01-0796R

RESOLUTION APPROVING THE TRANSFER OF OWNERSHIP OF IN-PLACE, CITY-OWNED PLAYGROUND EQUIPMENT TO ST. MICHAEL'S CHURCH AND DULUTH BIBLE CHURCH.

BY COUNCILOR NESS:

        WHEREAS, city acquired, via purchase, in-place playground equipment installations at the former Washburn and Lakeside elementary schools from Independent School District #709 in 1995 as authorized by Resolution 95-0498; and

        WHEREAS, city entered into separate lease agreements for said in-place playground equipment in 1995 and authorized by Resolution 95-0722 with St. Michael's Church (4628 Pitt Street) and Duluth Bible Church (201 West St. Andrews Street); and

        WHEREAS, said five year lease agreements have now expired, and

        WHEREAS, city desires to transfer physical ownership of said in-place playground equipment installations to St. Michael's Church and Duluth Bible Church because the cost of removing the equipment exceeds its fair market value; and

        WHEREAS, both organizations are desirous of receiving said in-place playground equipment installations.

        NOW, THEREFORE, BE IT RESOLVED, that the proper city officers are authorized and directed to execute all documents necessary for the transfer of the in-place playground equipment installations to St. Michael's Church and Duluth Bible Church.



STATEMENT OF PURPOSE:  In 1995, the city purchased two in-place playground equipment installations from ISD 709 at the former Lakeside and Washburn elementary schools. Five year lease agreements were executed with each entity insuring public access and committing city maintenance. Both leases are now expired and this resolution authorizes the transfer of ownership of the in-place playground equipment installations along with all subsequent maintenance to St. Michael's Church and Duluth Bible Church respectively. These in-place playground installations have been in-place for 11 and 13 years of 20 year life expectancies and they cannot be relocated to other city facilities without the city bearing costs greater than their current value. By transferring equipment to the entities, the city is relieved of maintenance responsibility and any potential liability incident to the ownership of the equipment. The leases provided for no payment to the city so the city is not losing any cash flow.