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2. HRA SR 09-04-2018
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2. HRA SR 09-04-2018
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8/29/2018 9:56:25 AM
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City Government
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HRSR
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9/4/2018
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Elk River TH 10 and Lowell Redevelopment <br />LHB Project No. 180477 Page 5 of 11 Final Report <br />to the International Energy Conservation Code in this code mean the Minnesota Energy <br />Code…” <br />• The Senior Building Code Representative for the Construction Codes and <br />Licensing Division of the Minnesota Department of Labor and Industry <br />confirmed that the Minnesota Energy Code is being enforced throughout the State <br />of Minnesota. <br />• In a January 2002 report to the Minnesota Legislature, the Management Analysis <br />Division of the Minnesota Department of Administration confirmed that the <br />construction cost of new buildings complying with the Minnesota Energy Code is <br />higher than buildings built prior to the enactment of the code. <br />• Proper TIF analysis requires a comparison between the replacement value of a <br />new building built under current code standards with the repairs that would be <br />necessary to bring the existing building up to current code standards. In order for <br />an equal comparison to be made, all applicable code chapters should be applied to <br />both scenarios. Since current construction estimating software automatically <br />applies the construction cost of complying with the Minnesota Energy Code, <br />energy code deficiencies should also be identified in the existing structures. <br /> <br />C. DISTRIBUTION OF SUBSTANDARD BUILDINGS <br />Minnesota Statutes, Section 469.174, Subdivision 10, defines a Redevelopment District and requires <br />one or more of the following conditions, “reasonably distributed throughout the district.” <br /> <br />(1) “Parcels consisting of 70 percent of the area of the district are occupied by buildings, <br />streets, utilities, paved or gravel parking lots, or other similar structures and more than <br />50 percent of the buildings, not including outbuildings, are structurally substandard to a <br />degree requiring substantial renovation or clearance; <br />(2) the property consists of vacant, unused, underused, inappropriately used, or infrequently <br />used rail yards, rail storage facilities, or excessive or vacated railroad rights-of-way; <br />(3) tank facilities, or property whose immediately previous use was for tank facilities…” <br />Our interpretation of the distribution requirement is that the substandard buildings must be <br />reasonably distributed throughout the district as compared to the location of all buildings in <br />the district. For example, if all of the buildings in a district are located on one half of the <br />area of the district, with the other half occupied by parking lots (meeting the required 70 <br />percent coverage for the district), we would evaluate the distribution of the substandard <br />buildings compared with only the half of the district where the buildings are located. If all of <br />the buildings in a district are located evenly throughout the entire area of the district, the <br />substandard buildings must be reasonably distributed throughout the entire area of the <br />district. We believe this is consistent with the opinion expressed by the State of Minnesota <br />Court of Appeals in the Walser Auto Sales, Inc. vs. City of Richfield case filed November 13, <br />2001. <br /> <br /> <br />
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