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HomeMy WebLinkAbout6E 1� C- (1) me mor arid u m r Community & Economic Development 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. 2886 — Acquisition Offer for 601 — 605 W. Washington Res. No. 2887 — Counter Offer for 601 — 605 W. Washington Date: June 14, 2011 This is the staff report for the acquisition of 601 — 605 W. Washington. This property was added to the West Washington Chapin Development Area Acquisition List by Resolution No. 2852 on March 22, 2011. It was added in an effort to clear the non - conforming buildings on this corner in preparation of more appropriate infill housing or a historic house move. This property is a one story, three unit, brick building built in 1960. The building contains 1,680 square feet on a 68'x 93' lot, across the street from Tippecanoe Place Restaurant. Resolution No. 2886 sets the acquisition value of the property at $72,000. The acquisition value is the average value as determined by two independent appraisals. Resolution No. 2887 is the property owner's counter offer of $87,000. When valuing this property, the appraisals did not consider the income approach since only one of the three units is currently leased. The property owner states that in anticipation of this sale, he has not actively pursued leasing the units. Using the income capitalization method of valuing this property based on its historic rental income, with a capitalization rate of 11 %, the value would be $126,000. This building had a new roof put on 3 years ago, with the center unit recently remodeled. Staff feels the acquisition cost of $87,000 for this property is reasonable, and requests your approval of Offer Resolution No. 2886 and Counter Offer Resolution No. 2887, to allow for the acquisition of this property. What We Do Today Makes A Difference! RESOLUTION NO. 2886 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION RELATED TO ACQUISITION OF PROPERTY IN THE WEST WASHINGTON CHAPIN DEVELOPMENT AREA WHEREAS, under the authority granted by Indiana Code § 36 -7 -14, et seq. and in furtherance of the West Washington Chapin 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 West Washington Chapin 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 March 22, 2011, the Commission adopted Resolution No. 2852 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 $72,000.00 (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 June 14, 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 71tle South Bend Redevelopment Commission ATTEST: Signature Printed Name and Title South Bend Redevelopment Commission EXHIBIT A PROPERTY DESCRIPTION AND OFFERING PRICE Tax Key No. Address Owner Average Acquisition Price 18 -1024- 105602 601 — 605 W. The Washington $72,000.00 Washington St. Street Partnership