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Department of
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Memorandum
June 26, 2013
TO: Redevelopment Commission
FROM: David Relos, Economic Resources Qk
SUBJECT: Administrative Settlement for 725 W. Indiana Ave.
This staff report is for the administrative settlement that is needed for the acquisition of
725 W. Indiana Ave., also known as Barany Sheet Metal. This property is one of the
remaining properties to be acquired between Scott and Kemble streets in the Ignition
Park South Expansion Area. According to the Uniform Relocation Act, an administrative
settlement is authorized when negotiations exceed the market value of the property and
are necessary for its acquisition.
On May 30, 2013 the Commission approved Resolution No. 3141, setting the offer price
for this property at $51,500, which is the average appraised value of the real estate and
improvements only. This property contains three parcels that equal 14,880 square feet,
or almost 1/3 acre. On this property is an industrial building containing a total of 8,400
square feet of usable space.
To relocate this business, another building that could accommodate it would need to be
found, and that building brought up to current building and fire codes. In addition, actual
moving costs would be incurred.
Current industrial zoned buildings on the market are either too large, too small, or need
a large amount of work to accommodate this type of business. One possible fit
currently on the market is an 8,181 square foot building for $350,000. Actual moving
costs would be an additional expense.
After three years of ongoing efforts to acquire and relocate this business, the property
owner has agreed to a lump sum payment of $300,000. The owners will then take it
upon themselves to find a location and move their business, which they have stated will
stay in South Bend.
Staff believes the administrative settlement of $248,500 ($300,000 less the acquisition
cost of $51,500) for this business is reasonable, in light of relocation costs that would
have been incurred, and requests approval to allow the acquisition of this property.
22/ W. JEFFERSON BLVD. SOUTH BEND, IN 46601 1 P: 574- 235 -9371 1 FAX: 574 - 235 -9021 1 SOUTHBENDIN.GOV
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