HomeMy WebLinkAbout6B(1) Resolution No. 2570~~ ~ C,)
Staff Report
Reimbursement for ROW (51270 Mayflower Road) for Auten Connector
2/27/09
In March of 2008, the Redevelopment commission approved the attached Letter
Agreement date 2/15/08 between the City and Holladay Properties to acquire Right of
Way for the Auten connector. The property is located at 51270 Mayflower Road..
The acquisition of this property for Right of Way at this time was spurred by the property
being voluntarily put on the market for sale. The purchase price of $280,000 for the 10
acre parcel, with a house and outbuilding appeared reasonable. Buying when the
property was on the market, eliminated having to potentially use eminent domain in a
potentially adversarial acquisition at a later date.
The essence of the Letter Agreement was Redevelopment could not use TIF to acquire
the property because it was not in the City and not in the AEDA TIF area. Accordingly,
Holladay was to acquire the property and go through a voluntary annexation. Once in the
City, Redevelopment would expand the TIF to include the property, then proceed to
acquire the property for the not to exceed amount of $300,000.
Subsequent to the Letter Agreement, new TIF legislation was enacted limiting
Redevelopment's ability to expand the TIF without going through more costly, time
intensive process. However, the new legislation does allow Redevelopment to use TIF to
reimburse the City for local public improvements "connected to" the TIF area. Right of
Way (ROW) is considered a local public improvement.
Redevelopment will not be taking title to this property, but solely reimbursing the City
for its ROW costs. The Auten Connector is part of the planned transportation
improvements for Portage Prairie, a planned $300 million plus private mixed use
development.
The South Bend Common Council has appropriated Major Moves funds for the
acquisition of this property (Bill #11-09), and has approved this specific acquisition by
the City's Board of Public Works under Bill # 9-17.
Staff recommends favorable consideration by the Redevelopment Commission for the
reimbursement to the City for the ROW acquisition of property at 51270 Mayflower
Road. The cost of the property is not to exceed $300,000, and related expenses
(appraisal, title, survey, etc.) are not to exceed $50,000.
RESOLUTION N0.2570
A RESOLUTION OF THE SOUTH BEND
REDEVELOPMENT COMMISSION AUTHORIZING THE USE OF CERTAIN
TAX INCREMENT REVENUES FOR THE REIMBURSEMENT OF
THE SOUTH BEND MAJOR MOVES FUND
(AUTEN ROAD CONNECTOR PROJECT)
WHEREAS, the South Bend Redevelopment Commission (the "Commission"),
the governing-body of the City of South Bend, Indiana, Redevelopment District (the "District")
and the City of South Bend> Indiana, Department of Redevelopment, exists and operates under
the provisions of Ind. Code §36-7-14, as amended from time to time (the "Act"); and
WHEREAS, the Commission has previously (i) designated and declared an area
in the City of South Bend, Indiana (the "City"), known as the Airport Economic Development
Area (the "Area"), to be an economic development area within the meaning of Ind. Code §3b-7-
14; (ii) established- the Area as the Airport Economic Development Area Allocation Area (the
"Allocation Area") to be an allocation area for the purpose of separately accounting for the tax
increment revenues derived from the Area; and (iii} created an allocation fund for the Area (the
"Allocation Fund") for purpose of tax increment financing; and
WHEREAS, the City has appropriated $350,000.00 from the South Bend Major
Moves Fund (the "Major Moves Money") for the purchase of property to be used as right of way
for the construction of the Auten Road Connector (the "Project"); and
WHEREAS, the Major Moves Money has been appropriated on the condition that
tax increment revenues be used to reimburse the South Bend Major Moves Fund (the "Fund"};
and
WHEREAS, the Commission desires to reimburse the Fund using existing tax
increment revenues allocated to the Commission and resulting solely from the increase in the
assessed value of real property and improvements thereon located in the Area and deposited into
the Allocation Fund, as required by Ind. Code X36-7-14-26; and
WHEREAS, the Commission has determined that sufficient unencumbered tax
increment revenues will be available to the Commission to reimburse the Fund.
NOW THEREFORE, BE IT RESOLVED, by the City of South Bend, Indiana,
Redevelopment Commission as follows:
1. The Commission hereby authorizes the use of the Allocation Fund for the
reimbursement of the South Bend Major Moves Fund in the sum of up to $350,000.00.
2. This Resolution shall be in full force and effect after its adoption by the
Commission, shall be subject to completion of all actions necessary to create the obligations
referred to herein and shall not be repealed or amended in any manner which would serve to
adversely affect the reimbursement of the South Bend Major Moves Fund.
ADOPTED at a meeting of the South Bend Redevelopment Commission held on
March 6, 2009, in Room 1308, County-City Building, 227 West 3efferson Boulevard, South
Bend, Indiana 46601.
SOUTH BEND REDEVELOPMENT
COMMISSION
Marcia Jones, President
ATTEST:
Nancy N. King, Secretary
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