HomeMy WebLinkAbout6B4Department of
Community Investment
Memorandum
June 26, 2013
TO: Redevelopment Commission
FROM: David Relos, Economic Resources'
SUBJECT: Administrative Settlement for 913 - 915 W. Indiana Ave. & 1522 Prairie
This staff report is for the administrative settlement that is needed for the acquisition of
913 - 915 W. Indiana and 1522 Prairie Avenues. These two properties are commonly
owned and once housed United Plumbing. The property on Indiana is one of the
remaining properties to be acquired between Scott and Kemble 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 April 24, 2012 the Commission approved Resolution No. 3028, setting the offer price
for the Indiana property at $21,000. On the same date, the Commission approved
Resolution No. 3029, setting the offer price for the Prairie property at $28,500, both of
which are the average appraised value (total value of $49,500).
The Indiana property is one parcel with a 3,820 square foot office / warehouse building.
The Prairie property is two parcels with a 3,200 square foot warehouse; combined
square footage for both buildings is a little more than 7,000 sf. Though the business is
non - operational, both contain a substantial amount of inventory and the 90 year old
owner still goes to his office almost every day.
If relocation was requested, buildings that could accommodate it would need to be
found, and those buildings brought up to current building and fire codes. In addition,
actual moving costs would be incurred. One possible fit currently on the market is a
7,400 square foot building for $123,900, which needs a new roof at the minimum.
Actual moving costs would be an additional expense.
After three years of ongoing efforts to acquire and relocate this owner, he has agreed to
a lump sum payment of $140,000 for both properties.
Staff believes the administrative settlement of $90,500 ($140,000 less acquisition costs
of $49,500) for these properties is reasonable, in light of relocation costs that would
have been incurred, and requests approval to allow the acquisition of these properties.
227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 1 P: 574- 235 -9371 1 FAX: 574- 235 -9021 1 SOUTHBENDIN.GOV
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