ORDINANCE NO. __________



The city of Duluth does ordain:

     Section 1. That by virtue of the ability to make the exchange of properties authorized by Public Document No. ____________, the Duluth City Council finds that the North Shore property as described therein and owned by the city is surplus to the city’s needs and available for disposal in accordance with the terms and conditions of said public document.

     Section 2. That the proper city officials are authorized to make this exchange because the council finds that the property to be received pursuant to such exchange has higher potential use and greater benefit as recreational property to serve the interests of the citizens of the city of Duluth than the property to be conveyed and further will provide a better connection to Lake Superior for said citizens and therefore will better meet the intention of the donor of funds originally used to acquire said North Shore property and that therefore competitive bidding is not appropriate in this case.

     Section 3. That the proper city officials are hereby authorized to enter into an agreement, a copy of which is on file in the office of the city clerk as Public Document No. ____________, authorizing the conveyance of certain city-owned property in St. Louis County, Minnesota, southeast of Stoney Point to Odyssey Development, Inc., as described therein in exchange for the conveyance to the city by Odyssey of certain property adjacent to the Little Sucker River as described therein.

     Section 4. That this ordinance shall take effect 30 days after its passage and publication.

STATEMENT OF PURPOSE:  The purpose of this ordinance is to authorize an agreement with Odyssey Development, Inc., pursuant to which the city would convey a portion of the property owned by it southwest of Stoney Point on Lake Superior to Odyssey in exchange for property owned by Odyssey on either side of the Little Sucker River from the Congdon Boulevard right-of-way to the lake.

Odyssey has acquired and hopes to develop almost all of the property between the Congdon Boulevard right-of-way and the lake, starting at the west side of the Little Sucker River and running to the existing southwesterly entry road to Stoney Point (opposite the road to Tom’s Logging Camp). The only exception to this is a strip of land about 2.6 acres in size running from Congdon Boulevard to the general area where the parking area is located on the southwest side of Stoney Point; this land is owned by the city, having been acquired in the early part of the 20th Century using funds provided to the city for the purpose by Chester Congdon.

Odyssey desires to develop the land for residential purposes and have determined that the acquisition of the city’s 2.6 acres would materially improve their development. Therefore, they have offered to exchange approximately 3.04 acres of land owned by them on either side of the Little Sucker River, running from the boulevard right-of-way down to the lake on both sides of the river. The exchange would be conducted at no out-of-pocket cost to the city.

The city’s 2.6 acres has approximately 170 feet of lake frontage while the Little Sucker River parcel has approximately 275 feet of lake frontage. An appraisal conducted by John Hoff, Jr., of F.I. Salter and Company has established the value of the property the city is receiving at $211,400 while the property the city is giving up is valued at $182,400; this appraisal has been reviewed by the city assessor and has been found to be a fair and reasonable appraisal of the value of the respective parcels.

Both the planning director and the planning commission have reviewed the proposed exchange and have determined that it is advantageous to the city and its citizenry to proceed with the exchange as proposed.