Laserfiche WebLink
Department of <br />Community Investment <br />1865 <br />Memorandum <br />August 15, 2013 <br />TO: Redevelopment Commission <br />FROM: David Relos, Economic Resources <br />SUBJECT: Monroe Park Contract for Sale - Remaining 10 Properties <br />Todd Berger/ Trajectory Investment Group LLC. <br />Over the past two years, 15 properties that once were leased through the Housing <br />Development Corporation (HDC), and owned by the Redevelopment Authority, have been <br />transferred from the Authority to the Commission. This transfer occurred because HDC is no <br />longer in operation, and to facilitate the disposition of these twelve houses and three vacant <br />lots. <br />Houses that were unoccupied when HDC ceased operation have remained unoccupied. All <br />were appraised in 2011. Since the 2011 appraisals, some have been broken in to and <br />vandalized, had leaking roofs, and overall have larger deferred maintenance issues. <br />For disposition purposes, these 15 properties were split in to two groups. The first group <br />consisted of five houses, with the last being sold this past May. These five houses had an <br />average appraised value of $20,400 and an average sales price of $7,040. All five houses <br />were listed with a Realtor and received little to no interest. <br />The remaining seven houses have an average appraised value of $25,250. Two interested <br />parties expressed interest for these seven houses and three vacant lots- one offering <br />$25,000, with Mr. Berger's offer of $50,400 being the second. Mr. Berger's offer equates <br />to an average of $7,200 per house. <br />Mr. Berger is a 40 year resident of South Bend, has experience in the construction industry <br />and working with at risk populations, assisting individuals obtain employment and housing <br />opportunities. Upon taking possession of these properties, Mr. Berger will have a person <br />living on site providing maintenance and security services. <br />Since the sale of these properties to a private investor will place them back on the tax rolls, <br />provides for a minimum $80,000 investment into them, and has received the support of the <br />Monroe Park Neighborhood Association, Staff requests approval of this Contract for Sale. <br />227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 1 P: 574 - 235 -9371 1 FAX: 574 - 235 -9021 1 SOUTHBENDIN.GOV <br />