HomeMy WebLinkAbout6D 6• UTd
Community & Economic Development'
• !tK
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 6-9.
Subject: Administrative Settlement for acquisition of 1525 S. Kemble Avenue
Date: June 14, 2011
This is the staff report for the administrative settlement that is needed for the acquisition of
1525 S. Kemble 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.
On July 9, 2010, the Commission approved Resolution No. 2718, which authorized the
purchase of this property based upon its average appraised value of $29,000. The owner
of this property died without a will, and Staff has been working with her heirs since July of
last year to work through the process of setting up an estate so this property could be
acquired.
Since the property owner's death, one son has lived in the house, making payments on the
mortgage, paying the taxes, and maintaining the property. According to the attorney for the
estate, this son has a pending petition to receive the first $80,000 of the estate's proceeds
(primarily this property).
Under the Act, this son is eligible for relocation benefits. Following the Act, the estimated
acquisition and relocation costs associated with this property would be $47,000.
Instead of being relocated under the Act, the son would instead like a lump sum payment of
$50,000. This payment would be made to the estate.
The approximate mortgage payoff is $11,000. The remaining $39,000 would be used as a
down payment by the son and his wife toward a new home.
Staff feels the total acquisition cost of $50,000 is reasonable for this property, and requests
your approval of the administrative settlement to allow the acquisition of this property.
What We Do Today Makes A Difference!