BY COUNCILOR STOVER:
The city of Duluth does ordain:
Section 1. That the proper city officials are hereby authorized to enter into an agreement substantially in the form of that on file in the office of the city clerk as Public Document No. __________ with Oliver Companies, Inc., for the sale of the below-described property in St. Louis County, Minnesota, for the sum of $376,500, one-half of which shall be paid to the Water Fund 0510, Agency 500, Source 4853 and one-half of which shall be paid to the Gas Fund 0520, Agency 500, Source 4853:
Lots 385, 387, 389, 391, 393 and 395, Block 77, DULUTH PROPER Second Division.
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 the water and gas building, across First Street from City Hall, to Oliver Companies, Inc.
The consolidation of the water and gas department into either City Hall or the new water and gas facility on Garfield Avenue has rendered the old headquarters building unnecessary to the department’s operations, and, therefore, it was determined to be in the city’s best interests to sell the building. The city went through a proposal process and Oliver Companies’ proposal was selected.
Closing is anticipated for January of 2005.
TAX BASE IMPACT SUMMARY
The sale price of the property is proposed to be $376,000. This will result in an estimated market value of the property of approximately $355,000 which in turn will result in annual property taxes of approximately $11,507.48, based on expected taxing rates. The city’s share of annual property taxes is estimated to be about $1,705.99.