08-15-13 Redevelopment Commission Minutes

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South Bend Redevelopment Commission Regular Meeting — Thursday, August 15, 2013 6. NEW BUSINESS A. South Bend Central Development Area (12) continued... HDC is no longer in operation, and to facilitate the disposition of these twelve houses and three vacant lots. Houses that were unoccupied when HDC ceased operation have remained unoccupied. All were appraised in 2011. Since the 2011 appraisals, some have been broken into and vandalized, have developed leaking roofs and, overall, have larger deferred maintenance issues. For disposition purposes, these 15 properties were split into two groups. The first group consisted of five houses, with the last being sold this past May. These five houses had an average appraised value of $20,400 and an average sales price of $7,040. All five houses were listed with a Realtor and received little to no interest. The remaining seven houses have an average appraised value of $25,250. Two parties expressed interest in these seven houses and three vacant lots, one offering $25,000, with Mr. Berger's offer of $50,400 being the second. Mr. Berger's offer equates to an average of $7,200 per house. Mr. Berger is a 40 -year resident of South Bend, has experience in the construction industry and working with at -risk populations, assisting individuals to obtain employment and housing opportunities. Upon taking possession of these properties, Mr. Berger will have a person living on site providing maintenance and security services. Since the sale of these properties to a private investor will place them back on the tax rolls, provides for a minimum $80,000 investment into them, and has received the support of the Monroe Park Neighborhood Association, staff requests approval of this Contract for Sale. Ms. Schey asked if the Housing Development Corporation (HDC) is owned by the City of South Bend. Mr. Inks responded that the Housing Development Corporation was an independent non -profit organization, which was sponsored by the city. Ms. Schey asked if these properties were acquired through federal grants owners. Mr. Inks responded that in this case no. These properties were acquired through bond proceeds since they were owned by the Redevelopment Authority which is their only source of income. The properties were then leased to the HDC for use in their low income housing program. Over the years, federal money went into these properties to maintain them. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carved, the Commission approved the Contract for Land Sale of Land for Monroe Park properties. 10