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06/15/00 15:48 FAX 6512233002 _.. SPRINGSTED INC. 4 28 • The structural(inverted hyperbolic umbrella design)columns are spaced approximately 60 feet on a square grid system;a combination wetldry automatic fire sprinkler system protects all areas of the retail space;and the height of the mass of the building is over 14 feet(elear span)above grade at the front foyer.Generally the building assemblies are experiencing a significant lack of normal maintenance and in marginal condition_ The building conditions were analyzed to ascertain if certain qualifiers pertinent for a Redevelopment Project are present The load bearing capacity of the structural components were not analyzed to determine their capacity to support the imposed loads.(however the roof system is continually leaking because the super structural components constitute a design defect)The reconnaissance and abbreviated building analysis was conducted in May and June of 2000 and concludes the retail space is obsolete for it's present or continued use,is not designed for as adaptive reuse and is very difficult to find or access by the retail customer.(this building is located the farthest distance from the vehicular access point of entry to the Apache Plaza Shopping Center). According to Laws of Minnesota Section 469.002 subdivision 11 (The Housing and Redevelopment Authorities Act) Blight is defined as "any area with buildings or improvements which by reason of dilapidation, obsolescence, overcrowding,faulty arrangement or design, lack of ventilation • light or sanitary facilities,excess land coverage, deleterious land use, or obsolete layout, or any combination of these or other factors,that are detrimental to the safety,health,morals, or welfare of the community" Physical and Functional Obsolescence The condition of the Apache Plaza Mall was found to be structurally substandard in terms of the Statutory Criteria of the Redevelopment Statute Section 469.174 and contains substantial construction defects to a degree requiring substantial renovation or clearance and is not determined structurally standard.There are a number of design defects,out dated mechanical equipment,and lacking certain mechanical equipment for public health and hygiene.The estimated total cost of necessary repairs(Approx.$9,000,000)to comply with the new building code would exceed the required State Statutory threshold of 15%of the buildings replacement value. (see formula below) Of more concern is the obsolete layout and faulty design of this over 325,000 square foot retail facility_The general retail customer is reluctant to walls more than 200 feet to the front entry of a shopping complex from their automobile and certainly not 600 feet from one Major retailer to another with no intervening retailer stores The center also lacks access between the adjacent Cub Food Store and the Apache Plana Shopping Center. The most in dissolvable problem is the lack of retail exposure to the buying public. This former Department Store building is oriented to the westerly elevation or approximately 2 blocks Westerly of the access point of Silver Lake Road in the City of St.Anthony_