Formalizing the intent of the Council with regards to the aquisition of Clay Utilities as proposed by the Mayor of South Bend

Home Browse Search

Roger 0. Parent Page 2 May 16, 1977 2. Cost of city referendum (1975 city election primary and fall election cost was $240,000) $120,000 3. Appraisal for purpose of making good faith offer 12,000 4. Three appraisals by court appointed appraisers at $12,000 each 36,000 5. Two additional appraisals by city to attempt to substantiate any lower appraisal figure available, including court testimony, at $15,000 each 30,000 6. Expenses of revenue bond issue 40,000 Total $239,000 The above figures were furnished me by Chief Deputy City Attorney Robert Parker who also advises me that the bond cost estimate was taken from the last Wastewater bond issue in 1969 for $3,000,000 in which accounting, legal, P.S.C., printing and miscellaneous costs were $41,629. If part of the condemna- tion bond issue were revenue and part G.O., there would then be additional bond issue costs. Attributable costs of engineering review, trial costs and appeal costs done by city personnel are not included as a separate expense of the con- demnation procedures. As you may know, Indiana law requires that before condemna- tion could begin, a good faith offer must be made, a petition to condemn signed by 50 of the voters must be obtained, and a referendum must be held to obtain the approval of the voters. This is an extremely expensive and time - consuming process. Such an undertaking and expenditure of taxpayers' money would be questionable under normal curcumstances, but, in view of the Council's refusal to pay more than $1.7 million, it is foolhardy. For what would it gain the city to spend $239,000, occupy the time of many city officials, and gain a court appraised price in excess of $2.1 million which you and a majority of Council members have consistently refused to approve?