6C(5) Resolution No. 2793 - Laserfiche WebLink

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G c(s)ao) • r a n • u nn 4 SouTU B o ,v1 l,;i�yP�c 3 Community & Economic Development Y 1200 County -City Building, 227 West Jefferson, South Bend, Indiana 46601 -1830 Phone 574/235 -9371 Fax 574/235 -9021 To: Redevelopment Commission From: David Relos, Economic Development Planner Subject: Res. No. 2793 — Acquisition Offer for Enyart Motors Res. No. 2800 — Counter Offer & Relocation for Enyart Motors 122 — 124 E. Sample St., 117 - 123 E. Ohio St. Date: November 02, 2010 This is the staff report for the acquisition and relocation of Enyart Electric Motor Repair. This property was added to the Airport Economic Development Area Acquisition List by Resolution No. 2668 on May 21, 2010. It was added in an effort to assist Ivy Tech expand classroom, storage, and parking needs, in light of their large increases in enrollment. This particular property is a two story masonry and cement block, 9,200 square foot building, comprised of 5,200 square feet of office / shop / warehouse on the first floor, and 4,000 square feet of second floor storage space. Land area is 21,150 square feet, or .486 acres. It contains five abutting parcels, one along East Sample Street and four along East Ohio Street. This building will be used by Ivy Tech for the expansion of much needed classroom, storage, and / or parking space. Resolution No. 2793 sets the acquisition value of the property at $107,500. The acquisition value is the average value as determined by two independent appraisals. Resolution No. 2800 is the property owner's counter offer of $190,160. When valuing this building, the appraisals did not give value to the second story. The price per square foot was applied only to the first floor's square footage. The owners feel the second floor does add value, and argue that this value should be calculated into the building's overall pricing, especially in light of the value per square foot of their building versus Habitat's a few blocks away ($20 / square foot Enyart versus $25.75 / square foot Habitat). Attached is a letter from the owner, explaining their reasoning. The owner's counter offer of $190,160 is based on applying the $20 per square foot value to the square footage of both floors, not just the first floor, in addition to the 308 square foot cement block storage garage behind the building. Recent improvements to the building What We Do Today Makes A Difference!