04-057-O

ORDINANCE NO. __________


AN ORDINANCE AUTHORIZING RECONVEYANCE OF PROPERTY IN ENDION DIVISION TO STATE OF MINNESOTA FOR LAKEWALK TOWNHOMES PROJECT.

BY COUNCILOR GILBERT:

The city of Duluth does ordain:

     Section 1. That the proper city officials are hereby authorized to convey the below-described property in St. Louis County, Minnesota, by reconveyance deed to the state of Minnesota to be held in trust as provided for in Minnesota Statutes Section 281.25:

           Lot 11, Block 2 ,ENDION DIVISION OF DULUTH, except the northerly 25 feet thereof.

     Section 2. This ordinance shall take effect 30 days from and after its passage and publication.


STATEMENT OF PURPOSE:  This ordinance authorizes the reconveyance of a lot originally acquired by the city by means of a free conveyance of tax forfeited property from the state of Minnesota so that it can be resold to DEDA for inclusion in the Lakewalk Townhomes project.


The property in question, located between I-35 and the lake shore just west of the unimproved right of way for 25th Avenue East, was originally acquired by the city in 1993 in contemplation of the future development of public or private improvements along the lake shore, one of which was expected to include the extension of the Lakewalk. The Project which has developed for the area is the Lakewalk Townhomes Project, running generally from the right of way for 23th Avenue East through the right of way for 25th Avenue East which will include the extension of the Lakewalk through the project area. As presently cast, the tax forfeit property upon which private improvements are to be constructed is to be conveyed to DEDA for conveyance to the Developer under the terms and conditions of the Development Agreement; the City will be a party to that agreement by virtue of its involvement in the Lakewalk Project.


As Lot 11 will have private improvements on it, it will be necessary for the Developer to have clear title to the property, a form of title which the City cannot convey because it has only a restricted title by virtue of the free conveyance. In order for the Developer to acquire clear title to the property, it is necessary for the City to reconvey their interest in the property to the State; the State will then be able to sell an unlimited fee title in the property to DEDA for the appraised value of the parcel as established by the County Land Department and approved by the County Board. This ordinance is necessary to start this process.