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Department of Community Investment Memorandum June 26, 2013 TO: Redevelopment Commission FROM: David Relos, Economic Resources' SUBJECT: Administrative Settlement for 913 - 915 W. Indiana Ave. & 1522 Prairie This staff report is for the administrative settlement that is needed for the acquisition of 913 - 915 W. Indiana and 1522 Prairie Avenues. These two properties are commonly owned and once housed United Plumbing. The property on Indiana is one of the remaining properties to be acquired between Scott and Kemble in the Ignition Park South Expansion Area. According to the Uniform Relocation Act, an administrative settlement is authorized when negotiations exceed the market value of the property and are necessary for its acquisition. On April 24, 2012 the Commission approved Resolution No. 3028, setting the offer price for the Indiana property at $21,000. On the same date, the Commission approved Resolution No. 3029, setting the offer price for the Prairie property at $28,500, both of which are the average appraised value (total value of $49,500). The Indiana property is one parcel with a 3,820 square foot office / warehouse building. The Prairie property is two parcels with a 3,200 square foot warehouse; combined square footage for both buildings is a little more than 7,000 sf. Though the business is non - operational, both contain a substantial amount of inventory and the 90 year old owner still goes to his office almost every day. If relocation was requested, buildings that could accommodate it would need to be found, and those buildings brought up to current building and fire codes. In addition, actual moving costs would be incurred. One possible fit currently on the market is a 7,400 square foot building for $123,900, which needs a new roof at the minimum. Actual moving costs would be an additional expense. After three years of ongoing efforts to acquire and relocate this owner, he has agreed to a lump sum payment of $140,000 for both properties. Staff believes the administrative settlement of $90,500 ($140,000 less acquisition costs of $49,500) for these properties is reasonable, in light of relocation costs that would have been incurred, and requests approval to allow the acquisition of these properties. 227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 1 P: 574- 235 -9371 1 FAX: 574- 235 -9021 1 SOUTHBENDIN.GOV