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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: Administrative Settlement for acquisition of 1527 S. Kemble
Date: August 23, 2011
This is the staff report for the administrative settlement that is needed for the acquisition of
1527 S. Kemble. According to the Uniform Relocation Act (Act), an administrative
settlement is authorized in cases where an additional payment is necessary to acquire a
property.
Before the Commission today was Resolution No. 2928, setting the offer price for this
property at $32,000, which is the average appraised value. Staff has been working with the
property owner to reasonably reach an agreement to acquire this property.
This property is a large, extensively remodeled two story rental. Recent improvements
include:
• 3 years ago new windows were installed in two of the units, and new floor coverings
in all three units
• 5 years ago the house was insulated and siding put on
The income stream from this property is $1,025 per month. Using a 12% cap rate, the
annualized investment property value is calculated to be almost $75,000. The owner has
agreed to sell this property for $65,000.
Staff feels the acquisition cost of $65,000 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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