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06/15/00 15:49 FAX 6512233002 SPRINGSTED INC. fj 113 Incompatible use or Land Use Relationships The use of the property and the structures adversely affects the predominant commercial use and character of the area primarily due to deterioration and vacant buildings, street hazards or inaccessible properties,congestion of streets due to inadequate space for the use,its parking and servicing needs:traffic,service trucks,parked cars,or type of activity generated or attracted by this commercial use in appropriated sited in this location. These features of the use are unavoidable due to its commercial character. The existing property cannot be converted to a use compatible with the commercial surroundings because of the site, or building design or because of economic or building code restrictions. (eg. Too much of the former shopping center,namely Penny's Department Store,was demolished to make space for the Garb Food Store but resulted in excessively vacant land). Hazard to Health or Safety The structure and property without benefit of a full retail intensity are necessarily obsolete for the present,permitted or future use and are marginal in terms of current code and energy conservation requirements . Vacant buildings or those buildings indicating a lack of normal maintenance have a proclivity for causing declining values of adjacent properties. (some buildings appear open to the elements and others indicate hazardous occupancy). Major renovation or reconstruction of the structures or portions thereof would be required to t eliminate building code problems,however,removal of a portion of the building(already performed without benefit to the shopping center)would remove essential space or facilities needed for continued operation or use of the property,while the cost and nature of the reconstruction or repairs would be prohibitive or could not be accomplished within the restriction of local codes or ordinances.Deterioration of the roof systems and wasted energy will continue and result in,ultimately,the relocation of the occupant in order to construct the proper roof assembly or insulate the building to thermal standards. Generally speaking,the area proposed for redevelopment could qualify as a Redevelopment Tax Increment Financing District because the building conditions are marginal ,in most cases substandard, and after further detailed analysis it is with reasonable certainty the above described deficiencies could result in a finding of Structurally Substandard for over 50%of the buildings (not including out buildings). Also under the 70%Occupancy Test For TIF District; in order to meet the eligibility criteria established in the Minnesota Tax Increment Financing Act for redevelopment tax increment financing districts"parcels consisting of 70%of the area of the district are occupied by buildings, streets utilities or other improvements,(Section 469.174, Subd 10(a)(1). Individual parcels are considered"occupied by buildings,streets, utilities or other improvements" if "15 %of the area of the parcels contain improvements". (section 469.174, subd.10 (c) In the case of a parcel on which the building has been demolished,remaining utilities or other improvements would still permit the parcel to be considered occupied as long as the utilities or •