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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