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HomeMy WebLinkAbout6B (2)G A (3) u� 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 1509 S. Kendall St. Date: November 22, 2011 This is the staff report for the Administrative Settlement that is needed for the acquisition of 1509 S. Kendall St. According to the Uniform Relocation Act (Act), an Administrative Settlement is authorized in cases where an additional payment is necessary to acquire a property. On October 15, 2010, the Commission approved Resolution No. 2784, which authorized the purchase of this property based upon its average appraised value of $25,500. The property owner passed away in May 2010, leaving no will. Staff has been working with the owner's heirs, and subsequently with their attorney, to reasonably reach an agreement to acquire this property. This particular property is a 1,416 square foot, one and a half story, 4 bedroom, 1 bath house with a fenced back yard. In 2001, a $50,000 mortgage was secured by the property owner, paying off a 1997 mortgage in the amount of $22,000 and to remodel this house. Since the illness and death of the property owner, the mortgage has become delinquent. In addition, there is approximately $1,500 in legal fees, and $2,100 in moving costs to the son that currently lives at the property. Total cost of this acquisition is $59,100 ($55,500 mortgage payoff, $1,500 legal fees, $2,100 moving costs), which is similar to the total acquisition and relocation costs of similar properties. Staff feels the total acquisition cost of $59,100 is reasonable for this property, and requests your approval of the Administrative Settlement to allow its acquisition. What We Do Today Makes A Difference!