AN ORDINANCE AUTHORIZING SALE OF CERTAIN PROPERTY ON EAST SUPERIOR STREET TO DEDA FOR THE TECH VILLAGE PROJECTBY COUNCILOR NESS:
The city of Duluth does ordain:
Section 1. That the proper city officials are hereby authorized to sell and convey the following described property in St. Louis County, Minnesota, by quit claim deed, to DEDA for the Tech Village project, and execute all documents necessary with regard to said conveyance:
The southerly 99 feet of the east 1/2 of Lot 1, the southerly 99 feet of Lot 3 and the east 1/2 of Lot 5, all in DULUTH PROPER, First Division.Section 2. That this ordinance shall take effect 30 days from and after its passage and publication.
The property in question was acquired directly or indirectly as part of tax increment deals undertaken by the city in the 1980's before the creation of DEDA. After DEDA was created, an ordinance was introduced to authorize the transfer of those properties acquired with tax increment proceeds, or which otherwise were seen as properties appropriate for redevelopment, to DEDA. For a number of reasons, that ordinance was separated into several "pieces" and passed separately. Somehow in this process these two parcels were either overlooked or the authorization for their transfer cannot be found.
Since that time, the Tech Village project has been developed which subsumed all of the property on the north side of Superior Street between Lake Avenue and First Street including these parcels. DEDA, believing that the transfer had been authorized, included these parcels in those it conveyed to the developer.
The developer, in seeking to secure permanent financing for the project, was required to provide title insurance to the property on which it stands and the title insurer has required proof of the authorization of the transfer of these properties from the city to DEDA in order to validate DEDA's conveyance to the developer. As this authorization cannot be located, this ordinance will serve to authorize the necessary conveyance which will allow the issuance of a "clean" title insurance policy, in turn allowing the developer to secure his permanent financing.