Laserfiche WebLink
South Bend Redevelopment Commission <br /> Regular Meeting—June 26, 2014 <br /> 6. NEW BUSINESS (CONT.) <br /> B. Airport Economic Development Area <br /> (3) continued... <br /> were Hughes & Company and Valbridge Property Advisers, both well known, national golf <br /> course appraisal companies. <br /> The appraisals have been received, and as an update, the values arrived at are: <br /> Valbridge - $1,560,000 <br /> Hughes - $1,750,000 <br /> Therefore,the fair market value as determined by averaging the two appraisals, is <br /> $1,655,000. The Department of Community Investment will continue to weigh options for <br /> the course, and will report back to the Commission when options arise. <br /> Mr. Varner asked whether these evaluations represent fee simple ownership. Mr. Relos <br /> responded that they do. <br /> Mr. Varner asked whether the appraisals break out what portion of the value is for land and <br /> what for the business. Mr. Zeeb responded that they both valued the course multiple ways. <br /> The highest and best use is still is a golf course. The values are inclusive of capital <br /> investment that you need too make in a golf course. <br /> Mr. Varner asked whether the valuations consider the fact that food services are constrained. <br /> Mr. Zeeb responded that the appraisers were informed of that. <br /> Mr. Downes said he had read the appraisals and noted that they valued the revenue stream. <br /> Then they used(eight or nine) comparable sales in the region that had sold in the last two <br /> years. He found it interesting that both appraisals said that the cost approach(the cost to <br /> build the course)would not be valid. He asked if anyone remembered what it had cost to <br /> construct Blackthorn Golf Course, because it was a unique property in that it required a lot <br /> less earth movement than most courses. Mr. Varner thought it was about$3.5M. Mr. <br /> Downes said that was very inexpensive at the time. However, this valuation is reflective of <br /> the declining golf market and the overbuilding of golf courses. Mr. Downes said it was hard <br /> for him to believe that the golf course isn't worth more money. <br /> Mr. Downes asked what the next step is. Mr. Relos replied that staff will try to consider <br /> options and determine a strategy for the golf course. <br /> (4) Resolution No. 3217 approving and authorizing the execution of an Addendum to the <br /> Master Agency Agreement (Ignition Park Multi-Tenant Campus) <br /> 7 <br />