BY COUNCILOR STOVER:
The city of Duluth does ordain:
Section 1. That the city hereby designates the property described in Section 3 below as being surplus to the city’s future needs, and hereby declares its intention to alienate its interest in same.
Section 2. That, upon recommendation of the director of administration, the council has determined that it is appropriate to sell the below-described property to Minnesota Power at its fair market value but without competitive bidding pursuant to the authorization of Section 2-177 of the Code because the acquisition of the property by Minnesota Power is reasonably necessary to the purchaser’s ability to provide an adequate and continuous supply of electrical power to the citizens and users thereof in the city.
Section 3. That the proper city officials are hereby authorized to sell and convey the following described property in St. Louis County, Minnesota, by quit claim deed to Minnesota Power, a division of Allete, Inc., a Minnesota Corporation, for the total sum of $35,000, payable to the General Fund 0100-700-1407-4640 and to execute all documents necessary with regard to said conveyance:
Lots 254 and 256, Block 32, DULUTH PROPER SECOND ADDITION.
Section 4. That 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 sale of city-owned property near the intersection of Garfield Avenue and Superior Street to Minnesota Power. This property is surplus to the city’s future needs.
Minnesota Power is the adjoining owner of Lots 234-252 (even numbered), Block 32, DULUTH PROPER SECOND ADDITION. Minnesota Power plans to add this property to their existing property and use it for expansion of their 15th Avenue West electrical distribution substation facilities.
The city assessor has determined the value of this property to be $2.50/square foot. An independent appraisal commissioned by Minnesota Power was also conducted by Twin Ports Appraisals. That appraisal also determined the same value of $2.50/square foot. Minnesota Power has agreed to pay to the city said $2.50/square foot for the 14,000 square foot parcel which totals $35,000.
Tax base impact summary: This property will be returned to the tax roles after several years. Minimal tax impact until such time as this property is improved with a structure or other site improvement.