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CONCLUSION <br /> After inspecting and evaluating the properties within the proposed TIF. District and applying <br /> current statutory criteria for a Redevelopment District under Minnesota Statutes, Section <br /> 469.174, Subdivision 10, it is our professional opinion that the proposed TIF District qualifies as <br /> a Redevelopment District. <br /> The remainder of this report describes our process and findings in detail. <br /> PART 2—MINNESOTA STATUTE 469.174,SUBDIVISION 10 REOUIREMENTS <br /> The properties were inspected in accordance with the following requirements under Minnesota <br /> Statutes, Section 469.174, Subdivision 10(c),which states: <br /> Interior Inspection <br /> "The municipality may not make such determination [that the building is structurally <br /> substandard) without an interior inspection of the property..." <br /> Exterior Inspection and Other Means <br /> "An interior inspection of the property is not required, if the municipality finds that (1) the <br /> municipality or authority is unable to gain access to the property after using its best efforts to <br /> obtain permission from the party that owns or controls the property; and (2) the evidence <br /> otherwise supports a reasonable conclusion that the building is structurally substandard." <br /> Documentation <br /> "Written documentation of the findings and reasons why an interior inspection was not <br /> conducted must be made and retained under section 469.175,subdivision 3(1)." <br /> Qualification Requirements <br /> Minnesota Statutes, Section 469.174, Subdivision 10 (a) (1) requires two tests for occupied <br /> parcels: <br /> A. Coverage Test <br /> ..."parcels consisting of 70 percent of the area of the district are occupied by buildings, <br /> streets,utilities,or paved or gravel parking lots" <br /> The coverage required- by the parcel to be considered occupied is defined under <br /> Minnesota Statutes, Section 469.174, Subdivision 10(e), which states: "For purposes of <br /> this subdivision, a parcel is not occupied by buildings, streets, utilities,or paved or gravel <br /> parking lots unless 15 percent of the area of the parcel contains building, streets, utilities, <br /> or paved or gravel parking lots." <br /> B. Condition of Buildings Test <br /> ..."and more than 50 percent of the buildings, not including outbuildings,are structurally <br /> substandard to a degree requiring substantial renovation or clearance;" <br /> Page 4 <br />