04-0726R


RESOLUTION APPROVING DEDA RESOLUTION 04D-92 AUTHORIZING DEDA CONDEMNATION OF LOTS 44, 46 AND 48, WEST THIRD STREET, DULUTH PROPER FIRST DIVISION, FOR CREATION OF A RESIDENTIAL FACILITY FOR CHRONIC ALCOHOLICS.

BY COUNCILOR GILBERT:

     RESOLVED, that the use of eminent domain by DEDA approved pursuant to DEDA resolution 04D-92 is hereby approved.


STATEMENT OF PURPOSE:  The purpose of this resolution is approve the use of eminent domain by DEDA to acquire the so-called “San Marco” properties for the development of the wet-house project in the Central Hillside neighborhood.


The city had originally approved the project and had authorized the exercise of eminent domain to acquire the necessary property. Arguments have since been raised that such a project is the appropriate function of an HRA or of an EDA having the powers of an HRA such as DEDA. In order to prevent any delays in the litigation process occasioned by disputes over the authority of the City to do the project, it was determined to be the better course of action to have the project done through DEDA. This resolution presupposes that the project will remain the same and that the same sources of funding will be used. The only change is that DEDA will be the public authority and will acquire the property.