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�SpUTp e�ti \, /%- Department of Community 1865 Investment Memorandum June 26, 2013 TO: Redevelopment Commission FROM: David Relos, Economic Resources SUBJECT: Administrative Settlement for 1505 S. Kendall This staff report is for the administrative settlement that is needed for the acquisition of 1505 S. Kendall St., owned by Darrel Austin. This property is one of the remaining properties to be acquired between Scott and Kemble streets 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 May 30, 2013 the Commission approved Resolution No. 3142, setting the offer price for this property at $26,250, which is the average appraised value of the real estate and improvements only. This property contains two 4,960 square foot lots. One is a parking lot, with the other containing a 1,820 square foot building which operates as a bar / adult cabaret (Centerfolds). Per the City's zoning ordinance, an adult cabaret is a permitted use only in a General Industrial area, and further restricts their operation within 500 feet of a residentially zoned area, church, or school. To relocate this business, another building that could accommodate it would need to be found, and that building brought up to current building and fire codes. In addition, actual moving costs would be incurred. Current restaurant / bars that are on the market range from $269,000 to $375,000 and up; none of these listings are in a General Industrial zoned area of the City. After three years of ongoing efforts to acquire and relocate this business, the property owner has agreed to a lump sum payment of $350,000. It will then be his responsibility to find another location, if possible. Staff believes the administrative settlement of $323,750 ($350,000 less the acquisition cost of $26,250) for this business is reasonable, in light of relocation costs that would have been incurred, and requests approval to allow the acquisition of this property. 227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 1 P: 574 - 235 -9371 1 FAX: 574- 235 -9021 1 SOUTHBENDIN.GOV