|
City of Elk River, Minnesota
<br />outbuildings, are structurally substandard requiring substantial renovation or clearance. A parcel is deemed
<br />"occupied" if at least 15% of the area of the parcel contains buildings, streets, utilities, paved or gravel
<br />parking lots, or other similar structures.
<br />(2) the property consists of vacant, unused, underused, inappropriately used, or infrequently used railyards, rail
<br />storage facilities, or excessive or vacated railroad right -of -ways; or
<br />(3) tank facilities, or property whose immediately previous use was for tank facilities, as defined in section
<br />115C.02, subdivision 15, if the tank facilities:
<br />(i) have or had a capacity of more than 1,000,000 gallons;
<br />(ii) are located adjacent to rail facilities; and
<br />(iii) have been removed or are unused, underused, inappropriately used, or infrequently used.
<br />For districts consisting of two more noncontiguous areas, each area must individually qualify under the provisions
<br />listed above, as well as the entire area must also qualify as a whole.
<br />The TIF District qualifies as a redevelopment district in that it meets all of the criteria listed in (1) above. The
<br />supporting facts and documentation for this determination will be retained by the City for the life of the TIF District and
<br />are available to the public upon request. An analysis was completed by LHB to make this determination.
<br />"Structurally substandard" is defined as buildings containing defects or deficiencies in structural elements, essential
<br />utilities and facilities, light and ventilation, fire protection (including egress), layout and condition of interior partitions,
<br />or similar factors. Generally, a building is not structurally substandard if it is in compliance with the building code
<br />applicable to a new building, or could be modified to satisfy the existing code at a cost of less than 15% of the cost of
<br />constructing a new structure of the same size and type.
<br />A city may not find that a building is structurally substandard without an interior inspection, unless it can not gain
<br />access to the property and there exists evidence which supports the structurally substandard finding. Such evidence
<br />includes recent fire or police inspections, on -site property tax appraisals or housing inspections, exterior evidence of
<br />deterioration, or other similar reliable evidence. Written documentation of the findings and reasons why an interior
<br />inspection was not conducted must be made and retained. A parcel is deemed to be occupied by a structurally
<br />substandard building if the following conditions are met:
<br />(1) the parcel was occupied by a substandard building within three years of the filing of the request for
<br />certification of the parcel as part of the district;
<br />(2) the demolition or removal of the substandard building was performed or financed by the City, or was
<br />performed by a developer under a development agreement with the City;
<br />(3) the City found by resolution before such demolition or removal occurred that the building was structurally
<br />substandard and that the City intended to include the parcel in the TIF district, and
<br />(4) the City notifies the county auditor that the original tax capacity of the parcel must be adjusted upon filing
<br />the request for certification of the tax capacity of the parcel as part of a district.
<br />In the case of (4) above, the County Auditor shall certify the original net tax capacity of the parcel to be the greater of
<br />(a) the current tax capacity of the parcel, or (b) a computed tax capacity of the parcel using the estimated market
<br />value of the parcel for the year in which the demolition or removal occurred, and the appropriate classification rate(s)
<br />for the current year.
<br />At least 90 percent of the tax increment from a redevelopment district must be used to finance the cost of correcting
<br />conditions that allow designation as a redevelopment district. These costs include, but are not limited to, acquiring
<br />properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or
<br />contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development,
<br />demolition and rehabilitation of structures, clearing of land, removal of hazardous substances or remediation
<br />SPRINGSTED Page 3
<br />
|