The two appraisals for the purchase of right-of-way for the CR 300N roundabout project prompted the Warsaw Redevelopment Commission president to question them because they were so vastly different.
As part of the monthly claims, City Planner Jeremy Skinner presented a claim of $16,240 to Petro Family LLC for the right-of-way purchase. The amount is the average of the two appraisals on the property.
President Tim Meyer said the first appraisal for ground out came out to $157,000 per acre. “People are actually paying that?”
Skinner said he didn’t know, but it would be “based on like properties” by the appraiser.
The property in question is only .15 acres, so the first appraisal amounted to approximately $23,550.
The second appraisal for the property was $8,900.
“There’s a huge difference between those two. … I don’t understand that,” Meyer said.
George Clemens, commission member, agreed there’s usually not that big of a gap.
Meyer said he’s not familiar with real estate in that area. Clemens said it is valuable real estate and has frontage.
“The issue you run into is when you deal with right-of-way purchase and taking from the lessees. It’s right on the curb, it always happens,” Skinner said.
He said he’s paid $10,000 for 50 square feet.
Meyer asked if there’s typically a gap between two appraisals of the same property.
“It can be,” Skinner said, noting that land purchases for Husky Trail were similar. “That’s the reality.”
Commission member Mike Klondaris asked if it’s that subjective. Skinner said, “When you get into right-of-way taking, you get into loss and damages. That’s the problem.”
When Klondaris asked Skinner if he was comfortable with the appraisals, Skinner said they were “very reasonable” and “typical.”
Klondaris said when you look at the overall cost of the project out at CR 300N, the purchase of this right-of-way seemed fairly “miniscule.” Skinner noted it’s a $10 million project. Clemens said that while one appraisal seems high, the other seemed fairly low.
The two appraisals cost a total of about $2,100-$2,200.
Commission Vice President Rick Snodgrass asked if they could get a third appraisal. Skinner said they could but that would drive up the cost of the right-of-way.
The claim for the Petro property was approved.
Under new business, the commission approved for Peerless Midwest Inc. to drill a test well for the Buffalo Street plaza project for $22,100. The test well will be serviceable “to install the actual well once we test it,” Skinner said. The well will operate the fountain portion of the project.
The water will be just for the fountain and not be operated for drinking water.
Other claims approved by the Redevelopment Commission included:
• $5,981.43 to Sands Office Equipment to replace a scanner in the building and planning department. Half of the cost will be paid out of Skinner’s office budget, the other half by the Redevelopment Commission.
• $110,081.96 to Selge Construction Co. Inc. for the final payment of the North Buffalo Street infrastructure project.
• $5,000 to Troyer Group for the North Pointe Drive improvement design and $2,035 to Troyer for work on the CR 300N project.
• $125 in annual dues to RAI – Redevelopment, the redevelopment organization in Indiana.
• $7,324.64 to Wessler Engineering for ongoing engineer work for the Airport Industrial Park sewer project.
• $67,000 to OrthoWorx for the commission’s five-year agreement with it.
• $13,605 to Graycraft Signs for transferring the IvyTech sign down to Polk Drive at the city’s Tech Park. The Tech Park sign will be moved to the entrance of U.S. 30 and Silveus Crossing.
• $9,597.50 to A & Z Engineering for work on the preliminary design for U.S. 30 and Silveus Crossing.
• $5,112 to Wessler Engineering for ongoing services for the Airport Industrial Park sewer project.
