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~j) 1 I / ~7O ~~~ ~ o N,,'~s Community & Economic Development ` -~.,r IBfS 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: Acquisition of 306 W. Monroe Street Date: January 18, 2011 On December 17th, the Redevelopment Commission approved Resolution 2804 which set the acquisition offering price for the Michiana Lock & Key property ("ML&K") at 306 W Monroe Street at $65,000.00. As a follow-up to that presentation, Staff has been working with the property owner to develop a comprehensive administrative settlement value for the acquisition and relocation of ML&K from its present location to a new location in the East Bank Village located at 621 East Jefferson Boulevard (immediately to the west of Rubin's Cleaners). The total proposed administrative settlement value related to this acquisition and relocation that Staff presents to the Redevelopment Commission is in the amount of $340,000.00. For analysis purposed, the amount is broken into two parts - (1) Property Acquisition and (2) Resettlement Costs. (1) Property Acquisition The current ML&K property at 306 W. Monroe Street is 11,528 SF and consists of a single 2-story (1,800 SF) structure. The majority of the site is fenced in and is used as customer and employee parking area. The property sits on the corner of Monroe and Lafayette at a traffic signal. Because of the nature of the structure (house converted to a commercial business center) and the lack of adjacent commercial activity in the area, the property appraised at $65,000. Based on the SF of the site and the appraised value, the cost per SF is $5.64/SF. For land area comparison, the Harmon Glass parcel is 17,000 SF ($150,000 or $8.82/SF), the Richey's Radiator parcel is 11,440 SF ($190,000 or $16.64/SF), and the Fred's Transmission parcel is 24,395 SF ($262,500 or $10.76/SF). The average per SF price for the corners of Western and William was $12.07/SF in comparison to the $5.64/SF for Lafayette and Monroe. If the higher per SF cost is applied to the ML&K property, the price per SF would be approximately $139,181. The property that ML&K is interested in locating to in the East Bank at 621 E Jefferson Blvd consists of two parcels with a total property area of 6700 SF and two buildings with the principal building having a SF footprint of roughly 2,262 SF. The parcel with the main building consists of only the building (about 2680 SF of land) and all parking spaces and the second building are located on the second parcel (about 4020 SF of land). The small building is owned and used by the property owner as a business office and he will relocate once the sale is completed. The sale price for the entire site is $200,000 and is in balance with the price paid for the site. The main building was Whaf We Do Today Makes A Difference!