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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 Planner6�1j
Subject: Res. No. 2872 — Counter Offer & Relocation for Prairie Salvage
1504 — 1514 Prairie Ave
Date: May 10, 2011
This is the staff report for the acquisition and relocation of Prairie Salvage. On April 12,
2011, Resolution No. 2867 was approved, which set the offering price for this property at
$63,950, which is the average value as determined by two independent appraisals.
The owners of this property have counter offered a value of $104,000. They feel this value
is a more appropriate value for their long standing business location, which includes three
parcels of land, a house (922 square feet, in good condition, with full basement), and
various retail and storage buildings (total of 7,200 square feet under roof). The land value
alone of these properties appraised at $32,000.
In addition to the acquisition price of $104,000 for this property, relocation and moving
expenses of $246,000 are needed, broken down as follows:
• $65,000 to move large amounts of fabric, equipment, shelving, etc, and store set up
at the new location
• $181,000 to acquire and refashion the new location on State Road 2 just west of
town (the old Jeep Acres property).
Staff feels the total acquisition, relocation, and moving costs of $350,000 for this property is
reasonable, and requests approval of Resolution No. 2872 and relocation expenses of
$246,000, to allow for the acquisition and relocation of this property.
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RESOLUTION NO. 2872
RESOLUTION APPROVING AND ACCEPTING A COUNTEROFFER
FOR THE 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 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 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 (the "Property "); and
WHEREAS, on April 12, 2011, the Commission adopted a Resolution setting
the Acquisition Offering Price and authorizing staff to present an offer to Beene D. Veen,
as owner 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 for the Acquisition
Offering Price as authorized, which the Owner rejected; and
WHEREAS, the Owner has provided a counteroffer to the Commission for
$104,000.00, plus relocation and other expenses related to the acquisition; and
WHEREAS, the staff has reviewed the counteroffer and determined that the
proposal 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
Assignment of the Purchase Agreement and /or 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. Staff members for the Commission are 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 May 10, 2011, at 1308 County -City Building, 227 West Jefferson
Boulevard, South Bend, Indiana 46601.
CITY OF SOUTH BEND,
DEPARTMENT OF REDEVELOPMENT
Signature
Printed Name and lit le
South Bend Redevelopment Commission
ATTEST:
Signature
Printed ame and Title
South Bend Redevelopment Commission
EXHIBIT A
PROPERTY DESCRIPTION AND PURCHASE PRICE
Counter ,
Tax Key No.
Address
Owner
Acquisition Price
18- 8053 -2120
1504 Prairie Ave.
18 -8053 -2121
1512 Prairie Ave
Beene D. Veen
$104,000.00
18- 8053 -2122
1514 Prairie Ave