2007.03.19 EDA Packet - Laserfiche WebLink

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City of Hugo, Minnesota The activities contemplated in the present Development Program and Tax Increment Financing Plan do not preclude the undertaking of other qualified redevelopment activities. These activities are anticipated to occur over the life of the District. Section E Designation of Tax Increment Financing District as a Redevelopment District Redevelopment districts are a type of tax increment financing district in which one or more of the following conditions exists and is reasonably distributed throughout the district: (1) parcels comprising at least 70%of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and more than 501k of the buildings, not including outbuildings, are structurally substandard requiring substantial renovation or clearance. A parcel is deemed "occupied" if at least 15% of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots;or other similar structures. (2) the property consists of vacant, unused, underused,inappropriately used, or infrequently used railyards, rail storage facilities, or excessive or vacated railroad right-of-ways;or (3) tank facilities, or property whose immediately previous use was for tank facilities, as defined in section 115C.02,subdivision 15, if the tank facilities: (i) have or had a capacity of more than 1,000,000 gallons; (ii) are located adjacent to rail facilities;and (iii) have been removed or`are unused, underused,inappropriately used,or infrequently used. For districts consisting of two more noncontiguous areas, each area must individually qualify under the provisions listed above,as well as the entire area must also qualify as a whole. The TIF District qualifies as a redevelopment district in that it meets all of the criteria listed in (1) above. The supporting facts and documentation for this determination are summarized in Exhibit VII and will be retained by the City for the life of the TIF District and are available to the public upon request. "Structurally substandard"is defined as buildings containing defects or deficiencies in structural elements, essential utilities and facilities, light and ventilation,fire protection (including egress), layout and condition of interior partitions, or similar factors. Generally, a building is not structurally substandard if it is in compliance with the building code applicable to a new building, or could be modified to satisfy the existing code at a cost of less than 15%of the cost of constructing anew structure of the same size and type. A city may not find that a building is structurally substandard without an interior inspection, unless it can not gain access to the property and there exists evidence which supports the structurally substandard finding. Such evidence includes recent fire or police inspections, on-site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence. Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained. A parcel is deemed to be occupied by a structurally substandard building if the following conditions are met: (1) the parcel was occupied by a substandard building within three years of the filing of the request for certification of the parcel as part of the district; (2) the demolition or removal of the substandard building was performed or financed by the City, or was performed by a developer under a development agreement with the City, (3) the City found by resolution before such demolition or removal occurred that the building was structurally substandard and that the City intended to include the parcel in the TIF district,and SPRINGSTED Page 3