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Elk River TH 10 and Lowell Redevelopment
<br />LHB Project No. 180477 Page 4 of 11 Final Report
<br />The coverage required by the parcel to be considered occupied is defined under Minnesota
<br />Statutes, Section 469.174, Subdivision 10(e), which states: “For purposes of this subdivision, a parcel
<br />is not occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar
<br />structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved
<br />or gravel parking lots, or other similar structures.”
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<br />B. CONDITION OF BUILDINGS TEST
<br />Minnesota Statutes, Section 469.174, Subdivision 10(a) states, “…and more than 50 percent of the
<br />buildings, not including outbuildings, are structurally substandard to a degree requiring
<br />substantial renovation or clearance;”
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<br />1. Structurally substandard is defined under Minnesota Statutes, Section 469.174, Subdivision 10(b),
<br />which states: “For purposes of this subdivision, ‘structurally substandard’ shall mean
<br />containing defects in structural elements or a combination of deficiencies in essential
<br />utilities and facilities, light and ventilation, fire protection including adequate egress, layout
<br />and condition of interior partitions, or similar factors, which defects or deficiencies are of
<br />sufficient total significance to justify substantial renovation or clearance.”
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<br />a. We do not count energy code deficiencies toward the thresholds required by Minnesota
<br />Statutes, Section 469.174, Subdivision 10(b) defined as “structurally substandard”, due to
<br />concerns expressed by the State of Minnesota Court of Appeals in the Walser Auto
<br />Sales, Inc. vs. City of Richfield case filed November 13, 2001.
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<br />2. Buildings are not eligible to be considered structurally substandard unless they meet certain
<br />additional criteria, as set forth in Subdivision 10(c) which states:
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<br /> “A building is not structurally substandard if it is in compliance with the building code
<br />applicable to new buildings or could be modified to satisfy the building code at a cost of
<br />less than 15 percent of the cost of constructing a new structure of the same square footage
<br />and type on the site. The municipality may find that a building is not disqualified as
<br />structurally substandard under the preceding sentence on the basis of reasonably available
<br />evidence, such as the size, type, and age of the building, the average cost of plumbing,
<br />electrical, or structural repairs, or other similar reliable evidence.”
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<br />“Items of evidence that support such a conclusion [that the building is not disqualified]
<br />include recent fire or police inspections, on-site property tax appraisals or housing
<br />inspections, exterior evidence of deterioration, or other similar reliable evidence.”
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<br />LHB counts energy code deficiencies toward the 15 percent code threshold required by
<br />Minnesota Statutes, Section 469.174, Subdivision 10(c)) for the following reasons:
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<br />• The Minnesota energy code is one of ten building code areas highlighted by the
<br />Minnesota Department of Labor and Industry website where minimum
<br />construction standards are required by law.
<br />• Chapter 13 of the 2015 Minnesota Building Code states, “Buildings shall be designed
<br />and constructed in accordance with the International Energy Conservation Code.”
<br />Furthermore, Minnesota Rules, Chapter 1305.0021 Subpart 9 states, “References
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