Title
RESOLUTION OF INTENT TO SELL OR CONVEY CERTAIN REAL PROPERTY IN THE LESTER PARK NEIGHBORHOOD.
Body
CITY PROPOSAL:
WHEREAS, Section 2-176(a) of the Duluth City Code, 1959, as amended, requires that prior to any city-owned property being offered for sale or conveyance, the city council shall, by resolution, state its intention to sell or convey such property.
NOW, THEREFORE, BE IT RESOLVED, that the Duluth city council hereby states its intention to offer for sale or conveyance real property in the city of Duluth legally described on the attached Exhibit A.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to state the city’s intent to sell certain real property in the Lester Park neighborhood (the “Property”). The Property is comprised of approximately 230 acres of land located within the former Lester Park Golf Course site, which specific area is generally outlined in green on the attached Exhibit B. The city desires to convey the Property to the Duluth Economic Development Authority, a public body, corporate and politic and political subdivision under Minnesota Statutes Chapter 469 (“DEDA”). The terms and conditions governing the conveyance to DEDA will be presented to the city council for consideration on December 8, 2025, through Ordinance No. 25-032, as well as a development agreement.
The city’s planning department reviewed the proposed sale or conveyance for conformity to the city’s comprehensive plan and determined that a sale or conveyance of the property conforms with said comprehensive plan and the property is surplus to the city’s future needs. The letter of conformity is attached as Exhibit C.
According to the St. Louis County Assessor, the Property has a current estimated market value of $1,123,000, which equates to $4,882 per acre. However, there are several factors to consider when valuing real property and DEDA will engage with a licensed appraiser to obtain a more accurate analysis of the market value of the Property before it is sold or conveyed to a developer or developers. For comparison, the lower 37.5 acres of the former Lester Park Golf Course site that was previously conveyed to DEDA was appraised at $50,048 per acre in June 2023.
This resolution must pass with a simple majority on November 24 in order for the second reading of Ordinance No. 25-032 to occur on December 8.