HomeMy WebLinkAbout6C(5) Administrative Settlement 755 S. Michiganc.r c C 0
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Community & Economic Development" °�;
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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: David Relos, Economic Development Planner,'
Subject: Administrative Settlement for acquisition of 755 S. Michigan St.
Date: November 19, 2010
This is the staff report for the administrative settlement that is needed for the acquisition of
755 S. Michigan Street. 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. 2801, setting the offer price for this
property at $82,500, which is the average appraised value.
Over the years the Center for Homeless has tried to purchase this property, but the parties
could not come to an agreement on its acquisition. To help move the acquisition forward,
the Commission added the property to the AEDA's acquisition list in August of this year.
Staff and the owner's representative have come to an agreement for the acquisition of this
property. The acquisition would be a lump sum payment of $205,000, with no other
relocation costs being incurred.
Traditionally, when relocating a business, it is not uncommon for moving and relocation
costs to be equal to or more than the acquisition cost. If these additional costs were
factored in, the total acquisition and relocation costs could easily be near $200,000.
Staff feels the acquisition cost of $205,000 is reasonable for this property, and requests
your approval of the administrative settlement to allow for the acquisition of this property.
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