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South Bend Redevelopment Commission <br />Regular Meeting –January 15, 2010 <br /> <br />6. NEW BUSINESS (CONT.) <br /> <br />D. Airport Economic Development Area <br /> <br />(5) continued… <br /> <br />Ms. King questioned why we do appraisals, <br />which are supposed to be based on <br />comparative analysis, independent and <br />unbiased, then accept a price based on <br />analysis by a licensed realtor. <br /> <br />Mr. Relos noted that for all of the homes that <br />we are trying to buy in that area, the <br />mortgages are upside down. <br /> <br />Mr. Downes asked if there is a time crunch to <br />close on this purchase. There is not. <br /> <br />Mr. Varner asked if the Commission has a <br />policy addressing how we deal with <br />purchasing a property that is upside down on <br />its mortgage. Mr. Inks said they do not. But <br />in the Airport Economic Development Area <br />the Commission does not have use of <br />eminent domain. It relies on the willingness <br />of the seller to sell. Staff always tries to <br />negotiate the best purchase price. They are <br />sometimes dissatisfied with the best price <br />they can get. <br /> <br />This offer does beg the question of why our <br />appraisers’ values are so much different than <br />the realtor’s. It is staff responsibility to <br />review the work of its appraisers and make <br />sure we are comfortable with it. We can’t <br />explain the difference, but to convince <br />someone to move who is satisfied living in <br />the home they have, they have to feel like <br />they can purchase something comparable <br />without additional expense to themselves. <br />Our price may have to include making them <br /> 31 <br /> <br />