00-019-O

ORDINANCE NO. __________

AN ORDINANCE AUTHORIZING SALE OF CERTAIN PROPERTY TO A. KEMP FISHERIES COMPANY, INC., FOR TITLE CLEARANCE PURPOSES.

BY PRESIDENT GILBERT:

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 A. Kemp Fisheries Company, Inc., for the purpose of clearing title to said property, and execute all documents necessary with regard to said conveyance:

That part of Lots 1 through 4, inclusive, Block 179 WEST DULUTH Seventh Division, lying westerly of a line drawn parallel with and distant 50 feet from the centerline of the Duluth, Winnipeg and Pacific Railroad as the same is now constructed across Block 179, together with those portions of public highways, whether vacated or unvacated, appurtenant to said lots, excepting, however, all minerals and mineral rights.
Section 2. This ordinance shall take effect 30 days from and after its passage and publication.

STATEMENT OF PURPOSE: The purpose of this ordinance is to authorize the execution of a quit claim deed conveying the city's purported interest in property the city does not claim to own to the party who actually owns it in order to clear up an objection to the title to the property which is preventing the owner from selling it.

The property in question, which consists of parts of Lots 1 through 4 in Block 179, WEST DULUTH Seventh Division, is owned by A. Kemp Fisheries Company and lies to the southeast of Menard's West Duluth Store and southwest of the city's toolhouse on Colalillo Drive which is in that area commonly referred to as Oneota II. The property was separated from the toolhouse by property which was originally part of the right-of-way of the Duluth, Winnipeg and Pacific Railroad.

When the city was originally laying out the plat of Oneota II and selling the property on which the toolhouse is located to another party who originally built the building where the toolhouse is now located, the City needed clear title to the railroad right-of-way and so we secured a quit claim deed from the railroad to the required property; the deed included all of Lots 1 through 4. Because a quit claim deed only conveys whatever interest in property that the granting party actually owns, this should not have created any problem because it should have conveyed only such interest as the railroad actually owned in the lots in question to the city.

However, for reasons unknown, the registrar of titles allowed the quit claim deed to the city to be recorded as a memorial on the certificate of title that included the portions of Lots 1 through 4 that Kemp owns. This creates a "cloud on the title" to those lots and the purchaser is requiring that that cloud be removed.

The simplest way of removing that cloud is for the city to convey by quit claim deed whatever interest it has in Kemp's portion of Lots 1 through 4 (which is nothing) to party that actually does own the property: A. Kemp Fisheries Company, Inc.

This ordinance would authorize that conveyance.