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G 6(3) <br />• r a n d u ni Ut <br />Community & Economic Development <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 <br />Subject: Administrative Settlement for acquisition of 1527 S. Kemble <br />Date: August 23, 2011 <br />This is the staff report for the administrative settlement that is needed for the acquisition of <br />1527 S. Kemble. According to the Uniform Relocation Act (Act), an administrative <br />settlement is authorized in cases where an additional payment is necessary to acquire a <br />property. <br />Before the Commission today was Resolution No. 2928, setting the offer price for this <br />property at $32,000, which is the average appraised value. Staff has been working with the <br />property owner to reasonably reach an agreement to acquire this property. <br />This property is a large, extensively remodeled two story rental. Recent improvements <br />include: <br />• 3 years ago new windows were installed in two of the units, and new floor coverings <br />in all three units <br />• 5 years ago the house was insulated and siding put on <br />The income stream from this property is $1,025 per month. Using a 12% cap rate, the <br />annualized investment property value is calculated to be almost $75,000. The owner has <br />agreed to sell this property for $65,000. <br />Staff feels the acquisition cost of $65,000 is reasonable for this property, and requests your <br />approval of the administrative settlement to allow for the acquisition of this property. <br />What We Do Today Makes A Difference! <br />