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Home My WebLink About6E (5)f 6pUT$ @,p \liiill,l i �0 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: Matthew Sikora, Economic Development Planner Subject: Administrative Settlement for acquisition of 1007 N. Bendix Drive Date: July 12, 2011 This is the staff report for the administrative settlement needed for the acquisition of 1007 N. Bendix Drive in the Airport Economic Development Area. According to the Uniform Relocation 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. As you may recall, as part of Sterling Group LLC's application for tax credits for the senior housing project (Heritage Place at LaSalle Square), the city agreed to support the project by purchasing property from Faith Apostolic Temple, Inc. and donating it to the development. Those negotiations are nearing completion. Earlier this year, the scope of the project was altered and expanded, necessitating the acquisition of additional property — the former Fernando's Restaurant — and presenting an opportunity. On October 23, 2009 Resolution No. 2611 was approved, setting the offering price for this property at $137,000, or the average appraised value. Despite continued negotiations, the current owners have held to an offering price of $325,000, based on a search of available property in the area of similar size and amenities (particularly parking) to their existing site. Despite the disparity, we feel this is an opportunity to expand the scope of the housing development, to allow the building to open toward and connect more fully to Bendix (and provide greater access to the Memorial health facility across the street), to create opportunities for retail development at the northeast edge of LaSalle Square and to remove a building whose on -site business remains at odds with its LaSalle Square neighbors. In order to offset the above disparity and to keep our projected administrative settlement ($88,000) more in line with that of other settlements, Sterling Group LLC has agreed to put $100,000 toward the acquisition of Fernando's (please see attached letter). Given the overall value of an expanded development within LaSalle Square, as well as the additional private sector support offered to help with acquisition, Staff requests your approval of the administrative settlement of $88,000 (and a total request of $225,000) to allow for the acquisition of this property. What We Do Today Makes A Difference! } EElE €= 3uvnDS 3-1 VSVI 630NVINVA aOd S1SW03H 5 a { 1V 30V1d 30V112l3H NVId 31lS ),iJVNlVMMld f sn - o Z r °p�Wtin�a'z'WbW "_ate a..8 az CD a.o4r ^4�4 °ff <w -4AIaO XION38 ------- - -- - -- Afi'G[�/n..i. ['A.�"1C r— I I F U `ll b61 - \ o Z ' %i � /��. O 0 o a a C. $g our inoui ,sl aaomue - - �' g (Alit A8) 13381S A11J 03SOdOdd " w'� r s° a ° R \ I Z4 MISZS:OL L V4LS *NEJIOH luVd'6 PMW DIE GEL LOL 1I�A LIOIIIIOUd ONMOO II a:3 RESOLUTION NO. 2611 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 (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 May 16, 2008, the Commission adopted Resolution No. 2450 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 average appraised value of the Property of $137,000.00 (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 expenscs incidental to the conveyance and determination of title). 4. Don Inks or Jeff Gibney is 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 October 23, 2009, at 1308 County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601. CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT C-A" tgna ture e Marnia T A�we.-, president rune ame an�Tit e South Bend Redevelopment Commission ATTEST: 4"wee', ' — ignature Nancy N. King, Secretary Printea Name and 1 it e South Bend Redevelopment Commission EXHIBIT A PROPERTY DESCRIPTION AND OFFERING PRICE Tax Key No. Address Owner Average Acquisition Price Ramadan A. 18- 2191- 719205 1007 N. Bendix Ave. Salameh and $137,000.00 Tamilyn Salameh, Husband and Wife 0' _.IVEQ ® JUN - d 1011 Multifamil Housing Specialists Sterling Development LLC Matthew Sikora June 3, 2011 Economic Development Planner City of South Bend 227 W. Jefferson Blvd., Ste. 1200 S. South Bend, IN 46601 Re: Heritage Place at LaSalle Square Senior Housing Dear Mr. Sikora, Thank you for arranging the meeting on June 2, 2011 with members of the City of South Bend Economic Development Department and Members of Heritage Place at LaSalle Square L.P. to discuss the acquisition of land for Heritage Place at LaSalle Square. Per that discussion, please know that the Partnership for Heritage Place at LaSalle Square has agreed to contribute $100,000 (One Hundred Thousand Dollars) to assist in the acquisition of the parcel owned by Ramadan and Tamilyn Salameh and known as Fernando's Restaurant located at the Northwest Corner of Bendix and Bond Streets. This additional land will allow us to better site plan the building and create what we feel will be the "Gateway" into the new LaSalle Square shopping center. Again, we look forward to working with the City of South Bend and providing Quality Affordable Senior Housing to the west side of South Bend and more specifically to the LaSalle Square area. Sincerely, Sw Managing Member CC: Jeff Gibney Margo DeMont Sterling Group, Inc. Sterling Development LLC ■ Sterling Construction Corp. of Indiana ■ Sterling Management Ltd., Inc. ■ Sterling Acquisitions LLC 3900 Edison Lakes Parkway, Suite 201, P.O. Box 2008, Mishawaka, IN 46546 -2008 574/243 -8547 ■ FAX: 574/243 -8562 www.thesterlinggrp.com