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f 6pUT$ @,p \liiill,l i �0 Community & Economic Development" 1200 County -City Building, 227 West Jefferson, South Bend, Indiana 46601 -1830 Phone 574/235 9371 Fax 574/235 -9021 To: Redevelopment Commission From: Matthew Sikora, Economic Development Planner Subject: Administrative Settlement for acquisition of 1007 N. Bendix Drive Date: July 12, 2011 This is the staff report for the administrative settlement needed for the acquisition of 1007 N. Bendix Drive in the Airport Economic Development Area. According to the Uniform Relocation 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. As you may recall, as part of Sterling Group LLC's application for tax credits for the senior housing project (Heritage Place at LaSalle Square), the city agreed to support the project by purchasing property from Faith Apostolic Temple, Inc. and donating it to the development. Those negotiations are nearing completion. Earlier this year, the scope of the project was altered and expanded, necessitating the acquisition of additional property — the former Fernando's Restaurant — and presenting an opportunity. On October 23, 2009 Resolution No. 2611 was approved, setting the offering price for this property at $137,000, or the average appraised value. Despite continued negotiations, the current owners have held to an offering price of $325,000, based on a search of available property in the area of similar size and amenities (particularly parking) to their existing site. Despite the disparity, we feel this is an opportunity to expand the scope of the housing development, to allow the building to open toward and connect more fully to Bendix (and provide greater access to the Memorial health facility across the street), to create opportunities for retail development at the northeast edge of LaSalle Square and to remove a building whose on -site business remains at odds with its LaSalle Square neighbors. In order to offset the above disparity and to keep our projected administrative settlement ($88,000) more in line with that of other settlements, Sterling Group LLC has agreed to put $100,000 toward the acquisition of Fernando's (please see attached letter). Given the overall value of an expanded development within LaSalle Square, as well as the additional private sector support offered to help with acquisition, Staff requests your approval of the administrative settlement of $88,000 (and a total request of $225,000) to allow for the acquisition of this property. What We Do Today Makes A Difference!