BY PRESIDENT GILBERT:00-0577R
RESOLUTION AUTHORIZING EXECUTION OF A SATISFACTION OF MORTGAGE PERTAINING TO CERTAIN REAL PROPERTY GIVEN BY GREATER DULUTH-GRAND PORTAGE ENROLLEES, INC., IN FAVOR OF THE CITY OF DULUTH.
RESOLVED, that the proper
city officials are hereby authorized to execute a satisfaction of mortgage
given by the Greater Duluth-Grand Portage Enrollees, Inc. (the agency),
in favor of the city of Duluth to secure a forgivable urban revitalization
action program (URAP) loan in the amount of $16,000 with respect to property
legally described as Lot 411, Block 78, Duluth Proper, Second Division,
St. Louis County, Minnesota.
On May 30, 1991, the agency and the city entered into a forgivable loan agreement under which the agency was given $16,000 in state of Minnesota URAP funds to assist in the acquisition rehabilitation of the subject property under the URAP program. The agreement called for a ten year lien to ensure affordability and was secured by a mortgage on the property.
At this time the agency no longer has a need for this type of housing nor the resources to manage the property. The agency has a buyer for said property and the lien is set to expire within the next year. For these reasons, community development staff is recommending that the satisfaction of mortgage be authorized as of this date. Additionally, the community development division will be re-evaluating the community housing development organization (CHDO) status of the agency.