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HomeMy WebLinkAbout6A1(0H6) F� %o Department of Community Investment 1865 Memorandum July 25, 2013 TO: South Bend Redevelopment Commission, ^ FROM: David Relos, Economic Resources V ' SUBJECT: Professional Services Agreement — R.E. Pitts & Associates College Football Hall of Fame Property Tax Appeal Appraisal This staff report is for a Professional Services Agreement to have Rick Pitts, a MAI Certified Indiana Appraiser, who in 2010 appraised the College Football Hall of Fame (Hall) provide a Value In Use appraisal for the Hall. This type of appraisal will be needed for the property tax appeal currently pending. Value In Use is defined by the Real Property Assessment Manual as: "The value of property for a specified use. The concept holds value to be inherent in property itself, that is, the value is based on the ability of the asset to produce revenue or utility through ownership. The value a specific property has for a specific use." This appraisal will value the Hall as it was intended to be used, i.e., as a museum, in addition to normal valuation methods. Since the appeal is for the 2012 pay 2013 taxes, the appraisal will value the Hall as of the assessment date the appeal is based, or March 1, 2012. Having the Hall's assessed value be closer to its market value will assist in its eventual disposition. Staff requests approval of this Professional Services Agreement in the amount of $4,800. 227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 1 P: 574 - 235 -9371 1 FAX: 574- 235 -9021 1 SOUTHBENDIN.GOV R. E. PITTS & ASSOCIATES, INC. Real Estate Appraisers • Consultants City of South Bend c/o Mr. Dave Relos, Economic Development Planner Department of Community Investment Economic Resources 227 West Jefferson Blvd., Suite 1400 South Bend, IN 46601 July 17, 2012 Re: Appraisal of General Commercial /Office Building (former Collegiate Football Hall of Fame) 111 South St. Joseph Street, South Bend, IN, 46601 Dear Mr. Relos: Pursuant to your request, I hereby submit a proposal for appraisal services for the above referenced subject property. The appraisal shall be prepared for and is for the sole and exclusive use of the client, its representatives and assigns. The purpose of the appraisal is to estimate the "Market Value In Use" of the Fee Simple Interest in the subject property "As -Is ". The effective date of valuation will be March 1, 2012 (retrospective), the date of local property tax assessment of 2012 /payable 2013 real estate taxes. The property will be inspected by the undersigned appraiser. In this assignment, the appraiser will consider all recognized and relevant approaches to value. The appraisal will be reported in Summary Narrative format and will conform to the reporting requirements of Standards Rule 2 -2b of the Uniform Standards of Professional Appraisal Practice (USPAP). I have no present or prospective interest in or bias with respect to the property that is the subject of the appraisal assignment, and have no personal interest or bias with respect to the parties involved with this assignment. I have provided prior services as an appraiser regarding the subject property within 3 years immediately preceding acceptance of this appraisal assignment. An appraisal report of the subject property was provided to the client, effective November 11, 2010 and dated January 8, 2011. The completion date for the assignment is estimated to be on or about August 26, 2013 assuming receipt of any relevant documentation needed for preparation of the reports in a timely manner. I will furnish (2) original copies of the appraisal report and an electronic transmission (pdf format). The total fee for this assignment shall be $4,800 which will be invoiced and shall be due upon completion of the report. Rick Pitts, MAI 50580 Woodbury Way • Granger, IN 46530 574 - 272 -3224• Fax: 574-272-3224 Z *MM PittsMA14@sol.com Mr. Dave Relos July 17, 2013 Pg. 2 The value indications within the appraisal report will be subject to any assumptions and limiting conditions or hypothetical conditions stated in the report and /or the addenda and consistent with the certification. Sincerely, R.E. PITTS & ASSOCIATES, INC. Rick Pitts, MAI Indiana Certified General Appraiser, License #CG69100722 Engagement Letter Accepted: Signature Date