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HomeMy WebLinkAbout6C(5) Resolution No. 2793G c(s)ao) • r a n • u nn 4 SouTU B o ,v1 l,;i�yP�c 3 Community & Economic Development Y 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. 2793 — Acquisition Offer for Enyart Motors Res. No. 2800 — Counter Offer & Relocation for Enyart Motors 122 — 124 E. Sample St., 117 - 123 E. Ohio St. Date: November 02, 2010 This is the staff report for the acquisition and relocation of Enyart Electric Motor Repair. This property was added to the Airport Economic Development Area Acquisition List by Resolution No. 2668 on May 21, 2010. It was added in an effort to assist Ivy Tech expand classroom, storage, and parking needs, in light of their large increases in enrollment. This particular property is a two story masonry and cement block, 9,200 square foot building, comprised of 5,200 square feet of office / shop / warehouse on the first floor, and 4,000 square feet of second floor storage space. Land area is 21,150 square feet, or .486 acres. It contains five abutting parcels, one along East Sample Street and four along East Ohio Street. This building will be used by Ivy Tech for the expansion of much needed classroom, storage, and / or parking space. Resolution No. 2793 sets the acquisition value of the property at $107,500. The acquisition value is the average value as determined by two independent appraisals. Resolution No. 2800 is the property owner's counter offer of $190,160. When valuing this building, the appraisals did not give value to the second story. The price per square foot was applied only to the first floor's square footage. The owners feel the second floor does add value, and argue that this value should be calculated into the building's overall pricing, especially in light of the value per square foot of their building versus Habitat's a few blocks away ($20 / square foot Enyart versus $25.75 / square foot Habitat). Attached is a letter from the owner, explaining their reasoning. The owner's counter offer of $190,160 is based on applying the $20 per square foot value to the square footage of both floors, not just the first floor, in addition to the 308 square foot cement block storage garage behind the building. Recent improvements to the building What We Do Today Makes A Difference! were done in 2008, and include a new roof, tuck pointing the front brick facade, and residing the building's west side. In addition to the acquisition price of this property, relocation and moving expenses of $132,318 are needed. Relocation and moving expenses consist of needed improvements to the new location of Enyart Electric Motors, which is proposed to be 1313 Prairie Avenue, which is Commission owned and currently going through the disposition process. Staff feels the total acquisition, relocation, and moving costs of $322,478 for this property is reasonable, and requests your approval of Offer Resolution No. 2793, Counter Offer Resolution No. 2800, and relocation and moving expenses of $132,318, to allow for the acquisition of this property. Memo to RC Acq, Counter Offer.doc What We Do Today Makes A Difference! -Enyart -Efe ctric Motor Revailr Rewinding and Repairing of Electric Motors - Commercial - Industrial - Domestic 122 East Sample Street South Bend, IN 46601 Phone: 574.288.4731 Fax: 574.282.4860 City of South Bend Redevolpment Commission: October 11,2010 Regarding: 122 E & 124 E Sample St. South Bend In. 46601 On June 17th we sat with David Relos in review of the appraisal of our building at $107,000 and a comparison of how the appraisal of the building previously occupied by the Re -Store was calculated. We understand that certain factors; corner lot, 416 ft of frontage, single ground level made the value per square ft more valuable in that acquisition. The price per square foot paid for that property was $ 25.75. Our properties at 122 E. & 124 E. Sample St. have been toured by staff members from Ivy -Tech on two occasions and at each tour they expressed interest in using both levels of the building. Our building has 55 ft. of frontage on Sample Street and 4 parcels of land that front on Ohio St. The parcels on Ohio Street includes 139 ft. of frontage and a free standing Cement block storage building. There are 2 stairways that allow access to the upstairs, 124 E. Sample St., level; one from each end of the building. When the appraisal was done a price of $ 20.00 per sq. ft was applied to only the ground level, 5200 sq. ft. The upstairs 4000 sq. ft and the 308 sq. ft. of the out building were not considered in the computation. Although we understand that the appraisers operate under certain standard protocols we would like to ask the Planning commission to reconsider the value of our property. If we use the same $ 20.00 per sq. ft. and include the 4,308 ft of the upper level and outbuilding the value would be $ 190,160 Certain factors which were not considered in the appraisal were recent improvements made to the building ; New roof,( 2008), Re -tuck pointing of the brick front, (2008), complete residing of the West side. Carl Enyart purchased this property in 1965 and has faithfully paid all property taxes at the time they were due and has complied with every request by the City to keep the property aesthetically appealing to the neighborhood especially as the Juvenile Justice Center and IVY Tech have attempted to improve the area. The income from the current lease for this property has been a source of retirement income for the Enyarts and the sale of this building will terminate that source of income. We feel that we are being reasonable in the facts presented in this request and would appreciate your careful consideration in this matter. Respectfully Submitted: Richard A. Siri r_ Carl V. Enyart Patricia A. Enya r RESOLUTION NO. 2793 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION RELATED TO 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 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 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 ( "Property "); and WHEREAS, on May 21, 2010, the Commission adopted Resolution No. 2668 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 offering price of $107,500.00 (the "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 Offering Price (the "Average Acquisition Price" in Exhibit A) 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 with this Resolution and in a form 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 November 02, 2010, at 1308 County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601. CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT Signature Printed Name and 7711e South Bend Redevelopment Commission ATTEST: Signature Printed ame and Ttle South Bend Redevelopment Commission EXHIBIT A PROPERTY DESCRIPTION AND OFFERING PRICE Tax Key No. Address Owner Average Acquisition Price 18- 7001 -0016 120 E. Sample St. Patricia A. Enyart 18- 7001 -0027 117 —119 E. Ohio Revocable Trust 18- 7001 -0028 St dated the 22"d day $107,500.00 18- 7001 -0029 121 E. Ohio St of September 2006, 18- 7001 -0030 123 E Ohio St as amended