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HomeMy WebLinkAbout09-09-2011 City announces plan for Family Dollar store property O4 Sou TH 4 O F 2 w rencs j ]865 Office of the Mayor MEDIA RELEASE Friday, September 09, 2011 3:30 PM Contact: Mikki Dobski, Director of Communications&Special Projects, 574-235-5855 or 876-1564 Chuck Leone, City Attorney, 574-235-9241 CITY ANNOUNCES PLAN FOR FAMILY DOLLAR STORE PROPERTY South Bend, IN: City Officials today announced a plan of action to deal with the Family Dollar store property at 717 E. LaSalle Ave. in South Bend which has been the subject of litigation between the City of South Bend and certain City residents represented by the American Civil Liberties Union and Americans United for the Separation of Church and State. On Wednesday, September 7,Judge Robert L. Miller,Jr. issued an injunction against transfer of the Family Dollar store property from the City of South Bend to Northeast Neighborhood Revitalization Organization (NNRO) for eventual transfer to Saint Joseph's High School. That ruling was based on the court's finding that the proposed transfer, as then structured, would violate the Establishment Clause of the First Amendment to the United States Constitution. City officials today stated that they would proceed forward with a plan, pursuant to sections of the Indiana Code and consistent with Judge Miller's ruling, to transfer the property to St. Joseph's High School for the average of two professional appraisals so that the Saint Joseph's High School construction project could continue. City Attorney Chuck Leone explained that the Indiana Code makes provision for sale or transfer of real estate by allowing a city government to obtain two appraisals of a piece of property and to negotiate and sell a parcel for the average of the two appraisals. The purpose of the transaction must be to either promote an economic development project or to facilitate compatible land use planning. Because the transaction is for the full value of the property, as determined by the appraisals,the transaction is presumed fair to both the City and the acquiring entity. Under that section of Indiana law, the City may negotiate a sale or transfer of the property for the value that has been determined under that Code section. Leone also indicated that because the sale of this property is subject to an injunction issued in Federal Court, that the City would file a motion in the injunction case to seek approval from Judge Miller that the method of sale, as proposed, does not violate the Court's injunction. He also indicated that the City has not yet made a determination whether to appeal the ruling that the Court issued on Wednesday. For more information please contact: City Attorney Chuck Leone, 235-9241.