Title
AN ORDINANCE AUTHORIZING THE CONVEYANCE OF CERTAIN REAL PROPERTY IN THE LINCOLN PARK NEIGHBORHOOD TO THE HOUSING AND REDEVELOPMENT AUTHORITY OF DULUTH, MINNESOTA, FOR NOMINAL CONSIDERATION.
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 25-0304, legally described as follows (the “Property”):
East ½ of Lot 326, Block 109, Duluth Proper Second Division AND
West ½ of Lot 324, Block 109, Duluth Proper Second Division
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 $31,800.
Section 2.
(a) Pursuant to Section 2-177.3 of the Code, the city may convey property to another governmental unit if the needs of said governmental unit are greater in importance than the need of the city to retain said property and that the best interests of the citizens of the city will be best served by accomplishing such conveyance.
(b) The Housing and Redevelopment Authority of Duluth, Minnesota (the “HRA”) desires to acquire the Property to facilitate the development of an affordable housing project (the “Project”). The HRA owns an adjacent lot and desires to combine it with the Property to create a larger site for the Project.
(c) The city council finds that a conveyance of the Property to HRA supports the reuse of previously developed lands and promotes reinvestment in neighborhoods (Principles #1 and 5 of the Imagine Duluth 2035 Update to the Comprehensive Plan).
Section 3. That the proper city officials are hereby authorized to: (i) convey the Property to The Housing and Redevelopment Authority of Duluth, Minnesota, a public body corporate and politic under the laws of Minnesota, for $1.00 and in accordance with the terms and conditions of the purchase agreement approved under Resolution No. 25-0422, and (ii) execute a quit claim deed and all other documents necessary to effectuate the conveyance of the Property.
Section 4. 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 The Housing and Redevelopment Authority of Duluth, Minnesota, a public body corporate and politic under the laws of Minnesota (the “HRA”). The Property is located in the Lincoln Park neighborhood on W. Fourth St. between 20th and 21st Avenues West. HRA desires to acquire the Property to facilitate the development of an affordable housing project (the “Project”). The HRA owns an adjacent lot and desires to combine it with the Property to create a larger site for the Project (the “Site”). The HRA is currently working with non-profit corporation to construct two duplexes on the Site. An aerial view of the Property, as well as HRA’s adjacent property, is depicted on the map attached Exhibit 1.
The sale of the Property shall be in accordance with the terms and conditions of the purchase agreement authorized under Resolution 25-0422.
The St. Louis County Assessor estimated the current market value of the Property at $31,800. The City desires to convey the Property to the HRA for $1.00 and other good and valuable consideration. The City acquired the Property via donation in 2021 intending it to be redeveloped for housing purposes. Despite the estimated market value of the Property, the City desires to convey it to the HRA for nominal consideration because of the public benefit of the Project. HRA will be responsible for all costs incurred with the conveyance, including deed tax and recordation fees.