07-037-O

ORDINANCE NO. __________


AN ORDINANCE AUTHORIZING CONVEYANCE OF CERTAIN PROPERTY NEAR BECKS ROAD TO STEVEN J. VUJCEVIC FOR $1.

BY COUNCILOR STAUBER:

The city of Duluth does ordain:

     Section 1. That the city hereby designates the property described in Section 2 below as having been erroneously conveyed to the city and therefore 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 convey the below-described property to Steven J. Vujcevic at no cost, without competitive bidding, pursuant to the authorization of Section 2-177 of the Code because he has purchased the underlying fee title to said property from the state of Minnesota and said conveyance is necessary in order to clear the city’s inadvertently-acquired interest from the title thereto.

     Section 3. That the proper city officials are hereby authorized to sell and convey, by quit claim deed, that portion of the Northeast Quarter of the Northeast Quarter of Section 4, Township 48, Range 15, Louis County, Minnesota, legally described on Public Document No. ____________ to Steven J. Vujcevic for the total sum of $1, payable to the General Fund 100-700-1407-4640 and to execute all documents necessary with regard to said conveyance.

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


STATEMENT OF PURPOSE:  The purpose of this ordinance is to authorize the conveyance of the city’s inadvertently acquired interest in certain property west of New Duluth and north of Fond du Lac to the rightful owner of the underlying fee to the property at no cost.


As part of the Becks Road realignment project in 1989, the city needed to acquire a strip of property approximately 6.2 acres in size across the Northeast Quarter of the Northeast Quarter of Section 4, Township 48, Range 15 which property was forfeit to the state of Minnesota for non-payment of taxes. The state sold the property in question in December of 1989, and the city paid the state $13,500 for the property but through some mistake, they deeded the entire quarter-quarter section (some 40 acres less railroad right-of-way) to the city instead of just the 6.2 acres we paid for. They later tried to correct the problem by issuing a corrective deed to the city limited to the property we actually needed and paid for.


Subsequently, the state sold a portion of the property in question to Mr. Vujcevic and he has attempted to record his purchase. But the property in question is registered property under the Torrens system and the examiner of titles is taking the position that the state cannot simply “undeed” or take back the property in question, and therefore the original deed from the state to the city is a cloud on the title, preventing the recording of Mr. Vujcevic’s deed. In order to clear this cloud on his deed, it is necessary for the city to deed him the city’s non-existent interest in the property he bought from the state.


As the city didn’t ask for the property in question, didn’t pay for the property in question and has no need for the property in question, it is appropriate for the city to give Mr. Vujcevic a quit claim deed to the portion of the property in question which he purchased in order to clear this cloud to his title and to allow him to record his valid ownership of it.