6D(3) Administrative Settlement 521 W. Indiana

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~~ ~ (~ Community & Economic Development ~~~ ~.~_~ ~~ ~ 1y65.. ~^~~ 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 521 W. Indiana Ave. Date: October 01, 2010 This is the staff report for the Administrative Settlement that may be needed for the acquisition of 521 W. Indiana Avenue. 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. On September 17, 2010, the Commission approved Resolution No. 2761, which authorized the purchase of this property based upon its average appraised value of $43,500. Staff has been working with the property owner, within the acquisition and relocation sections of the Act, to reasonably reach an agreement to acquire this property. These property owners are in their 70's, and over the many years they have owned this property, have fixed it up to the point where nothing else needs done. They have found a smaller house that has recently been completely remodeled, which is move-in ready. To acquire this house, they may need an additional $5,100. Between the couple's own money and the Commission's acquisition and relocation benefits, this would allow them to put an offer on the house for $15,000 less than it is currently listed for. If the offer is accepted by the seller, then this Administrative Settlement would be paid. If not accepted, it would only be used in a similar situation. When appraised, the higher of the two appraisals valued this house at $48,000. Staff feels the total acquisition cost of $48,600 is reasonable for this property, and requests your approval of the Administrative Settlement to allow the acquisition of this property. What We Do Today Makes A Difference!