6C(5) Administrative Settlement 755 S. Michigan

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c.r c C 0 4SpU7'Hg�,. Community & Economic Development" °�; 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: David Relos, Economic Development Planner,' Subject: Administrative Settlement for acquisition of 755 S. Michigan St. Date: November 19, 2010 This is the staff report for the administrative settlement that is needed for the acquisition of 755 S. Michigan Street. According to the Uniform Relocation Act (Act), which has been adopted as the Commission's relocation policy, an administrative settlement is authorized in cases where an additional payment is necessary to acquire a property. Before the Commission today was Resolution No. 2801, setting the offer price for this property at $82,500, which is the average appraised value. Over the years the Center for Homeless has tried to purchase this property, but the parties could not come to an agreement on its acquisition. To help move the acquisition forward, the Commission added the property to the AEDA's acquisition list in August of this year. Staff and the owner's representative have come to an agreement for the acquisition of this property. The acquisition would be a lump sum payment of $205,000, with no other relocation costs being incurred. Traditionally, when relocating a business, it is not uncommon for moving and relocation costs to be equal to or more than the acquisition cost. If these additional costs were factored in, the total acquisition and relocation costs could easily be near $200,000. Staff feels the acquisition cost of $205,000 is reasonable for this property, and requests your approval of the administrative settlement to allow for the acquisition of this property. What We Do Today Makes A Difference!