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LHB only identified system condition deficiencies that were visible upon our <br /> inspection of the building or contained in City records. We did not consider the <br /> amount of"service life" used up for a particular component unless it was an obvious <br /> part of that component's deficiencies. <br /> Minnesota Statutes, Section 469.174, Subdivision 10(c), provides for the minimum <br /> threshold of code deficiencies that must be met in order to consider a building <br /> substandard. If a building meets the minimum code deficiency threshold under <br /> Minnesota Statutes, Section 469.174, Subdivision 10(c), then in order for such <br /> building to be "structurally substandard" under Minnesota Statutes, Section 469.174, <br /> Subdivision 10(b), the building's defects or deficiencies should be of sufficient total <br /> significance to justify substantial renovation or clearance." Based on this definition, <br /> LHB re-evaluated each of the buildings that met the code deficiency threshold under <br /> Minnesota Statutes, Section 469.174, Subdivision 10(c), to determine if the total <br /> deficiencies warranted "substantial renovation or clearance" based on the criteria we <br /> outlined above. <br /> Finding: <br /> In our professional opinion, 18 of the 25 buildings (72 percent) in the proposed TIF <br /> District are structurally substandard to a degree requiring substantial renovation or <br /> clearance, because of defects in structural elements or a combination of deficiencies <br /> in essential utilities and facilities, light and ventilation, fire protection including <br /> adequate egress, layout and condition of interior partitions, or similar factors which <br /> defects or deficiencies are of sufficient total significance to justify substantial <br /> renovation or clearance. <br /> C. Distribution of substandard structures <br /> Much of this report has focused on the condition of individual buildings as they relate <br /> to requirements identified by Minnesota Statutes, Section 469.174,Subdivision 10. It <br /> is also important to look at the distribution of substandard buildings throughout the <br /> geographic area of the proposed TIF District. <br /> Finding: <br /> The substandard buildings are reasonably distributed throughout the geographic area <br /> of the proposed TIF District. A parcel map illustrating the Iocations of substandard <br /> buildings within the proposed TIF District is located in Appendix C of this report. <br /> Page 9 <br />