HomeMy WebLinkAbout6.B.(3) Resolution No. 2602Community & Economic Development
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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
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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