BY COUNCILOR STAUBER:
RESOLVED, that the proper city officials are hereby authorized to enter into a purchase agreement, a copy of which is on file in the office of the city clerk as Public Document No. ______________, with the Burlington Northern Santa Fe Railway Company for the purchase of the following described property on Grassy Point in St. Louis County, Minnesota, for the sum of $16,000, payable from Fund 450, Agency 030, Object 5510, Project CP2005-C0503:
A strip of land or land covered with water, described as follows to wit:
Beginning at a point on the south line of the right-of-way of the Duluth Short Line Railway Company seven hundred and thirty-nine and seventeen one hundredths (739.17) feet east of and measured along the said south line of said right-of-way from the intersection of the same with the centre line of Fourth Avenue East in West Duluth, Third Division, prolonged south, thence in a southeasterly direction at an angle of thirty-four degrees and thirty minutes to the right, with said south line of said right-of-way, for a distance of three hundred and twenty-nine and six one hundredths (329.06) feet, thence to the right, at an angle of the thirteen degrees and thirteen minutes, in a direct line, and except for a short distance at the commencement being ninety-two and one half (92-1/2) feet distant, measured at right angles and on the southwesterly side of the centre line of the railroad of the said party of the second part, as now located and constructed, to the established dock line in the Bay of St. Louis, thence in a northeasterly direction, along the said dock line, to a point one hundred (100) feet distant from and measured at right angles from the last above described direct line, thence, in a northwesterly direction parallel to and one hundred (100) feet distant from the said above described direct line, to the south line of the right-of-way of the said Duluth Short Line Railway Company, thence westerly, along said south line, one hundred and seventy-six and fifty-four hundredths (176.54) feet to the place of beginning, the same being part and parcel of Government Lot One (1) in Section Seventeen (17), and Lots Two (2) and Three (3) in Section Eighteen (18), in Township Forty-nine (49) North, of Range Fourteen (14) West of the Fourth Principal Meridian, reserving the right to the said party of the first part to lay and dedicate a highway, forty feet in width across the northerly end of said tract.
RESOLVED, that the proper city officials are hereby authorized to execute such documents as are necessary to complete said transaction.
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize a purchase agreement with the Burlington Northern Santa Fe Railway Company to purchase the above described property on Grassy Point in West Duluth. This property is owned by the Burlington Northern Santa Fe Railway Company but has not been used for railroad purposes for many years. Once acquired, the Grassy Point Trail can proceed with future planning and construction phases. A property appraisal has been completed by F.I. Salter Realty which established a value of $15,000 for the property. The Burlington Northern Santa Fe Railway Company has added an administrative fee of $1,000, bringing the grand total to $16,000. Two grants have been secured to cover the purchase price for this property. One grant is from Minnesota’s Lake Superior coastal program and the other from the MnDNR remediation grant fund.
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.