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Home My WebLink About6.D1 Resolution No. 2644~ ~ ~~ • • ~pUTfi ~eF et ~I/moo ~~ ~ %~L dJ ~ ~O' Community & Economic Development ~~ `~ ~,~ _~= 1865 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: Res. No. 2644 -Acquisition Counter-Offer for 412 E. Sample St. Date: January 15, 2010 This is the staff report for the acquisition of 412 E. Sample Street, the Habitat for Humanity Restore. This property was added to the Airport Economic Development Area Acquisition List by Resolution No. 2596 on August 26, 2009. It was added in an effort to help Ivy Tech expand classroom, storage, and parking needs in light of their large increases in enrollment. On October 02, 2009, the Commission approved Resolution No. 2605, which set the offering price for this property at $272,000, which is the average value as determined by two independent appraisals. This property has an 8,500 square foot building on approximately 1.32 acres of land. This building will be used by Ivy Tech to consolidate their apprenticeship programs, which are currently housed in two different locations. The relocation of the apprenticeship programs into this building then allows classrooms to be expanded into the space they currently occupy. In addition, the western half of this lot will provide much needed parking for the expansion of classrooms in the ITOSS building. After forming a search committee, Habitat's Board analyzed many different locations. They came to the conclusion that the old Kroger's store and adjacent parking lot to the north, at the southwest corner of Main & Ewing, best fits their needs and mission. Habitat has counter offered $345,000. This price allows for the acquisition of these properties. In addition, relocation costs of $342,223 are requested, which includes $57,333 for moving and re-establishment expenses, and $284,890 for the rehabilitation of the building and parking lot (new roof, HVAC, general build out, parking lot overlay). The building was built in 1970, and is in need of these repairs for the safe operation of Habitat's Restore. Staff feels Habitat moving to this highly visible corner will help stabilize this area, and be a positive influence on the surrounding neighborhoods. In addition, it will greatly help Ivy Tech, which makes this a win win situation for everyone. Staff requests approval of Resolution No. 2644, to allow for the acquisition of this property and the relocation costs associated with it. What We Do Today Makes A Difference! Project Name: 2411 S. Main St. Date: January 2008 GENERAL DATA Property Location: Street: 2411 S. Main St. City: South Bend County: St. Joseph State: IN Industrial for Sale: Flex Space ^ Manufacturing ® Office Showroom ^ Research & Development (R&D) ^ Self Storage/Mini Storage Facility ^ Truck TerminallHub/Transit Facility ^ Warehouse Distribution Warehouse ® Refrigerated/Cold Storage ^ List Price: $395,000.00 Property Size: Building: 14 668 Land: 1.32 Listing Broker: Company: CB Richard Ellis ~ Bradley Address: 202 S Michigan St Ste 200 South Bend IN 46601 Agent: Steve Ellison (steve.ellison(a,cbre.com ) X2007, CB Richard Ellis, Inc. we obroined she inlonnaeon above 6om sources we behe.e ro be reliable. However, we ho.e nm verified ih accuracy and make no guarantee, woaonry « repse:entafion about is. Is submitted subject to the possibi31ry of eaor<, omissions, chonga of pica, rental « other condinons, pri« sale, lease « financing, « withd.owal without notice. We Include pojscfions, opinion:, ossumpfions « e:emores f« .sample only, and they may gar represent cum.nr « farure pedo.monce of N,e poperly. You and your m. and Isgol adwors should c«,ducr yoar own rove:Xgalion of the poparfy and transacn«,. CBRE ~Brod~y PROPERTY INFORMATION CHECKLIST INDUSTRIAL RESOLUTION N0.2644 RESOLUTION APPROVING AND ACCEPTING A COUNTEROFFER FOR THE ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA WHEREAS, under the authority granted by Indiana Code § 36-7-14, et seq. and in furtherance of the Airport Economic Development Area Development Plan (the '`Plan''), the South Bend Redevelopment Commission (the "Commission") has determined that it is necessary to acquire unencumbered fee simple interest in certain property located within the area heretofore designated as the Airport Economic Development Area (the ``Area") within the City of South Bend, Indiana (the "City"), which property is more particularly described at Exhibit A attached hereto and incorporated herein (the "Property"); and WHEREAS, on October 02, 2009, the Commission adopted a Resolution setting the offering price (the "Offering Price") and authorizing staff to present an offer to Habitat for Humanity of St. Joe County, Inc, as owners of the Property (the "Owner'') in an amount not to exceed the Offering Price along with the payment of expenses incidental to the conveyance and determination of the title of the Property; and WHEREAS, the staff has presented the Owner an offer for the Offering Price as authorized, which the Owner rejected; and WHEREAS, the Owner has provided a counteroffer to the Commission for $345,000.00, $342,223.00 in relocation expenses, plus all expenses related to the acquisition; and WHEREAS, the staff has reviewed the counteroffer and determined that the proposal is reasonable in light of the appraisal amount, conditions in the area, and the amount of announced development in the immediate area; and WHEREAS, the Commission has completed its acquisition procedures for the Property and sufficient funds are available for the purchase of the Property; NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission that: 1. The Commission hereby finds that the consideration set forth in the Purchase Agreement is reasonable considering the circumstances and that it is in the best interest of the citizens of the City and the South Bend Redevelopment District and consistent with the purposes and requirements set forth in Indiana Code § 36-7-14 to accept the counteroffer evidenced in the Purchase Agreement. 2. The Commission hereby approves and accepts the Purchase Agreement and authorizes the President and the Secretary to execute and attest, respectively, the Assignment of the Purchase Agreement and/or the Purchase Agreement with such changes in form or in substance as they deem to be necessary or appropriate to complete the transfer, with such approval to be conclusively evidenced by such execution and attestation, respectively. The President and/or Secretary are each authorized to execute and deliver any other documentation necessary to complete the acquisition of the Property. Legal counsel for the Commission is further authorized to close the transaction on behalf of the Commission and execute any incidental closing documents necessary to complete the transaction. 3. The Secretary of the Commission is instructed to place a copy of the assignment and Purchase Agreement presented to the Commission with this Resolution in the records and minutes of this meeting. 4. Don Inks or Jeff Gibney is authorized to execute on behalf of the Commission any documents necessary to carry out the intent of this resolution. ADOPTED at a Regular Meeting of the South Bend Redevelopment Commission held on January 15, 2010, at 1308 County-City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601. CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT ignana~e Printec .'Fame an it e South Bend Redevelopment Commission ATTEST: igrtature Prime Name anc Ti! e South Bend Redevelopment Commission EXHIBIT A PROPERTY DESCRIPTION AND PURCHASE PRICE Counter Tax Key No. Address Owner Acquisition Price Habitat for 18-7008-0300 412 E. Sample St. Humanity of St. Joe $345,000.00 County, Inc