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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 '$ a
Subject: Resolutions 2743 & 2744 -Acquisition of 502 W Western Avenue
Date: August 3, 2010
Attached to this memorandum are Resolutions 2743 and 2744 related to the proposed
purchase of 502 West Western Avenue. The property at 502 W Western is located on the
southwest quadrant of the intersection of Western and William and was the former location
of the Harmon Glass Company. Harmon vacated the site in 2008 and consolidated their
operations at another location.
Since 2008, the Redevelopment Commission has purchased the Richey's Radiator parcel
on the southeast corner and the Fred's Transmission parcel on the northwest corner of this
intersection. Fred's will be torn down starting in late August and the Richey's building and
site are being incorporated into the site planning of the Coveleski project.
The parcel at 502 W Western is a key piece to control of the Western and William
intersection. As part of the site planning for the Coveleski Park, a new entrance will be
developed at the end of William Street near the Synagogue. With a focus being located at
this corner, control of the 502 property is important. At the present time, the owner of the
site is in negotiations with a potential user that might be detrimental to the plan for the area.
Resolution 2743 would set the Acquisition Offering Price at $85,750.00 based on the
average of two commercial appraisals. This appraisal was completed at a time when the
building was vacated and partially damaged due to an auto accident so the value is lower
than it might appraise currently. The property is currently on the market for sale or lease
and has been on the market since 2009.
After discussions with the property owner and the real estate representative, acounter offer
has been submitted in the amount of $129,000.00. This amount is reflective of the corner
location, the current condition of the building and other associated costs. The price is
comparable based on other prior acquisitions in the area and so staff submits Resolution
2744, which is the counteroffer and final purchase price, for 502 W Western Avenue.
Staff requests approval of both resolutions.
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RESOLUTION N0.2743
A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION
RELATED TO ACQUISITION OF PROPERTY IN THE
SOUTH BEND CENTRAL DEVELOPMENT AREA
WHEREAS, under the authority granted by Indiana Code § 36-7-14, et seg. and
in furtherance of the South Bend Central Development Area Plan ("Plan"), the South
Bend Redevelopment Commission ("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 Bend Central 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 ("Property"); and
WHEREAS, on March 28, 2008, the Commission adopted Resolution No. 2441
amending the Plan and adding the Property to the Area"s acquisition list; and
WHEREAS, two (2) independent appraisals of the Property have been obtained
in accordance with Indiana Code § 36-7-14-19(b), which provide an initial offering
price of $85,750.00 (the '`Acquisition Offering Price'); and
WHEREAS, the Commission now desires to authorize its authorized agents,
hired for such purposes, or the staff of the Commission to provide and negotiate an offer
for the Purchase of the Property in accordance with Indiana Code ~ 36-7-14-19, which
may include relocation costs and the Commission's payment of expenses incidental to the
conveyance and determination of the title of the Property; and
WHEREAS, the Commission finds that all procedures necessary for
authorizing and acquiring the Property have been completed in accordance with Indiana
law:
NOW, THEREFORE, BE IT RESOLVED by the South Bend
Redevelopment Commission that:
1. Authorized agents of the Commission and the staff of the Commission are
hereby authorized and directed to cause a purchase offer to be made in writing to the
owner(s) of the Property as described at Exhibit A at the Acquisition Offering Price in
accordance with Indiana Code ~ 36-7-14-19, which offer or process may include
relocation costs and the payment of expenses incidental to the conveyance and
determination of the title of the Property.
2. The Commission's agents and attorneys are hereby authorized and
directed to negotiate and prepare documentation necessary to accomplish the acquisition
of the Property in accordance ~~~ith this Resolution and in a forni acceptable to legal
counsel.
3. The Commission hereby ratifies any actions of its staff or legal counsel
previously taken consistent with the authority provided in Section 1 or 2 hereof.
Notwithstanding the foregoing, no representations, contract or understanding relative to
the purchase of the Property, whether made by a Commissioner, employee or other agent
or official, is binding against the Commission until approved and accepted by the
Commission in writing. The Commission hereby accepts, in advance, any purchase of
the Property pursuant to a uniform acquisition offer set forth at Indiana Code § 32-24-1-
5 (or a purchase offer deemed by legal counsel to be substantially similar to said Uniform
Acquisition Offer, which may include the payment of expenses incidental to the
conveyance and determination of title).
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
ignanu e
Prinu~c ,A~umc~ am lit c
South Bend Redevelopment Commission
ATTEST:
Yana°~ .A'cunc° un~ Tir c'
South Bend Redevelopment Commission
EXHIBIT A
PROPERTY DESCRIPTION AND ACQUISITION OFFERING PRICE
Tax Key No. Address Owner Acquisition
Offering Price
TRC South Bend
18-3013-0465 502 W Western Ave Glass, LLC, a $85,750.00
18-3013-0467 Minnesota limited
liability company