DISCLAIMER

06-045-O

ORDINANCE NO. __________


AN ORDINANCE ALIENATING CERTAIN PROPERTY IN DULUTH HEIGHTS AND AUTHORIZING CONVEYANCE OF SAME TO THE HOUSING AND REDEVELOPMENT AUTHORITY OF DULUTH AT NO COST, AND ACCEPTING A LAND EXCHANGE FROM THE HRA IN THE HAWK RIDGE AREA AND DEDICATING SAID EXCHANGED PROPERTY FOR PARK PURPOSES.

BY COUNCILOR STOVER:

The city of Duluth does ordain:

     Section 1. That the city hereby designates the property described in Section 2 below as being surplus to the city’s future needs and hereby declares its intention to alienate its interest in same.

     Section 2. That the proper city officials are hereby authorized to convey the following described property in St. Louis County, Minnesota, by quit claim deed to the Housing and Redevelopment Authority of Duluth, Minnesota, in exchange for the property described in Section 3 below and to execute all documents necessary with regard to said conveyance:

           Lots 17, 18,and 19, Block 6, DULUTH HEIGHTS FIFTH DIVISION.

     Section 3. That the proper city officials are hereby authorized to accept fee title to the following described property from the Housing and Redevelopment Authority of Duluth, which property is hereby dedicated for park purposes:

           Outlots A and B, HAWK RIDGE ESTATES FIRST ADDITION.

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


STATEMENT OF PURPOSE: The city acquired the Duluth Heights property (.21 acres) from the HRA at no cost in 1986. The HRA will use this property for public housing. In a straight exchange for the Duluth Heights property, the HRA is offering to deed to the city Outlots A and B, HAWK RIDGE ESTATES FIRST ADDITION. Outlots A and B (5.6 acres) are 150 feet in width, located immediately below and adjoining Skyline Drive between 52nd and 54th Avenues East. The city assessor has determined the value of Outlots A and B at $.30 per square foot. The total area is calculated at 244,063 square feet for a total value of $73,200. The acquisition of Outlots A and B will add additional nondevelopment buffer along Skyline Drive. The HRA has added the condition that Outlots A and B be dedicated for park purposes. The parks and recreation commission reviewed the land exchange offer at their meeting on October 11, 2006 and support acceptance of Outlots A and B from the HRA for park purposes.


Tax Base Impact Summary: The Duluth Heights property is currently tax exempt. The HRA will make payment in lieu of taxes (PILOT) payments for the public housing units. Outlots A and B are currently tax exempt. The tax impact is neutral.