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~ g ~~~ o~ 5 +°iH,iBF~a~ r,~ ~,~~ Community & Economic Development - ~ ~' -.... J865_. 1200 County-City Building, 227 West Jefferson, South Bend, Indiana 46601-1830 Phone 574/235-9371 Fax 574/235-9021 To: Redevelopment Commission From: David Relos, Economic Development Planner ~' Subject: Administrative Settlement for acquisition of 1513 S. Scott St. Date: August 06, 2010 This is the staff report for the administrative settlement that is needed for the acquisition of 1513 S. Scott St. According to the Uniform Relocation Act (Act), which has been adopted as the Commission's relocation policy, an administrative settlement is authorized in cases where an additional payment is necessary to acquire a property. Before the Commission today was Resolution No. 2737, setting the offer price for this property at $17,750, which is the average appraised value (income merged with market). When valuing the property based solely on the income approach, the average appraised value is $21,875 ($22,500 & $21,250). The house is assessed at $38,300. In discussions with the property owner, they currently have a lease for $600 per month in rent (which has been verified), and would not be able to replace this rental house with another one if paid the average appraised value. They have done the following to the house in the 10 years they have owned it: upgraded the electrical service to 100 amp; new water heater, interior paint, roof, kitchen cabinets, and faucets in the kitchen and bathroom. The property owner has agreed to accept $25,000, an amount they feel is adequate to replace this rental property with another income producing property. Staff feels the acquisition cost of $25,000 is reasonable for this property, and requests your approval of the administrative settlement to allow for the acquisition of this property. What We Do Today Makes A Difference!