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03-911Council File # �3 — ` � ( ���oa� Green Sheet # �89984 RESOLUTION Presented By Referred To OF SAINT PAUL, MINNESOTA Committee: Date .►'! 1 RESOLUTION ADOPTING FINDINGS OF FACT RELATED TO DEMOLTiTON OF BUII,DINGS LOCATED 2 IN PROPOSED F`UT[7RE WESTD'iINSTER 3[JI3CTION BUSINESS CEi�TER 3 TAX INCREMENT DISTRICT 5 WTIEREAS, the City of Saint Paul (the "City") has been advised tUat the Port Authority of the City of Saint 6 Paul (the `Port Authorit}�') intends to establish a redevelopment taY increment fmancing distact including the azea 7 generally bounded by Westuriuster S4eet to the west, Wlurall Street to the north, Payne Avenue to the east and the 8 proposed future Phalen Boulevazd to the south to be lmown as the Weshninster Junction Business Center outlined on the 9 site plan attached hereto as Exlubit A(the `DistricP'); and 10 11 12 13 14 15 16 1� 18 WHEREAS, prior to certification of the Distdct, the Ciry Council of the City of Saint Paul (the "City Councff") is required to make the findings required by Minnesota Statutes Section 469.175, Subd. 3, including the reasons and facu supporting the determination that ffie Disirict meets the statutory requirements for a redevelopment dishict; and WIIEREAS, the City has been fiuther advised that, prior to certification of the Dishict, and for healffi and safety reasons, the Port Authority intends to demolish the commercial buildings currenfly located on the parcels identified on the attached aerial photograph as Pazcel Numbers 20-19, 22-14, and 26-12 (the "Structures") and i 9 VI�IEREAS, as set forth in its Resolurion Number 4030 adopted by the Port Authority on August 26, 2003, and 2 o the Port Authority Boazd Report of which copies aze attached hereto as E�ibit B(the "Port Authority Resolution"), the zl Port Authority has deteniriued that these three Structures aze "shucturally substandard" within the meaning of 2 2 Minnesota Statutes, Section 469.174, subdivision 10, all as described in greater detaIl in the Port Authority Resolurion; 2 3 and 24 25 26 27 28 29 30 31 32 33 34 35 36 37 WHEREAS, the City made its own independent investigation of the condition of the Shuctures and staff reports dated August 29, 2003 sets forth of the investigation (the "City Report"); and WIIEREAS, the City CouncIl, in reliance on the information provided to it by the Port Authority, including but not lixnited to the reports prepazed by Short Elliot Hendrickson, Inc. (collectively "SEH Report"), and on its own investigation and the City Report, concurs with the Port Authority's deterniination that the buildings aze "sh'uchu'ally substandazd" witbin the meaning of Minnesota Statutes, Section 469.174, subdivision 10; and WHEREAS, the putpose of this action is to set forth the factual findings of the City Commcff before the Buildings aze demolished, wluch factual finding may then be relied on by ihe City Council at such time as the City Councfl considers whether the proposed Dislrict, as a whole, meets the statutory requirements of a redevelopment dish 3 8 NOW, Tf�REFORE, BE IT RESOLVED, by the City Council of the City of Saint Paul that, on the basis of 3 9 information provided to it by the Port Authority, including the SEH Report, and the City Report, City CouncIl finds that 4 0 the Substandard Buildings aze "struchirally substandard" witbin the meaning of Minnesota Statutes, Section 469.174, 41 subdivision 10, for the reasons set forth in the SEH Reports and the Port Authority Resolution. 28484.1. 03-9�1 .����� ... :-.... e�� �0�� :. .. , S�� . -,,., S�� �5�� .,, S�� ���� ��e� Adopted by Council: Date //�— � d� Form Appxoved by City Attorney � Approve �.'-�' 28484. 1. Adoption Certified by Council Secretary 03 �r� � �q� GREEN SHEET No� Gary Grabko, 651/266-6709 October 8, 2003 � TOTAL � OF SIGNATURE PAGES oF..m�rowr�mrt ��,,.,,�,� =' `c ❑ �,� /G-E-o3 �..�.�.�,�n� ��.�,.�� ❑YYOR(ORYfifYR� ❑ . (CL1P ALL LOCATIONS FOR SIGNATUR� Resolution adopting findings of fact related to demolition of buildings located in proposed future Westminster Junction Business Center tax increment financing district. PLANNING COMMISSION CIB COMMITfEE CNIL SERVICE CAMMISSION Has Uis P�� erer xwked under a mitract for Mie tlepaNnenl7 YES NO Hes Nis p'-�soMrm e�er been a aty empbyee7 . YES NO Does Mis Pa���m G� a sldll not nomial�YPOSSesseE bY arry curteM city employee4 YES NO Is thia pereonr�rm e tarpeted veMOYt YES" NO In order for the Port Authority to establish a redevelopment tax increment financing distriet for the 4Yestminster Junction Business Center, the City Council is required by 9tate law to make- findings that support that the TIF district meets the statutory requiremerats. City staff has conducted its own analysis and has determined that the proposed TIF district does meet the statutory requirements. The Westminster Junetion Business Center will be developed: None The project will not move forward. SOURCE (IXPWN) COST/REYRlUE BUIXiETED (GRCLE ONE) VEE NO ACTNITY NUMBER �n��..-+n? �n .nhf �� ' ,� lk 03-91� HOUSINGANDREDEVELOPMENTAUTfiOAITY � Mariha G. Fuller, Executrve Dmector ci� oF san�rT Paui, R¢ndy C Ke[!y, Mayor Aug. 29, 2003 To: Pete McCall 2� West Fourth Street Telephone� 6�1-?66-66�5 SamtPau{M1V55102 F¢csimile:651-2?8-3261 From: Gary Grabko �✓� Re: Review of TIF District Eligibifity Report for Westminster Junction Business Center, Parce1s20-19, 22-14, 26-12 prepazed by Short, Elliot, Hendrickson, Inc. I have reviewed this report and find that the procedures used to determine eligibility for a TIF district at this site are correct and comply with the requirements established by State Law. The condirions identified at these parcels by Short, Elliot, Hendrickson and described in their 7/31/03 report are building code related deficiencies and are necessary to bring the buildings up to Code. I agree with their assessment of the deficiencies identified at the site, the cost to repair them and the cost to replace the existing structures. cc: John Young, Port Authority AA-ADA-EEO Employer 1900 Landmark Towers 345 St. Peter Street Saint Paul, Minnesota 55702-1661 p O R r � 9 J G Q s a s r � y � �b * Y September 30, 2003 03-4i1 Tel: 657-224-5686 Fax: 651-223-5198 Toll Free:800-328-8477 www.sppa.com - -2 .��-�'�—' �r���r`s o�AcG Ms. Martha Fulle�, Director '� � � ��`° Planning & Economic Development Department 1300 City Hall Annex E�� Q����� 25 West Fourth Street Saint Paul, Minnesota 55102 RE: Findings for Tax Increment Finance District for Westminster Junction Business Center Dear Ms. Fuller: —We submit for your-review and referral-to-the o�ce.of-the Mayor, Gity Council, and City Attomey's office,-- --- -- Findings for Tax Increment Finance District for Westminster Junction Business Center. In addiiion to the staff memorandum, we are attacfiing a draft copy of the proposed City Council Resolution and a copy of the t� increment findings that were approved by the Port Authority's Board on Augusi 26, 2003. City Council action is requested at its meeting on October 8, 2003. Your expeditious handling of this matter will be appreciated. Sincerely, Attachment cc: Mayor Kelly Redevelopment ::ODMA\PCDOCS\SPPAl28477�1 �e�g ��s; =�e� ie�� 3" �s� a� €�e=�:°a� asoo:�sEs y�.�.�b.�e£ �g�ag`c_ ' _ �d v� g ¢" € xx a, ; -� � e_ �$e$m a�� } Gc�^y�s� $ rt� Rm£b eQ A �„� € �m ��� �; L `�ASd`. ^� m �e�.� ����� � tl=�= Sa�A„4 $ , R �.a R� ��z� � i� a.� � �z" ��so3�;� soo:_o€o y� ��m���' � #z�Ah� � �•" ��@�,xo"�� „Da� gtoa���[ ° 3 p' '� x � x qq ° S." � �� §�� � �6�g'^ ° a�s� m:�. ��.S g ?d:?$M. a �� �� " R A za ��t � R' Se° � � f��ta : � ; ���� � I§I' , J >ftF:iSOiGriT i ` � � '� cLam< r ��. �� � � u � � n �'� fln� J � � 'JI�'J EXHIBIT A ' i ; x, �SE '.�. r. �Q � '��: > \ `. �''. ,.i/ S i,. /. '6 �j� `� '`zs=<' // ��� � :-} �� � _ '\,\>>\� 1 _ \}, 1 { t t� 1 1 1' b ';� 1 � 1 L.�C' � I ; � � � � I� �II i i�� N 1,. � �;�''� i �� ;�;, i 7i I 1�1r' � �i . � �� i i . . _ ' I I i , ' I >>��, I � � � I � F _� .-^` L � ,. >.,� ` �— �, �c-_ J �u�. � t ` r Ld�`1 �J i F ,�pa���a _ �� t L� �,, r ,. a .a�" ' ' �s�� S$ : ' � ,. 9 �xar¢a� I —�F � E I,r�V V � € j�! , � ,; 'u � 'A. '�=?�%:STEA � ;i��� ����r � i { �'�� a � -� i 41 �,� . o�, � !�A, — � : �� l ��I II'���� i � li �� I i 4 N ,� � , �— � � �,. — � y - I `'-µJ �` \ 1 s �� 03- 9il �' - _ _ c%` � � _' -�`_�::=;s. _� ' '= li � �J _ _ P I ' _ _ �_ '.WftK` F 1 ��� � L� �. I U vI..IJ `�— `' —� _ �V � n .� ` i � �: L� L J ,� � F: -�� ���� � —� _� �E_or� �: R -��— ` ;_ �`_ ��— '� � � J � . ; ,, , J ,� � J ti�>„ Il'; A _ �_ ti1� � i -.��--� — BVkR f �Y � � �'��,r;,�^� ���� ��i G - , r r ' j �- n r- n � ��� � � — :' iii ,� � r-- �i ' i — K i,i p �j � r,. I i' J I I G�., ' �� !� I � r ry ' ,1 r � � i -� _ _ _ u ,� k�I� c�_ ,--- � - � — � �= ��E _� „ , �= _ ,, _ _ �,; �!', ; — —r �. pl ��, ` �, 'i -, �'E F � . �� �� ��� � � i i �ti .R � �I�U � �. Y I � � [ u � I I +} ^G' i .� u r II��.� `'""�'�J ,I-,+C:' ' .- _— .. � — ti./ — I L, _ — I! . - �. i `'-� � , . � OS/06l03 JY REVISIONS 03 -911 . ��: � 1. Port Authority Board Report (including attachxnents) 2. Port Authoriry Boazd Resolurion Number 4030 3. City Report SAINT PAUL PORT AUTHORITY u� u � :: ►►� .�ii T�: BOARD OF COMNHSSfONERS DATE: (RegularMeefing of August 26, 2003) FROM: John W. Young . Lome J. Loude � 3 Kenneth R.John �� � 03- 9�1 August 21, 2003 SUBJECT: Findings for Tax Increment Finance District for Westminster Junction Business Center Resolution No. 4030 , Action Requested: That the Port Authorify Board of Commissioners find the properties at 538, 516, and 506 Whitall meet the requirements of Secfion 469.174, Subd.10 of Minnesota Statutes for inclusion in a Redevelopment Tax Increment District based on the report of Short, Eiliot, Hendrickson and opinion of legal counsel. Public Purpose: --- — Phalen 8oulevard construction and redevelopmenYof the Westrninster Junction Business Center will create a minimum of 300 permanent jobs using the Port Authority `s one job per 1,000 square feet of building space criteria. Actual results at Wiiliams Hill, Crosby Lake, and Ariington Jackson Business Centers suggest that the total number of jobs at this business center could reach 500. Construction jobs created by the boulevard and business center construction are es#imated at 200. The new business center will generate privafe investment and new plant and equipment and additional property taxes for the City of Saint Paul. The business center will provide empioyment opportunities for Saint Paul and Eastside residents, and generally wilf eliminate blight and the under utilization of industrial lantl. Business Subsidv: N/A Backqround: The Saint Paul Port Authority is acquiring land for Phalen Boulevard construction and redevelopment of the Westminsfer Junction Business Center. We have acquired all of the land necessary for construction of Phalen Boulevard. These parcels inclutle Twin City Auto and Military Supply, Waste Management, Lovering Johnson (JBC Development), and FEO Properties. In November 2002 and February 2003, the Port Authority Board of Gommissioners reviewed reports of Shorf, Efliot, Hendrickson and opinion of legal counsel; regarding prope�ies we have acquired and found they meet the requiremerts of Section 469.174, Subd.10 of Minnesota Sta;�,;tes for inclusion in a Redevelopmer.t Tax Increment Distnct. 26657.1. b3-9ll Page2 #28168v1-BRDMemo:WestTIF/Whifall We are now ready to recommend to the Board of Commissioners that the first three of twelve residences also meet the requirements of a Redevelopment Tax tncrement Disfricf. Specifically, that the property is 70°/a improved and the buiidings are substandard as defined in State law. Making these findings will qualify this property for a 25-year Redevetopment T� Increment District, which yields the most funds to pay project costs. The Port Board by making findings desaibed above is not approving a TIF District, but only making findings nowso this property.can be included in the TIF District which we will ask the Board to set up in the future. We will ask the Board to make similar findings on properties we acquire in the future. The requirements as contained in Chapfer 469, subdivision 10, of a Redevelopment District are briefly: Parcels consisting of 70% of the area of #he district are occupied by buildings, streets, utilities, paved or graveled parking lots, or other similar structures, a�d more than 50% of the buildings, not induding outbuildings, are structuraily sub-standard requiring substantial renovation or clearance. To find that the buildings are structuraliy substandard the buildings must contain "defects in structural elements or a combination of deficiencies in essential utilities and facilities, light antl ventilation, fire protection including adequate egress, layoui and conditio� of interior pertitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance " In addition, - - a building is not substandard if it can be modifietl to mee# the building code applicable to new buildings at a cost of less than 15% of the cost of construcfing a new structure of the same square footage and type on the site. In order to make these findings, the Port Authority has retained Short, Elliot, Hendrickson, a reputabie architectural and engineering firm who specializes in, among other things, the inspection of buiidings and property in order to meet tax increment finance guidelines. The person doing the work is a registered architect with significant experience in this regard. Several other munic�palities provided positi�+e references for the consultant, as did the Briggs and Morgan law firm. The consultant made a thorough interior inspec6on of the three residences. A significant amount of notations and photographs were generafed during this inspection. The consultant inspected the residences and determined where there were building code deficiencies. These building code deficiencies were then assigned a dollarvalue. The buildings new construction cost was ther� estimated and the deficiency amount was compared to the new constnictian cost of the building to determine if the deficiencies equal 75% or more of the new construction costs. With regard to these properties, specifically, the consultanYs findings are as follows: All three residences meet the statutory definition of substandard by using the methodology described above. • A report on both of these findings is attached to this memo. ::�DMAIPCDOCSISPPAI28168\1 �3 - gi� Page3. #28966 vl -BRDMerta:WesL T1F f Whifall • A letfer from our legal counsel of Leonard, Street, and Deinard supporting these findings is aiso attached. The acquisition of these parcels is camplete and the Port Authorify owns fee-simple interest in the property. The demolition is being paid for with proceeds from the HUD 108 loan from the City of Saint Paul. When combined, the reports for #he Twin City Auto and Military Supply parcel, Lovering Johnson (JBC Development); Waste Management, FEO ProQerUes parcels and residences at538, 516 and 506 Whitall demon'strate that these parcels meet the requirements ouUined in Chapter 469, Subd. 10 for a T� Increment Redevelopment District. Parcels consisting of more than 70% of the area of the District are occupied by buildings, streets, utilities, paved or gravef parking lofs or other similar shuctures, and more than 50% of the buildings (10 of 12, not including outbuiidings) are structurally substandard as it relates to Minnesota State Statutes. Recommendation The Port Authority Board of Coromissioners finds that the residences at 538, 516, and 506 Whitall meet the requirements of Section 469.174, Subd.10 of Minnesota Statutes for inclusion in a Redevelopment TaY Increment District based on the report of Short, Elliot, Hendrickson and opinion of legal counsel. Irrd Attachmenfs ::ODM4IPCDOCSISPPAl2816811 03 -9 i 1 . ��: Short Elliott Hendrickson, Tnc. Report 2383918v1 A-1 d3-�il Redevelopment Eligibility Assessment Proposed Westminster Junction TIF District St. Paul, MN August 20, 2003 Prepared by: Short Elliott Hendrickson, Ina (SEH) Butler Squaze Building, Suite 710C 100 North 6` Street Minneapolis, MN 55403 SEH No. A-STPPA0301.00 �3 -9►1 City of St. Paul Port Authority Westminster Junction TIF District August 20, 2003 PURPOSE Short Elliott Hefldrickson, Inc. (SEI� was hired by the St. Paul Port Authority, St. Pavl, Minnesota; to survey and evaluate the properties within the pioposed Westminster 7unction Tas Increment Financing District. The proposed district is generally bounded by Westminster Street to the west, Whitall Sireet to the north, Payne Avenue to the east, and the groposed future Phalen Boulevard to the south. The purpose of our work �vas to independently ascertain whether the qualification tests for tax increment eligibility, as required under Minnesota Statute, could be met. Note that the subject properties in this report constitute a portion of the greater proposed Westrninster 7unction District — the subject properties and findings wilf eventually be combined with prev_ious and future findings to determine tax increment eligibility for the entire District. The findings "and conclusions drawn herein are solely for the purpose of tax increment eligibility and are not intended to be used outside the scope of this assessment. SCOpF �F !►i�ORIC The subject area in this repozt consists of 3 pazcels comprised of the foilowing types of —� -- ------ - — — ------.- ----- --- improvemenfs: 3 residential structures distribut� on 3 parcels. EVALUATiONS Of the 3 buildings in the proposed district, both interior and exterior areas were available for evaluation. FINDINGS Coverage Test — 3 of the 3 properties met the coverage test with a 100°lo azea coverage. This exceeds the 70% azea coverage requirement: Condition of Buildings Test — 100 percent of the buildings were fovnd to be "strucharally substandazd" when considering code deficiencies and other deficiencies of sufficient total significance to justify substantial renovation or clearance (see definition of "structurally substandard" as follows). This exceeds the Condition of Buildings Test whereby over 50% of buildings, not inciuding outbuiidings, must be found "stsucturally substandard." CONCLUSION Our surveying and evaluatii�g of the propertie's within this proposed Redevelopment District render results that in our professional opinion qualify the district eli� ble under the statutory criYeria and formulas for Tas Increment Financing District Funding. 03 -9�1 SUPi?ORTING DOCUMENTS ATTACNED - Site Occupied/Building Substandard Determination table -'TIF Assessment maps: Buildings Assessment, Occupied Surfaces, Percent Occupied by Pazcel - Report on Building Condition (one per building) - Individual Building Summary Report (one per buiiding) PROCEDURAL REQUIREMENTS The properties were surveyed and evaluated in accordance with the following requuements under Minnesota Statute Section 464.174, 3ubdivision 10, clause (c} which states: Interior Inspection —"The munieipality may not make such detemunation [that the building is siructurally substandazd] without an interior inspection of the property..." Exterior Inspection and Other Means —"An interior inspection of the property is not regulred, if the munJcipality finds that (1) the municipality or authority is unable to gain access to the groperty; and after using its best efforts to obtain pemussion from the party that owns or controis the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structura]Iy substandard" - ----- -- ------------ — - — — --- -- --- — ------ -------- Documentation —"Written documentation of the buiIding f ndings and reasons why an interior inspection was not conducted must be made and retained under section 469.175, subdivision 3, clause (1)." Because all building interiors were evaluated in this process, documentation for these purposes is not necessary for this report. PROCEDURES FOLLOWED TO MEET REQUIREMENTS John Young, representing the St. Paul Port Authority, coordinated the timing of the interior evaluations for ail buildings. SEH conducted assessments on 7uly 24 and 7uly 31, 2003. In all cases, both interior and exterior evaluations were completed. For fhe subject parcels, SEH collected copies of all available building pernuts on record. These permits provide a basic description of type of work completed for each permit and, in some cases, approximate value of work to be completed. Additional building data was collected from public taxpayer information available from Ramsey Counry. Buiiding data from these public records was combined with and reviewed against informaTion gathered in the field. The properties within the proposed district contained at least one outbuilding. According to the applicable State statute, these buildings were not evaluated and are not addressed in- these findings. For the puiposes of this test, we define the term `outbuilding' generaldy as a strlcture that cor.Yains a use cleazly inciden±al ±o a main use such as, but n�! limitsd to, domestic storage in a barn, garage, shed, tool room or similar accessory building. 03- 9/� QUALiFiCATiON REQUIREMENTS The properties were surveyed and evaluated to ascertain whether the qualification tests for ta� increment eligibility for a redevelopment district, requued under the following Minnesota Statutes, could be met_ Minnesota_Statute Secfion 469.174, Subdivision 10, ciause (a) (1} requires two tests for occupied parcels: l. Coverage Test —"parcels consisting af 70 percent of the area of the district are occupied by buildings, streets, utilifies, paved or gravel parking lots or similar structures . . ." Note: The coverage required by the pazcel to be considered occupied is defined under Minnesota Statute Section 469.174, Subdivision 14, clause (e) which states: "For purposes of this subdivision, a pazcel is not occupied by buildings, streets, utilities, paved oz gravel parking lots or other similar structures unless 15% of the azea of tlie parcel contains buildings, streets, utilities, paved or gravel parking lots or other similaz structwes." 2. Condition of Buildings Test —"... and more than 50 percent of the buildings, not in�luding outbuildings, are structurally substandazd to a dPg:Pe reqniring sLbsta.�tial renovation or cleazance;" The term `structurally substandazd', as used above, is defined by a two-step test: Step One: Under the tax increment law, specifically, Minnesota Statutes, Section 469.174, Subdivision 10, clause (b), a building is structurally snbstandard if it contains "defects iri structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire grotection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies aze of sufficient total significance to justify substantial renovation or cleuance." Step Two: Notwithstanding the foregoing, the tax increment law, specifically, Minnesota Statutes, SecUOn 469174, Subdivision 1Q clause (c) also provides that a building may noY be considered structurally substandard if it: ". .. is in compliance with building code applicable to new buildings or could be modified to satisfy the building code at a cost o� less than 15 percent of the cost of constructing a new structure of the same squaze footage and type on the site." Based on the above requirements, the substandard detemunation of a particular buiiding is a two-step process; therefore, the findings of each step.are independent of each other and both steps must be satisfied in order for a building to be found structurally substandazd. It is not sufficient to conclude that a building is structurally substandard solely because Step 2 is satisfied. It is theoretically possible for a building to require extensive renovatSon in order to meet current building codes but still not meet the main test of Step 1. o3-9i1 Furthermore, deficiencies included in Step 1 may or may not include spec�c code deficiencies as listed in Step 2. In many cases, specific building code deficiencies may well contribute to the data which supports satisfying Step l; conversely, it is certainly gossible that identified hazards or other deficiencies which could be included in Step i do not necessarily constitute current building code deficiencies. By definition, the nature of the two steps is sl3ghtly different. Step 1 is more subjecrive, whereas Step 2 is an objective test. Step. l deficiencies aze less technical and not necessarily measurable to the same extent of tY�e code deficiencies in Step 2. To the end that technical, measurable building code deficiencies support the satisfaction of the less technical Step 1, the following code requirements are defined in terms that go beyond the technical requirements of the code and demonstrate their relevance in terms of "... deficiencies in essential utilities and facilities, light and ventilation, etc. » Intemational Buildin� Code (IBC): The purpose of the TBC is to provide minimum standazds to safeguard public health, safety and general welfare through structural strength, means of egress facilities, stability, sanitation, adequate light and ventilation, energy conservation, and safety to life and property from fire and other hazazds attributed to the built environment (IBC 101.3). A deficiency in the building code (insufficient number of building exits, insufficient door landing - area, etc.) adversely affects_one or more of the above standards to safeguard `public health ...and safety to life'; therefore, a deficiency in the building code is considered a deficiency in one or more "essential utilities and faci]ities, light and ventilation, etc.". Minnesota Accessibilitv Code, Chapter 1341: This chapter sets the requirements for accessibility all building occupancies. The Minnesota Accessibility Code closely follaws the Americans with Disabilities Act Accessibility Guidelines (ADAAG), which sets the guidelines for accessibility to places of public accommodations and commercial facilities as required by the Americans with Disabilities Act (ADA) of 1990. The ADA is a federal anti-discrimination statute designed to remove barriers that prevent gualified individuals with disabilities from enjoying the same opporlunities that aze available to persons without disabilities (ADA Handbook). Essential]y, a deficiency in the accessibility code (lack of handrail extension at stairs or ramp, lack of cleazance at a toilet fixture, etc.) results in a discriminatian against disabled individuals; therefore, a_ deficiency in the accessibility code is considered a deficiency in "essential utilities and facilities". Minnesota Food Code, Chapter 4626: This chapter is enforced by ihe Minnesota Department of Health and is similaz to the IBC in Ehat it provides minimum st?ndards to safegu�rd p»b_i?c health in areas of public/com�??ercial food preparation. A deficiency in the food code (lack of non-absorbent walI or ceiling finishes, lack of hand sink, etc:) causes a condition for potential contamination of o3-9�r food; therefore, a deficiency in the food code is considered a deficiency in "essential utilities and facilities"_ National Electric Code (NEC): The purpose of the NEC is the practical safeguarding of persons and property from hazards arising from the use of electricity. The NEC contains provisions thaT aze considered necessary for safety (NEC 90-1 {a) and (b)). A de5ciency in the electric code (insufficient electrical service capacity, improper wiring, efc_) causes a hazazd from the nse of electricity; therefore, a deficiency in the electric code is considered a deficiency in "essential utilities and facilities". International Mechanical Code (IMC): The purpose of the IMC is to provide miflimum standards to safeguazd life or limb, health, property and public welfaze by regulating and controlling the design, construetion, installation, quality of materials, location, operation, and maintenance or use of inechanical systems (IMC 1013). The IMC sets specific requirements for building ventilation, exhaust, intake and relief. These requirements translate into a specified number of compiete clean aar exchanges for a building based on its occupancy type and occupant load. A deficiency in the mechanical code adversely affects the `health . .. and public welfare' of a building's occupants; therefore, a defic7ency in the mechanical code is considered a deficiency in "light and ventilation". ------------------- -------- --- --- ---- _ -- - — - ------ ----- Note: The above list represents some of the more common potential code deficiencies considered in the assessment of the buildings in the proposed district. This list does not necessarily include every factor inciuded in the data used to satisfy Step 1 for a particular building. Kefer to individual building reports for specific fandings. Finally, the ta7t increment law provides that the municipality may find that a building is not disqualified as structurally sutastandard under Step 2 on the basis of "reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or other similaz reliabie evidence. Items of evidence that support such a conclusion [that the bnilding is structuraily substandazd] include recent fire or police inspections, on-site property appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence." MEASUREMENTS AGAtNST TECHNICAL TEST REQUIREMENTS Cot!erage Test SEH obtained information in a GIS (Geographic Information Systems) database format to obtain individual parcel information. The GTS database contained graphic information (parcei shapes) and other related pazcel information. This information was used by SEH for the purposes of this assessment. o3-9r) The total squaze foot area of each property parcei.was calculated from the GIS parcel information and general site ve�cation_ The-total extent of site improvements on each property parcel was digitized from recenY aerial photography LSpring, 2000)_ The total square footage of site improvements was then digitally measured and confirmed by general site verification. The total percentage of coverage of each property parcel was computed to defermine if the IS% requirement was met_ Refer to attached maps: Occupied Starfaces map and Percent Occupied by Parcel map. "I'he total azea of all qualifying property parcels was compared to the total area of all parcels to detemune if the 70% reqUirement was met. Condition of Bui/ding Tesf R�lacement Cost — the cost of constructing a new structure of the same size and type on site: R. S_ Means Square Foot Costs (2003) was used as the industry standard for base cost calculations. R. S. Means is a nationally pubiished reference tool for construction cost data. The book is updated yearly and establishes a"national average" for materials and labor prices for all types of building construction. The base costs derived from R. S. Means were reviewed, and modified if applicable, against our professionaI judgement and experience. A base cost was calculated by first establistung l�uiiding type, building construction type, and construction quality level (residential construction) to obtain the appropriate Means cost per sqnare foot. This cost was multiplied times the building square footage to obtain the total replacement cost for an individual building. Additionally, to account for regional/locai pricing, a cost factor was added to the totai cost according to R.5. Means tables. Using R. S. Means, consideration is made for building occupancy, building size, and construction type; therefore, the cost per square foot used to construct a new structure will vary accordingly. Building Deficiencies: Step 2(Systems Condition Deficiencies) — deternuning the combination of defects or deficiencies of sufficient totai significance to justify substantial renovation or cleuance. On-Site evaluations - Evaluation of each building was made by reviewing available information from city records and making interior andlor exterior evaluations, as noted. Deficiencies in structural elements, essential ntilities and facilities, light and ventilation, fire protection including adeguate egress, layout and cor.dit:on of ::,Te:icr pzrtitions, r si:ri:ar factcrs, were r.oted by.the evaluator. Systems Condition Deficiencies may or may not include Code Deficiencies as defined below. Energy code compliance was not considered for the purposes of b3 - g�l determining Systems Condition Deficiencies_ Deficiencies were combined and summa for each building in order to determine their total significance_ Buildin� Deficiencies: Step 2(Code Deficienciesl — determ;n;ng technical conditions that aze not in complianee with current building code applicable to new buildings and the cost to correctthe deficiencies: On-Site evaluations - Evaluation of each building was made by reviewing available information from ciYy records and making interior andlor exterior evaluations; as noted. On-siie evaluations were completed using a standard checklist format. The standazd checklist was derived from several standard building code plan review checklists and was intended to address the most common, easily identifiable code deficiencies. Mechanical Engineers, Electrical Engineers, and Building Code Officials were also consulted in the development of the checklist. Deficiencies were generally grouped into the following categories (category names aze foilowed by its applicable building code): • Bu3lding accessibility — Minnesota Accessibility Code • Building egress, building construction — Intemational Building Code • Fire protection systems — International Building Code • Food service — Minnesota Food Code -------- - ---- ---- --- ------- --------- ---- - ---- - • HVAC (heaung, ventilating, and air conditioning) — Jnternational Mechanical Code • Electrical systems — National Electric Code and Minnesota Energy Code • Energy code compliance — Minnesota Energy Code Energy code compliance is relevant in determining Step 2(Code Deficiencies) because its criteria affect the design of integral parts of a majority of a building's systems. The intent of these c�iteria is to provide a means for assuring building durability, and permitting energy efficient operation (7676.0100). The energy code addresses general buiIding construction (all forms of energy transmission in an exterior building envelope — walls, roofs, doors and windows, etc.) and energy usage by lighting and mechanical systems. A deficiency in the energy code (inadequate insulation, non-insulated window systems, improper air infiltration protection, etc.} reduces energy efficient operation and adversely affects building system durability; therefore, a deficiency in the energy code is considered to conuibute to a condition requiring substantial renovation or ciearance. Office evaluations — Following the on-site evaluation, each building was then reviewed, based on on-site data, age of consrruction, building usage and o�c��p2_*�cy, square footage, �nd known i_Tnprovements (from b��ilding permit �at? or physical observation), and an assessment was made regarding compliance with current mechanical, electrical, and energy codes. A basic code review was also 03-9/1 completed regazding the potential need for additional egress (basement stairways, for example), sprinkler systems, or elevators. Deficiency Cost — Costs to correct identified deficiencies were deterr�ined by using R. S Means Cost Data and our pmfessional judgement and experience_ In general, where several items of varying guality were available for selection to correct a deficiency, an item ot average cost was used, as appropriate for typical ' commercial or residential applications. Actual construction costs are affected by many factors (bidding climate, size of project, etc.}. Due to the nature of this assessment, we were only able to generalize the scope of work for each correction; that is to say that detailed plans, qaantities, and gualities of materials were not possible to be known. Our approach to this matter was to deternune a preliminary cost projection suitable to the level of detail that as known. This proeess was similar to our typical agproach for a cost projection that may be given to an owner during a schematic design stage of a project. Costs to correct deficiencies were computed for each building and compared to the building replacement cost to determine if the 15% requirement was met. The total number of buildings determined to be "structurally substandard" by satisfying both Step 1 and Step 2 in this manner was compared to the total number of buildings in . __ the_dishict to determine if the 50%.requirement was met, _ ___ _ . ______ __ _____ .____ Reports on Structurally Substandard Buildings and Individual Building Summary Reports aze available for review at the offices of SEH, and th� St. Paul Port Authority. Technical Condicions Resources — the following list represents the cunent building codes applicable to new buildings used in the Building Deficiency rebiew: 2003 Minnesota State Buiiding Code 2000 International Building Code 2000 International Housing Code MN 1341— Minnesota Accessibiliry Code, Chapter 1341 (1999) 2000 Minnesota Energy Code, Chapters 7672, 7674, or 7676 1999 National Blectric Code 2000 Intemaiional Mechanical Code PROJECT TEAM: Jason P. Zemke, AIA, Project Architect Nancy G. Schultz, AIA, Principal � 0 N 0 N W Z 0 r a � J Q > W � Q r � r m m � ar � x� J Z Y p r r � 1 �'- � 7 � N rn Wy c�ov F �cr rn QF �nd d Z W Q O�" U � N r .r O c0 N h O r � W � r � Q N r � � W CS Q � W > t' O U V LL' F N O a Z W � 4 � Q F � W Q Z 1- Z ❑ N F F � U W Z F 7 w � ° � z O W W LL � N � � N 0 ? N a Q F W F ��nm m W Q � 3 � m � � , Z � m oa� J = J W W a c� � rn � v 7 F O � J Il7 Q � � (7 z 0 J � m 1- W c i- 'r F-=?' � 7 Q (A tn (A��``�a m Q� Z_I J J�£ �� W _! 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N U) ¢ h- E-' D.�-g/( 03-911 Report on Structuraity Substandard Buifding Building IABvsiness Name/Address: SOb Wlutall Sh 20-19 Structurally Substandazd Building (Y/N): Y Step One Under the [ae increment law, specifically, MinnesoEa Statutes, Section 464.174, Subdivision 10, a huilding is structurally subsYandard if it contains "defects in strucmral elements or a combination of deficiencies in essential utiliFies and facilities, light and ventilation, fire protec[ion including adequate ea ess, layout and condi[ion of interior partitions, or similaz factors, which defeccs or deficienries are of sufficient total significance to justify substantia] renovation or cleuance:' The above buildin�, based upon actual interior inspection and review of building permit records, meets the above-referenced definidon of structura]ly substandard for the followine reasons: Structural Elements • Two-story addi[ion on southwest comer appears to be `sliding' down-hill: severe vertical _ setdement cracks present at northwest and sou[hwest corners of addition • FVoor structure slopes toward center of house in kitchen Essen6al Utilities & Facilities • Head room in basement does not conform fo minimum hei�ht requirements for basement or habitable area • Second floor heating unit contains no ductwork to second floor spaces and dces not utilize exterior, fresh air for combustion Light & VenCilation • Bathroom no[ provided wi[h means of natura3 or mechanical ventilation • Lack of soffit ventiiation provided Fire Ptotection/Eb ess • Deficient exterior stairway: insufficient cleaz stair width; deficient rise/run; deficient handrail heisht; deficient guardrail consWCtion • Deficieni emereency eb ess: lack of bedroom emergency egress windows • Deficient interior stairway: insufficient cleaz s[air width; deFicient rise/run; insufficient stair landing uea; insufficsent stair cleaz headroom; deficient handrail heigh[; handrails aze no[ continuous • Lack of smoke detector/detection system on an individual floor and ia each bedroom LayoudCondition of Interior Partitions • Toilet on first floor is not located wi[hin a toilet room, but is tocated in a common, open haliway leading to the secoud floor Similar Factors • Deficiencies in exterior buildin� shell: majority of wood window frames and sills severely damaged by water, some contain ro[; exterior siding is in poor condition: comer trim missing a[ various locations • Retaining waIl fai]ing on south side of si[e Step Two No[withstandins the forewin�, the tax increment law also provides that a buildin� may not be considered structurally substandard if it is in compliance with the bnilding code apglicable to new buildings or cou]d be modified to safisfy the cuaen[ bui]di�g code at a cost of less than 15% of the cost of constructing a new building of the same square foota�e and type on the same site. - Estimated coct of new build�ne of same size and type (Total Replacement Cosil: Estimated cost of correction of code deficiencies (Total Deficiency Cost): Percentage of Code Deficiency to Repiacement Cose $iay,5gx.i5 $33,372.34 23.58% Refer to Individual Buildin= Summary Report for documenta[ion of specific code deficiencies. o� -��i �I�� I� I-- � J �p J o � O �� m3 � N � N � � N if1 � } j Vl tn Vl z } E V � a� o�i o v V v � d N V C U C v � � v� (L N G N� Q O 0] O. 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The above buildinL, based upon actual interior inspec[ion and review of building permit records, meets the above-referenced definition of swcmrally substandard for the following reasons: SWC[ural Elements • Evidence of water seepage throu�h fieldstone founda[ion walls and po[eatial de[erioration • Severe watl and roof damage at second floor shower azea due to roof leakage and water damage — framed wall and roof framing a[ dormer window is gone or severely deteriorated Essential Utilities & Facilities • Deficient in facilicies for disabled: Light & Ventilation • Bathroom not provided with means of na[ural or mechanical ventilation Fire Protection/Egress • Deficient exterior stairway: deficient rise/run; deficient handrail height • Deficient emergency egress: lack of basement and bedroom emer�ency egress windows • Insufficient cleaz width at second floor exi[ comdor • Deficient interior stairway: insufficient clear stair width; deficient rise/run; insufficient siair landing area; insufficient stair head room clearance; deficient handrail heigh[ and [erminations; deficient a wardrail construction • Lack of smoke detector/detection system on an individual floor and in each bedroom Similar Fac[ors � • Deficiencies in extedor buitding shell: gutters & downspouts in poor condition; roof shin�tes badly worn on north half of building • Headroom in garage/storage room addition on south side less than 6'-2" dear — insufficient for standazd gazage use • Evidence of cunent and past roof leaks — caused damage to interior finishes in several locations Step 1'wo Notwithstanding the foregoins, the ta�c increment law also provides that a building may not be considered sWCtural}y substandard if ii is in compliance with Ihe building code applicable to new buildin�s or could be modified ta satisFy the current building code at a cost of less than 15% of the cost of constructine a new buildina of the same square footage and type on the same site. Estima[ed cos[ of new building of same size and type (To[al Replacement Cost)_ Estimated cost of correction of code deficiencies (Total Deficiency Cost): Percentaee of Code Deficiency to Replacement Cosr $125,194.21 $24,60312 ' J9.65% Refer to Lidividual Suildine Summary Repor[ for documentation of specific code deficiencies. a3-9 �i m n{V .�.� ° O O � O O O P �; � pj � � O O M O Q Q' �� p� p � � O O O fA uy i y Y � I� 10 ti � ? >. r � O q � � � � 0 i9 (9 O 0 a � r y � J o ¢ o �i ��3 N N �O N N �f1 } a � o�i `o v � d N � � � � % � N Q O [0 0 N — - p U � ' -d i- O > v V N O o +. 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O N O O 0 N O O N m � � Oi 43 {A O 0 O O N 1� O L7 O O fA fR n �» m v m — m v r E E ro � � o 0 0 — m � = � m o o a Z_ Z= � m � m � � o R `x 3 n p m O O � U N � O � O � ^ n j ? � � � � f Z C n i n � m Z m Z • � � 9 � N � m m � � `o a — � — y �` > N j � 9 W C y _ � C O C O m � 9 O � H Q � r O� � ` � N C N G N N L � 3 0 [0 . _� . . .. _ __ _ __ 3 � � w � m � � 3 � 0 t C � R � R 3 3 0 3 D � � 0 aa o`mm � � �. �p m } N O c'n - o E� o�' N m 3 � O �� N � 4 R X C N (O b N � � � O ��-- �i v •�- X �E ° o c-� o `m m� 'o �o� `o_E _ � a� x'a R N C 3 O C 6 E j� O O O m � � S 0 i� X �� N O �u p m N O m � V '� � V � 0 0 - 3 X� ��m� 3 0 - o ^ °. a.. 0 0 9 O � v 3 a� a n o a 3 3 `r u n _° � c N N N � p O O U � % R ¢ m N L 4 ' N C LL U r � � � O L`L � LL LL y O N �- > . > S m m 1- J F J � N . J N y X y y X m W W W W W W U x ax a x a a 03- 911 � m N a �3-9! 1 Report on S#ructurally Substandard Building Bvilding TDBusiness Name/Address: Structurally Substandard Buildina (YlI�: 538 Whitall Street 26-12 Y Step One Under [he tax increment faw, specifically, Minnesota S[atu[es, Section 469.174, Subdivision 10, a buildin� is structurally snbstandard if it contains "defects in strucmral elements or a combination of deficiencies in essentia] utilities and facilities, li�h[ and ventilation, fire protection including adequate e�ess, layout and condition of interior partitions, or similar factors, which defects or deficiencies aze of sufficient total si�nificance to justify substantial renovation or cleazance." The above building, based apon acmal interior inspection and review of building permit records, meets the above-referenced defmition of swcturally substandard for the fol]owing reasons: Structural Elements . Deficiencies in exterior building shell: stone foundation missing mortar join[s and limestone is deterioratio� �at southeas[ corner; various selQement cracks (through-wall} present in basement foundation wall Light & Ventila[ion . . Iack of inechanical oven exhaust ventilation in kitchen area Fire Protection/Sgress . Deficient ex[erior stairway: deficient rise/run measurements; additional handrails required . Deficient emergency eoress: lack of bedroom emergency egress windows . Deficient exterior door: i�sufficient door landina area . Deficient interior stairway: insufficient c3ear stair widih; deficient risehun measurements; deficient clear headroom height; addi[ional handrails required; deficient handrail grip; deficient �uardrail construction LayoutlCondition of Interior Partitions • Insufficient cleaz floor area pmvided a[ toi3et fixtures . Interior finishes in poor condition: all flooring, majority"ofwalls and second floor ceilings damaged by abuse, lack of maintenanee, or moismre • Evidence of continuous wet basement moisture `wicking' up into foundation walls (and interior pax[itions); interior cementitious coating spaDing off of foundation walls Similar Factors . Deficiencies in exterior building shell: moisture damage present at majoriry of wood window frames (major wood rot at second floor windows) Step Two Notwithstanding the foregoing, the tax increment ]aw also provides that a building may not be considered strucmrally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the current building code at a cost of less than 15% of the cost of consVuctin� a new building of the same square footage and type on the same site. Estimated cost of new buildin� of same size and type (Total Rep3acement Cost): Estimated cost of correc[ion o€ code deficiencies (Total Deficiency Cost): Percentage of Code Deficiency to Replacement Cost: $127,182.28 $21,628.24 17.01 %a Refer to Indi�•idual Buildino Summary Report for documentation of specific code deficiencies. e O O N O O O O O p> O O O iti o� vs r ws °� ° m w U q �p a *- c» V (R C O U 0 ? � � r } Y. H a � o�i o U lL y � V �- - 6 �'N � N G L Q £ G O �] O O / �-� a—O v V N O � + J 0-' � 6 L � } d � O t � � W � � 2 rn � S L } � F � J � O F o Fy �3 N N � N � N N �1 U N V d � � � � � O V � T t � � N � N � U = O m � � d L � 6 � � Q � "- � � d � U � � T p a d � v '- o � U L � i' O � d L p� O O `�- t .-� � v d V L � a � O� b v h N N a N � d H 6 � � ^ 01 6 t � N � C N �F- � � y � L } L � Q d � p � V 6 i- m d 6 � � o d � V N - n m � � o O � 6 i- U 0 L O 0 V CS LL t a � i * a O � LY vj W W N T pi �� � Z Z h O H CC < Q I� ..(`'). 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R r C � m ` c o � � � c � � V m E V j U p� C O d C� C C" m tl! O C p - -°n.` �-°'"°-o 0 0 "°`°�a� 9 � � m O� O O m O'� C LL 1� � LL C LL� t6 � � N N � a 63-9t� 0 0 0 0 0 � 0 0 0 0 b � R b .- r O O O 0 V O N O O m � 0 O � C U E m m Q m E N 0 n O � Q U m ? Q 0 � 3 � C E � - m N � m � � a a a � O y C � O a ' m � 9 4 Q C 2 V m N ti � R m N � m p V O C � 0 �' U 0 7 v� P G m (O N CV CV O O O '� E m @ � m y c 6 ' N C � �'. � j ? o� o s � � LL �%' m R � j . � c � m F F � � V m .. ' ' �"� w w w w w U x s u x ac x �3-9�1 ��:j��:� Zsonard, Street and Deinazd Qpurion 2383918v1 B_ I 03-9�f LEONARD, STREET AND DEINARD PBOFESSZOAAL ASSOCIATION August 21, 2003 Port Authority of the City of Saint Pau1 1900 Landmark Towers 345 St. Peter Street . Saint Paul, MN 55102-1661 Re: Proposed Weshninster Junction Redevelopment District The Po=-t P.uthaa*.;� of tue �iry �f �ai;�t Pa�:i (�ue "Fart Auuioriy' j is �ro�iosing �o create a Redevelopment Tax Increment District pursuant to Section 469.174, Subd. 10 of Minnesota Statutes. The proposed district is to be generally bounded by Wesfminster 5treet to the wesY, Whitall Street to the north, Payne Avenue Yo the east and the proposed future Phalen Boulevard to the south (the "DistricY'). With the help of Short Elliot Hendrickson, Ina ("SEH"), which has prepared its August 20, 2003 Redevelopment Eligibility Asseasment (the "Assessment"), the Port Authority has recently exaulined the buildings located at 506, 516 and 538 Whitall Street in the District to determine whether the buildings are "structurally substandard" for purposes of ineeting the requirements for establishing the District. The buildings �amined are described in detail in the Assessment and are referred to herein as the "Current Parcels." To be strucYurally substandard a building mnst contain "defects in structural elements or a combination of deficiencies in essential utilities and faciliries, ligYkt and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." Minn. Staz � 469.174, Subd. 10(b). In addition, no building can be considered struchxrally substandard if it is in compliance with the building code applicable_ to new buildings or can be moclified to satisfy such building code at a cost of less than 15% of the ccsi-oi co;.s� a r.ew sYn:cture oi tne same se�uaze iootage and iype on rhe site. h[inn. ,Stat. �' 469.174, Subd. 1 D(c). In its Assessment, SEH concludes that all three of the buildings are structurally substandazd in that all of them contain structural deficiencies and other deficiencies of the Idnd outlined in the statute which, in total, justify substanrial renovation or clearance of each building. In addition, SEH determined that none of the buildings containing such deficiencies comply with the building code apnlicable to new buildings and that in the case of each building, the cost of modifying the building to comply with code requirements would exceed 15% of the cost of constructing a new building. In reaching these conclusions SEH has conectly stated the statutory requirements as interpreted by recent case law. $00 LAWSON COMMONS jS0 ST. P£TEA STREET SAINT PAUL� MINNESOZq55102 TEL CSI-222"74S$ FAX A$I-222-7C>¢¢ 2383921v1 LAW OFFICES IN MZNNEAPOLIS� SAZNT PAUL AND MAN%ATO 03-9►1 Port Authority of the City of Saint Paul August 21, 2003 Page 2 We believe the Assessment unambiguously supports the conclusion that the three buildings described (506, 516 and 538 Whitall Street) are slructuraliy substandard. We therefore believe that, based on the Assessment, the Port Authority has a soimd basis for finding that those buildings aze struciurally substandazd to a degree requiring substantial renovation or clearance._ Piease let us laiow if we can be of any fiuther assistance. Very truly yours, LEONARD, STREET AND DEINARD Professional Association 2383921v1 03-9�1 Resolution No. 4030 PORT AUTHORTTY OF THE CTTY OF SAIlVT PAUL [Westminster Junction Business Center] WHEREAS, the Port Authority of the Cily of Saint Paul (the "Port Authorit}�') is proposing to create a Redevelopment Tas Increment District pursuant to Section 469.174, Subd. 10 of Minnesota Statutes, to be comprised of 31 separate contiguous tax parcels generally bounded by Westminster Street to the west, Whitall Sbreet to the north, Payne Avenue to the east and the proposed future Phalen Boulevazd to the south (the "DistricY'); and WHEREAS, for safety reasons, the Port Authority intends to, prior to final certification of the District, demolish certain of the struciures located on land to be included in the District; and 'vVFIEREAS, it has been proposed ihai, prior to demolition of the buiidings, ihe Port Authority make certain factual findings supporting inclusion of the land in the District; and WF�REAS, Section 469.174, Subd. 10 states that, when establishing a Redevelopment Dishict, a parcel of land may be treated as though it is improved with a structurally substandard building if (among other things) (a) the parcei was occupied by a structurally substandard building wiUvn 3 years of the request for certification of the Redevelopment District, (b) the substandazd building was demolished or removed by the Port Authority or the demolition or removal was financed by the Port Authority or was done by a developer under a development agreement with the Port Authority, and (c) the Port Authority finds by resolution before the demolition or removal that the parcel was occupied by a shucturally substandard building and that a8er demolition and clearance the Port Authority intendeds to include the parcel within a Redevelopment District; WHEREAS, the Board has reviewed the Redevelopment Eligibility Assessment prepazed by Short Elliot Hendrickson, Inc. ("SEH") and attached as Exhibit A(the "AssessmenY') related to the residential buildings located at 506, 516 and 538 4Vhitall Street in the District (the "Buildings"); and WHEREAS, the Board has also reviewed the opinion of L,eonazd, Street and Deinazd attached hereto as Exhibit B to the effect that the findings made in the Assessment are based on a correct interpretation of applicable law; and WHEREAS, the Credit Committee has reviewed and approved this resolurion. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Port Authority of the City of Saint Paul as foliows: 1. The Port Authority hereby fmds: 2383918v1 D3 -9►1 (a) on the basis of the aerial photo attached hereto as Eachibit C reviewed at this meeting, visual inspections by Port Authority personnel, and the Assessment, that all three of the ta7c parcels on which the Buildings aze located are "occupied" by such buildings and other improvements within the meaning of Minxiesota Statutes, Section 469.174, Subd. 10 which requires that at least 15% of each tax pazcel be occupied by buildings or other improvements; and (b) on the basis of the SEH Assessment attached hereto as Exhibit A, that all of the Buildings Pazcels are shucturally substandard as defined by Section 469.174, Subdivision 10 of Minuesota Statutes. 2. T`he Port Authority hereby finds that all of the Buildings constitute a public nuisance and danger and should be demolished. 3. The Port Authority hereby declazes its intention to include the taac parcel on which the Baildings are located in the District after demolition of the Buildings. 4. Port Authority management, together with its advisors and legal counsel, are hereby authorized to proceed with the preparation of the proposed District, and to negotiate, draft, prepare and present to this Board for its consideration all fiuther plans, resolutions, documents and contracts necessary for this purpose. 5. Port Authority management together with its advisors and legal counsel, are authorized to make arrangements for and proceed with the demolition of the Buildings. Adopted: August 26, 2003 PORT AU'I`HORTI'Y OF THE CTTY OF SAINT PAUL B�S�� 6�tiv,,s�,.a'_' J ��,� "°�" � Its Chair ATTEST: ��� � Se� 2383918v1 2