6B1 Waiver of Right of Redemption 1509 S. Kendall

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Department of Community Mvestment Memorandum July 10, 2014 TO: South Bend Redevelopment Commission FROM: David Relos, Economic Resources SUBJECT: 1509 S. Kendall Waiver of Right of Redemption On November 22, 2011, the Commission approved a $59,100 Administrative Settlement ( "Settlement') for the acquisition of 1509 S. Kendall St. Since that time, Staff has been trying to acquire and close on the property, which is one of two remaining properties to be acquired west of Scott St. in the Ignition Park South expansion area. This past March, through the County Commissioner's tax sale process, staff was authorized to bid on the property. A tax sale certificate was acquired. Part of the tax sale process includes a 120 day redemption period. Because the eight heirs could likely redeem the property, discussions were held with their attorney to come to an agreement whereby they would not redeem the property, and we would honor our commitment to pay the previously agreed upon Settlement amount. From the Settlement amount the heirs agreed to deduct an amount owed their attorney, past due and pro -rated property taxes, and any liens not cleared by the tax sale process. The net amount would then be split evenly between them. No payment will be made until it can be verified the property was not redeemed, and a title commitment indicates there is clean title to the property. Staff requests approval of this Waiver of Right of Redemption, which may finally allow the acquisition of this property. 21t W. JttttnsuN etvU. bUUIH UtNU, IN 4bbOl I N' 514-235 -9371 1 FAX: 574 - 235 -9021 1 SOUTHBENDIN.GOV