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Home My WebLink About6B1to 8 0) o�s�u'dlH /BR o Department of Community ieu Investment Memorandum March 14, 2013 TO: Redevelopment Commission FROM: David Relos, Economic Resources Associate SUBJECT: Lump Sum Administrative Settlement for 726 - 730 E. Sample St. This staff report is for a lump sum administrative settlement that is needed for the acquisition of 726 — 730 E. Sample St. This property is the last of multiple properties that have been acquired in this area since 2001. According to the Uniform Relocation Act, an administrative settlement is authorized when negotiations exceed the market value and relocation costs of the property and are necessary for its acquisition. To relocate the wood working business currently operating on this property, another building that could accommodate it would need to be identified, and that building brought up to current building and fire codes. According to zoning ordinances, this business requires a Light Industrial designation, which further limits relocation options. Funding would be required to acquire and rehabilitate a new building for this business' operations. In addition, a firm would need to be hired to assist the property owner through the various departments who would need to approve this relocation, and to provide design services for the work needed on a new building. Costs would be incurred to move and install multiple machines, racking, and stored materials. Staff has spent substantial time assisting the owner in finding a suitable building the business could relocate to. Prices ranged from $75,000 to $150,000 +. To accommodate the business, these buildings all needed additional costs for build out; professional services and permitting fees for variances, etc.; actual moving and reinstallation costs; and closing costs and inspection fees. These costs would conservatively add $25,000 to an acquisition cost. With these additional costs, acquisition and relocation costs would range from $100,000 to $175,000. This property owner requests a lump sum administrative settlement, allowing him to find a suitable location at his own pace. Staff believes the settlement of $100,000 for this property is reasonable, in light of costs that would be incurred if the business were relocated, and requests your approval to allow the acquisition of this last property. 227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 1 P: 574- 235 -9371 1 FAX: 574- 235 -9021 1 SOUTHBENDIN.GOV SOUTH Bf Department of yr,z Community Investment IBfS Memorandum March 14, 2013 TO: Redevelopment Commission FROM: David Relos, Economic Resources Associate SUBJECT: Res. No. 3126 — Acquisition Offer for 726 -730 E. Sample St. This staff report is for the acquisition of 726 — 730 E. Sample St. This property was added to the Airport Economic Development Area Acquisition List by Resolution No. 1839 on July 20, 2001. It was added in an effort to clean and clear the area for future development opportunities. This particular property is the last property to be acquired in this area (see attached map). It is improved with a one story commercial building containing 3,940 square feet. Housed in the building is a wood working business. The property owner would like participate in the goals of the Commission in its efforts to clean and clear this area, and has been cooperating with Staff to acquire this property. Resolution No. 3126 sets the acquisition value of the property at $27,750. The acquisition value is the average value as determined by two independent appraisals. Staff requests approval of Resolution No. 3126, to allow for the acquisition of this property 227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 1 P: 574 - 235 -9371 1 FAX: 574- 235 -9021 1 SOUTHBENDIN.GOV 5 G7 cu . -, c a CO •YO n9. e i � :.. y Ar ti tall" �W i IV U 4 N a O U n U c 31l ,: o' 'o '$ 9 ,r /� 3 dw ja v i a l rb .il� RESOLUTION NO. 3126 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 ( "Plan "), the South Bend Redevelopment Commission ("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 ("Property "); and WHEREAS, on July 20, 2001, the Commission adopted Resolution No. 1839 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 offering price of $27,750.00 (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 expenses incidental to the conveyance and determination of title). 4. Commission staff members are 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 March 14, 2013, at 1308 County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601. CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT , inted Name and Thle South Bend Redevelopment Commission ATTEST: Printed Name and line South Bend Redevelopment Commission EXHIBIT A PROPERTY DESCRIPTION AND OFFERING PRICE Tax Key No. Address Owner Average Acquisition Price 18- 7018 -0728, 072801, 0729 726 — 730 E. Michael G. Beres $27,750.00 Sample St.