DEDA to Help Developers Acquire Tax-Forfeited Property
By Peter Passi, Duluth News-Tribune, Minn.
Nov. 6–The Duluth Economic Development Authority lent its support to two projects Monday by agreeing to help developers acquire tax-forfeited property.
Authority members unanimously approved a resolution that would authorize the purchase of 31 acres of tax-forfeited land through St. Louis County. The land would then be transferred at appraised value, plus a 1 percent handling fee, to White Pine Development Inc., an outfit that wants to bring 36 single-family homes to a 145-acre site east of Lester River Road and north of the U.S. Highway 61 expressway. No appraisal of the tax-forfeited land to be acquired has yet been completed, so its price remains in question.
White Pine owns 114 acres of property for its proposed development.
John Hovland of White Pine aims to begin construction of the housing development next spring.
Bob Bruce, Duluth’s director of planning and development, said the project departs from past residential developments DEDA has supported in that it contains no affordable housing component. But he praised the project and requested the authority’s support, calling it “the first large-scale housing project to come before us that’s been driven by the comprehensive plan.”
City Planner Kyle Deming said the project preserves the natural beauty of most of the parcel by clustering residential development on about one-third of the property.
The authority also renewed its backing for a plan to acquire 10 acres of tax-forfeited land in support of a proposed commercial development at the west corner of Haines and Arrowhead roads. The developer, Haines Properties LLP, owns 36 acres at the site and would add to that by paying $242,900 — the appraised value of the tax-forfeited land — plus a 1 percent commission of $2,429 to DEDA for its services.
The authority had earlier approved a plan to authorize the land transfer, but under that agreement, Haines Development — a partnership formed by Frank Holappa — was to have successfully rezoned the property by Nov. 30. DEDA modified the terms of the agreement Monday, giving the developer until Feb. 22 to complete rezoning of the parcel to C1 — a designation that would allow for office, commercial and light industrial uses. The land in question is now zoned for S1 (mixed use).
DEDA members approved the modified resolution in support of Haines Properties’ plans by a 6-1 vote, with Garry Krause in sole opposition. City Councilors Laurie Johnson and Roger Reinert were absent from Monday’s meeting.
“I’ll be voting against this, because it’s moving into an area that has lots of traffic considerations to be taken into advisement,” Krause said, noting that the property also contains some sensitive wetlands.
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