BY COUNCILOR GILBERT:
The city of Duluth does ordain:
That the proper city officials are hereby authorized to convey the below-described
property in St. Louis County, Minnesota, to the Duluth economic development
authority for the sum of $233,000, payable to the Fund 0530 (sanitary
sewer fund), Agency 500, Revenue Source 4853:
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 conveyance of city-owned land for the city-owned Lincoln Park toolhouse, generally located at 2405 West First Street, to DEDA to allow DEDA to exchange it for the Amendola warehouse property which DEDA needs to acquire as part of its obligations under its development agreement with SMDC for the First Street medical facilities project.
An agreement has been reached with the owner of the Amendola warehouse which will involve the conveyance of the toolhouse property to them in exchange for a conveyance of the warehouse property to SMDC for use in the development. Neither the city nor DEDA will be expected to pay any money, including any relocation costs to the warehouse building owners to induce them to convey the warehouse building to SMDC; any cost, over and above the value of the toolhouse, will be funded by SMDC.
The city carries the toolhouse property on its books at $200,000 albeit recent appraisals have indicated that the market value may actually be higher than the sale price to DEDA. The benefit to the public of such a sale is that no additional relocation costs need be paid, a savings that is expected to more than off-set any price differential.