6B(1) Resolution No. 2570 - Laserfiche WebLink

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~~ ~ C,) Staff Report Reimbursement for ROW (51270 Mayflower Road) for Auten Connector 2/27/09 In March of 2008, the Redevelopment commission approved the attached Letter Agreement date 2/15/08 between the City and Holladay Properties to acquire Right of Way for the Auten connector. The property is located at 51270 Mayflower Road.. The acquisition of this property for Right of Way at this time was spurred by the property being voluntarily put on the market for sale. The purchase price of $280,000 for the 10 acre parcel, with a house and outbuilding appeared reasonable. Buying when the property was on the market, eliminated having to potentially use eminent domain in a potentially adversarial acquisition at a later date. The essence of the Letter Agreement was Redevelopment could not use TIF to acquire the property because it was not in the City and not in the AEDA TIF area. Accordingly, Holladay was to acquire the property and go through a voluntary annexation. Once in the City, Redevelopment would expand the TIF to include the property, then proceed to acquire the property for the not to exceed amount of $300,000. Subsequent to the Letter Agreement, new TIF legislation was enacted limiting Redevelopment's ability to expand the TIF without going through more costly, time intensive process. However, the new legislation does allow Redevelopment to use TIF to reimburse the City for local public improvements "connected to" the TIF area. Right of Way (ROW) is considered a local public improvement. Redevelopment will not be taking title to this property, but solely reimbursing the City for its ROW costs. The Auten Connector is part of the planned transportation improvements for Portage Prairie, a planned $300 million plus private mixed use development. The South Bend Common Council has appropriated Major Moves funds for the acquisition of this property (Bill #11-09), and has approved this specific acquisition by the City's Board of Public Works under Bill # 9-17. Staff recommends favorable consideration by the Redevelopment Commission for the reimbursement to the City for the ROW acquisition of property at 51270 Mayflower Road. The cost of the property is not to exceed $300,000, and related expenses (appraisal, title, survey, etc.) are not to exceed $50,000.