DISCLAIMER

07-032-O

ORDINANCE NO. ______


AN ORDINANCE AUTHORIZING SALE OF CERTAIN PROPERTY ON GARFIELD AVENUE TO NORTHERN TRENDS BUILDING AND DESIGN, INC., FOR $11,556.60.

BY COUNCILOR JOHNSON:

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 Northern Trends Building and Design, Inc., 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 said company is necessary to allow construction of Code-required handicapped access facilities for their adjacent building and to provide parking for the expansion of their business in that building.

     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 Northern Trends Building and Design, Inc., a Minnesota corporation, for the total sum of 11,556.60 and to execute all documents necessary with regard to said conveyance:

           The westerly 67.75 feet of Lots 82 and 84, and the northerly two inches of the westerly 67.75 feet of Lot 86, all in Block 40, RICE’S POINT.

     Section 4. That the amount paid to city pursuant to this ordinance shall be paid into the following funds:

FUND

AGENCY

ORGANIZATION

ACCOUNT NO.

% OF FUND

510

500

1900

4853

23

520

500

1900

4853

29

530

500

1900

4853

28

535

500

1900

4853

20

     Section 5. This ordinance shall take effect 30 days from and after its passage and publication.


STATEMENT OF PURPOSE: The purpose of this ordinance is to declare certain city-owned property on Garfield Avenue as surplus to the city’s current and future needs and to authorize its sale at market price to the owner of an adjacent building to allow that building to be brought into compliance with handicapped accessability requirements and to allow the business therein to expand.


The city purchased all of Lots 82, 84, and the northerly two inches of Lot 86, Block 40, RICE’S POINT from the state of Minnesota (tax forfeited property) in 2001 via Resolution 01-0766. This is the former Branding Iron Restaurant site. The property was acquired for additional parking and materials storage for the Garfield Service Center.


Since 2001, a metal storage building (39-1/2 ft. x 32 ft.) has been constructed at the easterly end of the property adjacent to the alley. The remainder of the property is not needed by the city for parking as sufficient parking is available at the Garfield Service Center and other adjacent city-owned property.


Thus the remainder is surplus to the city’s needs and is now made available for sale to Northern Trends Building and Design, Inc.


Northern Trends owns and operates the business in the building immediately adjacent to this property. They are expanding their existing facility and this property will be used for parking and construction of a handicap access ramp. The property was originally acquired by the city in 2001 for $1.39 per sq. ft. The city assessor has established the square foot value of this property at $3.40/sq. ft. and the buyer has agreed to pay the city that price for the site, which yields a total price of $11,556.60.


Tax base impact summary: This property will be returned to the tax roles after 5+ years but will have minimal tax impact until such time as property is improved with a structure or other site improvement.