02-13-2013 Council Agenda - Laserfiche WebLink

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PURPOSE: The purpose of this report is to determine whether the qualification test for tax increment eligibility, as required by Minnesota Statute for a Redevelopment District can be met. The proposed expansion to TIF District 6 -1 includes the addition of the parcels located at 2945 and 2959 Labore Road as well as a 33 foot strip of unimproved road right -of -way. (See Map Attached for Changes to the District's boundaries.) SCOPE OF WORK: The proposed district consists of two parcels totaling 77,537 square feet or 1.78 acres. A total of six (6) buildings /structures occupy the site consisting of two (2) single family homes, two (2) detached garages and 2 garden sheds. EVALUATIONS: On January 28, 2013 and February 5, 2013 inspections were conducted on the six (6) buildings /structures and property. Permission was given by the owner of the property to enter and inspect both the interior and exterior of all buildings. FINDINGS: Coverage Test — According to the calculation of the City Engineer, the two properties each exceed the 15% improvement coverage threshold. (See City Engineer's diagrams for each parcel attached to this report). As a result, 100% of the area to be added to TIF District 6 -1 meets the statutory criteria. The proposed vacation of road right -of -way would not meet the coverage test. Even so, the right -of -way is 22,770 square feet in size. With the two additional parcels (2945 & 2959) included with the right -of -way, the total square footage of the area to be added to 'TIF District 6 -1 equals 100,306.8. Therefore, over 70% of the area to be added meets the coverage test (77.3 %). Condition of Buildings Test — The principle residential structure is found to be "Structurally Substandard" when considering code deficiencies and other deficiencies of significant total significance to justify substantial renovation or clearance, (100% verses a minimum of 50 %). The attached and detached accessory structures all have deficiencies which require code upgrades and structural repairs. This exceeds the condition of buildings test whereby 100% of the buildings are deemed to he "Structurally Substandard ". If all buildings, including outbuildings are factored, one hundred percent (100 %) of all the buildings, six (6) out of the six (6) buildings /structures and /or accessory structures were found to have existing conditions which would require substantial renovation or clearance to remove hazards to the health, safety, and general well -being of the community. This exceeds to 50% threshold for other buildings requiring substantial renovation and clearance to remove existing conditions such as inadequate street layout, incompatible uses or land use relationships, obsolete buildings not suitable for improvement or conversion or other hazards to the health, safety, and general well -being of the community. 5