BY COUNCILOR STAUBER:
RESOLVED, that the proper city officers are authorized and directed to execute the grant agreement on file in the office of the city clerk as Public Document No. ____________, between the city of Duluth and the state of Minnesota, which awards the city a matching grant in the amount of $7,740 to be used for the land acquisition of Burlington Northern property on Grassy Point, said grant funds to be deposited into Fund 450, Agency 030, Revenue Source 4210-01, Project CP2005-C0503.
STATEMENT OF PURPOSE: The city submitted a grant application for 50-50 matching funds to Minnesota’s Lake Superior coastal program (state of Minnesota - department of natural resources). The funds will be used toward the purchase of property owned by the Burlington Northern Railroad on Grassy Point. The total purchase price is $16,000 ($15,000 land + $1,000 administration fee). This property has not been used for railroad purposes for over 80 years and bisects Grassy Point. Acquisition of this property will allow the city to re-engage both planning and construction efforts toward the completion of the Grassy Point Recreational Trail.
TAX BASE IMPACT SUMMARY: Passage of this resolution will permanently remove this land from the tax base. Railroad operating property is assessed by the Minnesota commissioner of revenue. This parcel represents a deminimus fractional apportionment of all the railroad property in the city of Duluth. Therefore, there would be no significant impact to the tax base.