10-27-1999 Council Agenda - Laserfiche WebLink

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TIF District No. 3 -2 2.4 Redevelopment Classification The City finds that District No. 3 -2 meets the criteria of a redevelopment district pursuant to Minnesota Statutes, Section 469.174, Subdivision 10. The specific statutory criteria are contained in Table 2 -3. In meeting the statutory criteria, the City relies on the following facts and findings: District No. 3 -2 consists of 24 parcels. An inventory of the parcels shows that 71% of the parcels are occupied as defined in the Act. An inspection of the buildings located within District No. 3 -2 finds that 82% of the buildings are structurally substandard as defined in the Act. The 1999 expansion of District No..3 -2 independently meets the criteria: for a redevelopment(b) For purposes of this subdivision, "structurally substandard" district shall tnean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, The 1999 expansion consists of four: parcels. layout and condition of interior partitions, or similar factors, An inventory of the parcels shows that over 70% of which defects or deficiencies are of sufficient total significance the area of the parcels are occupied as defined in the to justify substantial renovation or clearance. Act. (a) "Redevelopment district" means a type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that one of the following conditions, reasonably distributed throughout the district, exists: (1) parcels consisting of 70 percent of the area in the district are occupied by buildings, streets, utilities, or other improvements and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; or (2) The property consists of vacant, unused, underused, inappropriately used, or infrequently used railyards, rail storage facilities or excessive or vacated railroad rights -of -way. An inspection of the buildings located within District No. 3 -2 finds that 100% of buildings are structurally substandard' as defined in the Act. Supporting information can be found in Appendix 2 A. 2.5 Duration of District The duration of District No. 3 -2 will be 25 years from the date of receipt of the first increment by the City. The date of receipt by the City of the first tax increment will Lc apptoximat.ly July, 1998. The first tax increment was received' by the City in July, 1997. Thus, it is estimated that District No. 3 -2, including any modifications of the Plan for subsequent phases or other changes, would A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably -available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs or other similar reliable evidence. If the evidence supports a reasonable conclusion that the building is not disqualified as structurally substandard, the municipality may make such a detennination without an interior inspection or an independent, expert appraisal of t /ne cost of repair and rehabilitation of the building... c) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities or other improvements until 15 percent of the area of the parcel contains improvements. Table 2 -3 Statutory Criteria for Redevelopment TIF District terminate after July, 2022. 2022. The City does reserve the right to decertify District No. 3 -2 prior to the legally required date. Page 146 2 -4