DISCLAIMER

06-048-O AS AMENDED

 

ORDINANCE NO. __________


AN ORDINANCE ALIENATING CERTAIN PROPERTY IN WEST DULUTH AND AUTHORIZING SALE OF SAME TO JACK P. AND BONNIE J. SYLVESTER FOR $19,625.

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 sell and convey the following described property in St. Louis County, Minnesota, by quit claim deed to Jack P. and Bonnie J. Sylvester for $19,625 to be deposited in General Fund 0100-700-1407-4640, and to execute all documents necessary with regard to said conveyance:

           Lots 3, 4, 5 and 6, Block 147, WEST DULUTH FIFTH DIVISION.

     Section 3. That proceeds of the sale shall be deposited in a fund to be used only for improvement or maintenance of park lands.

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


STATEMENT OF PURPOSE: The city acquired the former Duluth, Winnipeg and Pacific (DWP) Railroad right-of-way in 1984. The acquisition was for future trail purposes. Since then, key bridges, trestles and other infrastructure has been removed making the development of a future trail costly and impractical. The planning commission recommended the sale of this former railroad property in an action dated September 14, 2004. This property is now surplus to the city’s future needs and is alienated.


The buyers are the adjoining owners on both sides of this property, own a used car business adjacent to this property and plan to use it for business expansion purposes. The Spirit Valley Citizens’ Neighborhood Development Association (SVCNDA) has expressed support of the sale of the former DWP property to adjoining owners for business or residential expansion.


The city assessor has established the square foot value of this property at $1.57/square foot and the buyer has agreed to the established price of $19,625.


Tax Base Impact Summary: This property will be returned to the tax roles after 20+ years. Minimal tax impact until such time as property is improved with a structure or other site improvement.