2 Minutes 06-16-13 Meeting - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Meeting —June 26, 2013 6. NEW BUSINESS B. Airport Economic Development Area (3) continued... Mr. Downes asked what the status is for the overall budget for property acquisition in the Ignition Park South Expansion Area. Mr. Relos responded that overall, the budget was set at $4.9 million, and staff is at $2.7 million. Upon a motion by Mr. Downes, seconded by Ms. Schey and unanimously carried, the Commission approved the Administrative Settlement for acquisition of property in the amount of $300,000 in the Airport Economic Development Area for 725 W. Indiana Ave. (4) Staff report on Administrative Settlement for acquisition of property in the Airport Economic Development Area (913 — 915 W. Indiana Ave. & 1522 Prairie) Mr. Relos noted that 913 - 915 W. Indiana and 1522 Prairie 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 acquisition offering price for the Indiana property at $21,000. On the same date, the Commission approved Resolution No. 3029, setting the offering 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. The combined square footage for both buildings is a little more than 7,000 s£ Although the business is non - operational, both buildings 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.