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~P(z~ • • SpUT7i B FOB ~\1~ i~C~/~FtiO Community & Economic Development ~ _s,,a~' 7865_ 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 '$ a Subject: Resolutions 2743 & 2744 -Acquisition of 502 W Western Avenue Date: August 3, 2010 Attached to this memorandum are Resolutions 2743 and 2744 related to the proposed purchase of 502 West Western Avenue. The property at 502 W Western is located on the southwest quadrant of the intersection of Western and William and was the former location of the Harmon Glass Company. Harmon vacated the site in 2008 and consolidated their operations at another location. Since 2008, the Redevelopment Commission has purchased the Richey's Radiator parcel on the southeast corner and the Fred's Transmission parcel on the northwest corner of this intersection. Fred's will be torn down starting in late August and the Richey's building and site are being incorporated into the site planning of the Coveleski project. The parcel at 502 W Western is a key piece to control of the Western and William intersection. As part of the site planning for the Coveleski Park, a new entrance will be developed at the end of William Street near the Synagogue. With a focus being located at this corner, control of the 502 property is important. At the present time, the owner of the site is in negotiations with a potential user that might be detrimental to the plan for the area. Resolution 2743 would set the Acquisition Offering Price at $85,750.00 based on the average of two commercial appraisals. This appraisal was completed at a time when the building was vacated and partially damaged due to an auto accident so the value is lower than it might appraise currently. The property is currently on the market for sale or lease and has been on the market since 2009. After discussions with the property owner and the real estate representative, acounter offer has been submitted in the amount of $129,000.00. This amount is reflective of the corner location, the current condition of the building and other associated costs. The price is comparable based on other prior acquisitions in the area and so staff submits Resolution 2744, which is the counteroffer and final purchase price, for 502 W Western Avenue. Staff requests approval of both resolutions. What We Do Today Makes A Difference!