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• UTd <br />Community & Economic Development' <br />• !tK <br />1200 County -City Building, 227 West Jefferson, South Bend, Indiana 46601 -1830 Phone 574/235 -9371 Fax 574/235 -9021 <br />To: Redevelopment Commission <br />From: David Relos, Economic Development Planner 6-9. <br />Subject: Administrative Settlement for acquisition of 1525 S. Kemble Avenue <br />Date: June 14, 2011 <br />This is the staff report for the administrative settlement that is needed for the acquisition of <br />1525 S. Kemble Avenue. According to the Uniform Relocation Act (Act), which has been <br />adopted as the Commission's relocation policy, an administrative settlement is authorized in <br />cases where an additional payment is necessary to acquire a property. <br />On July 9, 2010, the Commission approved Resolution No. 2718, which authorized the <br />purchase of this property based upon its average appraised value of $29,000. The owner <br />of this property died without a will, and Staff has been working with her heirs since July of <br />last year to work through the process of setting up an estate so this property could be <br />acquired. <br />Since the property owner's death, one son has lived in the house, making payments on the <br />mortgage, paying the taxes, and maintaining the property. According to the attorney for the <br />estate, this son has a pending petition to receive the first $80,000 of the estate's proceeds <br />(primarily this property). <br />Under the Act, this son is eligible for relocation benefits. Following the Act, the estimated <br />acquisition and relocation costs associated with this property would be $47,000. <br />Instead of being relocated under the Act, the son would instead like a lump sum payment of <br />$50,000. This payment would be made to the estate. <br />The approximate mortgage payoff is $11,000. The remaining $39,000 would be used as a <br />down payment by the son and his wife toward a new home. <br />Staff feels the total acquisition cost of $50,000 is reasonable for this property, and requests <br />your approval of the administrative settlement to allow the acquisition of this property. <br />What We Do Today Makes A Difference! <br />