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C (3) • r a n d u m Community & Economic Development r 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 - Three commonly owned properties 1509 S. Scott & 725 — 731 W. Indiana Date: April 10, 2012 This is the staff report for an administrative settlement that is needed for the acquisition of three properties under common ownership in the Ignition Park South Expansion Area. According to the Uniform Relocation Act (Act), an administrative settlement is authorized in cases where an additional payment is necessary to acquire a property. On April 10, 2012, the Commission approved Resolution No. 3014 and 3015, which authorized the purchase of these properties based on their average appraised value of $5,400 and $5,900 respectively. Staff has been working with the property owner to reasonably reach an agreement to acquire these properties. Under this agreement, we would acquire the two vacant lots at 725 — 731 W. Indiana for $6,000, and the house and property at 1509 S. Scott for $25,000, for a total acquisition cost of $31,000 (see attached map). 1509 S. Scott is the last property on Scott Street not owned by the Commission, and is an important acquisition because Scott is planned to be Ignition Park's entrance from the south. Prior to appraisals being completed at 1509 S. Scott this past fall, the property was broken into and vandalized, with many items being removed for their scrap value. This dramatically lowered the appraised value. The house for the last several years has been assessed at $25,000 - $28,000. Similar houses acquired from property owners on this same street have ranged from $25,500 - $35,000. Because the house is not currently occupied, no relocation costs will be incurred. If the owner occupied this house, additional relocation costs of $25,000 would be expected. Staff feels the total acquisition cost of $31,000 is reasonable for these three properties, and requests your approval of the administrative settlement to allow their acquisition. What We Do Today Makes A Difference!