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South Bend Redevelopment Commission Regular Meeting —June 14, 2011 Resolution No. 2886 sets the acquisition value of the property at $72,000, the average value as determined by two independent appraisals. Staff recommends approval. Upon a motion by Mr. Varner, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2886 related to acquisition of property in the West Washington- Chapin Development Area (601- 605 W. Washington) (2) Resolution No. 2887 approving and accepting a counteroffer for the acquisition of property (601 -605 W. Washington) Mr. Relos noted that the owner of 601 -605 W. Washington has submitted a counter offer in the amount of $87,000. When valuing this property, the appraisals did not consider the income approach since only one of the three units is currently leased. The property owner states that in anticipation of this sale, he has not actively pursued leasing the units. Using the income capitalization method of valuing this property based on its historic rental income, with a capitalization rate of 11 %, the value would be $126,000. This building had a new roof put on 3 years ago, with the center unit recently remodeled. Staff feels the acquisition cost of $87,000 for this property is reasonable, and requests your approval of Resolution No. 2886. Upon a motion by Mr. Varner, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2887 approving and accepting a counteroffer for the acquisition of property (601 -605 W. 50 COMMISSION APPROVED RESOLUTION No. 2886 RELATED TO ACQUISITION OF PROPERTY IN THE WEST WASHINGTON- CHAPIN DEVELOPMENT AREA (601 -605 W. WASHINGTON) COMMISSION APPROVED RESOLUTION NO. 2887 APPROVING AND ACCEPTING A COUNTEROFFER FOR THE ACQUISITION OF PROPERTY (601 -605 W. WASHINGTON)