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HomeMy WebLinkAbout6B(9)~ 1~ < <~ UTH o~ s°~ ~I~.;~eF~o, ~_ V \'~ ~ ~1 a Community & Economic Development W `""'`~' ,~ ~i.-.. ..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: Administrative Settlement for acquisition of 807 W. Indiana Ave. Date: August 06, 2010 This is the staff report for the administrative settlement that is needed for the acquisition of 807 W. Indiana Avenue. According to the Uniform Relocation Act (Act), which has been adopted as the Commission's relocation policy, an administrative settlement is authorized in cases where an additional payment is necessary to acquire a property. Before the Commission today was Resolution No. 2741, setting the offer price for this property at $24,000, which is the average appraised value. The private club that occupies this property has decided to accept this purchase price, but need relocation assistance to acquire and make improvements to a new building for their move. Because City ordinance allows private clubs to locate only in Local Business or Mixed Use zoned areas, this limits where the club can relocate (see attached maps). Additionally, private clubs need a special exception to locate in these two zoned areas. The club has found a building currently for sale in a Mixed Use zoned area. They have made an offer to purchase, contingent on the Commission's relocation assistance approval, and the special exception and variances they need. The purchase price agreed to between the parties is $85,000. The building was originally listed in 2007 for $144,900, later reduced to $124,900, $99,900, and now to $95,000. In addition to the purchase price of the building, certain improvements are needed that the club has at their current location. These improvements are: brick infill the front two large plate glass windows and west side door, privacy fencing, and a small gravel parking area. These improvements will cost more than the additional $12,000 requested, but the club will pick up the costs over this amount. Total relocation assistance above the acquisition price of $24,000 is $76,150 ($85,000 - $24,000 + $12,000 + $3,150 Special Exception /Variance services of Mike Danch, which is before the Commission today). Moving and other relocation costs will be absorbed by the club. Staff feels the relocation assistance needed to move this club is reasonable, and requests your approval of the administrative settlement to allow for the acquisition of this property. 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