07-060-O AS AMENDED ON 9/24

 

ORDINANCE NO. __________


AN ORDINANCE AUTHORIZING SALE OF CERTAIN PROPERTY ON GARFIELD AVENUE TO THE SEAWAY PORT AUTHORITY OF DULUTH FOR $16,025.

BY COUNCILOR JOHNSON:

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 the Seaway Port Authority of Duluth for $16,025 to be deposited in general the parks and recreation fund 100-700-1420-4640, and to execute all documents necessary with regard to said conveyance:

           Lots 174 - 200 (even numbered), Block 38, RICE’S POINT.

           That part of Lots 197 and 199, Block 46, RICE’S POINT, which lies southwesterly of the following described line:

                 Beginning at the northwest corner of said Lot 197; thence run southeasterly to a point on the southeasterly line of said Lot 199, distant 30 feet northeasterly of the southwest corner thereof and there terminating.

           Lots 201 - 217 (odd numbered), Block 47, RICE’S POINT.

           Subject to easements and servitudes of record.

     Section 3. 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 declare certain city-owned property on Garfield Avenue as surplus to the city’s current and future needs and to authorize its sale to the port authority. The port authority will then assemble this property with other property already owned by the port authority into a site of suitable size for future industrial, manufacturing or other related development purpose.


The city acquired this property in 1980 from Mn/DOT as turn back property no longer needed for highway purposes. This property has no street access to Garfield Avenue due to the Blatnik Bridge off-ramp. There are no utilities nearby this site which further reduces its value as a stand alone parcel. This area is zoned M-2.


The port authority’s original request was for free conveyance for the intent stated above but has agreed to the purchase amount of $16,025 based on the appraised value established by the bond appraisal group.


Tax basis: This property has been tax exempt for 27+ years. No tax impact until this property can be assembled, marketed and sold by the port authority. Once sold, minimal tax impact until the property is developed for the intended purpose.