00-043-O
ORDINANCE NO. __________

AN ORDINANCE AUTHORIZING SALE OF CERTAIN EXCESS CITY PROPERTY TO VARIOUS PARTIES.

BY PRESIDENT GILBERT:

The city of Duluth does ordain:

Section 1. That the proper city officials are hereby authorized to sell and convey that property in St. Louis County, Minnesota, described in Public Document No. __________________ on file in the office of the city clerk, which property has been determined to be excess of the city's needs for the foreseeable future, by quit claim deed, to those persons named in said public document for the prices set forth therein.

Section 2. That said officials are further authorized to sell and convey that property in St. Louis County, Minnesota, described in Public Document No. _________________ on file in the office of the city clerk, which property has been determined to be excess of the city's needs for the foreseeable future, by warranty deed, to those persons named in said public document for the prices set forth therein under the following terms and conditions:

(a) The successful purchaser must build a suitable residence on the parcel within three years of the closing date;

(b) The city will convey these parcels by contract for deed during the building requirement term. Once the building requirement is met the city will convey parcels by warranty deed.

Section 3. 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 sale of various properties owned by the city for which the city has no current use. Periodically, the facilities management division reviews the list of properties owned by the city to determine whether the city currently is using the property or anticipates a need for using it in the foreseeable future. In the course of this review other city departments and divisions are consulted. If the property is not needed, it is then generally included in a list of properties to be auctioned to the highest bidder.

One major exception to this procedure relates to property that is not readily useable or developable on a stand-alone basis. This property is generally offered to an adjacent property owner for its estimated value. The other exception is property upon which the city wants to impose additional restrictions on its use; an example of this is the two parcels described the public document referenced to in paragraph 2 of the ordinance upon which the city is placing requirements that it be developed for housing within a relatively short period of time.

The major reasons for selling the property is to facilitate its re-use by private parties, to convert land for which the city has no use into funds which can be used for other purposes, to get such property back onto the tax roles.

The price for the auctioned property was, of course, established at the auction, albeit the city had established a "reserve" price prior to the auction to insure that the city received a fair price for its land. All other land was sold based on estimated market value.