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TIF Analysis for 326 Gates Ave NW, 414, 426 and 430 Main St NW Page: 3 <br />Date: September 6, 2019 <br /> <br /> <br />75-401-0145 (414 Main Street NW): <br />• The parcel is approximately 8,712 square feet and is 41.7 percent covered by buildings, parking <br />lots or other improvements. <br /> <br />Findings: <br />The parcels are covered by buildings, parking lots or other improvements, exceeding the 15 percent parcel <br />requirement. <br /> <br />2. 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 substantial <br />renovation or clearance;” <br /> <br />a. 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 containing <br />defects in structural elements or a combination of deficiencies in essential utilities and facilities, <br />light and ventilation, fire protection including adequate egress, layout and condition of interior <br />partitions, or similar factors, which defects or deficiencies are of sufficient total significance to <br />justify substantial renovation or clearance.” <br /> <br />i. 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. <br /> <br />Findings: <br />The three residential buildings at 326 Gates Avenue Northwest, 414, and 426, Main Street <br />Northwest and former office at 430 Main Street Northwest exceed the criteria required to be <br />determined substandard buildings (see the attached Building Code, Condition Deficiency and <br />Context Analysis Reports). <br /> <br />b. 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: <br /> <br />“A building is not structurally substandard if it is in compliance with the building code applicable <br />to new buildings or could be modified to satisfy the building code at a cost of less than 15 <br />percent of the cost of constructing a new structure of the same square footage and type on the <br />site. The municipality may find that a building is not disqualified as structurally substandard <br />under the preceding sentence on the basis of reasonably available evidence, such as the size, <br />type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or <br />other similar reliable evidence.” <br /> <br />“Items of evidence that support such a conclusion [that the building is not disqualified] include <br />recent fire or police inspections, on-site property tax appraisals or housing inspections, exterior <br />evidence of deterioration, or other similar reliable evidence.” <br /> <br />LHB counts energy code deficiencies toward the 15 percent code threshold required by Minnesota <br />Statutes, Section 469.174, Subdivision 10(c)) for the following reasons: <br /> <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 construction <br />standards are required by law.