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Page: 2 Date: March 27, 2015 CONCLUSION After inspecting and evaluating the building on March 13, 2015 and applying current statutory criteria for a Redevelopment District under Minnesota Statutes, Section 469.174, Subdivision 10, it is our professional opinion that the building qualifies as substandard. The remainder of this letter and attachments describe our process and findings in detail. MINNESOTA STATUTE 469.174, SUBDIVISION 10 REQUIREMENTS The property was inspected in accordance with the following requirements under Minnesota Statutes, Section 469.174, Subdivision 10(c), which states: Interior Inspection “The municipality may not make such determination [that the building is structurally substandard] without an interior inspection of the property...” Exterior Inspection and Other Means “An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard.” Documentation “Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained under section 469.175, subdivision 3(1).” Qualification Requirements Minnesota Statutes, Section 469.174, Subdivision 10 (a) (1) requires two tests for occupied parcels: 1. Coverage Test …“parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, or paved or gravel parking lots” The coverage required by the parcel to be considered occupied is defined under Minnesota Statutes, Section 469.174, Subdivision 10(e), which states: “For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or other similar structures.” The LHB team reviewed parcels 31-31-22-43-0007, 31-31-22-43-0006 and 31-31-22-43-0017: • Parcel A (31-31-22-43-0007) is approximately 25,358 square feet and is 98 percent covered by buildings, parking lots or other improvements. • Parcel B (31-31-22-43-0006) is approximately 36,305 square feet and is 45 percent covered by buildings, parking lots or other improvements. • Parcel C (31-31-22-43-0017) is approximately 30,381 square feet and is 21 percent covered by buildings, parking lots or other improvements.