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to 8 0) o�s�u'dlH /BR o Department of Community ieu Investment Memorandum March 14, 2013 TO: Redevelopment Commission FROM: David Relos, Economic Resources Associate SUBJECT: Lump Sum Administrative Settlement for 726 - 730 E. Sample St. This staff report is for a lump sum administrative settlement that is needed for the acquisition of 726 — 730 E. Sample St. This property is the last of multiple properties that have been acquired in this area since 2001. According to the Uniform Relocation Act, an administrative settlement is authorized when negotiations exceed the market value and relocation costs of the property and are necessary for its acquisition. To relocate the wood working business currently operating on this property, another building that could accommodate it would need to be identified, and that building brought up to current building and fire codes. According to zoning ordinances, this business requires a Light Industrial designation, which further limits relocation options. Funding would be required to acquire and rehabilitate a new building for this business' operations. In addition, a firm would need to be hired to assist the property owner through the various departments who would need to approve this relocation, and to provide design services for the work needed on a new building. Costs would be incurred to move and install multiple machines, racking, and stored materials. Staff has spent substantial time assisting the owner in finding a suitable building the business could relocate to. Prices ranged from $75,000 to $150,000 +. To accommodate the business, these buildings all needed additional costs for build out; professional services and permitting fees for variances, etc.; actual moving and reinstallation costs; and closing costs and inspection fees. These costs would conservatively add $25,000 to an acquisition cost. With these additional costs, acquisition and relocation costs would range from $100,000 to $175,000. This property owner requests a lump sum administrative settlement, allowing him to find a suitable location at his own pace. Staff believes the settlement of $100,000 for this property is reasonable, in light of costs that would be incurred if the business were relocated, and requests your approval to allow the acquisition of this last property. 227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 1 P: 574- 235 -9371 1 FAX: 574- 235 -9021 1 SOUTHBENDIN.GOV