DISCLAIMER

 

06-0087R


RESOLUTION AUTHORIZING AN ASSIGNMENT OF RIGHTS AGREEMENT WITH APEX PROPERTY AND TRACK EXCHANGE, INC., AND THE BURLINGTON NORTHERN SANTE FE RAILWAY COMPANY FOR PROPERTY BEING ACQUIRED FROM THE BURLINGTON NORTHERN SANTA FE RAILWAY COMPANY ON GRASSY POINT IN WEST DULUTH.

BY COUNCILOR STAUBER:

     RESOLVED, that the proper city officials are hereby authorized to enter into an assignment of rights agreement, a copy of which is on file in the office of the city clerk as Public Document No. _________________, with the Apex Property and Track Exchange, Inc., and the Burlington Northern Santa Fe Railway Company for the assignment of rights from Burlington Northern Santa Fe Railway Company to Apex Property and Track Exchange, Inc., of the property on Grassy Point being acquired from Burlington Northern Santa Fe Railway Company pursuant to Resolution 06-0056.


STATEMENT OF PURPOSE: The purpose of this resolution is to authorize an assignment of rights agreement with Apex Property and Track Exchange, Inc., and the Burlington Northern Santa Fe Railway Company related to the purchase of the above described property on Grassy Point in West Duluth. The Burlington Northern Santa Fe Railway company is using Apex Property and Track Exchange, Inc., as a qualified intermediary for the purpose of completing a tax-deferred exchange under Section 1031 of the Internal Revenue Service Code. The city, as the purchaser of the above property, is a party to the assignment of rights agreement and, as such, is required to execute it. All monies paid by the city for this land purchase will be paid direct to Apex Property and Track Exchange, Inc.


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.