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FEB-03-98 09 :20 AM PELSTRING01 5509221 P. 02 <br /> Item 7. <br /> %• <br /> I1 r®eo I1Iff <br /> PELSTRING CAPITAL CORPORATION <br /> 4205 Lancaster Lane North*Suite I I(X) +Minneapolk. MN 55441 <br /> To: Paul Steinman, City of Elk River <br /> From: Patrick Pelstring, <br /> Peistring Capital Corporation <br /> Subject: Redevelopment Analysis <br /> Date: January 30, 1998 <br /> INTRODUCTION <br /> As we reviewed Iast month, I have conducted a preliminary review of the <br /> proposed Associated Development site to determine appropriate <br /> • qualifications to establish the site as a redevelopment tax increment district. <br /> This analysis presumes only the inclusion of the Hohlen property and the 40- <br /> acre proposed industrial property immediately to the south of the Hohlen <br /> property. The adjacent right of way for Highway 169 and County Road 12 <br /> are also included as a part of the TIF district. <br /> The redevelopment analysis consists of two statutory "tests" summarized as <br /> follows: <br /> 1. Buildings, roadways, public improvements or other improvements <br /> must occupy 70% of the parcels (by area). A parcel is considered <br /> "occupied" if the improvements cover at least 15% of the parcels area. <br /> AND <br /> 2. At least 50% of the buildings (not including "outbuildings") must be <br /> determined to be structurally "substandard". A building is determined <br /> to be substandard if the cost of improvements to repair the building <br /> 111 would exceed 15% of the cost to replace the structure. <br /> (61.2)550-79x08(}(l-n42-6258uda(612) 550-9221 Faxofr pclxtringla'carthlink,nct <br />