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City of Elk River, Minnesota <br /> (2) the property consists of vacant, unused, underused, inappropriately used, or <br /> infrequently used railyards, rail storage facilities, or excessive or vacated railroad right- <br /> of-ways. <br /> For districts consisting of two more noncontiguous areas, each area must individually qualify <br /> under the provisions 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) <br /> above. The supporting facts and documentation for this determination will be retained by the <br /> City for the life of the TIF District and are available to the public upon request. <br /> "Structurally substandard" is defined as buildings containing defects or deficiencies in structural <br /> elements, essential utilities and facilities, light and ventilation, fire protection (including egress), <br /> layout and condition of interior partitions, or similar factors. A building is not structurally <br /> substandard if it is in compliance with the building code applicable to a new building, or could be <br /> modified to satisfy the existing code at a cost of less than 15% of the cost of constructing a new <br /> structure of the same size and type. <br /> A city may not find that a building is structurally substandard without an interior inspection, <br /> unless it can not gain access to the property and there exists evidence which supports the <br /> structurally substandard finding. Such evidence includes recent fire or police inspections, on- <br /> site property tax appraisals or housing inspections, exterior evidence of deterioration, or other <br /> similar reliable evidence. A parcel is deemed to be occupied by a structurally substandard <br /> building if the following conditions are met: <br /> (1) the parcel was occupied by a substandard building within a three-year period prior to the <br /> parcels inclusion in the district; and <br /> (2) if the substandard building was demolished or removed within the three year period, <br /> such demolition or removal was performed or financed by the City, or was performed by <br /> a developer under a development agreement with the City. In addition, the City must <br /> have found by resolution before such demolition or removal occurred that the building <br /> was structurally substandard and that the City intended to include the parcel in the TIF <br /> District. <br /> In the case of (2) above, the County Auditor shall certify the original net tax capacity of the <br /> parcel to be the greater of (a) the current tax capacity of the parcel, or (b) a computed' tax <br /> capacity of the parcel using the estimated market value of the parcel for the year in which the <br /> demolition or removal occurred, and the appropriate classification rate(s) for the current year. <br /> At least 90 percent of the tax increment from a redevelopment district must be used to finance <br /> the cost of correcting conditions that allow designation as a redevelopment district. These <br /> costs include, but are not limited to, acquiring properties containing structurally substandard <br /> buildings or improvements or hazardous substances, acquiring adjacent parcels necessary to <br /> provide a site of sufficient size to permit development, demolition and rehabilitation of <br /> structures, clearing of land, removal of hazardous substances, and installation of utilities, roads, <br /> sidewalks, and parking facilities for the site. The allocated administrative expenses of the <br /> authority may be included in the qualifying costs. <br /> • <br /> SPRINGSTED Page 2 <br />