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HomeMy WebLinkAbout6D (2)rapUTB B Community & Economic Development 1865 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 5 Subject: Monroe Park Neighborhood — purchase offers Date: October 25, 2011 This memo is an update and request to proceed regarding the proposed sale of five Redevelopment -owned properties in the Monroe Park Neighborhood (a list of the properties is attached for reference). On June 28, 2011 the Redevelopment approved bid specs, fair - market valuation, and advertising of legal notices to begin the disposition process for each of the five properties. At the July 26, 2011 Redevelopment Commission meeting, staff reported that no bids had been received on any of the properties and that they would thus be able to be sold at a negotiated price less than the Minimum Offering Price. On September 27, 2011 the Redevelopment Commission approved a contract with Bruce Gordon to list and market four of the five properties. We have received offers on all five of the properties. 310 E South Street and 602 Carroll Street — We've received a cash offer of $5000 and $10,000, respectively. A neighbor adjacent to the properties plans to install his mother in one of the homes and maintain the other as a rental unit, keeping the current tenant (an elderly woman renting through HDC) until such time as she decides to vacate. Both properties will require maintenance /repairs of up approximately $7500, which is a part of the reason for the lower bids. The bidder on these properties has a well- maintained home (that's current in taxes and has had no code issues), is active in the neighborhood association, and has expressed his desire to purchase these properties in an effort to maintain the integrity of the neighborhood. As such, staff recommends accepting the offers and requests permission to proceed with a Contract for Sale and associated documents (including lease termination with HDC) necessary for the sale of these two properties. 628 Rush Street 609 Columbia Street and 620 Columbia Street — We've received one offer for 628 Rush Street for $10,000 and a second offer for $40,000 for the three properties and including 310 E South (or approximately, $10,000 per home). In both cases, it's been determined that the offers are likely not coming from within the neighborhood but from out of town (and out of state) investors looking to rent or turn them over. Staff, in consultation with our real estate agent, requests a rejection of all offers at this time. What We Do Today Makes A Difference! Property Size Minimum Offering Price proposed Use 609 Columbia Street 1,144 ftz (S) $15,500 018 - 3026- 093901 Lot: 58'x 46' Residential projects that are permitted within the "SF1" and "SF2" 628 Rush Street 1,344 ft2 (S) $17,500 Residential District 018 - 3031 -1183 Lot: 41'x 51' zoning designation. 310 E. South Street 1,446 ftz (S) $25,000 Strong emphasis will be 018 - 3026 -0936 Lot: 42'x 116' placed during the review process on compatibility with the goals and objectives of the Monroe 602 Carroll Street 1,823 ftz (D) $27,000 Park Neighborhood and 018 - 3026 -0934 Lot: 54' x 100' the South Bend Central Development planning area, with an added preference for single - 620 Columbia Street 1,174 ftz (D) $17,000 family structures. 018 - 3026 -0962 Lot: 40'x 153' (S) = Single- family unit (D) = Duplex