Laserfiche WebLink
JUN 18 '99 01 :59PM EHLERS & ASSOCIATES <br />0 <br />w <br />To: Joel Hanson <br />From: Rusty Fifield <br />Subject: TIP District <br />Date: June 18, 1999 <br />P. 2/9 <br />EHLERS <br />& ASSOCIATES INC <br />Here are my observations on amending Tax Increment Financing District #3 -2 and new statutory <br />requirements for business subsidies. <br />Redevelopment Test <br />To add parcels to the Tll^ District, these parcels must meet the criteria for creating a <br />redevelopment district. The statutory criteria are described below. The italicized words <br />represent the text of the statute. <br />1. Parcels consisting of 70 percent of the area of the district are occupied by buildings, <br />streets, utilities, or other improvements. For a parcel to meet the criteria, the relevant <br />improvements must cover at least 15% of the parcel area. Based on your description, all <br />of the parcels meet the coverage test. <br />2. More than 50 percent of the buildings, not including outbuildings, are structurally <br />substandard to a degree requiring substantial renovation or clearance. There are three <br />buildings in the District expansion area. Clearly, two of the buildings are blighted and <br />require clearance. I do not believe that either of the buildings can be termed as <br />outbuildings. Two buildings (66 %) exceeds the statutory minimum. The information I <br />sent should help your building official make the statutory findings for structurally <br />substandard. <br />3. These conditions are reasonably distributed throughout the district. The need to <br />assemble these parcels into a single development site helps meet the reasonable <br />distributed criteria. This restriction is intended to impair the combining of unrelated <br />blighted and vacant parcels. This amendment clearly deals with related properties. <br />Under these conditions, I believe that the proposed amendment passes the statutory test and can <br />be added to District 3 -2. <br />Process <br />The amendment of an existing district requires the same process as the initial establishment. The <br />main steps in the process are as follows: <br />L E A D E R S I N P U B L I C F I N A N C E <br />3060 Centre Pointe Drive <br />Roseville, MN 55113-1105 <br />PAGE 251 <br />651.697.8506 fax 651.697.8555 <br />rusty @ethers- Inc.corn <br />