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South Bend Redevelopment Commission <br />Regular Meeting –July 23, 2010 <br /> <br />6. NEW BUSINESS (CONT.) <br /> <br />D. Airport Economic Development Area <br /> <br />(13) continued… <br /> <br />policy, an administrative settlement is <br />authorized in cases where an additional <br />payment is necessary to acquire a property. <br /> <br />The property owner has supplied staff with <br />an appraisal that was done in November <br />2004, based on which he was granted a loan <br />by TCU in December 2004, in the amount of <br />$55,000. This loan appears on the title <br />search Meridian completed in May 2010. <br />The owner currently owes approximately <br />$40,000 on this loan, which staff verified. <br /> <br />The property owner also supplied a formula <br />for rental properties he states TCU uses to <br />value rental properties. According to this <br />formula, the property would be valued at <br />approximately $42,000. Staff did verify with <br />TCU that they use a cap rate of 9 – 11%. <br />Also verified is the lease for $650 / month in <br />rent. <br /> <br />Using the income approach to valuing <br />property, the appraisers valued the property <br />at $29,375. The house is assessed at <br />$30,600. <br /> <br />The property owner has agreed to accept <br />$40,000, the amount currently owed on this <br />property. Staff recommends accepting the <br />counter offer of $40,000. <br /> <br />C <br />Upon a motion by Ms. King, seconded by <br />OMMISSION APPROVED THE ADMINISTRATIVE <br />$40,000 <br />SETTLEMENT INT EH AMOUNT OF FOR <br />Mr. Alford and unanimously carried, the <br />733W.I <br /> NDIANA <br />Commission approved the administrative <br />settlement in the amount of $40,000 for 733 <br /> <br />W. Indiana. <br /> <br /> 15 <br /> <br />