Title
AN ORDINANCE AUTHORIZING THE CONVEYANCE OF REAL PROPERTY IN THE FAIRMOUNT NEIGHBORHOOD TO THE DULUTH ECONOMIC DEVELOPMENT AUTHORITY 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 No. 22-0499, which property is legally described as (the “Property”):
Lots 4-16, inclusive, Block 2, CLINTON PLACE ADDITION TO DULUTH
Lots 11-16, inclusive, Block 3, CLINTON PLACE ADDITION TO DULUTH
Lots 5-16, inclusive, Block 5, CLINTON PLACE ADDITION TO DULUTH
St. Louis County, Minnesota.
(b) Pursuant to Section 2-177.3 of the Code, the city council finds that the conveyance to the Duluth Economic Development Authority, an economic development authority under Minnesota Statutes Chapter 469 (“DEDA”), of the Property is in the best interests of the citizens of the city and exceeds the needs of the city to retain the property.
(c) 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 has a current estimated market value of $42,700.
(e) Pursuant to Resolution No. 22-0595, the city council authorized city officials to enter into a purchase agreement (the “Purchase Agreement”) for the sale of the Property to DEDA.
Section 2. That the proper city officials are hereby authorized to: (i) convey the Property to DEDA in accordance with the terms of the Purchase Agreement for the sum of $1.00 and (ii) execute the deed, substantially in the form attached as Exhibit A, and all other documents necessary to effectuate the conveyance of the Property to DEDA.
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 the Duluth Economic Development Authority, an economic development authority under Minnesota Statutes Chapter 469 (“DEDA”). The Property is located in the Fairmount neighborhood north of Main Street, West of Nicollet St. and near 67th and 68th Avenues West. The real property proposed to be sold or conveyed are vacant lots and is outlined in red on the attached Exhibit B.
DEDA is working on a housing project in this area and desires to include this property within the overall site. The City desires to convey the Property for nominal consideration because of the following public benefits provided by the future housing project: (i) new residential units added to the city’s housing stock and (ii) new taxable value added to the city.
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.
According to the St. Louis County assessor, the real property intended to be sold or conveyed has a current estimated market value of $42,700.