04-02council File # (��—O
RESOLUTION
Green Sheet # 103906
SAINT PAiJL, MIN(VESOTA
Presented By
Refened To
Committee: Date
1 RESOLUTION OF T'HE CTTY COUNCII, OF THE CITY OF SAPi TT PAUL, MINNESOTA
2 ADOPTING FINDINGS OF FACT RELATED TO DEMOLITiON OF BUII,DINGS LOCATED IN
3 PROPOSED FUTiTRE WESTMINSTER JUNCTION BUSINESS CENTER
5 WHEREAS, the City of Saint Paul (the "City") has been advised that the Port Authority of the City of Saint
6 Paul (the "Port AuThority") intends to establish a redevelopment tax increment financing district including the area
7 generally bounded by Westminster S4eet to the west, Whitall Street to the north, Payne Avenue to the east and the
e proposed future Phalen Boulevazd to the south to be lrnown as the Weshiia�ster Juncrion Business Center outlined on
9 the aerial photograph attached hereto as E�chibit A(the "Dish icP'); and
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WHEREAS, prior to certification of the District, the City Council of the City of Saint Paul (the "City
Council") is required to make the fmdings required by Minnesota Statutes Section 469.175, Subd. 3, includmg the
reasons and facts supporting the detemilna6on that the Dishict meets the statutory requiremems for a redevelopment
disirict; and
WHEREAS, the City has been fiu advised that, prior to certification of the District, and for health and
safety reasons, the Port Authority intends to demolish certain xesidenrial buildings cucrently located on the parcels to
be included in the District; and
WHEREAS, the Port Authority and the City have previously determined that shuctures located in the
District are "shucturally substandard" within the meaning of Minnesota Statutes, Secrion 469.174, Subd. 10; and
WIIEREAS, as set forth in a resolution adopted by the Port Authority on November 25, 2003, a copy of
which is attached hereto as E�ubit B(the "Port Authority Resolution"), the Port Authority has detemilned that two
buildings located at 442 Whitall Street and 837 Desoto Street and in the SEH Report referred to below, which
buildings aze to be demolished {ffie "Substandaid Builclings"), aze "structurally substandard° within the meaning of
Minnesota Statutes, Section 469174, subdivision 10, all as descnbed in greater detail in the Port Authority
Resolution; and
WHEREAS, the City made its own independent invesrigation of the condition of the Substandard Buildings
and a staff report dated Novembex 24, 2003 sets forth the fmdings of the invesrigation ("City Report"); and
WFTEREAS, the Ciry Council, in reliance on the infom�arion provided to it by the Port Authority, including
but not limited to the Redevelopment Eligibility Assessment prepazed by Short Elliot Hendrickson, Inc. dated
9/25/2003 (the "SEH Report"), and its own investigation and the City Report concurs wiTh the Port Authority's
determinarion that the Substandard Buildings aze "structurally substandazd" within the meaning of Minnesota
Statutes, Section 469.174, subdivision 10; and
WHEREAS, the purpose of this action is to set forth the factual findings of the City Council before the
Substandard Buildings are demolished, which factual fmding may then be relied on by the City Council at such time
as the City Council considers whether the proposed Dishict, as a whole, meets the statutory requirements of a
redevelopment distdct;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Saint Paul that, on the basis
of informarion provided to it by the Port Authority, including the SEH Report, and the CiTy Report, the City Council
fmds that the Substandazd Buildings are "shucturally substandazd" withiu the meaning of Minnesota Statutes,
Section 469.174, subdivision 10, for the reasons set forth in the City Report, SEH Report and the Port Authority
Resolution.
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Adopted by Council: Date ///}� �/'�//Ci � �c�4�
Adoption Certified by CouncIl Secretary
By: _
Form
By:
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28484.1.
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lST BE ON COUNCIL AGE�/1 BY (DATE)
January 7, 2004
TOTAL # OF SIGNATURE PAGES
GREEN SHEET No 1 � �°�� b
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(CLIP ALL LOCATIONS FOR SIGNATURE)
I Resolution adopting findings of fact related to dec;iolition of buildings located in proposed
future Westrminster Junetion Business Center tax increment financing distriet.
PLANNING COMMISSION
CfB COMMITTEE
CNIL SERVICE CAMMISSION
Flas u,K aersoMrm eRr worl�d unaer a contrxt r« mis departmem�
VES NO
Hasthie oe���� ever teen a cay emqoyeeT
YES NO
Does thie persoNfirtn poeaess a sidll not rioimatlypossesbed bY �Y curreM city emPbyee?
YES NO
Is this persoNfnn a tarpeted veMoR ,
res r�o
In order. for the Port Authbrity to establish a redevelopment tax increr�ent finaxteing district
for the Westr�inster Junetian Business Center, the Cit;r Gouneil is required by 3tate Iaw to
make findings that suppo"rt that the TIF district meets the statutory requirements. City sta
has condueted its own analysis,and has determined that the proposed TIF district does meet
the statutory requirer.�ents. �
The �Vestminster Junetion Business Center 'will be developed.
None
IFAPPROVED
The project will not move forward.
qMOUNT OF TRANSACTIOH �
SOURCE
INFORMA710N (IXPWN)
WST/REVENUE BUDGETED (GRCLE ONE)
ACTNITY NUMBER
YEE NO
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EXHIBIT A
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1. Port Authority Boazd Report (including attachments).
2. Port Authority Boazd Resolution Number 4050.
3. City Report.
.o.a
SAINT PAUL
POxT AUTHOxi'TY
��i u•::u�i►�►�
TO: BOARD OF COMMISSIONERS
(Meeting of November 25, 2003)
FROM: John W.
Lorrie J.
Kenneth
DA'TE: November 18, 2003
0�-02.,
SUBJECT: Findings for Ta�c Increment Finance District for Westrninster Junction Business Center
Resolution No. �056
Action Renuested:
That the Port Authority Board of Commissioners find the propes�es at 442 Whitall and 837 Desoto 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, Elliot, Hendrickson and opinion of legal counsel.
Public Purpose:
Phalen Boulevard construction and redevelopment of the Westminster Junction Business Center will create a
minimum of 300 pertnanent jobs using the Port Authority `s one job per 1,000 square feet of building space
criteria. Actual results at Williams Hiil, Crosby Lake, and Adington Jackson Business Centers suggest that the
total number of jobs at this business center could reach 500. Construc6on jobs created by the boulevard and
business center construction are estimated at 200. The new business center wiil generate private investment
and new plant and equipment and additional propefi/ taxes for the City of Saint Paul. The business center
will provide employment opportuni6es for Saint Paul and Eastside residents, and generally wili eliminate blight
and the under utilization of industrial land.
Business Subsidv:
N/A
Backqround:
The Saint Paul Port Authority is acquiring land for Phalen Boulevard construction and redevelopment of the
Westminster Junction Business Center. We have acquired all of the land necessary for construction of
Phalen Boulevard. These parceis include Twin City Auto and Military Suppiy, Waste Management, Lovering
Johnson (JBC Development), and FEO Properties.
In November 2002, February 2003, and August 2003 the Port Authority Board of Commissioners reviewed
reports of Short, Eliiot, Hendrickson and opinion of legai counsel, regarding properties we have acquired and
found they meet the requirements of Section 469.174, Subd.10 of Minnesota Statutes for inclusion in a
Redevelopment Tax Increment District.
28792.1.
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Page 2
#28792 v1- Board Memo: T1F(We5H4424YhiYall
SEH has inspected four additional residences and found two to be substandard as that term is defined in
state statute.
Specfically, that the property is 70% improved and the buiidings are substandard as defined in State law.
Making these findings will qualify this property for a 25-year Redevelopment Tax Increment Disfict, which
yie{ds the most �unds to pay project costs. The Port Board by making findings described above is not
approving a TIF District, but only making findings now so 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 Chapter 469, subdivision 10, of a Redevelopment District are briefly:
Parcels consisting of 70% of the area of the district are occupied by buildings, streets, utilities, paved or
graveled parking lots, or other similar stnictures, and more than 50% of the buildings, not including
outbuildings, are structuraily sub-standard requiring substantial renovation or clearance. To find that the
buildings are shucturally substandard the buildings must contain °defects in structural elements or a
combination of deficiencies in essenfial utilities and facilities, light and ventilation, fire protection
including adequate egress, layout and condition of interior pa�itions, or similar factors, which defects or
deficiencies are of sufficient total significance to justify substantiai renovation or clearance ° In addition,
a building is not substandard if it can be modified to meet the building code applicable to new buildings
at a cost of less than 15% of the cost of constructing 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 reputable
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 municipalities provided positive references
for the consultant, as did the Bdggs and Morgan law firm.
The consultant made a thorough interior inspection of the four residences. A significant amount of notations
and photographs were generated during this inspection. The consultant inspected the residences and
determined where there were building code deficiencies. These buiiding code deficiencies were then
assigned a dollar value. The buildings new construction cost was then estimated and the deficiency amount
was compared to the new construction cost of the building to determine if the deficiencies equal 15% or
more of the new construction costs.
With regard to these properties, specifically, the consultanYs findings are as follows:
• 442 Whitall and 837 Desoto meet the definition of substandard by using the methodology described
above.
• 514 Whitall and 522 Whita{{ do not meet the de5nition of substandard.
• A report on both of these findings is attached to this memo.
28792.1.
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P�e3
#28792 v1-BOard Memo: TIFN1esV442 YVhila�
A letter from our legal counsel of Leonard, Street, and Deinard supporting these findings is also
attached.
The acquisition of these parcels is compiete and the Port Authority 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 the Twin City Auto and Military Supply parcei, Lovering Johnson (JBC
Development), Waste Management, FEO Properties parcels and residences at 538, 516, 506, and 442
Whitail, and 837 Desoto demonstrate that these parcels meet the requirements ouUined in Chapter 469,
Subd.10 for a Tax Increment Redevelopment District. Parcels consisting of more than 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 50% of the buildings (12 of 16, not including outbuildings) are structuraily substandard as it relates
to Minnesota State Statutes.
Recommendation
The Port Authority Board of Commissioners finds that the residences at 442 Whitall and 837 Desoto meet the
requirements of Section 469.174, Subd.10 of Minnesota Statutes for inclusion in a Redevelopment Tax
Increment Disfict based on the report of Short, Eiliot, Hendrickson and opinion of legal counsel.
/rrd
Attachments
28792.1.
(y-�-OZ
Resolution No. 4050
PORT AUTHORTTY OF THE CITY OF SAINT PAUL
jVJestminster 7unction Business Center]
VVF�REAS, the Port Authority of the City of Saint Paul (the "Port Authority"j is
proposing to ef'eate a Redevelopment Ta4 Inerem�nt District pursuant to Section 469.174, Subd.
10 of Minnesota Statutes, to be comprised of 31 separate contiguous tax parcels generally
bounded by West�ninster Stteet to the west, WYutall Street to the north, Payne Avenue to the east
and the pioposed fiiture Phalen Boulevazd to the south (the "DistricY�; and
WHEREAS, for safety reasons, the Port Authority intends to; prior to final certification of
the Dislrict, demolish certain of the structures located on land to be included in the District; and
WIiEREAS, it has been proposed that, prior to demolition of the buildings, the Port
Authority make certain facival findings supporting inclusion of the land in the Dishict; and
i�f�itEAS, Section 469.174, Subd. l0� states tttat, when establishing a Redevelopment
District, a parcel of land may be treated as thongh it is improved with a structurally substaadard
building if (among other things) (a) the pazcel was occupied by a sisucturally substandard
building within 3 years of the request for certification af the Redevelopment District, (b) the
substandard building was demolished or removed by the Port Authority or the demolition or
removal was financed by the Port A�thority or was done by a developer under a development
agreement with the Port Authority, and (c) the Port Authozity finds by resolurion before the
demolition ar`removal that the parcel was occupied by a structurally substandard building and
that after d�molition and clearance the Port Authority intendeds to include the parcel withixt a
Redevelopment District;
WfiEE2EAS, the Port Authority Boazd has reviewed the Redevelopment Eligibility
Assessment prepared by Short Elliot Hendrickson, Ina ("SE�P') and attached as Exhibit A(the
"Assessment"} related to the 10 pazceis of land described therein (the "Parcels"); and
WHBREAS, the Port Authority Board has also reviewed the opinion of Leonard, Street
and Deinard 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 resolution.
NOW, TF�REFORE, BE TT RESOLVED by the Board of Commissioners of the Port
Authority of the Ciiy of Saint Paui as follows:
The Port Authority hereby finds:
(a) that, on the basis of visual inspections by Port Authority personnel and the
Assessment, 3 of the 10 Parcels aze "occupied" by buildings and other improvements
zs�sa.�.
Resolution No. 4051 ���'
RESOLUTION
OF THE
PORT AUTHORITY OF THE CITY OF SAINT PAUL
WHEREAS, the Port Authority has undertaken the Phalen/Bou(evard Westminster
Juncfion Business Center development; and
WHEREAS, the properEies include public rights af way which may have been vacated
in whole or in part by the City of Saint Paul; and
WHEREAS, tifle defects have been uncovered that require additionai requests from
the Council of the City of. Saint Paui for vacation of parts of streets within the Phalen
Boulevard/Westminster Junction Districts;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF
THE PORT AUTHORITY OF THE CITY OF SAINT PAUL, that the President is hereby
authorized and directed to execute on behalf of the Port Authority any and all petitions to the
Council of fhe City of Saint Paul requesting the vacation of streets, aileys, and utiliiy righ4s of
way or easements in public righfs of way adjacent to properties within the District owned by
the Aufhority.
Adopted: November 25, 2003
PORT AUTHORITY OF THE
CITY OF SAINT PAUL
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28874.1.
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Short Elliott Hendrickson, Inc. Report
2413888v1 A-j
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Report on Structuraliy Substandard Building
Buildina IDBusiness NameiAddress:
Stxucturally Substandard Build'mg (Y/I�:
442 Whitall Street 14=21
Y
Step One
Under the tax increment law, specifically, Minnesota Stamtes, Section 469.174, Subdivision 10, a building
is structurally substandard if it contains "defects in structural elements or a combinarion of deficiencies
in essential utilities and facilities, light and ventilation, fire protection including adequate egess, layout and
condition of interior partitions, oi similaz factois, which defects oz deficiencies aze of sufficient total
sigriificance to justify substantial renovation or cleazance"
The above building, based upon actual interior inspection and review of building permit records, meets the
above-referenced definition of strucNtally substandard for the following reasons:
Structural Elemenu
• `Soft spot' in floor on second floor corresponding with previous plumbing leakage on second
floor
Essential Utilities & Facilities
• Lack of lavatory in second floor toilet room
Light & Ventilation
• Toilet room lacks means of natural or mechanical ventilarion
Fire ProtectionlEgress
• Fire rated floor/ceiling assembly required between dwelling units
• Deficient exterior stairway: deficient rise/nm dimensions; deficient handrail height and grip;
deficient guazdrail construction
. Deficient exterior door: deficient door landing azea
• Deficient interior stairway: deficient risehun dimensions; deficient stair landing area;
deficient handrail height and terminarions; deficient guardrail conshuction
• Laek of smoke detector/detection system in each bedroom
LayouUCondition of Interior Partitions
• Interior finishes in generally poor condition on second floor: loose floor tile in kitchen,
cracked and peeling plaster walls
• Interior finishes in poor condition on first floor: plaster ceiling falling in bedrooms, cracked
and peeling plaster walls, severe ceiling damage in kitchen due to previous plumbing leakage
on second floor
Similar Factors
• Ceiliug in second floor kitchen and dining is sagging, indicating potential structural pioblems
with roof
• Defects in exterior building shell: ground floor window frames in need of paint
Step Two
Notwithstanding the foregoing, the tax increment law also provides that a building may not be considered
structivally 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 constructing a new
building of the same square footage and type on the same site.
Esrimated cost of new building of same size and type (Total Replacement Cost):
Estunated cost of correction of code deficiencies (Total Deficiency Cost):
Percentage of Code Deficiency to Replacement Cost:
$138,225.89
$30,424.24
22.01 %
Refer to Individual Building Snmmary Report for documentation of specific code deficiencies.
o�-o�
Report on Structuraity Substandard Building
Building IDBusiness Nazne/Address:
S�uctuially Substandard Building (Y/I�:
Step One
837 Desoto Street 15_17
Y
Under the taic increment law, specifically, Minnesota Statutes, Section 469.174, Subdivision 10, a building
is structurally substandard if it contains "defects in s4uctural elements or a combination of deficiencies
in essential utilities and facilities, light and ventilation, fire protection 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 clearance."
The above building, based upon actual interior inspection and review of building permit records, meets the
above-referenced definition of shucturally substandard for the following reasons:
Stnxchual Elements
• Defects in exterior building shell: minor spalling of exterior face of masonry foundation,
minor settlement crack on east side of porch foundation
Light & Ventilation
• Toilet room lacks means of natural or mechanical venrilation
Fire Protection/Egress
. Deficient exterior stairway: deficient handrail height
• Deficient emergency egess: lack of basement and bedroom emergency egress windows
• Deficient exterior door: deficient door landing azea
• Deficient interior staiiv✓ay: insufficient cleaz stairway width; deficient rise/run dimensions;
insufficient cleaz headroom height; deficient handrail height, grip, and terminations; handrails
aze not continuous; deficient guazdtail consmicrion
• Lack of smoke detector/detection system in each bedroom
LayouUCondition of Interior Partirions
• Floor and wall tiles in poor condition or missing in first floor bathroom; ceiling damage due
to roof leakage present in second floor bedroom
• Two door openings on first floor aze less than standazd height (6'-0" cleaz)
Similaz Factors
• Defects in exterior building shell: exterior stucco finish cracldng/bubbling on south wall;
wood window frames in basement rotting; roof shingles appeaz extremely wom;
appioximately 25% of alumuium fascia and soffit aze missing as well as roof shingles at the
southeast comer due to wind damage
5tep Two
Notwithstanding the foregoing, the tax increment law aiso provides that a building may not be considered
— structurally 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 constructing a new
building of the same squaze footage and type on the same site.
Estimated cost of new building of same size and type (Total Replacement Cost):
Estimated cost of correcrion of code deficiencies (Total Deficiency Cost):
Percentage of Code Deficiency to Replacement Cost:
$117,916.81
$24,184.76
20.51 %
Refer to Individual Building Suuunary Report for documentation of specific code deficiencies.
of� o z
Report on Structurally Substandard Building
Building IDBusiness Name/Address:
Siructurally Substandard Building (Y/I�:
Step One
N
Undex the tax increment law, specifically, Minnesota Statutes, Section 469.174, Subdivision 10, a building
is structurally substandard if it contains "defects in structural elements or a combination of deficiencies
in essential utilities and facilities, Iight and ventilation, fire protection including adequate egress, layout and
condition of interior partitions, or similaz factors, which defecu or deficiencies aze of sufficient total
significance to justify substantial renovation or clearance."
The above building, based upon actual interior inspection and review of building perurit records, meets the
above-referenced de5nition of s�ucturally substandard for the following reasons:
Struchual Elements
• Interior plaster finish of basement foundation wail spalling/bubbling/cracldng in several
locations due to moisfure infiltrarion
Fire Protection/Egress
• Deficient exterior stairway: additional handrails required
• Deficient emergency egress: lack of bedroom emergency egress windows; modificarion
required for existing basement egress opening
. Deficient interior stairway: deficient riselrun dimensions; deficient stair landing area;
insufficient cleaz headroom height; deficient handrail temrinarions; handrails aze not
continuous
• Lack of smoke detector/detecrion system in each bedtoom
Similaz Factors
• Deficiencies in exterior building shell: exterior siding contains several small holes and gaps —
sheathing exposed in some locarions; majority of wood fascia, soffit, and window frames in
need ofpaint
. All cazpeting in poor condition (loose, wom, bubbling); floor tile in second floor bathroom in
generally poor condirion
Step Two
Notwithstanding the foregoing, the tax increment law also provides that a buIlding may not be considered
structurally subsTandard if it is in compliance with the building code applicable to new buildings or coutd
be modified to sausfy the current building code at a cost of less than 15% of the cost of conshucting a new
building of the same squaze footage and type on the same site.
Estanated cost of new building of same size and type (Total Replacement Cost):
Estimated cost of correction of code deficiencies (Total Deficiency Cost):
Percentage of Code Deficiency to Replacement Cost:
514 R'hitall Street 21
$102,755.62
$6,488.06
6.31 %
Refer to Individual Building Summary Report for documentarion of specific code deficiencies.
o y�-o a-
Report on Structurally Substandard Building
Building IDBusiness NamelAddress: 522 Wlvtall Street 25
S�ucturally Substandazd Building (YJI�:
Step One
r.�
Under the taac increment law, specifically, Minnesota Statutes, Section 469.174, Subdivision 10, a building
is structnrally substandard if it contains "defects in structurat elements or a combination of deficiencies
in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and
condition of interior partifions, or sinrilar factors, which defects or deficiencies aze of sufficient total
significance to justify substantiai renovation or clearance."
The above building, based upon actual interior inspection and review of building pemrit records, meets the
above-referenced definition of structurally substandard for the following reasons:
S4uctutal Elements
• Masonry foundation walls contain several settlemenUstep cracks on all sides
Fire Protection/Egress
. Deficient interior stairway: insufficient cleaz stauway width; deficient risehun dimensions;
deficient stairway landing azea; insufficient cleaz headroom height; deficient handrail height
and ternvnations; deficient guardrail construcrion
. Lack of smoke detector/detection system on an individual floor and in each bedroom
Similaz Factors
• Deficiencies in exterior building shell: interior finish damage resulting from roof leakage in
first floor bathroom
Step Two
Notwithstanding the foregoing, the taac incremern law also provides that a building may not be considered
structivally substandard if it is in compliance with the building code applicable to new buildings or could
be modified to sarisfy the current building code at a cost of less than 15% of the cost of constructing a new
building of the same squaze footage and type on the same site.
Estunated cost of new building of saxne size and type (Total Replacement Cost): $102,758.62
Estimated cost of correcrion of code deficiencies (Total Deficiency Cost): $6,488.06
Percentage of Code Deficiency to Replacement Cost:
631%
Refer to Individual Building Sununazy Report for documentation of specific code deficiencies.
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City of St. Paui Port Authority
Westminster Junction TIF District — Phase 4
October 30, 2003
PURPOSE
Short Elliott Hendrickson, Inc. {SEI� was hired by the St. Paul Port Authority, St. Paul,
Minn esota, to survey and evaluate the properties witYiin the proposed Westminster
7uncrion Tas Increment Financing District. The proposed district is g�nerally bounded
by Westminster Street to the west, Whitall Street to the north, Payne Avenue to the east,
and the proposed future Phalen Boulevazd to the south. The pwpose of our work was to
independenfly ascertain whether the qualificarion 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 Westminster Junction Dishict — the
subject properties and findings will eventually be combined with previous and future
findings to detennine tax increxnent eligibility for the entire District.
The findings and conclusions drawn herein are solely for the purpose of taa� increment
eligibility and are not intended to be used outside the scope of this assessment.
SCOPE OF WORK
The subject area in this report consists of 10 parcels comprised of the following types of
improvements: 4 residenrial structures distributed on 4 parcels and 6 vacant parcels with
no improvements.
EVA�UATIONS
Of the 4 buildings in the proposed dishict, both interior and exterior areas were available
for evaluation.
FINDINGS
Coverage Test — 3 of the 10 properties met the coverage test resulting in 15% total area
coverage. (Note that the Coverage Test for the entire project area must exceed 70%).
Condition of Buildings Test — 50 percent of the buildings (2 of 4) were found to be
"structurally substandazd" when considering code deficiencies and other deficiencies of
sufficient total significance to justify substantial renovation or clearance (see definition of
"shucturally substandazd" asfokews). (Note that the Condition ofBuildings Test for the
entire project area must exceed 50%).
SUPPORTING DOCUMENTS ATTACHED
- Site Occupied/Building Substandard Determinarion table '
- TIF Assessment maps: Builclings Assessment, Occupied Surfaces, Percent
Occupied by Parcel
- Report on Building Condition (one per building)
- Individual Building Smiunary Report (one per building)
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I,eonard, Street and Deinazd Opinion
28798.1.
FRO� bEONAAD STREET & DEINAAD (THU)11. 6'03 13:42/ST.13:39/N0.4261040140 P 2
D�-o�
LEONARD, STREET AND DEINARD
pnpFF54IOi:AL A9SUCtnTinN
Stcvcn B. Mayeron
612-335-I502
steve.mayeron rr leonazd.com
November 5, 20�3
Port Authority of the City of Saint Paul
1900 Landmazk ?owers
345 St. Peter Street
Saint Paul, MN 55102-166]
Re: Proposed Wesrininster lunction Redevelopmenl District
The Port Authorify of the City of Saint 1'aul (the "Port Authority") is proposing to create
a Redevelopment Tax Increment District pursuant to Section 469.174, Subd. l0 of Minnesota
Statutes. The proposed disirict is to be generally bounded by Westminster Street to the west,
Whitall Street to the norih, Payne Avenue to tl�e east and tl�e proposed futwe Phalen Boutevard
to the south (tbe "DistricY').
With the help of Short Eliiot Hcndrickson, Inc. ("SEH"), which has prepared its October
30, 2003 Redevelopmenf Eligibility Assessment (the "Assessment"), tbe Port Authority has
recen0y cxamineJ the buildings located at 442 Whitall 3treet, 837 Desoto Street, 514 Whilall
Street and 522 Whitall Street in the Distxict to determine whether the buildings aze "structurally
substandard" for purposes of ineeting the cequirements for establishing the District. The
buiidings exatnined •are described in detail in the Assessment and are referred to heretn as the
"Current Buildings"
To be structuraily Substandazd a building must contain "defects in swctural elements or a
combination of deficiencies in essenrial utilities and facilities, light and ventilation, fire
protection including adequate egress, layout and condition of interior partitions, or similar
factors, which dcfeets or dcficitncies arc of suffic�cnt total significance to justify substantial
renovation or ciearance." Minre. S�a[. § 469.174. Subd. 10(b). In addition, no building can be
considered structuraily substandard if it is in compliance with the bnilding eode applicable to
new buildings or can be modified to satisfy such building code at a cost of less than I S°/u of the
cost of constructing a aew structure of ffie same square footage az�d type on thc sitc. Minn. Stut.
§ 469-174. ,�iand. 10(c).
In its Assessment, SEH concludes thaf nvo of the four buildings (specitically, the
buildings loca[ed at 442 Whitall Street and 83� Desoto Street) are stcuc[uralfy substandard in that
they contain shvcturai deficiencies 3nd other deficiencies of.the kind outlined in the statute
which, in total, jestify substantial renovation or clearance of each building. In addition, SEH
2S050UTH FIFTH STAERT $i7i7C 2}00 MIyNEA00LIS� Mi'NN4GN'A Sfy91 TE[ 6[a�;,91'r�uu j1AS �I2�]J$'SdSJ
Z�7�3Hy7�� LAW 1)FFICES [N MINNe+pnLld, Snint i�All/., MANYwiu, sntNT GLOUp nN[> �+npHiNC1o.v� p.�
tVNW LYONAnL.C�M
FROM LEONARD STREET & DEINABD
Port Authority of the City of Saint Paul
November 5, ZOU3
Page 2
(THU)11, 6'03 13;43/ST.13:39/N0.4261D40140 P 3
determined that neither of the buildings containing such deficiencies comply with the building
code applieable to new buiidings and that in the case of each building, the cost o£ modifying tbe
building fo comply with code requirements would cxcccd 15"/0 of the cost of constructing a new
building. Tn reaching these conClusions SEH has correctiy stated thz statutory requiremenls as
intezpreted by recent case law.
We believe the Assessment vnambiguously supports the conclusion that the buildings
located at 442 Whitall Street and 837 Desoto Street aze stnicturally substandar.d. We therefore
believe that, based on the Assessment, the Port Authority has a sound basis for finding that those
buildings aze suvcturally substandazd to a degree reyuiring substantial renovation or ciearance.
Please let us l�ow if we can be of any fi�rther assistance.
Very truly yours,
LEONARD, STREET AND DBINARD
��''ti�� / .,.lt^'� �' ''ce�-`�
/
Steven B. M2yeron
ca Tason Zemke
Robyn Hansen
xaiaxa��i
1900 tandmarkTowers
345 St. Peter Street
Saint Paul, Minnesota
55702-1661
p 0 R t
ti 9
J G
� ��\C ..'. �
a � x
0
2 �
i �
b �y
S
December 30, 2003
Ms. Martha Fuller, Director
Planning & Economic Development Department
1300 City Hall Annex
25 West Fourth Street �
Saint Paul, Minnesota 55102
Tel: 657-224-5686
Fax: 657-223-579$
Toll Free: 800-328-8417
www.sppa.com
RE: Findings for Tau Increment Finance District for Westminster Junction Business Center
Dear Ms. Fuller:
We submit for your review and referral to the office of the Mayor, City Council, and City Attomey's office,
Findings for Tax Increment Finance District for Westminster Junction Business Center.
In addition to the staff memorandum, we are attaching a draft copy of the proposed City Council Resolution
and a copy of the tax increment findings that were approved by the Port Authority's Board on November 25,
2003. Cify Council acfion is requested at its meeting on January 7, 2004.
Your expeditious handling of this matter will be appreciated.
Sincerely,
Attachment
cc: Mayor Kelly
29'136.1.