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DORSEY & WHITNEY <br /> • Page-3- <br /> Mr. Thomas D. Burt <br /> June 12, 1990 <br /> footage and type on the site. This test is in addition to the above referenced <br /> structurally substandard test. <br /> Unless the Speedy Market site is also structurally substandard it could <br /> not be included in a redevelopment tax increment district with the Clark station <br /> site, since more than 50% of the buildings in the district must be structurally <br /> substandard. <br /> To evidence that the "structurally substandard" test has been met the <br /> City and HRA should have at the time of creation of a redevelopment district a <br /> written report from the City's building official or an independent architect or <br /> engineer documenting the structurally substandard nature of the building. This <br /> report would then be relied upon by the City Council and HRA Board of <br /> Commissioners in making the findings required to establish the district. <br /> In your letter you also mention the possibility of using HRA funds for <br /> redevelopment. I assume that these are funds in the general fund of the I-IRA and <br /> not funds generated by other tax increment districts of the HRA. It is possible to use <br /> these HRA funds for development of the site (or sites) without creation of a tax <br /> increment district. In order to do so it will be necessary to establish a redevelopment <br /> plan under the HRA law (Minnesota Statutes, Section 469.001 to 469.047) for the site <br /> proposed to be improved. The establishment of a redevelopment plan will also be <br /> required in connection with the creation of a tax increment district. In addition, if a <br /> tax increment district is created, the HRA funds could be used in combination with <br /> tax increment to shorten the life of the tax increment district and thereby limit (or if <br /> the duration of the tax increment district can be shortened.to five years or less) <br /> eliminate the reduction in state aid to the City resulting from the creation of the tax <br /> increment district. <br /> If feasible, the HRA and City may wish to consider finding a developer <br /> who will acquire the site directly rather than having the site acquired by the HRA <br /> and sold to a developer in order to avoid potential liability for environmental clean <br /> up costs, particularly in this case when you are dealing with an old gas station site. <br /> In a number of recent instances where we have been involved the transaction has <br /> been structured to avoid having the political subdivision take title to the land for <br /> this reason. <br /> • <br />