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RESOLUTION AUTHORIZING AN AGREEMENT WITH ST. LOUIS COUNTY FOR THE FREE CONVEYANCE OF TAX-FORFEITED PARCELS PURSUANT TO MINN. STAT. § 282.01, SUBD. 1(e)(a) AND REDUCED COST PURCHASE OF TAX-FORFEITED PARCELS PURSUANT TO MINN. STAT. § 282.01, SUBD. 1(a)(h).
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into an agreement, substantially in the form attached as Exhibit 1, with St. Louis County for the free conveyance of tax-forfeited parcels pursuant to Minn. Stat. § 282.01, Subd. 1(e)(a) and the reduced cost purchase of tax-forfeited parcels pursuant to Minn. Stat. § 282.01, Subd. 1(a)(h).
Statement of Purpose
STATEMENT OF PURPOSE: The Imagine Duluth 2035 Comprehensive Plan Open Space chapter calls upon the City to acquire and permanently protect county-administered tax forfeit properties that have significant ecological, recreational, and/or storm water management value.
This resolution authorizes an agreement with St. Louis County that establishes the process by which the County and the City of Duluth will negotiate and transact the free conveyance and reduced cost sale of a set of tax-forfeited open space parcels to the City of Duluth. The attached agreement describes the provisions, procedures, and timeline for negotiating the substance of that land transaction.
Over the last several years, City and County staff have collaboratively devised processes for conveying these lands to the City on a basis that is consistent with both parties’ land use goals, statutory mandates, and resource limitations. A result of that effort is the Strategic Lands Realignment Project - a partnership of the City, the County, the Minnesota Land Trust, and the Conservation Fund.
The Strategic Lands Realignment Project has two phases. In the nearly complete Phase One, the partners worked together to facilitate the donation to the County of approximately $3.9 million of former Potlatch timberland located outside the City of Duluth. The County intends to manage the roughly 4,300-acre area according to its mandates for forestry, wildlife habitat, water quality, and recreation.
Phase Two of the project involves a conveyance of tax forfeited lands to the City of Duluth in exchange for, and of equal value to, the $3.9 million value of the Potlatch lands donated to St. Louis County. The City intends to manage these lands according to its mandates for environmental protection, outdoor recreation, and storm water management.
The present resolution authorizes an agreement with St. Louis County attached as Exhibit 1 that establishes the process by which the City and the County will negotiate the substance of a Phase Two land transaction:
1. The complete list of parcels to be conveyed.
2. Which parcels will be conveyed at no cost pursuant to Minn. Stat. § 282.01, Subd. 1(e)(a).
3. Which parcels will be purchased by the City at a discounted price of 5%-20% of estimated market value pursuant to Minn. Stat. § 282.01, Subd. 1(a)(h).
4. Where, in the 5%-20% range, each sale parcel will be priced.
It is anticipated that $3.9 million is enough value for the City to acquire desired tax forfeit property in three areas - Lester/Amity, Piedmont, and Mission Creek - as shown in Exhibit 2. The City intends to acquire additional properties in a fourth area along the St. Louis River via a previously announced EPA Great Lakes Restoration Initiative Grant.
As prescribed by this resolution, the City will utilize guidelines approved by Council resolution 20-0617R to select specific tax forfeit parcels for City ownership and protection (see Exhibit 3). The list of parcels approved by the County for sale will subsequently be submitted to the Natural Resource Commission, the Planning Commission, and the City Council for final approval.
The final cash cost of the present transaction will not be known until City and County staff have negotiated a final list of parcels and the basis for their conveyance. It is anticipated that the cash cost of the acquisition will be in the low six-figures and be paid for by a mix of federal, state, and/or city funds.