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HomeMy WebLinkAbout5A(1)o ,�1i,ili'/,FNd Community & Economic Developmen77 1865 IB65 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 Subject: Staff Report on Resolution 2744 - Counter Offer for 502 W Western Avenue Date: October 28, 2010 On August 6, 2010, the Redevelopment Commission approved Resolution 2743 which set the acquisition offering price for 502 W Western Avenue. The property is a single story commercial building located on the southwest corner of Western Avenue and William Street and was the former site location for Harmon Glass. Over the past several years, the Redevelopment Commission has acquired several key parcels located within the Coveleski Park planning area. As the plans for Coveleski Park are now coming together, there are still a few key parcels that need to be acquired to complete the master plan process. The property at 502 W Western is one of the corner properties at one of the main entry points into the stadium campus. The Commission owns the northwest quadrant which previously housed Fred's Transmission (presently being cleared for future development), owns the southeast corner which previously housed Ritchie's Radiator (currently being used for storage during the stadium renovation process and then will be cleared for parking (short term) or for a future development pad site (intended use). The acquisition of the southwest corner is key to the stabilization of the block frontage along Western Avenue in this section of the planning area. The property west of the 502 site has been redeveloped by Granger Community Church and other partners and proper tenanting of this space will help to advance their efforts as well as provide a new retailer in the project area. Staff has spent considerable time working with the property owner and his representative on a fair acquisition value for the site. The property originally appraised at $85,750 when it was appraised in 2008. For a comparison, the Commission paid $190,000 for Ritchie's Radiator, $262,500 for Fred's Transmission and $130,000 for the Son's of Israel Synagogue. The price of $150,000 for this corner parcel with two lots, a stable building that will likely be repurposed and site control at this entry point into the park campus is a reasonable acquisition price. Staff would request Commission approval of Resolution 2744 to approve the counter offer and to allow staff to proceed with the acquisition of this key property. What We Do Today Makes A Difference! RESOLUTION NO. 2744 RESOLUTION APPROVING AND ACCEPTING A COUNTEROFFER FOR THE ACQUISITION OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA WHEREAS, under the authority granted by Indiana Code § 36 -7 -14, et seq. and in furtherance of the South Bend Central 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 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 (the "Property "); and WHEREAS, on August 6, 2010, the Commission adopted a Resolution setting the Acquisition Offering Price and authorizing staff to present an offer to TRC South Bend Glass, LLC, a Minnesota limited liability company, 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 $150,000.00, 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 November 2, 2010, at 1308 County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601. CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT Printed Name and Title South Bend Redevelopment Commission ATTEST: Printed ame and Title South Bend Redevelopment Commission EXHIBIT A PROPERTY DESCRIPTION AND FINAL PURCHASE PRICE Tax Key No. Address Owner Final Purchase Price TRC Glass South 18- 3013 -0465 502 W Western Ave Bend, LLC, a $150,000.00 18- 3013 -0467 Minnesota limited liability company a Ln to co °r° � � d � a N a I a u ca a c� U H