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South Bend Redevelopment Commission <br />Regular Meeting –March 6, 2009 <br /> <br />6. NEW BUSINESS (CONT.) <br /> <br />B. Other <br /> <br />(1) continued… <br /> <br />Works will be acquiring property at 51270 <br />Mayflower Road. In March 2008 the <br />Redevelopment Commission approved a <br />letter agreement with Holladay Properties to <br />acquire right of way for the Auten Road <br />Connector. Acquisition at that time was <br />spurred by the property being voluntarily put <br />up for sale. The purchase price was <br />$280,000 for the land, a house and out- <br />building. That seemed a reasonable purchase <br />price and the purchase avoided later having <br />to go through an adversarial acquisition. <br /> <br />The letter agreement stipulated that <br />Redevelopment could not use TIF to acquire <br />the property because it was not then in the <br />city limits nor the TIF area. Accordingly, <br />Holladay Properties was to acquire the <br />property and go through a voluntary <br />annexation. Once that was done the <br />redevelopment area would be expanded to <br />include the property and Redevelopment <br />would proceed to acquire it from Holladay <br />Properties for an amount not to exceed <br />$300,000, which was the initial cost plus <br />transaction costs and a small amount for <br />holding. Subsequent to that letter agreement <br />new TIF legislation was enacted limiting <br />Redevelopment’s ability to expand the TIF <br />area without going through a much more <br />costly and time intensive process. However, <br />the new legislation does allow <br />Redevelopment to reimburse the city for <br />local public improvements connected to the <br />TIF area. Right-of-way is considered a local <br />public improvement, eligible for <br /> 12 <br /> <br />