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HomeMy WebLinkAbout6.B.(3) Resolution No. 2602Community & Economic Development 6 ;� (o-o/) SOUTH BE. O� AA1,ill }/N �O 1865 1200 County -City Building, 227 West Jefferson, South Bend, Indiana 46601 -1830 Phone 574/235 -9371 Fax 574/235 -9021 To: Redevelopment Commission From: Bill Schalliol, Economic Development Planner Subject: Resolutions 2602 and 2603 — Fred's Transmission Date: September 29, 2009 Attached to this staff report are Resolutions 2602 and 2603 which relates to property at 501 W. Western Avenue in the Coveleski Neighborhood Planning Area within the South Bend Central Development Area. This parcel was added to the South Bend Central Development Area acquisition list by Resolution 2595 on August 26, 2009. The parcel proposed for acquisition is the following: Tax Key No. Address Owner 18- 3012 -0412 18- 3012 -0424 501 W. Western Ave Fred's Shops LLC 18- 3012 -0425 Resolution 2602 The purpose of Resolution 2602 is to set the acquisition value for the property commonly known as Fred's Transmission located at 501 W Western Avenue. The average appraised value as determined by two qualified appraisers is $204,000.00. This value is for a 24,394 SF ( +/- .56 acres) lot with one 7,000 SF commercial structure. The parcel sits on the northwest corner of the intersection of Western and William and covers up almost the entire southern end of the block area which is designated the Housing Block in the Coveleski Park planning efforts. With a purchase of the Fred's Transmission parcel, the Redevelopment Commission would own all but three parcels on this block (See attached map). Resolution 2603 After intense negotiations with the property owners concerning the appraised value of the property, a counter offer in the amount of Two Hundred and Fifty Thousand Dollars ($250,000.00), with an additional amount of Twelve Thousand Five Hundred Dollars ($12,500.00) for relocation is being proposed as part of the counter value purchase resolution. After reviewing the appraisal information (high appraisal value at $240,000), the current tax assessment value ($247,500) and values paid in this area ($10.25/SF), this counter value is similar to the values of other properties within this area and is a reasonable number for this parcel. When acquired, the site will be cleared to facilitate new development in the Coveleski Park Planning Area. Summary Staff requests favorable approval of Resolutions 2602 and 2603. The value is reasonable and consistent with values paid to others in the neighborhood. This is a key parcel and is adjacent to other property owned by the Commission. 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Development Parcels Status Acquired Proposed - Fred's k weste 9 WN, I : r4- Ntl RESOLUTION NO. 2602 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION RELATED TO ACQUISITION OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA WHEREAS, under the authority granted by Indiana Code § 36 -7 -14, et seq. and in furtherance of the South Bend Central Development Area Plan ( "Plan "), the South Bend Redevelopment Commission ( "Commission ") has determined that it is necessary to acquire unencumbered fee simple interest in certain property located within the area heretofore designated as the South Bend Central Development Area (the "Area ") within the City of South Bend, Indiana (the "City "), which property is more particularly described at Exhibit A attached hereto and incorporated herein ( "Property "); and WHEREAS, on August 26, 2009, the Commission adopted Resolution No. 2595 amending the Plan and adding the Property to the Area's acquisition list; and WHEREAS, two (2) independent appraisals of the Property have been obtained in accordance with Indiana Code § 36- 7- 14- 19(b), which provide an offering price of $204,000.00 (the "Offering Price "); and WHEREAS, the Commission now desires to authorize its authorized agents, hired for such purposes, or the staff of the Commission to provide and negotiate an offer for the Purchase of the Property in accordance with Indiana Code § 36- 7- 14-19, which may include relocation costs and the Commission's payment of expenses incidental to the conveyance and determination of the title of the Property; and WHEREAS, the Commission finds that all procedures necessary for authorizing and acquiring the Property have been completed in accordance with Indiana law; NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission that: 1. Authorized agents of the Commission and the staff of the Commission are hereby authorized and directed to cause a purchase offer to be made in writing to the owner(s) of the Property as described at Exhibit A at the Offering Price (the "Average Acquisition Price" in Exhibit A) in accordance with Indiana Code § 36- 7- 14-19, which offer or process may include relocation costs and the payment of expenses incidental to the conveyance and determination of the title of the Property. 2. The Commission's agents and attorneys are hereby authorized and directed to negotiate and prepare documentation necessary to accomplish the acquisition of the Property in accordance with this Resolution and in a form acceptable to legal counsel. 3. The Commission hereby ratifies any actions of its staff or legal counsel previously taken consistent with the authority provided in Section 1 or 2 hereof. Notwithstanding the foregoing, no representations, contract or understanding relative to the purchase of the Property, whether made by a Commissioner, employee or other agent or official, is binding against the Commission until approved and accepted by the Commission in writing. The Commission hereby accepts, in advance, any purchase of the Property pursuant to a uniform acquisition offer set forth at Indiana Code § 32 -24-1- 5 (or a purchase offer deemed by legal counsel to be substantially similar to said Uniform Acquisition Offer, which may include the payment of expenses incidental to the conveyance and determination of title). 4. Don Inks or Jeff Gibney is authorized to execute on behalf of the Commission any documents necessary to carry out the intent of this resolution. ADOPTED at a Regular Meeting of the South Bend Redevelopment Commission held on October 2, 2009, at 1308 County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601. CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT Printed Name and Title South Bend Redevelopment Commission ATTEST: Signature Printed ame an it e South Bend Redevelopment Commission EXHIBIT A PROPERTY DESCRIPTION AND OFFERING PRICE Average Tax Key No. Address Owner Acquisition Price 18- 3012 -0412 18- 3012 -0424 501 W. Western Ave Fred's Shops LLC $204,000.00 18- 3012 -0425