrs. Baumgartner: No, it has a new loan umber. We have the check in hand. . Ellison: You have the proceeds from he intial loan in escrow? 7rs. Baumgartner: Right. 1r. Ellison: Now, this application will be sent to HUD and then what happens? Does MD then release the difference? Mrs. Baumgartner: We will have a cancel - ation of the previous loan of $15,100. We have to actually send the check of 15,100 back to HUD, have it cancelled C. long with the loan number and then we either receive a check in hand for 26,950. Mr. Ellison: Will the new loan change e pay out amounts or the monthly pay- ment, amounts for the family, and how do we assure that the family obtains credit for those amounts that have been paid under he loan that they really didn't use? How is that taken care of? 15 South BOd Redevelopment Commission Regular eting - June 6, 1980 6. NEW BUSINESS i. continued.... . rs. Baumgartner: First of all the amount that they have paid in will be paid back to [r. Ellison: Does the family understand all f this? rs. Baumgartner: Yes. We have been working ith them. 'r. Ellison: Is the 312 loan limit still at 27,000.00? rs. Baumgartner: Right. r. Ellison: Is there a rebate involved in his particular case? My basis for this uestion is that should there be a need for hange orders there is not an awful lot of Dom left on the Duron's case. rs. Baumgartner: Yes, $2,500.00. The only ping I can think in terms of change orders that the contractor went into the agreement ad is now responsible to bring that house D to standard. They were suppose to note Uerything on their bid in terms of an 3dendum; things which they may have omitted i their original specifications. So I would iy that the things we could allow for change rders is totally unforeseen. r. Ellison: Mr. Butler, do we then have to something mechanically with respect to ae previous loan? r. Butler: No, I don't believe there is a red for a recision. I believe that the )mmission action should include a direction the staff to make sure that the prior )ans are repaid. Were mortgages filed on pose loans? rs. Baumgartner: Yes. 16 South Bed Redevelopment Commission Regular Oeeting - June 6, 1980 6. NEW i. continued..... . Butler: Okay, then the releases of those rtga2es will have to be obtained. Robinson: Tam sure that we have had this ained before, but what happens if these le default on their loans? :rs. Baumgartner: Kissler Corporation turns t over to HUD who will attempt to reconcile ith the people and work with them. Dr. Robinson: Then, who owns it...HUD... d does HUD then pay us for the difference eft on the balance? r. Ellison: No, it is HUD's money that is oaned to the recipient and HUD simply orecloses and acts as a lender. It then ecomes the owner of the property. HUD ometimes trys to dispose of them through rokers and in the event that they annot, then they sometimes offer them a ocality to Homestead. . Ellison: One other question.... will the an terms change? . Baumgartner: No, it will still be my years. In essence, what will happen that one of the old documents will exist. . Ellison: Will the amount that they have paid on the previous loan be credited ainst their loan so that they will end with a loan slightly less than this ount? rs. Baumgartner: No, they will end up ith a loan of this amount, however, the ayments they have paid to Kissel will be efunded to them in total and they will eceive $600.00 from Kissel. 17 South Bead Redevelopment Commission Regular Meeting June 6, 1980 6. NEW BUSINESS i. dontinued.... . Ellison: I frankly like the idea of financing a loan whenever we can because eoretica.11y it puts the family in a tter position to maintain the house after e loan. s. Baumgartner: It also gives HUD a better sition in terms of reclaiming their debt. Is. Auburn made a motion to approve a 312 oan to the following: Bernadette J. Way f 2103 S. Swygart, South Bend, Indiana for COMMISSION APPROVAL 8,650.00; Vanilla Dixson of 1031 N. Allen, GRANTED FOR SIX 312 outh Bend, Indiana for $26,500.00; LOANS THROUGH THE oseph Kuzmits of 2101 S. Framklin, South BUREAU OF HOUSING end, Indiana for $19,150.00; Albert T. & nna Yerga of 742 S. Grant Street, outh Bend, Indiana for $16,850.00, ammie C. $ Vanette Brooks of 801 E. lton, South Bend, Indiana in the amount f $14,250.00; Frances L. Roberts, of 820 lmond Court, South Bend, Indiana, in the mount of $4,250.00, seconded by Mr. Cira nd the motion was unanimously carried. 'r. Donaldson made a motion for a onditional approval of a 312 loan to oberto & Soledad Duron of 454 S. Harris, COMMISSION APPROVAL outh Bend, Indiana in the amount of GRANTED FOR 312 LOAN 26,950.00, subject to the repayment of SUBJECT TO REPAYMENT he prior two loans and the releases of OF PRIOR TWO LOANS he corresponding mortgages, seconded by (ROBERTO & SOLEDAD DURON) s. Auburn, and the motion was unanimously arried. j. Jax abatement request from Mossberg & Co. Chair announced that this item on the TAX ABATEMENT REQUEST da is being deleted at this time on FROM MOSSBERG & CO. type of action pending further DELAYED PENDING STAFF stigation by the staff. INVESTIGATION W South Bead Redevelopment Commission Regular Meeting - June 6, 1980 6. NEW k. ommission Approval requested for Resolution No. 615 1 amendiji certa eso lilt ions eclaring the Central bliLihted and aniirovina an urban location payments ect No. IND. R-66. Ellison: Mr. Butler, would you care explain all of this? . Butler: Under the amendments to the Redevelopment Act by the legislature uring the last three years by the addition of a new Section 39.1, department's f Redevelopment are authorized to establish an incremental tax financing areas within urban renewal areas. This resolution is pursuant to that authorization. By his resolution the Redevelopment ommission will be designating asically a five block area including those arked in orange (pointing to map in back- ground) an allocation area for purposes f the incremental tax financing. The ffect of this designation is that the assessments of the properties in that area will be frozen as of the last eassment date which was March 1, 1980. Any increase in assessment from this time forward can and will be utilized or the purpose of paying bonds issued by the Department of Redevelop ent for public improvements which may ccur in that area. With respect to e specific types of public improvements at are contemplated I think that r. Ellison may explain that. . Ellison: Most of those public provements are contemplated in the so- lled Century Mall Project Area, which bounded by St. Joseph, Jefferson, shington and Main Street. For some ne we have been involved with the ivate sector in an effort to try to t together a multi -use development at would involve among aother things blic expenditures for the provision common areas within an enclosed retail onpin�_Y mall area. 19 South Be4d Redevelopment Commission Regular Veeting ,June 6, 1980 viol M1 k. Mr. Ellison continues.... addition, certain site provements, parking, and other related provements that were outlined and called r previously, in the study done by Rouse d the preliminary design done by Gruen & sociates on our behalf. There might as 11 be supplemental public improvements the nature of walkways and other site pe improvements that are necessary to use the anticipated mall project to nction as a unit within that general ea of downtown South Bend. Derbeck: Isn't the First Bank Center the project area? . .,Ellison: Yes. There will be some improvements that will take place after rch 1, 1980 to the First Bank project. Mat is much of the increment that we hope to capture through this technique. . Derbeck: Does the Commission have the thority to execute the authority by emselves? Butler: No. This is an amendment the original R -66 declaratory resolution ch has, of course, subsequently been nded. We must follow the same process. s will be submitted to the Area Plan mission, and to the Common Council .then it will corm back to the Commission confirmation at a public hearing. Ellison: Ms. Derbeck as you may know, an effort to get the legislature to rther amend the statutes which allows r this process to occur, Mayor Parent ok the position that tax incremental nancing was crucial to the Century Mall oject. This is the first step in imple- rating the tax incremental technique. Cira made a motion to approve Resolution . 61S amending certain resolutions declaring e Central Downtown Urban Renewal Area to be ighted and approving an urban renewal plan d conditions under which relocation payments 20 South Bead Redevelopment Commission Regular eting - June 6, 1980 6. NEW BUSINESS k. dontinued..... 11 be made for Project No. IND. 66, seconded by Ms. Auburn, and the tion was unanimously carried. 1. Commission approval'rE Of a s ted for execution Bend Public Trans - NSPO for disposition s. Kolata: This is a similar lease which ANSPO has had in the last few years, ying $1.00 per year for the lot on which ey are presently on (corner of Jefferson d Main Street). The lease is just a - authorization of the other leases, but dated to be leased for the year 1980. . Cira: How long will this be in effect, e year? . Kolata: Until the end of calendar r 1980) with a 30 -day cancellation clause tten within the lease. . Cira: Why are you giving them a one ar lease for $1.00 subject to a cancel - tion notice of within 30 days when the w businesses that you are having come downtown are not on 30 days cancellation? s. Kolata: Those are on a month -to- nth basis, and I believe the leases all ad the same, but the TRANSPO lease has term of one year within the lease. The in reason is that the interim leases are on e Century Mall property which we expect to molish sometime after January 1, 1981, and viously the improvement of the Transpo operty is much more minimal in nature. . Cira: Shouldn't we keep all the leases .same, and that way there wouldn't be y problem? 21 RESOLUTION NO. 615 APPROVED BY THE COMMISSION AMENDING CERTAIN RESOLU- TIONS AND APPROVING AN URBAN RENEWAL PLAN SO THAT RELOCATION PAYMENTS WILL BE MADE IN PROJECT NO. IND. R -66 South Be #d Redevelopment Commission Regular I#eeting - June 6, 1980 6. NEW BUSINESS 1. continued....... r. Ellison: We should, but in this nstance it is very important that we give RANSPO the right signal. That is that we till understand their need and are willing o work with them. An annual or semi - nnual lease is what they are used to. e feel, therefore, that an annual lease s appropriate. Besides, it reduces the mount of work we have to do. Cira: Basically it boils down to being same thing, I don't understand why we It have the leases all the same. frs. Kolata: This is our objective. The eases we have with the other stores e were aware that when we started renting o them in April, May and June that we had no ntention of letting them stay for a full ear so there is no point in letting them ave a yearly lease. Butler: In those cases, of course, y are buildings that are going to have be demolished. We are going to have to e control of those buildings or those perties more quickly than we would for ant land. .. Kolata: What we have said on those operties is that the leasee could stay the buildings until we given them 30 ys notice to vacate the premises and rminate the leases. Cira made a motion to approve the execution of a new lease with South Bend Public Transportation Corporation TRANSPO) for disposition parcels #4 -65 d 4 -87 for the year 1980 for $1.00, seconded by Ms. Auburn, and the motion as unanimously carried. m. Mr. Robinson noted that 6m through 6r (under New Business) were all related although they were for different people therefore, Mr. Ellison read the following: 22 COMMISSION APPROVAL GRANTED FOR A ONE YEAR LEASE FOR $1.00 WITH SOUTH BEND PUBLIC TRANSPORTATION CORPOR- ATION (TRANSPO) South BE Regular 6. NEW M. Film M 9 U r. ,rd Redevelopment Commission Meeting , June 6, 1980 USINESS Commission authorization requested for negotiation and execution of amendment o Agreement for "pro essional & Tec lcal cervices" between t e City of 'South Bend, artment of Redevelo exit; and 'IMr. John Pence, Re: Monroe-Sample., p6ridls jg le al review. ommission authorization requested for e otiation and execution of amendment to '"Agreement for Professional and Technical ervices" between the Cit o South Ben , Department of Redevelopment; and W. Richard Nichols, Re: Monroe- Sample, en in legal review. Commission authorization requested for negotiation and execution of amendment to "Agreement or Professional and TecIm ical ervices" between t e City o Sout Bend, Department of Re evelo ment,'an Mr: Ral auver; Re: East Race, pending iew Commission authorization requested for egotiation and execution of amendment to 'Agreement for Professional & TeETHical Services" between the Cit o South Bend, Zepartment of Redevelopment., and Mr. Ron ettel, e: ast Race, pending legal review ommission authorization requested for e otiation and execution of "Agreement or Profess i:orial an Technical Services" etween the City o South Bend, Department of Redevelopment, and Mr. Thomas Horka, e: East Race, pending legal review. Commission authorization requested for Fon an execution o Agreement ssional and Technical Services" e City o South Ben , Department lo merit; an Lang, Feeney; & s, Inc. Re: Mbnroe-Sanple & ast Bank, Pendirig legal review. . Horton: The first two contracts are elated to Monroe - Sample and are amendments to current contracts. They are for ppraisal services then are on -going for e preparation of the potential declaratory in that area. 23 South Be *d Redevelopment Commission Regular eeting June 6, 1980 6. NEW BUSINESS 6m through 6r -- Mr. Horton continues... he second two (6o. and 6p.) are again mendments to current contracts appraisal ervices related to the potentiality f a declaratory in the East Bank area. hese also specifically regard the assess - ent appraisers for the East Race itself. tem 6q. is a new contract with Mr. Thomas orka for appraisal services also specifically elated to the East Race itself. The purposes or having a new appraiser is that the Park epartment according to State Law needs hree appraises whereas Redevelopment only eeds two. The tentative agreement is that edevelopment would do the appraisal services or the Park Department. They requested that e take on a third appraiser so that they could eet the requirements of State Law and that ending the approval of a bond issue subject o the development of the race the cost of he appraisal would be included, and there ould be a reimbursement. Regarding 6r, we ave found recently that there is a need for person with some survey expertise so that e can relay or more specifically, identify o repair maps etc. for the preparation of he declaratory and also to identify the otential acquisition parcels etc. What e have done here is enter into a contract ith Lang, Feeney & Associates, Inc. beyond and. There are specific reasons for this; ne being that we are working with the ark Department on the East Race and there s a problem with the Park Department aving their surveyors and the Redevelopment epartment having their surveyors, and we eed professional services so that we can ake sure that we are being represented, and hat our opinion is accurate. Robinson: Do we want to take action to e the Redevelopment Staff work out the ails and come before the Commission a later date? . Ellison: We would like to negotiate so at we can devise a contract, have it studied Mr. Butler, and then have the Commission prove them. 24 South Bead Redevelopment Commission Regular eting - June 6, 1980 6. NEW BUSINESS 6m tlhrouzh 6r -- continued.... . Derbeck: What are the amendments to e contracts for? fr. Ellison: Basically, they amount to ime and dollars in all of these instances. hat it amounts to, Ms. Derbeck, is that hen we started out some time ago with our ppraisal services we estimated along with he contractors the amount of dollars and ime that would be involved. We have ound that the appraisal process and urveyor process in both areas to be uch more complicated than we initially nvisioned. Further, we are finding here are certain problems which require ome professional services to assure hat we in fact prepare correct plats nd maps that would be necessary for he Commission when we present a declar- tory resolution. Derbeck: Basically, the ones that are amending you are amending the nt of.time and money involved? . Ellison: That is correct, it is irly standard. Cira made a motion to delay action items 6m through 6r regarding horization requested for negotiation execution of amendments for "Agreement Professional & Technical Services" ween the City of South Bend, Department Redevelopment, for; 1) Mr. John Pence, Monroe- Sample, 2) Mr. Richard hols, Re: Monroe- Sample; 3) Mr. Ralph ver, Re: East Race; 4) Mr. Ron Gettel, East Race; 5) (a new contract) with Thomas Horka, Re: East Race, and; 6) g, Feeney, $ Associates Inc., Re: Monroe - p1e & East Bank, pending Redevelopment ff'.s further investigation of working details, and legal counsel review, onded by Ms. Auburn, and the motion unanimously carried. 25 COMMISSION DELAYED ACTION ON EXECUTION OF AMENDMENTS AND A NEW CONTRACT FOR AGREEMENT FOR PROFESSIONAL $ TECH- NICAL SERVICES PENDING FURTHER INVESTIGATION OF DETAILS AND LEGAL COUNSEL REVIEW South Bend Redevelopment Commission Regular Meeting - June 6, 1980 7. PROGRESS REPORTS a. �dd Fellows Building frs. Kolata: The thirty day period of xclusive negotiations with South Bend uilding Corporation has expired and we anted to let people know what has trans ired. Since the 30 -day period has expired, he negotiations have taken longer than xpected' and as a result of that we are till negotiating with South Bend wilding Corporation, but we have also e- opened negotiations with three other idders who bid originally in October, nd negotiations are taking place with he bidders. . Derbeck: Just what is going on here? . Ellison: We are still negotiating with 1 parties. South Bend Building Corporation d the other three proposals are the ones that re rejected quite some time ago, but have - opened for negotiations. Since we have t reached a conclusion we cannot say any - ing further about what is happening to at property. . Anderson: What is the hang -up with the ath Bend Building Corporation? Ellison: I would say details. As you aware, the Mayor has been saying for to some time now that it is his desire see the building rehabilitated if sible. We have said all along that we d some detailed information before the mission can made a decision. Derbeck: Are they still the front- Ellison: I wasn't aware that we had ed proposals from the perspective lopers, even though we agreed to go into usive negotiation. . Derbeck: I would think it was obvious. 26 DISCUSSIONS CONCERNING PROGRESS ON ODD FELLOWS BUILDING (NEGOTIATIONS BEING HELD WITH ALL ORIGINAL BIDDERS FOR THE REHABILITATION OF THE ODD FELLOWS BUILDING) South Bead Redevelopment Commission Regular eting - June 6, 1980 7. PROGRESS REPORTS a. continuea...... Y. Ellison: Since we are talking to 11 of the parties, obviously we have to resume that all of them are in the running. o one is a frontrunner. Y. Ford: Mr. Ellison, when you talk about etails do you mean details of the renovation tself, or details of the corporation of heir finances, etc.? r. Ellison: It is really plan details and lan details relating to all development actors such as financing. The Odd Fellows uilding is a bit of an unusual transaction. e are not used to dealing with vacant round and consequently we need in a way, ore clear information about plans. Under he circumstances, we cannot do anything xcept await that information. This has een going on for fourteen (14) months ow. There is clearly no particular esire to rush into things. r. Ford: Is it your desire by the outh Bend Building to move rather Ellison: Absolutely. We understand at they are still working very hard to 'ovide those details that are necessary ,r a determination. But they have not .ven us all of the information we need. r. Ford: Have all of the other three evelopers also interested in the rehab - litation of the Odd Fellows Building een contacted? r. Ellison: We have had contact with all hree and all three have indicated interest ad all three have been given information egarding more specifically what we require f them. We are going to have some meetings ith some of them next week, and as a result f that we should get a better handle on hether in fact the kinds of information we eed is being produced. Everybody has ndicated that they are still interested. We re in that gray area between interest and aving a hard deal; there is no hard deal yet. 27 South Be *d Redevelopment Commission Regular Meeting - June 6, 1980 7. PROMESS REPORTS a. continued..... Ford: Is there any sort of require - t that you may have now that you didn't e before that might exclude the other elopers or may make it more difficult them? Ellison: The Commission, as you may 11, a few weeks back hired Borger & s to help establish the minimum standards. information occurred after the previous lopers had submitted their proposals. efore we shared with them the minimum dards information. In addition, of the proposals are so old that ybody has to go back and look at ncing. Obviously, you can't go out do a bond at 8% today. Part of our ussions have had to do with the omics of those proposals and we requested some additional information. Derbeck: Has Redevelopment and the or's office made any effort to tact Kansas to see how W. Kalman ried through on his restorations re? . Ellison: Yes, we have tried to make ne contact, in fact, we have had some ntact. . Derbeck: Is Wichita satisfied with at Mr. Kalman did? r. Ellison: I wouldn't want to comment n that. Actually, I called the City of ichita, Kansas and had a conversation. ut since we are now talking to all hree parties I don't want to publicly et into indications that one developer eceived good or bad reports. b. interim Leases in Century Mall Project Area . Kolata: Since our last Commission meeting have entered into two leases that the W-0 South BOd Redevelopment Commission Regular eting - June 6, 1980 7. PROGRESS REPORTS b. Mrs. Kolata continues.... ommission has voted on verbally, nd we are following our procedure br reconfirming those leases. One ease is for Tony's Shore Repair Parcel #9- 20 ... Jefferson Book Store) nd the other lease is for an eating stablishment by the name of 112000 ncorporated" in Family Book Store.. arcel #8 -10. The main parties nvolved in this lease is Karen Gleason nd her husband. (r. Cira made a motion to approve nterim leases within the Century [all Project Area (Ind. R -66) for COMMISSION APPROVAL 1.00 per month with a 30 -day GRANTED FOR INTERIM LEASES ancellation clause within the WITHIN THE CENTURY MALL ease, to Tony's Shoe Repair PROJECT AREA IND. R -66 Jefferson Book Store - Parcel TO TONY'S SHOE REPAIR 9 -20), and to an eating establish- (PARCEL #9 -20) AND 112000 ent known as "2000 Incorporated' INCORPORATED" (PARCEL o Karen Gleason and her husband #8 -10) n the Old Family Book Store - arcel #8 -10, seconded by r. Donaldson, and the motion as unanimously carried. Ellison: I wish at this time introduce to members of the Commission, Derrick Campbell, who we have added our staff for the summer. Mr. Campbell INTRODUCTION OF MR. a Notre Dame student and through an DERRICK CAMPBELL TO THE angement with Notre Dame he will spend COMMISSION summer with us as an intern. . Robinson: Mr. Campbell, we welcome you. 8. NEXTICONMISSION MEETING The next regularly scheduled South Bend Rede elopment Commission Meeting will be NEXT COMMISSION MEETING held On June 20, 1980, at 10:00 A.M. 29 South Bead Redevelopment Commission Regular Meeting - June 6, 1980 a was was being no further business to come the Commission, Mr. Cira made a ADJOURNMENT .that the meeting be adjourned, ed by Ms. Auburn, and the motion animously carried. The meeting journed at 11:06 A.M. >i ent Carl Ellison, Executive Director 30