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HomeMy WebLinkAbout6D(3)(3� • r a n d u m Sous BFw Community & Economic Development r, 1200 County -City Building, 227 West Jefferson, South Bend, Indiana 46601 -1830 Phone 574/235 -9371 Fax 574/235 -9021 To: Redevelopment Commission From: Bill Schalliol, Economic Development Planner 7 / Subject: Resolution 2715 — Acquisition Counteroffer for 4215 S Main St Date: August 3, 2010 Attached is Resolution 2715 which is a acquisition counter offer resolution related to the acquisition of property located at 4215 South Main Street within the South Side Development Area. The subject parcel was added to the South Side Development Area Acquisition List by Resolution No. 2337 on May 19, 2006. On July 23rd, the Redevelopment Commission approved Resolution 2714 which set the acquisition offering price for the property at $79,500.00. The value was determined by two independent appraisers. The property owner has been sent notice of the offering value and has countered at a price of $130,000.00. The price is reflective of all costs in including relocation. Staff submits Resolution 2715, which is a counteroffer acquisition resolution, for this property in the amount of $130,000.00, based upon the following factors. Appraisal Value The average appraisal value for the property is $79,500.00 with the low appraisal value was $69,000 and the high value was $90,000. The spread of values is beyond the normal tolerance range and the higher value is more consistent with the current tax assessed value. Adjacent Acquisitions At the present time, only four houses, including this house, remain in the block area between Metalmation Drive and Ireland Road. Of the ten properties that have been acquired in this area, the range of acquisition values has generally been between $77,500 to $165,000. Three properties have similar lot sizes and the average value for acquisition was $125,000. Summary Staff requests approval of Resolution 2715. This is a key acquisition to allow for the future development of the Main - Lafayette crossover infrastructure project and will help us move forward to complete acquisitions within this project area. Staff requests approval of this resolution. What We Do Today Makes A Difference! RESOLUTION NO. 2715 RESOLUTION APPROVING AND ACCEPTING A COUNTEROFFER FOR THE ACQUISITION OF PROPERTY IN THE SOUTH SIDE DEVELOPMENT AREA WHEREAS, under the authority granted by Indiana Code § 36 -7 -14, et seq. and in furtherance of the South Side 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 South Side 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 July 23, 2010, the Commission adopted a Resolution setting the Acquisition Offering Price and authorizing staff to present an offer to David A. Ciula, as owners of the Property (the "Owner ") in an amount not to exceed the Acquisition 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 in the amount of the Acquisition Offering Price as authorized, which the Owner rejected; and WHEREAS, the Owner has provided a counteroffer to the Commission for $130,000.00, plus all moving expenses related to the acquisition; and WHEREAS, the staff has reviewed the counteroffer and determined that the counteroffer 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 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 Purchase Agreement presented to the Commission with this Resolution in the records and minutes of this meeting. 4. Commission staff members are 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 August 6, 2010, at 1308 County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601. CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT Printed ame and Title South Bend Redevelopment Commission ATTEST: inted Name and Title South Bend Redevelopment Commission EXHIBIT A PROPERTY DESCRIPTION AND FINAL PURCHASE PRICE Final Tax Key No. Address Owner Purchase Price 23 -1025 -1429 4215 S Main St David A. Ciula $130,000.00