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4. SYSTEM CONDITION DEFICIENCIES <br /> If a building meets the minimum code deficiency threshold under Minnesota Statutes, Section <br /> 469.174, Subdivision 10(c), then in order for such building to be "structurally substandard" <br /> under Minnesota Statutes, Section 469.174, Subdivision 10(b), the building's defects or <br /> deficiencies should be of sufficient total significance to justify "substantial renovation or <br /> clearance." Based on this definition,LHB re-evaluated each of the buildings that met the <br /> code deficiency threshold under Minnesota Statutes, Section 469.174, Subdivision 10(c), to <br /> determine if the total deficiencies warranted"substantial renovation or clearance"based on <br /> the criteria we outlined above. <br /> System condition deficiencies are a measurement of defects or substantial deterioration in <br /> site elements, structure, exterior envelope, mechanical and electrical components, fire <br /> protection and emergency systems,interior partitions, ceilings, floors and doors. <br /> The evaluation of system condition deficiencies was made by reviewing all available <br /> information contained in City records, and making interior and exterior inspections of the <br /> buildings. LHB only identified system condition deficiencies that were visible upon our <br /> inspection of the building or contained in City records. We did not consider the amount <br /> of"service life" used up for a particular component unless it was an obvious part of that <br /> component's deficiencies. <br /> After identifying the system condition deficiencies in each building, we used our <br /> professional judgment to determine if the list of defects or deficiencies is of sufficient total <br /> significance to justify"substantial renovation or clearance." <br /> FINDING: <br /> In our professional opinion, eight (8) out of twelve (12) buildings (66.7 percent) in the <br /> proposed TIF District are structurally substandard to a degree requiring substantial <br /> renovation or clearance, because of defects in structural elements or a combination of <br /> deficiencies in essential utilities and facilities,light and ventilation, fire protection including <br /> adequate egress,layout and condition of interior partitions, or similar factors which defects <br /> or deficiencies are of sufficient total significance to justify substantial renovation or <br /> clearance. This exceeds the 50 percent requirement of Subdivision 10a(1). <br /> C. DISTRIBUTION OF SUBSTANDARD STRUCTURES <br /> Much of this report has focused on the condition of individual buildings as they relate to <br /> requirements identified by Minnesota Statutes, Section 469.174, Subdivision 10. It is also <br /> important to look at the distribution of substandard buildings throughout the geographic <br /> area of the proposed TIF District (Diagram 3). <br /> FINDING: <br /> The parcels with substandard buildings are reasonably distributed compared to all parcels <br /> that contain buildings. <br /> Beaudry Redevelopment TIF District#24 <br /> LHB Project No. 170323 Page 9 of 12 Final Report <br />