ORDINANCE NO. __________



The city of Duluth does ordain:

     Section 1. That the proper city officials are hereby authorized to convey the below-described property in St. Louis County, Minnesota, by quit claim deed to Trinity Development Group, for the sum of $12,358.49; payable to the General Fund 100, Agency 700, Object 1420, Revenue Source 4640:

           The northerly 33 feet of the SE 1/4 of NW 1/4 Section 29, Township 50 North of Range 14 West of the Fourth Principal Meridian that lies Westerly of the East line of Lot 4, AUDITORS PLAT NO. 24 extended Northerly to the North line of said SE 14 of NW 1/4;


           The Westerly 33 feet of the SE 1/4 of NW 1/4 Section 29, Township 50 North of Range 14 West of the Fourth Principal Meridian that lies adjacent to Lot 8 AUDITORS PLAT NO. 24.

     Section 2. That the city council finds, upon advice from the city assessor, that the sale is for fair market value.

     Section 3. This ordinance shall take effect 30 days from and after its passage and publication.

STATEMENT OF PURPOSE:  The purpose of this ordinance is to authorize the conveyance of an L-shaped 33-foot wide strip of land (consisting of 43,363.13 square feet)to Trinity Development Group in connection with Coffee Creek development.

This strip of land was thought to have been a street easement in Auditor’s Plat No. 24. The St. Louis County Examiner of Titles has determined that this street easement was not properly dedicated years ago. Additionally, records have been found showing that this “street” area was actually deeded to the City, and therefore, instead of an easement, the City owns a fee interest in the strip of land.

Pursuant to Section 2-178 of the Duluth City Code, the City may sell a parcel to an adjacent owner without using the bidding procedures set forth in Article 33 of the City Code if no building can be legally constructed on a parcel. The sale must be for fair market value as determined by Council after advice from the City Assessor.

The strip of land is unbuildable. The City Assessor’s Office has given an opinion of estimated market value in the range of 20 to 37 cents per square foot. Staff recommends selling the property at the median price per square foot of 28-1/2 cents for a total of $12,358.49.

Tax base impact summary: This property will be returned to the tax rolls. Minimal tax impact until such time as property is improved with a structure or dwelling.