Title
AN ORDINANCE AUTHORIZING THE CONVEYANCE OF CERTAIN REAL PROPERTY IN THE GARY-NEW DULUTH NEIGHBORHOOD TO JOTO, LLC FOR $4,620.
Body
CITY PROPOSAL:
The city of Duluth does ordain:
Section 1.
(a) Pursuant to Section 2-176(a) of the Duluth City Code, 1959, as amended (the “Code”), the city council stated its intention to sell or convey certain property, as set forth in Resolution 25-0099, legally described as follows (the “Property”):
A strip of land 25 ft on either side of the center line of Duluth Trans RY as formerly laid out across SE¼ of SE¼ of NE¼ of SW¼, Sec 34, Twp49N, Rge 15W, EXCEPT MINERALS
St. Louis County, Minnesota
(b) Pursuant to Section 2-176(b) of the Code, the city’s planning department reviewed the proposed conveyance of the Property for conformity to the City’s comprehensive plan and reported that the conveyance of the Property conforms with said comprehensive plan and is surplus to the city’s future needs.
(d) Pursuant to Section 2-176(c) of the Code, the St. Louis County Assessor determined that the estimated market value of the Property is $4,000.
Section 2.
(a) Pursuant to Section 2-178 of the Code, the city may convey property to an adjacent owner at a price at least equal to its market value as determined by the assessor if, due to existing laws or regulations, no building can be legally constructed on it.
(b) JOTO, LLC, a Minnesota limited liability company (“Joto”), owns real estate adjacent to the Property and a portion of its building lies within the Property. Joto desires to acquire the Property so that it fully owns all of the property within its site.
(c) The Property is currently owned by the State of Minnesota (“State”) and cannot sell directly to Joto. However, the City is able to purchase the Property directly from the State for economic development purposes and convey it to Joto.
(d) The city council finds that a conveyance of the Property to Joto supports the existing economic base and economic growth sectors (Principles #3 and 4 of the Imagine Duluth 2035 Update to the Comprehensive Plan). No building can be constructed on the Property. Additionally, the Propety will add new value to the tax base of Duluth.
Section 3. That the proper city officials are hereby authorized to convey the Property to JOTO, LLC, a Minnesota limited liability company, for the sum of $4,620, and execute the deed and all other documents necessary to effectuate the conveyance of the Property to JOTO, LLC. Funds to be deposited into 110-700-1420-4640 (General Fund, Transfers and Other Functions, Capital Program, Sale of Land).
Section 3. That this ordinance shall take effect 30 days after its passage and publication.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this ordinance is to authorize the conveyance of real property legally described above (the “Property”) to JOTO, LLC, a Minnesota liability company (“Joto”). The Property the Gary-New Duluth neighborhood located off Commonwealth Ave. (across from Atlas Industrial Park). An aerial view of the Property, as well as Joto’s adjacent property, is depicted on the attached Exhibit 1.
The sale of the Property shall be in accordance with the terms and conditions of the purchase agreement authorized under Resolution 25-0100. Joto’s property is used in connection with Duluth Brass, a manufacturer of bronze bearings and related parts. A portion of the building used by Duluth Brass lies within the Property.
The St. Louis County Assessor estimated the market value of the Property at $4,000. The City can acquire the Property from the State of Minnesota (“State”) for the estimated market value, plus a 3% fee (to be paid to the State). The City will also add $500 to the purchase price to cover staff time involved to facilitate the transaction. The total purchase price will be $4,620. Joto will also be responsible for all other costs incurred with the conveyance, including deed tax and recordation fees.