Title
RESOLUTION OF INTENT TO SELL OR CONVEY CERTAIN REAL PROPERTY IN THE DOWNTOWN 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 property in the city of Duluth legally described on the attached Exhibits A and B.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to state the City’s intent to sell or convey real property located in the Downtown neighborhood located at: (i) the intersection of Lake Avenue and E. First Street and (ii) Third Ave. E. and E. First Street. The real property proposed to be sold or conveyed is outlined in red on attached Exhibits C and D (the “Property”). The Property is more commonly known as the Tech Village Parking Ramp and the Medical District Parking Ramp. This resolution is a companion resolution to Resolution No. 23-0971 authorizing a Term Sheet for the redevelopment of the East First Street corridor resulting in approximately 200 new housing units (the “Project”) and sale of the Property.
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 E.
According to the St. Louis County assessor, the Property intended to be sold or conveyed has a current estimated market value of $13,782,300 with the Tech Village Ramp assessed at $5,596,400 and the Medical District Ramp assessed at $8,465,200. However, the City obtained an independent appraisal for each parking ramp, and the value of each parking ramp was substantially less than the amount assessed by the St. Louis County assessor. The value established for the Tech Village Ramp via an independent appraisal dated January 7, 2022 is $3,450,000. The value established for the Medical District Ramp via an independent appraisal dated January 7, 2022 is $3,550,000.
If this resolution is approved, the City will bring forward, at a minimum, the following two additional Council actions to complete a sale:
1. A resolution authorizing a development agreement for the Project; and
2. An ordinance authorizing the sale of the Property.
Any sale of the Property will require that no fewer than: (ii) 100 stalls in the Tech Village Parking Ramp and (ii) 100 stalls in the Medical District Parking Ramp are provided to the general public for parking purposes at all times for at least seven years after the conveyance of the Property.