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SCOPE OF WORK <br />The proposed TIF District consists of eight (8) parcels with eight (8) buildings. Five (5) buildings <br />were inspected on the interior and exterior on August 14, 2019, and two (2) buildings were inspected <br />on the interior and exterior on May 8, 2020. One (1) building was not inspected as it did not appear <br />substandard upon initial inspection. Building Code and Condition Deficiency Reports for the <br />buildings that were inspected and found substandard are located in Appendix B. <br />CONCLUSION <br />After inspecting and evaluating the properties within the proposed TIF District and applying current <br />statutory criteria for a Redevelopment District under Minnesota Statutes, Section 469.174, Subdivision 10, <br />it is our professional opinion that the proposed TIF District qualifies as a Redevelopment District <br />because: <br />• The proposed TIF District has a coverage calculation of 100 percent which is above the 70 <br />percent requirement. <br />• 62.5 percent of the buildings are structurally substandard which is above the 50 percent <br />requirement. <br />• The substandard buildings are reasonably distributed. <br />The remainder of this report describes our process and findings in detail. <br />PART 2 - MINNESOTA STATUTE 469.174, SUBDIVISION 10 <br />REQUIREMENTS <br />The properties were inspected in accordance with the following requirements under Minnesota Statutes, <br />Section 469.174, Subdivision 10(c�, which states: <br />INTERIOR INSPECTION <br />"The municipality may not make such determination [that the building is structurally substandard] <br />without an interior inspection of the property..." <br />EXTERIOR INSPECTION AND OTHER MEANS <br />"An interior inspection of the property is not required, if the municipality finds that <br />(1) the municipality or authority is unable to gain access to the property after using its best efforts <br />to obtain permission from the party that owns or controls the property; and <br />(2) the evidence otherwise supports a reasonable conclusion that the building is structurally <br />substandard." <br />DOCUMENTATION <br />"Written documentation of the findings and reasons why an interior inspection was not conducted <br />must be made and retained under section 469.175, subdivision 3(1)." <br />QUALIFICATION REQUIREMENTS <br />Minnesota Statutes, Section 469.174, Subdivision 10 (a) (1) requires three tests for occupied parcels: <br />Main and Gates Redevelopment TIF District <br />LHB Project No. 190549 Page 3 of 12 Final Report <br />