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(iCL9~~'~~CJ <br />~ • . SppTg B <br />IV \\/i OI <br />Community & Economic Development ~,,~.~~,;~~; <br />1200 County-City Building, 227 West Jefferson, South Bend, Indiana 46601-1830 Phone 574/235-9371 Fax 574/235-9021 <br />To: Redevelopment Commission <br />From: David Relos, Economic Development Planner <br />Subject: Res. No. 2720 -Acquisition Offer for 1506 S. Catalpa St. <br />Res. No. 2721 -Counter Offer for 1506 S. Catalpa St. <br />Date: July 9, 2010 <br />This is the staff report for the acquisition of 1506 S. Catalpa St. This property was added to <br />the Airport Economic Development Area Acquisition List by Resolution No. 2668 on May <br />21, 2010. It was added in an effort to clean and clear the southern boundary of Ignition <br />Park, and to help stabilize the Rum Village neighborhood to the south. The Rum Village <br />Neighborhood Association strongly supports the redevelopment of this area on the north <br />side of Indiana Avenue. <br />This particular property is a two story, 1,152 square foot, four bedroom single family rental <br />residence. The property owner would like participate in the goals of the Commission in its <br />efforts to clean and clear this area, and contacted Staff of their interest in selling this <br />property. <br />Resolution No. 2720 sets the acquisition value of the property at $21,500. The acquisition <br />value is the average value as determined by two independent appraisals. The appraisers <br />who valued this property did so based on both the income and market approaches. They <br />blended their values based on both, to arrive at the average value of $21,500. <br />Resolution No. 2721 is the counter offer by the property owner, which is $25,000. When <br />looking only at the income approach value for this property, each appraiser valued it at <br />$25,000, based upon a researched gross rent multiplier for the area. Since this is a rental <br />property, staff feels the counter offer by the owner is reasonable. <br />Staff requests approval of Resolution No. 2720 and 2721, to allow for the acquisition of this <br />property. <br />What We Do Today Makes A Difference! <br />