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Saint Anthony Village Lowry Grove Redevelopment TIF District <br />LHB Project No. 170752 Page 9 of 11 Final Report <br />4. SYSTEM CONDITION DEFICIENCIES <br />If a building meets the minimum code deficiency threshold under Minnesota Statutes, Section <br />469.174, Subdivision 10(c), then in order for such building to be “structurally substandard” <br />under Minnesota Statutes, Section 469.174, Subdivision 10(b), the building’s defects or <br />deficiencies should be of sufficient total significance to justify “substantial renovation or <br />clearance.” Based on this definition, LHB re-evaluated each of the buildings that met the <br />code deficiency threshold under Minnesota Statutes, Section 469.174, Subdivision 10(c), to <br />determine if the total deficiencies warranted “substantial renovation or clearance” based on <br />the criteria we outlined above. <br /> <br />System condition deficiencies are a measurement of defects or substantial deterioration in <br />site elements, structure, exterior envelope, mechanical and electrical components, fire <br />protection and emergency systems, interior partitions, ceilings, floors and doors. <br /> <br />The evaluation of system condition deficiencies was made by reviewing all available <br />information contained in City records, and making interior and exterior inspections of the <br />buildings. 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 amount <br />of “service life” used up for a particular component unless it was an obvious part of that <br />component’s deficiencies. <br /> <br />After identifying the system condition deficiencies in each building, we used our <br />professional judgment to determine if the list of defects or deficiencies is of sufficient total <br />significance to justify “substantial renovation or clearance.” <br /> <br />FINDING: <br />In our professional opinion, three (3) out of four (4) buildings (75 percent) in the proposed <br />TIF District are structurally substandard to a degree requiring substantial renovation or <br />clearance, because of defects in structural elements or a combination of deficiencies in <br />essential utilities and facilities, light and ventilation, fire protection including adequate <br />egress, layout and condition of interior partitions, or similar factors which defects or <br />deficiencies are of sufficient total significance to justify substantial renovation or clearance. <br />This exceeds the 50 percent requirement of Subdivision 10a(1). <br /> <br />C. DISTRIBUTION OF SUBSTANDARD STRUCTURES <br />Much of this report has focused on the condition of individual buildings as they relate to <br />requirements identified by Minnesota Statutes, Section 469.174, Subdivision 10. It is also <br />important to look at the distribution of substandard buildings throughout the geographic <br />area of the proposed TIF District (Diagram 3). <br /> <br />FINDING: <br />The parcels with substandard buildings are reasonably distributed compared to all parcels <br />that contain buildings. <br /> <br /> <br />34