The URL can be used to link to this page

7.2 HRSR 07-10-2017E lls River` Request for Action To Item Number Housing and Redevelopment Authority 7.2 Agenda Section Meeting Date Prepared by General Business July 10, 2017 Amanda Othoudt, Economic Development Director Item Description Reviewed by Update on the Creation of TIF District No. 24 Cal Portner, City Administrator Reviewed by Action Requested Hear update on TIF District No. 24 Background /Discussion Beaudry Oil Company plans to development a new truck shop facility along Proctor Avenue. A TIF District is being established to facilitate the acquisition and demolition of blighted buildings to facilitate public improvements and prepare for a new developable parcel for commercial /retail. The city has performed all actions required by law to be performed prior to the modification and approval of the Program Modification and the TIF Plan. The Planning Commission reviewed the TIF plan on June 27, 2017, and found the plan to be consistent with the Comprehensive Plan. Staff is negotiating purchase agreements with property owners on Proctor and Quinn Avenue to locate the Beaudry project adjacent to their bulk plant with an east /west street connection from Proctor to Quinn to be constructed along the south which will replace 6`h Street. The next steps include requesting certification of the district from the county. The deadline to consider this action is June 30, 2018. Financial Impact The upfront financing for city acquisition, demolition and site prep will come from the City Development Fund, Storm Water Management Fund, the Street Improvement Reserve Fund, and the Pavement Management Fund (if necessary). The city will retain the captured tax increment to finance the repayment of cost project over 26 years. Attachments ■ TIF Plan for TIF District #24 • LHB Report • PC Resolution • City Resolution PV0WIHED 6Y Template Updated 4/14 INATUR City of Elk River, Minnesota Modification to the Development Program for Development District No.1 and the Tax Increment Financing Plan for Tax Increment Financing (Redevelopment) District No. 24 Within Municipal Development District No.1 (The Truck Shop Project) Draft Dated: June 1, 2017 Public Hearing Scheduled: July 3, 2017 Anticipated Approval: July 3, 2017 Prepared by: SPRINGSTED INCORPORATED 380 Jackson Street, Suite 300 St. Paul, MN 55101 -2887 (651) 223 -3000 WWW.SPRINGSTED.COM TABLE OF CONTENTS SECTION I — MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 Foreword.......................................................................................................................................... ..............................1 SECTION II —TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24 A. Definitions ................................................................................................................................ ..............................2 B. Statutory Authorization ............................................................................................................ ..............................2 C. Statement of Need and Public Purpose ................................................................................... ..............................2 D. Statement of Objectives .......................................................................................................... ..............................2 E. Designation of Tax Increment Financing District as a Redevelopment District ........................ ..............................2 F. Duration of the TIF District ....................................................................................................... ..............................4 G. Property to be Included in the TIF District ................................................................................ ..............................4 H. Property to be Acquired in the TIF District ............................................................................... ..............................4 I. Specific Development Expected to Occur Within the TIF District ............................................ ..............................4 J. Findings and Need for Tax Increment Financing ..................................................................... ..............................5 K. Estimated Public Costs ............................................................................................................ ..............................7 L. Estimated Sources of Revenue ............................................................................................... ..............................7 M. Estimated Amount of Bonded Indebtedness ............................................................................ ..............................7 N. Original Net Tax Capacity ........................................................................................................ ..............................8 O. Original Local Tax Rate ........................................................................................................... ..............................8 P. Projected Retained Captured Net Tax Capacity and Projected Tax Increment ....................... ..............................9 Q. Use of Tax Increment .............................................................................................................. ..............................9 R. Excess Tax Increment ............................................................................................................ .............................10 S. Tax Increment Pooling and the Five Year Rule ...................................................................... .............................10 T. Limitation on Administrative Expenses ................................................................................... .............................11 U. Limitation on Property Not Subject to Improvements - Four Year Rule .................................. .............................11 V. Estimated Impact on Other Taxing Jurisdictions ..................................................................... .............................12 W. Prior Planned Improvements .................................................................................................. .............................12 X. Development Agreements ...................................................................................................... .............................12 Y. Assessment Agreements ........................................................................................................ .............................13 Z. Modifications of the Tax Increment Financing Plan ................................................................ .............................13 AA. Administration of the Tax Increment Financing Plan ............................................................... .............................13 AB. Filing TIF Plan, Financial Reporting and Disclosure Requirements ........................................ .............................14 Map of the Tax Increment Financing District ............................................................ ............................... EXHIBIT I AssumptionsReport ........................................................................ ............................... ........................EXHIBIT II Projected Tax Increment Report ............................................................................. ............................... EXHIBIT III Estimated Impact on Other Taxing Jurisdictions Report ................. ............................... ........................EXHIBIT IV Market Value Analysis Report ......................................................... ............................... ........................EXHIBIT V Redevelopment TIF District Qualifications Report .......................... ............................... ........................EXHIBIT VI City of Elk River, Minnesota SECTION I — MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.1 Foreword The following text represents a Modification to the Development Program for Development District No. 1. This modification represents a continuation of the goals and objectives set forth in the Development Program for Development District No. 1. The changes generally include the establishment of Tax Increment Financing (Redevelopment) District No. 24. For further information, a review of the Development Program for Development District No. 1 is recommended. It is available from the City Administrator at the City of Elk River. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within Development District No. 1. SPRINGSTED Pagel City of Elk River, Minnesota SECTION II — TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (REDEVELOPMENTG) DISTRICT NO. 24 Section A Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: "City„ means the City of Elk River, Minnesota; also referred to as a "Municipality ". "City Council" means the City Council of the City; also referred to as the "Governing Body ". "County„ means Sherburne County, Minnesota "Development District" means Development District No. 1 in the City, which is described in the corresponding Development Program. "Development Program" means the Development Program for the Development District. "Protect Area" means the geographic area of the Development District. "School District" means Independent School District No. 728, Minnesota. "State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1794, both inclusive. "TIF District" means Tax Increment Financing (Redevelopment) District No. 24 "TIF Plan" means the tax increment financing plan for the TIF District (this document). Section B Statutory Authorization See the Development Program for the Development District. Section C Statement of Need and Public Purpose See the Development Program for the Development District. Section D Statement of Objectives See the Development Program for the Development 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 50% of the buildings, not including SPRINGSTED Page 2 City of Elk River, Minnesota 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 will be retained by the City for the life of the TIF District and are available to the public upon request. An analysis was completed by LHB to make this determination. "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 a new 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 (4) the City notifies the county auditor that the original tax capacity of the parcel must be adjusted upon filing the request for certification of the tax capacity of the parcel as part of a district. In the case of (4) above, the County Auditor shall certify the original net tax capacity of the parcel to be the greater of (a) the current tax capacity of the parcel, or (b) a computed tax capacity of the parcel using the estimated market value of the parcel for the year in which the demolition or removal occurred, and the appropriate classification rate(s) for the current year. At least 90 percent of the tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation as a redevelopment district. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of land, removal of hazardous substances or remediation SPRINGSTED Page 3 City of Elk River, Minnesota necessary to develop the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the City may be included in the qualifying costs. Section F Duration of the TIF District Redevelopment districts may remain in existence 25 years from the date of receipt by the City of the first tax increment. Modifications of this plan (see Section Z) shall not extend these limitations. Pursuant to Minnesota Statutes, Section 469.175, subd. 1(b), the City specifies 2020 as the first year in which it elects to receive tax increment from the TIF District, which is no later than four years following the year of approval of the TIF District. Thus, the City may collect increment from the district through December 31, 2045, and anticipates that the TIF District may be active for the maximum duration allowed (see Section P). However the City will decertify the TIF District as early as possible should the projected increment be received in a shorter time period than originally projected. All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the City. Section G Property to be Included in the TIF District The TIF District comprises of 12 parcels containing multiple substandard buildings to be demolished. The total area of the TIF district is approximately 4 acres and also includes adjacent streets and right -of -way located within the Project Area. A map showing the location of the TIF District is shown in Exhibit I. The boundaries and area encompassed by the TIF District are described below: Parcel Number Legal Description 75- 410 -0735 LOTS 8 & 9, BLK 7 75- 410 -0730 LOT 7, BLK 7 75- 410 -0725 LOT 6, BLK 7. SUB TO PERPETUAL EASEMENT 75- 410 -0720 LOTS 4 & 5, BLK 7 75- 410 -0715 N 1 -2 OF LOT 2, & ALL OF LOT 3, BLK 7 PLUS PERMANENT EASEMENT 75- 410 -0710 LOT 1 EXCEPT THE W 80 FT THEREOF, AND THE S 1/2 OF LOT 2 EXCEPT THE W 80 FT THEREOF, ALL IN BLK 7. 75- 410 -0705 W 80 FT OF LOT 1 & W 80 FT OF S 1 -2 OF LOT 2, BLK 7 75- 410 -0740 LOT 10 & E 1 -2 OF LOT 11, BLK 7 75- 410 -0745 W 1 -2 OF LOT 11 & ALL OF LOT 12, BLK 7 75- 403 -0010 LOT 1 75- 403 -0020 LOT 2 75- 403 -0030 LOT 3 The area encompassed by the TIF District shall also include all street or utility right -of -ways located upon or adjacent to the property described above, as illustrated in the boundary map included in Exhibit I. Section H Property to be Acquired in the TIF District The City anticipates acquiring property located within the TIF District; and reserves the right to sell such property as related to redevelopment. Section I Specific Development Expected to Occur Within the TIF District The proposed project includes the redevelopment of property within the City that consists of blighted buildings that have been found to be substandard and will be demolished. A business is planning the construction of an SPRINGSTED Page 4 City of Elk River, Minnesota approximate new 7,216 square foot facility to operate a light maintenance facility for the Beaudry Oil existing fleet. The facility will be used for minor repair for Beaudry Oil & Propane Fleet (not open to the public), which includes oil changes, replacing tires, changing brakes, minor service, light maintenance, cleaning and detailing. The City has identified additional public improvement costs related to the redevelopment project including acquisition of additional blighted properties adjacent to the proposed project site, as well as infrastructure improvements to allow better access to the project site. Following acquisition and demolition of the blighted properties, it is anticipated that a second development will occur in the District, generating additional taxable value and increment that will be available to financing the redevelopment costs. The City anticipates using tax increments to finance the identified redevelopment costs, including eligible related administrative expenses. Demolition and subsequent construction of the new development on the project site is projected to start in 2017 and is anticipated to occur in phases subject to market. The total project is expected to be fully constructed by December 31, 2018, and be 100% assessed and on the tax rolls as of January 2, 2019 for taxes payable 2020. Section J Findings and Need for Tax Increment Financing In establishing the TIF District, the City makes the following findings: (1) The TIF District qualifies as a redevelopment district; The City hired LHB to inspect and evaluate the property within the proposed Tax Increment Financing District No. 24 to be established by the City. The purpose of the evaluation was to determine if the proposed district met the statutory requirements for coverage and if the buildings met the qualifications required for a Redevelopment District. A final report will be prepared for the City to retain on file in City offices for public inspection. The report contains the details of the findings summarized below regarding the substandard qualifications: The TIF District consists of twelve parcels that are occupied so 100 percent of the area of the proposed TIF District is occupied (exceeding the 70 percent coverage test); 66.7 percent (8 of 12) of the buildings in the proposed District contain code deficiencies exceeding the 15 percent threshold; at least 50 percent of the buildings are structurally substandard to a degree requiring substantial renovation or clearance, because of defects in structural 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 are of sufficient total significance to justify substantial renovation or clearance, exceeding the more than 50 percent substandard test; and The substandard buildings are reasonably distributed throughout the geographic area of the proposed TIF District. (2) The proposed redevelopment, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the TIF Plan. Factual basis: Proposed development not expected to occur.- SPRINGSTED Page 5 City of Elk River, Minnesota The proposed project consists of the redevelopment of property within the City that consists of blighted properties that were found to be substandard and will be demolished following establishment of the district. The City has identified significant and extraordinary costs including public improvements, acquisition and demolition associated with redevelopment of the project site in conjunction with new development. The estimated total redevelopment costs for this property make the total cost of this effort significantly higher than costs reasonably incurred for similar developments on a clean site. The City's finding that the proposed redevelopment would be unlikely to occur solely through private investment within the reasonably foreseeable future is based on an analysis of the proforma and other materials submitted by the developer. As necessary, the City anticipates analyzing future developer's proformas in detail to determine the minimal amount of assistance needed to compensate developers for extraordinary and allowable costs. No higher market value expected. If the proposed redevelopment did not go forward, for the same reasons described above, no significant alternative redevelopment of the proposed TIF area would occur. The existing buildings are currently substandard and it is highly unlikely that the improvements would be made on the property site without tax increment financing. In short, there is no basis for expectation that the area would redevelop or be renovated in any significant way purely by private action without public subsidy. To summarize the basis for the City's findings regarding alternative market value, in accordance with Minnesota Statutes, Section 469.175, Subd. 3(d), the City makes the following determinations: a. The City's estimate of the amount by which the market value of the site will increase without the use of tax increment financing is anywhere from $0 to some modest amount based on small scale renovation or redevelopment that could be possible without assistance; any estimated values would be too speculative to ascertain. b. If the proposed development to be assisted with tax increment occurs in the District, the total increase in market value would be approximately $2,829,727, including the value of the building (See Exhibit V). C. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $731,388 (See Exhibit V). d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $2,098,339 (the amount in clause b less the amount in clause c) without tax increment assistance. (3) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for development of the Project Area by private enterprise. Factual basis: The anticipated redevelopment of the project site and any subsequent demolition, reconstruction, or renovation related to the project will remain consistent with the City's design goals. (4) The TIF Plan conforms to general plans for development of the City as a whole. Factual basis: The City Planning Commission has determined that the development proposed in the TIF Plan conforms to the City comprehensive plan. SPRINGSTED Page 6 City of Elk River, Minnesota Section K Estimated Public Costs The estimated public costs of the TIF District are listed below. Such costs are eligible for reimbursement from tax increments of the TIF District. Land/Building acquisition 500,000 Site improvement/preparation costs 167,000 Utilities Other public improvements Interest expenses 598,753 Administrative expenses 140,640 Total 1 1,406,393 The City anticipates using tax increment to the extent available to finance redevelopment costs of the project including primarily acquisition of blighted properties and site improvement /preparation costs (demolition), related administrative expenses, and other TIF - eligible expenditures as deemed necessary and related to redevelopment of the project site. The City reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost ($1,406,393) is not increased. The City also reserves the right to fund any of the identified costs with any other legally available revenues, but anticipates that such costs will be primarily financed with tax increments. Section L Estimated Sources of Revenue Tax Increment revenue 1,406,393 Interest on invested funds Other Total 1,406,393 The City anticipates capturing the tax increments from the project for financing of the identified redevelopment costs including acquisition and demolition. As tax increments are collected from the TIF District in future years, a portion of these taxes will be used by the City to reimburse itself for public costs incurred (see Section K). The City also anticipates retaining any remaining increment to finance additional needed public improvement costs. The City reserves the right to finance any or all public costs of the TIF District using pay -as- you -go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The City also reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. Section M Estimated Amount of Bonded Indebtedness The maximum principal amount of bonds (as defined in the TIF Act) secured in whole or part with tax increment from the TIF District is $1,406,393. The City currently plans to finance the acquisition and demolition costs through an interfund loan, but reserves the right to issue bonds in any form, including without limitation any interfund loan with interest not to exceed the maximum permitted under Section 469.178, subd. 7 of the TIF Act. SPRINGSTED Page 7 City of Elk River, Minnesota Section N Original Net Tax Capacity The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31, inclusive, this value is based on the current assessment year. The Estimated Taxable Value of all property within the TIF District as of January 2, 2017, for taxes payable in 2018, is $1,352,500. Upon establishment of the district and subsequent reclassification of the property, the estimated original net tax capacity of the TIF District is estimated to be $20,874. This assumes the properties are reclassified from residential to commercial - industrial. This value is also assumed to be the value of the properties, including land and building, as of the date the substandard buildings occupied the parcel. Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax - exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements; or (4) changes in property classification rates. Section 0 Original Local Tax Rate The County Auditor shall also certify the original local tax rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. In future years, the amount of tax increment generated by the TIF District will be calculated using the lesser of (a) the sum of the current local tax rates at that time or (b) the original local tax rate of the TIF District. The sum of all local tax rates that apply to property in the TIF District, for taxes levied in 2017 and payable in 2018 shall be the original tax capacity assuming the request for certification is made after June 30, 2017. The County Auditor shall certify the amount for taxes payable 2018 as the original tax capacity rate of the TIF District. For purposes of estimating the tax increment generated by the TIF District, the sum of the local tax rates for taxes levied in 2016 and payable in 2017, is 137.819% as shown below. 2016/2017 Taxing Jurisdiction Local Tax Rate City of Elk River 46.193% Sherburne County 50.458% ISD #728 36.659% Other 4.509% Total 137.819% SPRINGSTED Page 8 City of Elk River, Minnesota Section P Projected Retained Captured Net Tax Capacity and Projected Tax Increment The City anticipates that the redevelopment will be completed by December 31, 2018, creating a total tax capacity for TIF District No. 24 of $40,398 as of January 2, 2019. The captured tax capacity as of that date is estimated to be $19,524 and the first full year of increment is projected to be in $26,908 in taxes payable 2020. A complete schedule of estimated tax increment from the TIF District is shown in Exhibit III. Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TIF District. The estimates shown in this TIF plan assume that commercial - industrial class rates remain at 1.50% for value up to $150,000 and 2% for value above $150,000 of the estimated taxable value, and assume 3% annual increases in market values. Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TIF District. The County Auditor shall certify to the City the amount of captured net tax capacity each year. The City may choose to retain any or all of this amount. It is the City's intention to retain 100% of the captured net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the TIF District. Exhibit II gives a listing of the various information and assumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit III which shows the projected tax increment generated over the anticipated life of the TIF District. Section Q Use of Tax Increment Each year the County Treasurer shall deduct 0.36% of the annual tax increment generated by the TIF District and pay such amount to the State's General Fund. Such amounts will be appropriated to the State Auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. Exhibit III shows the projected deduction for this purpose over the anticipated life of the TIF District. The City has determined that it will use 100% of the remaining tax increment generated by the TIF District for any of the following purposes: (1) pay for the estimated public costs of the TIF District (see Section K) and County administrative costs associated with the TIF District (see Section T); (2) pay principal and interest on tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (3) accumulate a reserve securing the payment of tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (4) pay all or a portion of the county road costs as may be required by the County Board under M.S. Section 469.175, Subdivision 1a; or (5) return excess tax increments to the County Auditor for redistribution to the City, County and School District. SPRINGSTED Page 9 City of Elk River, Minnesota Tax increments from property located in one county must be expended for the direct and primary benefit of a project located within that county, unless both county boards involved waive this requirement. Tax increments shall not be used to circumvent levy limitations applicable to the City. Tax increment shall not be used to finance the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the State or federal government, or for a commons area used as a public park, or a facility used for social, recreational, or conference purposes. This prohibition does not apply to the construction or renovation of a parking structure or of a privately owned facility for conference purposes. If there exists any type of agreement or arrangement providing for the developer, or other beneficiary of assistance, to repay all or a portion of the assistance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on the use of tax increments. Assistance includes sale of property at less than the cost of acquisition or fair market value, grants, ground or other leases at less then fair market rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would otherwise be paid for by the developer or beneficiary. Section R Excess Tax Increment In any year in which the tax increments from the TIF District exceed the amount necessary to pay the estimated public costs authorized by the TIF Plan, the City shall use the excess tax increments to: (1) prepay any outstanding tax increment bonds; (2) discharge the pledge of tax increments thereof; (3) pay amounts into an escrow account dedicated to the payment of the tax increment bonds; or (4) return excess tax increments to the County Auditor for redistribution to the City, County and School District. The County Auditor must report to the Commissioner of Education the amount of any excess tax increment redistributed to the School District within 30 days of such redistribution. Section S Tax Increment Pooling and the Five Year Rule At least 75% of the tax increments from the TIF District must be expended on activities within the district or to pay for bonds used to finance the estimated public costs of the TIF District (see Section E for additional restrictions). No more than 25% of the tax increments may be spent on costs outside of the TIF District but within the boundaries of the Project Area, except to pay debt service on credit enhanced bonds. All administrative expenses are considered to have been spent outside of the TIF District. Tax increments are considered to have been spent within the TIF District if such amounts are: (1) actually paid to a third party for activities performed within the TIF District within five years after certification of the district; (2) used to pay bonds that were issued and sold to a third party, the proceeds of which are reasonably expected on the date of issuance to be spent within the later of the five -year period or a reasonable temporary period or are deposited in a reasonably required reserve or replacement fund. (3) used to make payments or reimbursements to a third party under binding contracts for activities performed within the TIF District, which were entered into within five years after certification of the district; or SPRINGSTED Page 10 City of Elk River, Minnesota (4) used to reimburse a party for payment of eligible costs (including interest) incurred within five years from certification of the district. Beginning with the sixth year following certification of the TIF District, at least 75% of the tax increments must be used to pay outstanding bonds or make contractual payments obligated within the first five years. When outstanding bonds have been defeased and sufficient money has been set aside to pay for such contractual obligations, the TIF District must be decertified. The City does not anticipate that tax increments will be spent outside the TIF District (including allowable administrative expenses), but such expenditures are expressly authorized in this TIF Plan. Section T Limitation on Administrative Expenses Administrative expenses are defined as all costs of the City other than: (1) amounts paid for the purchase of land; (2) amounts paid for materials and services, including architectural and engineering services directly connected with the physical development of the real property in the project; (3) relocation benefits paid to, or services provided for, persons residing or businesses located in the project; (4) amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to section 469.178; or (5) amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clause (1) to (3). Administrative expenses include amounts paid for services provided by bond counsel, fiscal consultants, planning or economic development consultants, and actual costs incurred by the County in administering the TIF District. Tax increments may be used to pay administrative expenses of the TIF District up to the lesser of (a) 10% of the total tax increment expenditures authorized by the TIF Plan or (b) 10% of the total tax increments received by the TIF District. Section U Limitation on Property Not Subject to Improvements - Four Year Rule If after four years from certification of the TIF District no demolition, rehabilitation, renovation, or qualified improvement of an adjacent street has commenced on a parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the original net tax capacity shall be adjusted accordingly. Qualified improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The City must submit to the County Auditor, by February 1 of the fifth year, evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the City or owner of the parcel subsequently commences any of the above activities, the City shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF District. SPRINGSTED Page 11 City of Elk River, Minnesota Section V Estimated Impact on Other Taxing Jurisdictions Exhibit IV shows the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The City believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. The fiscal and economic implications of the proposed tax increment financing district, as pursuant to Minnesota Statutes, Section 469.175, Subdivision 2, are listed below. 1. The total amount of tax increment that will be generated over the life of the district is estimated to be $1,411,473. 2. To the extent the project in TIF District No. 24 generates any public cost impacts on city - provided services such as police and fire protection, public infrastructure, and the impact of any general obligation tax increment bonds attributable to the district upon the ability to issue other debt for general fund purposes, such costs will be levied upon the taxable net tax capacity of the City, excluding that portion captured by the District. The City does not anticipate issuing general obligation tax increment bonds, but reserves the right to the use of internal financing, as necessary, to finance a portion of the project costs attributable to the District. 3. The amount of tax increments over the life of the district that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is estimated to be $375,444. 4. The amount of tax increments over the life of the district that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same is estimated to be $516,767. 5. No additional information has been requested by the county or school district that would enable it to determine additional costs that will accrue to it due to the development proposed for the district. Section W Prior Planned Improvements The City shall accompany its request for certification to the County Auditor (or notice of district enlargement), with a listing of all properties within the TIF District for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan. The County Auditor shall increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. Section X Development Agreements If within a project containing a redevelopment district, more than 25% of the acreage of the property to be acquired by the City is purchased with tax increment bonds proceeds (to which tax increment from the property is pledged), then prior to such acquisition, the City must enter into an agreement for the development of the property. Such agreement must provide recourse for the City should the development not be completed. SPRINGSTED Page 12 City of Elk River, Minnesota The City does not anticipate entering into an agreement for development. The City does anticipate acquiring several properties directly in conjunction with redevelopment as proposed within the district. Section Y Assessment Agreements The City may, upon entering into a development agreement, also enter into an assessment agreement with the developer, which establishes a minimum market value of the land and improvements for each year during the life of the TIF District. The assessment agreement shall be presented to the County or City Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land, and so long as the minimum market value contained in the assessment agreement appears to be an accurate estimate, shall certify the assessment agreement as reasonable. The assessment agreement shall be filed for record in the office of the County Recorder of each county where the property is located. Any modification or premature termination of this agreement must first be approved by the City, County and School District. The City does not anticipate entering into an assessment agreement. Section Z Modifications of the Tax Increment Financing Plan Any reduction or enlargement in the geographic area of the Project Area or the TIF District; a determination to capitalize interest on the debt if that determination was not part of the original TIF Plan, increase in the portion of the captured net tax capacity to be retained by the City; increase in the total estimated public costs; or designation of property to be acquired by the City shall be approved only after satisfying all the necessary requirements for approval of the original TIF Plan. This paragraph does not apply if: (1) the only modification is elimination of parcels from the TIF District; and (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF District's original net tax capacity, or the City agrees that the TIF District's original net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. The City must notify the County Auditor of any modification that reduces or enlarges the geographic area of the TIF District. The geographic area of the TIF District may be reduced but not enlarged after five years following the date of certification. Section AA Administration of the Tax Increment Financing Plan Upon adoption of the TIF Plan, the City shall submit a copy of such plan to the Minnesota Department of Revenue and the Office of the State Auditor. The City shall also request that the County Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in this process, the City shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the TIF Plan, and a listing of any prior planned improvements. The City shall also send the County Assessor any assessment agreement establishing the minimum market value of land and improvements in the TIF District, and shall request that the County Assessor review and certify this assessment agreement as reasonable. The County shall distribute to the City the amount of tax increment as it becomes available. The amount of tax increment in any year represents the applicable property taxes generated by the retained captured net tax capacity of the TIF District. The amount of tax increment may change due to development anticipated by the TIF Plan, other development, inflation of property values, or changes in property classification rates or formulas. In administering and implementing the TIF Plan, the following actions should occur on an annual basis: SPRINGSTED Page 13 City of Elk River, Minnesota prior to July 1, the City shall notify the County Assessor of any new development that has occurred in the TIF District during the past year to insure that the new value will be recorded in a timely manner. (2) if the County Auditor receives the request for certification of a new TIF District, or for modification of an existing TIF District, before July 1, the request shall be recognized in determining local tax rates for the current and subsequent levy years. Requests received on or after July 1 shall be used to determine local tax rates in subsequent years. (3) each year the County Auditor shall certify the amount of the original net tax capacity of the TIF District. The amount certified shall reflect any changes that occur as a result of the following: (a) the value of property that changes from tax - exempt to taxable shall be added to the original net tax capacity of the TIF District. The reverse shall also apply; (b) the original net tax capacity may be modified by any approved enlargement or reduction of the TIF District; (c) if laws governing the classification of real property cause changes to the percentage of estimated market value to be applied for property tax purposes, then the resulting increase or decrease in net tax capacity shall be applied proportionately to the original net tax capacity and the retained captured net tax capacity of the TIF District. The County Auditor shall notify the City of all changes made to the original net tax capacity of the TIF District. Section AB Filing TIF Plan, Financial Reporting and Disclosure Requirements The City will file the TIF Plan, and any subsequent amendments thereto, with the Commissioner of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes, Section 469.175, subdivision 4A. The City will comply with all reporting requirements for the TIF District under Minnesota Statutes, Section 469.175, subdivisions 5 and 6. SPRINGSTED Page 14 Exhibit 1 MAP OF PROPOSED TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 24 SPRINGSTED Page 15 lit ft A Ella.. - River 3r�r i:r y it ryiF �■,r ,_ X.,� 4 , b r a i� c• umIts C3 UFbw &"m Area [ 'P-16 0 -242 M Part Ames ri 1r jl IJ � r ^ e l _ T 17' I1: W :. 4 i 'WIN rr. t� �uvr 2 Redevelopment 6" r a #24 City of Elk. Rive �wrrgra�ara SPRINGSTED Page 15 Exhibit 11 Assumptions Report City of Elk River, Minnesota Tax Increment Financing (Redevelopment) District The Truck Shop Redevelopment Project Draft TIF Plan Exhibits Type of Tax Increment Financing District Redevelopment Maximum Duration of TIF District 25 years from 1st increment Projected Certification Request Date 12/30/17 Actual Certification Request Date Decertification Date 12/31/45 (26 Years of Increment) Base Estimated Market Value $1,352,500 Original Net Tax Capacity $20,874 Base Estimated Market Value Increase in Estimated Market Value Total Estimated Market Value Total Net Tax Capacity Assess ment/Collection Year 2017/2018 2018/2019 2019/2020 2020/2021 $1,352,500 $1,352,500 $1,352,500 $1,352,500 $0 $0 $704,879 $766,600 Local Tax Capacity Rate 137.819% Payable 2017 Frozen Tax Rate 137.819% $1,352,500 $1,352,500 $2,057,379 $2,119,100 $20,874 $20,874 $40,398 $41,632 City of Elk River 46.193% Sherburne County 50.458% ISD #728 36.659% Other 4.509% Local Tax Capacity Rate 137.819% Payable 2017 Frozen Tax Rate 137.819% Fiscal Disparities Contribution From TIF District NA Administrative Retainage Percent (maximum = 10 %) 10.00% 10.00% Pooling Percent 0.00% 0.00% Bonds Interfund Loan Bonds Dated NA Note Dated 02/01/18 Bond Issue @ 0.00% (NIC) NA Note Rate 4.00% Eligible Project Costs NA Note Amount $667,000 Present Value Date & Rate 02/01/18 4.00% Notes Projections assume no future changes to tax and classification rates with 3% annual MV inflator Projections are based on Pay2017 Total Tax Rate provided by County. Base values are existing land and building values SPRINGSTED Page 16 s W 0 Q C d d v C K v d �O CL` O N r O O L 1 U d ,c t a L O � Q C N L L G � L N ( a a O L C 1 ,O 4 N � N OO U O . � N Lu oti U �a 'm m o , o Q N N a w O � O N L2 1 O t's Q N N h N O ,U h o a O .o 0 O O U U s: � o � c a U •(p N O � � m O � N � � N O � U N N N U (U a � � C U k •� co) � O v cu d w W z �I a 000 0 N V 0 O In 00 00 (O V N N In () 00 () M M O In 00 O V 0 M ° N 1- O O1- V M O In 00 () 00 In O M U) (O V N 00 M (O 00 O O In Cl V oc — In Oc — V (O oc O N V (O [- oc O O — — N N N (`M In � 7 N N N M M V V V In In In In (O (O (O (O (O (O (O r- r- r- r- r- r- r- (O a� 0 0 N N N N N N N N N N N N N N N N N N N N N N N N N N M M M M M M M M M M M M M M M M M M M M M M M M M M M M M Q cr U Z 0 O O O (r- M OW N N x N� W N N 0 r- O W O (O 00 N 0) N N M V O W O N N In � O M (O O In LA In O (O M O CA (O V V M V In (O O N In O In 000 O M ON O NN 0 (A O N M V 0 r- 00 O N M In r- 00 O N V 0 00 O N V r- 0 N V N N N 0) N 0) N r- O O O OO 00 L � V U V N L � (O N oc In N cl oc (O (O (O (O G In oc M oc V oc (O (O � L � _ N D V In r- 00 O N M In � O M In r- O N V r- O N In r- O M (O () In Cz > N N N N M M (M (M (M (M V V V V In In In In In (O (O (O r- r- r- r- N V V V V V V V V V V V V V V V V V V V V V V V V V V V V V a m x O O O W 0W Nr p OO 00 00 r- � LO U (O N 0 0 A O N L N Mr- M M V W C (C0 n O N (M � cl V (O oc O M In Oc O M (O O N oc n oc (O 0 9 0 N N M M M M M (Y) 't n n n n (O (O (O (O CA CA CA O J Q N O ; T V V 00 N M M N N 0 0 00 O 00 I� I- O I- O M I- I- M 00 0 V C 000 ; 0 N O M � 00 n N V N 00 In V() O O N 00 N In M O In M N V O In In O r- 0 00 M V N 0 00 r- M 00 O O 00 N r- N (O Oc In N O O oc � oc oc O N In Oc N � M O � In (M M V In Oc — (O () M 7 O C 0 00 O N M In r- 0 V 0 00 O M In 00 O M (0 O N In 00 In 00 N N M M M M M M V V V V In In In In (O (O (O (O r- r- r- CA 00 00 (0 O �a) Z Q cL af a N Ln U 0 C O O O O r- M O (O N O (O V O r- In V (M N 0 0 0 N V (0 00 O O C O O O N N M V In In (O CA O O N M V r- 00 O O N 00 p N N N N N N N N N M (`") O N Q U 0 N (6 N N N N r O N 00 In In (0 O (0 V V r- M In O N E In 1- N O N r- D(D O E CR ~ (M (M (M O N M (M V In (O (O CA (A O N M V In (O oc O O (M (n o LLJ O O O N W 0 R r- M O O (O (MO V M () IN r- LO N LO N� O N V M � r- jR N Cl) ( ) (O M O ( ) (A ( ) O V (O O V ( ) In N O r- (O (O (O 00 V ( ) V H N (O 00 O N V In 1- O N V (O 00 M In 00 M (O O N U) 00 N In 00 M M M M M M M M M M M M M M M M M M M M M M M M M M M M M C N E N N N M M M M M M V V V V In V) In In (O (O (O (O r- r- r- 00 00 00 _ C O a iu — — — — — — — — — — — — — — — — — — — — — — — — — — — — — Q U C V) O N r O O L 1 U d ,c t a L O � Q C N L L G � L N ( a a O L C 1 ,O 4 N � N OO U O . � N Lu oti U �a 'm m o , o Q N N a w O � O N L2 1 O t's Q N N h N O ,U h o a O .o 0 O O U U s: � o � c a U •(p N O � � m O � N � � N O � U N N N U (U a � � C U k •� co) � O v cu d w W z �I a 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 sZ .� M M M M M M M M M M M M M M M M M M M M M M M M M M M M M cr U O O O (r- M OW N N x N� W N N 0 r- O W O (O 00 N 0) N N M V O W O N N In � O M (O O In LA In O (O M O CA (O V V M V In (O O N In O In C p U (A O N M V 0 r- 00 O N M In r- 00 O N V 0 00 O N V r- 0 N V 7 H N sZ N N N N N N N m m m m m m V V T V V In In In In In 0 0 6 N V V V V V V V V V V V V V V V V V V V V V V V V V V V V V m x c: w H .3 m 0 J 0 Z N U c ; T V V 00 N M M N N 0 0 00 O 00 I� I- O I- O M I- I- M 00 0 V O M O 0 In CA In r- M V O r- CA In CA (O O O 0 O 0 In O O CA CA CA M (O O N In (A M CA M O In N O (O V M N N (M V In � O V CA V p N 2 O O O O N V n 0 00 O N V 0 1- O M n 1- O M n 00 O N n V V V V V V V In In In In In (O (O (O (O r- cc) d � M cL N E U C O O O O m O M M 00 o 00 o o M n M O O O m o M m o n O O n r- V u) O O O r r- In 0 0 V 0 M M r- N 00 M V N n M n O In In In (M (C In O (O M N V cl cc (M (M cl (M V In In (O 00 M V N (O C C,) N N (6 N N N N r O N 00 In In (0 O (0 V V r- M In O N E In 1- N O N r- c c v m O E In In In In CA T 00 In M O 00 (O V M N— O O O 00 N V 0 00 O 11 ~ (M (M (M O N M (M V In (O (O CA (A O N M V In (O oc O O (M X N LL C W LLJ R jR N Cl) r- 00 O O N M V In 0 r- 00 O O N M V In 0 r- 00 O O N M V In W i V LL p C M M M M M M M M M M M M M M M M M M M M M M M M M M M M M C N N N N N N N N N N N N N N N N N N N N N N N N N N N N N 0~ a iu — — — — — — — — — — — — — — — — — — — — — — — — — — — — — L H H U O N r O O L 1 U d ,c t a L O � Q C N L L G � L N ( a a O L C 1 ,O 4 N � N OO U O . � N Lu oti U �a 'm m o , o Q N N a w O � O N L2 1 O t's Q N N h N O ,U h o a O .o 0 O O U U s: � o � c a U •(p N O � � m O � N � � N O � U N N N U (U a � � C U k •� co) � O v cu d w W z �I a r+ L N D N E N Q O O L da > +' N � N m w Q O C y X L LL Q W o CO N FL w L u- O 3 _ O H $ U H H � U O C N N (6 7 L O O O 0 I x U 2 H U N O 4 N (6 O a Q U J > = 0 � (6 U -O n U a U Q J T Q 0 x N X ~ C Z c H Z 0 'O 'O U .� 7 a N (6 f U c O N (x6 c0 x ~ N C C U LO 1 _ N co 1— LO (0 0') N co N co N 0 0 0 O � m c O O O O O 0 0 0 0 co 00 m O V L0 O0 (0 O (0 V V LO c7 � a U N(0 a � U 11 D) O > O J a 0 N LL CO L � V N 00 co 0 O (x6 ~ 2 C x N f C\F L C C U LO 1 _ N co 1— LO (0 0') N co N co N 0 0 0 O � m c O O O O O 0 0 0 0 co 00 m O V L0 O0 (0 O (0 V V LO c7 O O O O co co co co LO LO LO LO 0 00 co N O 0 00 LO c7 00 (0 LO N V N 00 cl m 00 (0 c7 CO C) N V N 00 co N 00 co O O O O co co co co LO LO LO LO 0 00 co N O 0 00 LO c7 00 (0 O - O m x N 0') U 1— N 00 i 00 V N (x6 00 m N C> a7 aO'' N N U C\F O N N 0000 N co Z 0 0 0 0 0 00 m O 0- n N O T O O O) LO LO O V (0 LO a0 (0 O (0 V Cl) V LO co 0 co 00 (0 U N N (6 0 m� m D � N 00 i 00 V (6 (6 H U X 0, U 0 O O Z t 0 00 CO 00 Q — N 00 co EAU > O T O - O m x U 'O U N O � n U (6 of 0 N (x6 O m (B 0 O x 6 N C> a7 aO'' N N U 0 O N N > (6 U = Z W c 00 N N O 0- n N O T O = 0 O L -0 0 0 U O (6 0 0 0 U Cl) Cl) � > O O O O - O m x U 'O U N O � n U (6 of 0 N (x6 O m (B 0 O x 6 N C> a7 aO'' N N L 0 O N N > (6 U = Z (6 N (6 U U (6 L (6 L U ^ O (6 O 0- n N O T O = 0 O L -0 0 (6 0 N O U (6 0 (x0 ~ LL 0 '�5 (6 '� O 'O N +0 C O 0 L ' N ' p 0 (0 n U U N N (6 0 m� m D (6 U m LL m 'O >0( U 5 m m H (6 (6 H U X 0, U 0 O O Z t 0 Q — EAU -0 x U o O 0 m c N 00 H m m (6 O N +� (n N N N U O Z O N Q a.E -0 O a) Z) O Q U C N (00 Q .O U) N U U N o a� 0 a> -0 a) N _0 ._ O U (0 U C L O N C O r N cn k cn N N U x fl � O C .O O � o � o C � O N U 0 fl O O a) (6 N U Q U N LL '0 N N U U) (6 N U O) 0) (6 C fl O U O ax0- O U C O _ O O � II 0) >, x a� a7 Q U) M N U (x6 0 + O � U N 0- Z E H H N co N (u 0- w W C7 z a Exhibit V Market Value Analysis Report City of Elk River, Minnesota Tax Increment Financing (Redevelopment) District The Truck Shop Redevelopment Project Draft TIF Plan Exhibits Assumptions Present Value Date P.V. Rate - Gross T.I. 12/30/17 4.00% Increase in EMV With TIF District $2,829,727 Less: P.V of Gross Tax Increment 731,388 Subtotal $2,098,339 Less: Increase in EMV Without TIF 0 Difference $2,098,339 Annual Present Gross Tax Value @ Year Increment 4.00% 1 2020 26,908 24,154 2 2021 28,609 24,693 3 2022 30,361 25,198 4 2023 32,166 25,669 5 2024 34,025 26,108 6 2025 35,940 26,517 7 2026 37,912 26,896 8 2027 39,944 27,248 9 2028 42,036 27,572 10 2029 44,191 27,871 11 2030 46,411 28,145 12 2031 48,697 28,395 13 2032 51,052 28,624 14 2033 53,478 28,831 15 2034 55,976 29,017 16 2035 58,550 29,184 17 2036 61,200 29,331 18 2037 63,930 29,461 19 2038 66,742 29,574 20 2039 69,639 29,671 21 2040 72,622 29,752 22 2041 75,694 29,818 23 2042 78,859 29,870 24 2043 82,119 29,908 25 2044 85,477 29,934 26 2045 88,935 29,947 $1,411,473 $731,388 SPRINGSTED Page 19 Exhibit VI Report of Inspection Procedures and Results for Determining Qualifications of a Tax Increment Financing District as a Redevelopment District SPRINGSTED Page 20 Report of Inspection Procedures and Results for Determining Qualifications of a Tax Increment Financing District as a Redevelopment District Beaudry Redevelopment TIF District #24 Elk River, Minnesota June 15, 2017 Prepared For the City of Elk River Prepared by: LHB, Inc. 701 Washington Avenue North, Suite 200 Minneapolis, Minnesota 55401 LHB Project No. 170323 TABLE OF CONTENTS PART 1 — EXECUTIVE SUMMARY ................................................. ............................... 2 Purpose of Evaluation ................................................. ............................... 2 Scopeof Work ............................................................ ............................... 3 Conclusion.................................................................. ............................... 3 PART 2 — MINNESOTA STATUTE 469.174, SUBDIVISION 10 REQUIREMENTS....... 3 A. Coverage Test ....................................................... ............................... 4 B. Condition of Buildings Test .................................... ............................... 4 C. Distribution of Substandard Buildings .................... ............................... 5 PART 3 — PROCEDURES FOLLOWED .......................................... ............................... 6 PART 4 — FINDINGS ....................................................................... ............................... 6 A. Coverage Test ....................................................... ............................... 6 B. Condition of Building Test ...................................... ............................... 7 1. Building Inspection ..................................... ............................... 7 2. Replacement Cost ...................................... ............................... 8 3. Code Deficiencies ...................................... ............................... 8 4. System Condition Deficiencies .................... ..............................9 C. Distribution of Substandard Structures .................. ............................... 9 PART 5 - TEAM CREDENTIALS ................................................... ............................... 11 APPENDIX A Property Condition Assessment Summary Sheet APPENDIX B Building Code, Condition Deficiency and Context Analysis Reports APPENDIX C Building Replacement Cost Reports Code Deficiency Cost Reports Photographs Beaudry Redevelopment TIF District #24 LHB Project No. 170323 Page 1 of 12 Final Report PART 1 - EXECUTIVE SUMMARY PURPOSE OF EVALUATION LHB was hired by the City of Elk River to inspect and evaluate the properties within a Tax Increment Financing Redevelopment District ( "TIF District ") proposed to be established by the City. The proposed TIF District is located at the northwest corner of 6`'' Street Northwest and Proctor Avenue Northwest (Diagram 1). The purpose of LHB's work is to determine whether the proposed TIF District meets the statutory requirements for coverage, and whether twelve (12) buildings on twelve (12) parcels and one (1) right of way parcel, located within the proposed TIF District, meet the qualifications required for a Redevelopment District. Diagram 1— Proposed TIF District Beaudry Redevelopment TIF District #24 LHB Project No. 170323 Page 2 of 12 Final Report SCOPE OF WORK The proposed TIF District consists of twelve (12) parcels and one (1) right of way parcel with twelve (12) buildings. Nine (9) buildings were inspected on the interior and exterior and one (1) building was inspected on the exterior on May 5, 2017 and May 16, 2017. Two (2) buildings were not inspected as they were assumed to be "Not Substandard" based on an exterior evaluation. Building Code and Condition Deficiency Reports for the buildings that were found to be substandard are located in Appendix B. CONCLUSION After inspecting and evaluating the properties within the proposed TIF District and applying current statutory criteria for a Redevelopment District under Minnesota Statutes, Section 469. 174, Subdivision 10, it is our professional opinion that the proposed TIF District qualifies as a Redevelopment District because: • The proposed TIF District has a coverage calculation of 100 percent which is above the 70 percent requirement. • 66.7 percent of the buildings are structurally substandard which is above the 50 percent requirement. • The substandard buildings are reasonably distributed. The remainder of this report describes our process and findings in detail. PART 2 - MINNESOTA STATUTE 469.174, SUBDIVISION 10 REQUIREMENTS The properties were inspected in accordance with the following requirements under Minnesota Statutes, Section 469.174, Subdivision 10(c), which states: INTERIOR INSPECTION "The municipality may not make such determination [that the building is structurally substandard] without an interior inspection of the property..." EXTERIOR INSPECTION AND OTHER MEANS "An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard." DOCUMENTATION "Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained under section 469.175, subdivision 3(1)." Beaudry Redevelopment TIF District #24 LHB Project No. 170323 Page 3 of 12 Final Report QUALIFICATION REQUIREMENTS Minnesota Statutes, Section 469.174, Subdivision 10 (a) (1) requires three tests for occupied parcels: A. COVERAGE TEST ..."parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, or paved or gravel parking lots..." The coverage required by the parcel to be considered occupied is defined under Minnesota Statutes, Section 469.174, Subdivision 10(e), which states: "For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or other similar structures." B. CONDITION OF BUILDINGS TEST Minnesota Statutes, Section 469.174, Subdivision 10(a) states, "...and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance;" Structurally substandard is defined under Minnesota Statutes, Section 469.174, Subdivision 10(b), which states: "For purposes of this subdivision, `structurally substandard' shall mean containing defects in structural 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 are of sufficient total significance to justify substantial renovation or clearance." a. We do not count energy code deficiencies toward the thresholds required by Minnesota Statutes, Section 469.174, Subdivision 10(b) defined as "structurally substandard ", due to concerns expressed by the State of Minnesota Court of Appeals in the Wlalser Auto Sales, Inc. vs. City of Richfield case filed November 13, 2001. 2. Buildings are not eligible to be considered structurally substandard unless they meet certain additional criteria, as set forth in Subdivision 10(c) which states: "A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence 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 similar reliable evidence." "Items of evidence that support such a conclusion [that the building is not disqualified] include recent fire or police inspections, on -site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence." Beaudry Redevelopment TIF District #24 LHB Project No. 170323 Page 4 of 12 Final Report LHB counts energy code deficiencies toward the 15 percent code threshold required by Minnesota Statutes, Section 469.174, Subdivision 10(c)) for the following reasons: • The Minnesota energy code is one of ten building code areas highlighted by the Minnesota Department of Labor and Industry website where minimum construction standards are required by law. • Chapter 13 of the 2015 Minnesota Building Code states, `Buildings shall be designed and constructed in accordance with the International Energy Conservation Code." Furthermore, Minnesota Rules, Chapter 1305.0021 Subpart 9 states, "References to the International Energy Conservation Code in this code mean the Minnesota Energy Code..." • Chapter 11 of the 2015 Minnesota Residential Code incorporates Minnesota Rules, Chapters, 1322 and 1323 Minnesota Energy Code. • The Senior Building Code Representative for the Construction Codes and Licensing Division of the Minnesota Department of Labor and Industry confirmed that the Minnesota Energy Code is being enforced throughout the State of Minnesota. • In a January 2002 report to the Minnesota Legislature, the Management Analysis Division of the Minnesota Department of Administration confirmed that the construction cost of new buildings complying with the Minnesota Energy Code is higher than buildings built prior to the enactment of the code. • Proper TIF analysis requires a comparison between the replacement value of a new building built under current code standards with the repairs that would be necessary to bring the existing building up to current code standards. In order for an equal comparison to be made, all applicable code chapters should be applied to both scenarios. Since current construction estimating software automatically applies the construction cost of complying with the Minnesota Energy Code, energy code deficiencies should also be identified in the existing structures. C. DISTRIBUTION OF SUBSTANDARD BUILDINGS Minnesota Statutes, Section 469.174, Subdivision 10, defines a Redevelopment District and requires one or more of the following conditions, "reasonably distributed throughout the district." (1) "Parcels consisting of 70 percent 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 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; (2) the property consists of vacant, unused, underused, inappropriately used, or infrequently used rail yards, rail storage facilities, or excessive or vacated railroad rights -of -way; (3) tank facilities, or property whose immediately previous use was for tank facilities..." Our interpretation of the distribution requirement is that the substandard buildings must be reasonably distributed throughout the district as compared to the location of all buildings in the district. For example, if all of the buildings in a district are located on one half of the area of the district, with the other half occupied by parking lots (meeting the required 70 percent coverage for the district), we would evaluate the distribution of the substandard Beaudry Redevelopment TIF District #24 LHB Project No. 170323 Page 5 of 12 Final Report buildings compared with only the half of the district where the buildings are located. If all of the buildings in a district are located evenly throughout the entire area of the district, the substandard buildings must be reasonably distributed throughout the entire area of the district. We believe this is consistent with the opinion expressed by the State of Minnesota Court of Appeals in the Wl'alserAuto Sales, Inc. vs. City of Kicbfield case filed November 13, 2001. PART 3 - PROCEDURES FOLLOWED LHB inspected ten (10) of the twelve (12) buildings during the day of May 5, 2017 and May 16, 2017. Two (2) buildings were assumed to be "Not Substandard" based on an exterior evaluation. PART 4 - FINDINGS A. COVERAGE TEST 1. The total square foot area of the parcel in the proposed TIF District was obtained from City records, GIS mapping and site verification. 2. The total square foot area of buildings and site improvements on the parcels in the proposed TIF District was obtained from City records, GIS mapping and site verification. 3. The percentage of coverage for each parcel in the proposed TIF District was computed to determine if the 15 percent minimum requirement was met. The total square footage of parcels meeting the 15 percent requirement was divided into the total square footage of the entire district to determine if the 70 percent requirement was met. FINDING: The proposed TIF District met the coverage test under Minnesota Statutes, Section 469. 174, Subdivision 10(e), which resulted in parcels consisting of 100 percent of the area of the proposed TIF District being occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures (Diagram 2). This exceeds the 70 percent area coverage requirement for the proposed TIF District under Minnesota Statutes, Section 469.174, Subdivision (a) (1). Beaudry Redevelopment TIF District #24 LHB Project No. 170323 Page 6 of 12 Final Report Diagram 2 — Coverage Diagram Shaded area depicts a parcel more than 15 percent occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures B. CONDITION OF BUILDING TEST BUILDING INSPECTION The first step in the evaluation process is the building inspection. After an initial walk - thru, the inspector makes a judgment whether or not a building "appears" to have enough defects or deficiencies of sufficient total significance to justify substantial renovation or clearance. If it does, the inspector documents with notes and photographs code and non- code deficiencies in the building. Beaudry Redevelopment TIF District #24 LHB Project No. 170323 Page 7 of 12 Final Report 2. REPLACEMENT COST The second step in evaluating a building to determine if it is substandard to a degree requiring substantial renovation or clearance is to determine its replacement cost. This is the cost of constructing a new structure of the same square footage and type on site. Replacement costs were researched using R.S. Means Cost Works square foot models for 2017. A replacement cost was calculated by first establishing building use (office, retail, residential, etc.), building construction type (wood, concrete, masonry, etc.), and building size to obtain the appropriate median replacement cost, which factors in the costs of construction in Elk River, Minnesota. Replacement cost includes labor, materials, and the contractor's overhead and profit. Replacement costs do not include architectural fees, legal fees or other "soft" costs not directly related to construction activities. Replacement cost for each building is tabulated in Appendix A. 3. CODE DEFICIENCIES The next step in evaluating a building is to determine what code deficiencies exist with respect to such building. Code deficiencies are those conditions for a building which are not in compliance with current building codes applicable to new buildings in the State of Minnesota. Minnesota Statutes, Section 469.174, Subdivision 10(c), specifically provides that a building cannot be considered structurally substandard if its code deficiencies are not at least 15 percent of the replacement cost of the building. As a result, it was necessary to determine the extent of code deficiencies for each building in the proposed TIF District. The evaluation was made by reviewing all available information with respect to such buildings contained in City Building Inspection records and making interior and exterior inspections of the buildings. LHB utilizes the current Minnesota State Building Code as the official code for our evaluations. The Minnesota State Building Code is actually a series of provisional codes written specifically for Minnesota only requirements, adoption of several international codes, and amendments to the adopted international codes. After identifying the code deficiencies in each building, we used R.S. Means Cost Works 2017; Unit and Assembly Costs to determine the cost of correcting the identified deficiencies. We were then able to compare the correction costs with the replacement cost of each building to determine if the costs for correcting code deficiencies meet the required 15 percent threshold. FINDING: Eight (8) out of twelve (12) buildings (66.7 percent) in the proposed TIF District contained code deficiencies exceeding the 15 percent threshold required by Minnesota Statutes, Section 469.174, Subdivision 10(c). Building Code, Condition Deficiency and Context Analysis reports for the buildings in the proposed TIF District can be found in Appendix B of this report. Beaudry Redevelopment TIF District #24 LHB Project No. 170323 Page 8 of 12 Final Report 4. SYSTEM CONDITION DEFICIENCIES If a building meets the minimum code deficiency threshold under Minnesota Statutes, Section 469.174, Subdivision 10(c), then in order for such building to be "structurally substandard" under Minnesota Statutes, Section 469.174, Subdivision 10(b), the building's defects or deficiencies should be of sufficient total significance to justify "substantial renovation or clearance." Based on this definition, LHB re- evaluated each of the buildings that met the code deficiency threshold under Minnesota Statutes, Section 469.174, Subdivision 10(c), to determine if the total deficiencies warranted "substantial renovation or clearance" based on the criteria we outlined above. System condition deficiencies are a measurement of defects or substantial deterioration in site elements, structure, exterior envelope, mechanical and electrical components, fire protection and emergency systems, interior partitions, ceilings, floors and doors. The evaluation of system condition deficiencies was made by reviewing all available information contained in City records, and making interior and exterior inspections of the buildings. LHB only identified system condition deficiencies that were visible upon our inspection of the building or contained in City records. We did not consider the amount of "service life" used up for a particular component unless it was an obvious part of that component's deficiencies. After identifying the system condition deficiencies in each building, we used our professional judgment to determine if the list of defects or deficiencies is of sufficient total significance to justify "substantial renovation or clearance." FINDING: In our professional opinion, eight (8) out of twelve (12) buildings (66.7 percent) in the proposed TIF District are structurally substandard to a degree requiring substantial renovation or clearance, because of defects in structural 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 are of sufficient total significance to justify substantial renovation or clearance. This exceeds the 50 percent requirement of Subdivision 10a(1). C. DISTRIBUTION OF SUBSTANDARD STRUCTURES Much of this report has focused on the condition of individual buildings as they relate to requirements identified by Minnesota Statutes, Section 469.174, Subdivision 10. It is also important to look at the distribution of substandard buildings throughout the geographic area of the proposed TIF District (Diagram 3). FINDING: The parcels with substandard buildings are reasonably distributed compared to all parcels that contain buildings. Beaudry Redevelopment TIF District #24 LHB Project No. 170323 Page 9 of 12 Final Report Diagram 3 — Substandard Buildings Shaded green area depicts parcels with buildings. Shaded orange area depicts substandard buildings. Beaudry Redevelopment TIF District #24 LHB Project No. 170323 Page 10 of 12 Final Report PART 5 - TEAM CREDENTIALS Michael A. Fischer, AIA, LEED AP - Project Principal /TIF Analyst Michael has 29 years of experience as project principal, project manager, project designer and project architect on planning, urban design, educational, commercial and governmental projects. He has become an expert on Tax Increment Finance District analysis assisting over 100 cities with strategic planning for TIF Districts. He is an Architectural Principal at LHB and currently leads the Minneapolis office. Michael completed a two -year Bush Fellowship, studying at MIT and Harvard in 1999, earning Masters degrees in City Planning and Real Estate Development from MIT. He has served on more than 50 committees, boards and community task forces, including a term as a City Council President and as Chair of a Metropolitan Planning Organization. Most recently, he served as Chair of the Edina, Minnesota planning commission and is currently a member of the Edina city council. Michael has also managed and designed several award - winning architectural projects, and was one of four architects in the Country to receive the AIA Young Architects Citation in 1997. Philip Waugh - Project Manager /TIF Analyst Philip is a project manager with 13 years of experience in historic preservation, building investigations, material research, and construction methods. He previously worked as a historic preservationist and also served as the preservation specialist at the St. Paul Heritage Preservation Commission. Currently, Phil sits on the Board of Directors for the Preservation Alliance of Minnesota. His current responsibilities include project management of historic preservation projects, performing building condition surveys and analysis, TIF analysis, writing preservation specifications, historic design reviews, writing Historic Preservation Tax Credit applications, preservation planning, and grant writing. Phil Fisher - Inspector For 35 years, Phil Fisher worked in the field of Building Operations in Minnesota including White Bear Lake Area Schools. At the University of Minnesota he earned his Bachelor of Science in Industrial Technology. He is a Certified Playground Safety Inspector, Certified Plant Engineer, and is trained in Minnesota Enterprise Real Properties (MERP) Facility Condition Assessment (FCA). His FCA training was recently applied to the Minnesota Department of Natural Resources Facilities Condition Assessment project involving over 2,000 buildings. Thomas D. Fennessey - Inspector Prior to joining the LHB team in early 2015, Tom served over 30 years in various positions within facilities management at the University of Wisconsin - Superior, including serving as Director of Facilities Management for over 10 years. His role in LHB's Superior office includes owner's representation, quality assurance of project delivery, construction management, Wisconsin business development, building assessments, plan reviews, and other facilities- related assessments and projects. He has served nearly eight years as a city councilor for the City of Superior and is currently city council president. In his various roles he has worked with both local and state levels of government in seeking new and revised legislation for both higher Ed and local government. 0: \17Pioj \170323 \400 Design \406 Reports \Final Report \170323 20170615 Elk River Proctor and Quinn Redevelopment TIF Report.docx Beaudry Redevelopment TIF District #24 LHB Project No. 170323 Page 11 of 12 Final Report APPENDICES APPENDIX A Property Condition Assessment Summary Sheet APPENDIX B Building Code and Condition Deficiencies Reports APPENDIX C Building Replacement Cost Reports Code Deficiency Cost Reports Photographs Beaudry Redevelopment TIF District #24 LHB Project No. 170323 Page 12 of 12 Final Report APPENDIX A Property Condition Assessment Summary Sheet °000000000�o� o aeeeoeeoee�o� o ZI»I»IZ »I» IZ 5000000000M©ME 0 0 0 0 0 0 0 0 0 0 0 0 ° L L N N M V LL� N N N M LL� N O U m ro o coo rn rn rn � o m o rn o v F r co co v co r u� co rn r u� 0 co co v o � c co m CD N Q 7 to N O t�A Ll N a � U fA C OI N C U O .N 7 N O O � U N C i N N IL u� v o r r O 0 0 0 ro m m 1,01 co co co o o ro r M N O O O O O O O O O N N o N N N Y N N 8 Y 8 O O O W W W_ N W_ W W_ W W W_ N O O O W O 45< O O O O O W O W N N N N N N N N N C > > > > > > > > > > N > > N O O O O O O O O O O O O Q Q Q Q Q Q Q Q Q Q N Q Q LO E E E E E E E E E E > E E N o a T z z z z z z z Z in Z in > > > > Q 9 > > > ¢ ¢ ¢ ¢ m N N O O O O O O M N N M O (6 N (6 O N = C a 0 0 o in o in o in o in o in � � -a J L L zi C Q m U o W 0 0 m H zNz o E a o o U r n O a` o N A a 0 W m F N m +� o EE o afo Q m E �z B y N T O m m m� ri ri co co co o o ro r M O i N O O N o ( O 0 0 0 0 0 0 0 0 0 0 0 0 ° L L N N M V LL� N N N M LL� N O U m ro o coo rn rn rn � o m o rn o v F r co co v co r u� co rn r u� 0 co co v o � c co m CD N Q 7 to N O t�A Ll N a � U fA C OI N C U O .N 7 N O O � U N C i N N IL u� v o r r O 0 0 0 ro m m 1,01 co co co o o ro r M N O O O O O O O O O N N o N N N Y N N 8 Y 8 O O O W W W_ N W_ W W_ W W W_ N O O O W O 45< O O O O O W O W N N N N N N N N N C > > > > > > > > > > N > > N O O O O O O O O O O O O Q Q Q Q Q Q Q Q Q Q N Q Q LO E E E E E E E E E E > E E N o a T z z z z z z z Z in Z in > > > > Q 9 > > > ¢ ¢ ¢ ¢ m N N O O O O O O M N N M O (6 N (6 O N = C a 0 0 o in o in o in o in o in � � -a J L L zi C Q m U o W 0 0 m H zNz o E a o o U r n O a` o N A a 0 W m F N m +� o EE o afo Q m E �z B y N T O m m m� APPENDIX B Building Code, Condition Deficiency and Context Analysis Reports Beaudry Redevelopment TIF District #24 Building Code, Condition Deficiency and Context Analysis Report June 5, 2017 Parcel No. & Building Name: A Rental Units Address: 706 Quinn Ave NW Elk River, MN 55330 Parcel ID: 75- 403 -0030 Inspection Date(s) & Time(s): May 5, 2017 12:15 PM exterior and May 16, 2017 10:00 am interior Inspection Type: Interior and Exterior Summary of Deficiencies: It is our professional opinion that this building is Substandard because: - Substantial renovation is required to correct Conditions found. - Building Code deficiencies total more than 15% of replacement cost, NOT including energy code deficiencies. Estimated Replacement Cost: $309,564 Estimated Cost to Correct Building Code Deficiencies: $107,394 Percentage of Replacement Cost for Building Code Deficiencies: 34.69% Defects in Structural Elements 1. Foundation walls are compromised and earthen material has migrated into the pathway for emergency egress, which is contrary to code. Combination of Deficiencies 1. Essential Utilities and Facilities a. There are no code required Arc Fault Interrupters. 2. Light and Ventilation a. f VAC system is not mechanical /building code compliant. 3. Fire Protection /Adequate Egress a. Code compliant smoke detectors should be installed. b. Code compliant carbon monoxide detectors should be installed. c. There is no code require building sprinkler system installed. d. There is no code required emergency notification system installed. 4. Layout and Condition of Interior Partitions /Materials a. Stair tread is not code compliant for rise and run. b. Toilet does not meet code for minimum distance from other fixed objects. C. Wall paper is stained. d. Interior walls need to be painted. Beaudry Redevelopment TI District #24 Page 1 of 2 Building Report LHB Project No. 170323 Parcel A, Rental Units e. Flooring needs to be replaced. f. Ceiling exhibits water staining and should be repainted. g. Floor to ceiling height does not meet code in second floor bathroom. h. Interior window trim is water stained. 1. Basement floor to ceiling height does not comply with code. j. Install code required emergency egress windows in basement. 5. Exterior Construction a. Exterior window trim needs repair. b. Front step carpeting needs to be replaced. c. Windows are broken and should be repaired per city code. Description of Code Deficiencies 1. HVAC system is not mechanical /building code compliant. 2. Code compliant smoke detectors should be installed. 3. Code compliant carbon monoxide detectors should be installed. 4. Code required AFCI's should be installed. 5. Code required building sprinkler system should be installed. 6. Code required emergency notification system should be installed. 7. Stair tread needs to be modified on second floor to comply with code. 8. Bathroom on second floor needs to be modified to comply with code for distance in front of toilet. 9. Floor to ceiling height on second floor bathroom needs to be modified to comply with code, 10. Basement floor to ceiling height needs to be modified to comply with code. 11. Foundation walls need to be rebuilt to hold back earthen material per code. 12. Install emergency egress windows in basement to comply with code. 13. Repair broken windows per code. Overview of Deficiencies This building has six rental units. Each of the units will require new flooring and painting. There are no code required carbon monoxide detectors in any of the units. There is no code required building wide sprinkler system. The basement floor to ceiling height does not meet code. The second floor bathroom floor to ceiling height does not meet code. There are no code required AFCI's in the building. There are no compliant smoke detectors in the building. Stair treads on the second floor need to be modified to comply with code for rise. The foundation is compromised and should be rebuilt per code. 0: \17Proj \170323 \400 Design \406 Reports \Building Reports \170323 706 Quinn Ave Building Report.docx Beaudry Redevelopment TI District #24 Page 2 of 2 Building Report LHB Project No. 170323 Parcel A, Rental Units Beaudry Redevelopment TIF District #24 Building Code, Condition Deficiency and Context Analysis Report June 2, 2017 Parcel No. & Building Name: Address: Parcel ID: Inspection Date(s) & Time(s) Inspection Type: Summary of Deficiencies: Estimated Replacement Cost: B Residence 634 Quinn Ave NW Elk River, MN 55330 75- 403 -0020 May 5, 2017 11:55 am Interior and Exterior It is our professional opinion that this building is Substandard because: - Substantial renovation is required to correct Conditions found. - Building Code deficiencies total more than 15% of replacement cost, NOT including energy code deficiencies. Estimated Cost to Correct Building Code Deficiencies: Percentage of Replacement Cost for Building Code Deficiencies: Defects in Structural Elements $117,526 $19,031 16.2% 1. Roof is showing a protrusion mid -roof running from ridge to entryway addition indicating structure settlement or heaving. 2. NW corner of house is not sitting tight to foundation wall indicating structural movement of house /foundation wall. 3. Temporary basement floor jacks have been installed to stabilize 1St floor, indicating structural deficiency in flooring system. Combination of Deficiencies 1. Essential Utilities and Facilities a. Portions of electrical wiring in basement is improperly installed and needs to be rerouted. b. Circuit breaker box has open slots that need to be filled. c. House lacks code - required AFCI receptacles in living room, bedrooms and hallways. d. Current forced -air system does not meet current heating and ventilation code and needs to be replaced. e. Areas of basement plumbing was not installed per current plumbing code and needs to be modified. £ Basement utility sink faucet with hose thread does not have code - required vacuum breaker. 2. Light and Ventilation a. None Beaudry Redevelopment TIF District #24 Page 1 of 3 Building Report LHB Project No. 170323 Parcel B, Residence Fire Protection /Adequate Egress a. Front wood entrance steps do not meet code requirement for egress and need to be replaced. b. Rear entrance lacks proper code - compliant steps; currently using loose patio blocks. c. Rear entry lacks proper flat walking surface; currently a tripping hazard due to uneven concrete and gravel. d. All smoke detectors have been disabled. Install code compliant hardwired detectors. e. No CO detectors present; install code compliant detectors. f. Underside of basement stairs is not enclosed per fire -code. 4. Layout and Condition of Interior Partitions /Materials a. Carpet is old and worn and needs replacing. b. Portions of kitchen cabinets have been damaged and need replacing. c. Interior woodwork on windows need refinishing and repair. Exterior Construction a. Several sections of vinyl siding are missing, allowing for water intrusion. b. NW corner of foundation wall has been spray foamed to seal gap between house and foundation. Foam has deteriorated allowing for weather intrusion. c. Several asphalt roof shingle tabs missing resulting in possible water intrusion. d. Chimney base roof flashing improperly installed allowing possible water intrusion. e. Chimney masonry is deteriorated and missing and brick work cracked allowing for water intrusion. Description of Code Deficiencies 1. Roof is showing a protrusion mid -roof running from ridge to entryway addition indicating structure settlement or heaving, investigate and repair. 2. Northwest corner of house is not sitting tight to foundation wall indicating structural movement of house /foundation wall. 3. Replace and modify existing temporary basement floor jacks with structurally designed system. 4. Replace front wood entrance steps to meet proper egress codes. 5. Install code - compliant rear entrance steps to replace existing loose patio blocks. 6. Install code - compliant sidewalk at side entrance to replace existing partial concrete and uneven gravel surface to eliminate tripping hazard. 7. All smoke detectors have been disabled. Install code compliant hardwired detectors. 8. No CO detectors present. Install code compliant detectors. 9. Enclose underside of basement stairs to comply with fire -code. 10. Replace missing sections of vinyl siding to prevent water intrusion. 11. Northwest corner of foundation wall has been spray foamed to seal gap between house and foundation. Foam has deteriorated allowing for weather intrusion. 12. Several asphalt roof shingle tabs are missing, resulting in possible water intrusion. 13. Chimney base roof flashing improperly installed, allowing possible water intrusion. 14. Chimney masonry is deteriorated and missing and brick work cracked, allowing for water intrusion. 15. Reroute portions of electrical wiring in basement area that is improperly installed. 16. Correct open slots in circuit breaker box. 17. Install code - required AFCI receptacles in living room, bedrooms and hallways. 18. Replace current forced -air system with code compliant version including controls. 19. Modify /correct improperly installed basement plumbing to meet current plumbing code. 20. Install code - compliant vacuum breaker on utility sink hose connections. Beaudry Redevelopment TIF District #24 Page 2 of 3 Building Report LHB Project No. 170323 Parcel B, Residence Overview of Deficiencies This single story, single family home was built in 1934. It consists of three bedrooms, one bath and a partially finished basement. The house interior needs much updating of kitchen, walls and flooring. The house exterior needs repairs on the roof, chimney, and siding. There is evidence of structural shifting of the house as evidenced in the roof, corner foundation and the additional floor jacks installed in the basement to stabilize the upper floor. The heating system does not meet current heating and ventilation codes and needs to be replaced. 0: \17Pioj \170323 \400 Design \406 Reports \Building Reports \170323 634 Quinn Ave Building Report.docx Beaudry Redevelopment TIF District #24 Page 3 of 3 Building Report LHB Project No. 170323 Parcel B, Residence Beaudry Redevelopment TIF District #24 Building Code, Condition Deficiency and Context Analysis Report June 1, 2017 Parcel No. & Building Name: C Residence Address: 620 Quinn Ave NW, Elk River, MN 55330 Parcel ID: 75- 403 -0010 Inspection Date(s) & Time(s): May 5, 2017 11:30 am Inspection Type: Exterior Summary of Deficiencies: It is our professional opinion that this building is Substandard because: - Substantial renovation is required to correct Conditions found. - Building Code deficiencies total more than 15% of replacement cost, NOT including energy code deficiencies. Estimated Replacement Cost: $120,241 Estimated Cost to Correct Building Code Deficiencies: $31,825 Percentage of Replacement Cost for Building Code Deficiencies: 26.5% Defects in Structural Elements 1. Entire exterior of house is missing portions of siding with evidence of rotted subsiding and framing. 2. Eaves and soffits were improperly installed and maintained with evidence of water intrusion and deterioration. Combination of Deficiencies 1. Essential Utilities and Facilities a. Could not assess, as building was abandoned and no internal access allowed. 2. Light and Ventilation a. All exterior windows and back door have been removed and boarded up. 3. Fire Protection /Adequate Egress a. Could not assess, as building was abandoned and no internal access allowed. 4. Layout and Condition of Interior Partitions /Materials a. Could not assess, as building was abandoned and no internal access allowed. 5. Exterior Construction a. Sections of soffits are open allowing water intrusion and animal habitat. b. House siding has been removed in sections, plywood ill- fitted, Tyvek sheeting missing and torn. Beaudry Redevelopment TIF District #24 Pagel of 2 Building Report LHB Project No. 170323 Parcel C - Residence c. Soffit and eaves are unprotected, allowing for water intrusion. d. Vegetative vine growth present on several exterior walls, trees have grown up alongside house and landscaping around house is overgrown. e. New roof has been installed in last 3- years, but installation is improper due to poor condition of roof substrate, eave and soffits. Description of Code Deficiencies 1. Front door needs to be replaced to meet proper accessibility into house. 2. Missing and evidence of rotted subsiding and framing allowing for water intrusion. 3. Eaves and soffits improperly installed and maintained with evidence of water intrusion and deterioration. 4. Rear door has been removed and boarded up- install new code - required door. 5. Windows have been removed and boarded up restricting proper egress. 6. Sections of soffits are open allowing for water intrusion and animal habitat. 7. House siding has been removed in sections, plywood ill- fitted, Tyvek sheeting missing and torn; lacks code required water tight exterior. 8. Soffit and eaves unprotected allowing for water intrusion. 9. Remove vegetative vine growth that is present on several exterior walls causing siding damage. 10. Remove numerous tree and shrub growth that is against house siding and roof edge causing damage. 11. Replace roof due to poor substrate, soffits and eaves. Overview of Deficiencies This single story, single family house, was built in 1932. It currently sits vacant and entry to the interior for inspection was not allowed. Exterior of house is in total non - compliance to building codes due to lack of proper siding, along with all exterior windows and rear entrance, which are boarded up. In addition, numerous areas of the exterior lack a watertight seal with areas of soffits open allowing for animal habitat The roof is in good condition but lacks proper installation due to poor roof substrate and failing soffits and eaves. 0: \17Proj \170323 \400 Design \406 Reports \Building Reports \170323 620 Quinn Ave Building Report.docx Beaudry Redevelopment TIF District #24 Page 2 of 2 Building Report LHB Project No. 170323 Parcel C - Residence Beaudry Redevelopment TIF District #24 Building Code, Condition Deficiency and Context Analysis Report June 5, 2017 Parcel No. & Building Name: D Residence Address: 1234 6th Street NW Elk River, MN 55330 Parcel ID: 75- 410 -0745 Inspection Date(s) & Time(s): May 5, 2017 11:05 am Inspection Type: Interior and Exterior Summary of Deficiencies: It is our professional opinion that this building is Substandard because: - Substantial renovation is required to correct Conditions found. - Building Code deficiencies total more than 15% of replacement cost, NOT including energy code deficiencies. Estimated Replacement Cost: $128,746 Estimated Cost to Correct Building Code Deficiencies: $42,844 Percentage of Replacement Cost for Building Code Deficiencies: 33.28% Defects in Structural Elements 1. None observed. Combination of Deficiencies 1. Essential Utilities and Facilities a. Electrical outlets are not grounded and do not comply with code. b. There are no code required Arc Fault Circuit Interrupters installed. 2. Light and Ventilation a. The fIVAC system does not comply with mechanical /building code. 3. Fire Protection /Adequate Egress a. There are no code required smoke detectors present. b. There are no code required carbon monoxide detectors present. 4. Layout and Condition of Interior Partitions /Materials a. Interior walls need repair /repainting. b. The basement stairs are not code compliant for tread rise and run. c. The basement stairway does not have a code compliant hand rail. d. The basement stairway has an open underside and does not comply with code. e. The electrical circuit box does not comply with code. f. The side door does not comply with code for opening over a landing. Beaudry Redevelopment TIF District #24 Page 1 of 2 Building Report LHB Project No. 170323 Parcel D, Residence g. Wood floors need to be refinished. h. The bathroom toilet is not code compliant for distance from door. 1. The bathroom exhaust system is not code compliant. j. The stairs to the second floor do not comply with code. k. The floor to ceiling height on the second floor does not comply with code. 5. Exterior Construction a. Front entrance steps are not code compliant for tread rise. b. Exterior wood surfaces need painting. c. Foundation block mortar is separating or missing and needs to be replaced to prevent water intrusion per code. d. The windows are allowing for water intrusion contrary to code. Description of Code Deficiencies 1. The HVAC system does not comply with code. 2. Code compliant smoke detectors should be installed. 3. Code required carbon monoxide detectors should be installed. 4. Install code required grounded electrical outlets. 5. Install code required AFCI's. 6. The basement stairs should be modified to comply with code. 7. The stairway to the second floor should be modified to comply with code. 8. The electrical circuit box does not comply with code. 9. The side door entering the basement stairway landing does not comply with code. 10. The bathroom toilet does not comply with code for distance from door. 11. The bathroom toilet exhaust is not code compliant. 12. The second -floor stairway is not code compliant. 13. The floor to ceiling height on the second floor does not comply with code. 14. The front entrance steps are not code compliant. 15. Mortar on the foundation block needs to be repaired to prevent water intrusion per code. 16. Windows should be replaced to prevent water intrusion per code. Overview of Deficiencies This residential dwelling needs a new HVAC system to comply with code. There are no code compliant smoke detectors in the residence. There are no code required carbon monoxide detectors in the home. Electrical outlets are not grounded and do not comply with code. Both the basement and the second floor stairways do not comply with code. The interior walls and ceilings need repair /repainting. The floor to ceiling height does not comply with code on the second floor. Windows should be replaced to prevent water intrusion. 0: \17Pioj \170323 \400 Design \406 Reports \Building Reports \170323 1234 6th St Building Reportdocx Beaudry Redevelopment TIF District #24 Page 2 of 2 Building Report LHB Project No. 170323 Parcel D, Residence Beaudry Redevelopment TIF District #24 Building Code, Condition Deficiency and Context Analysis Report June 2, 2017 Parcel No. & Building Name: F Residence Address: 1214 6th Street NW Elk River, MN 55330 Parcel ID: 75- 410 -0705 Inspection Date(s) & Time(s): May 5, 2017 10:15 am Inspection Type: Interior and Exterior Summary of Deficiencies: It is our professional opinion that this building is Substandard because: - Substantial renovation is required to correct Conditions found. - Building Code deficiencies total more than 15% of replacement cost, NOT including energy code deficiencies. Estimated Replacement Cost: $169,960 Estimated Cost to Correct Building Code Deficiencies: $31,259 Percentage of Replacement Cost for Building Code Deficiencies: 18.4% Defects in Structural Elements 1. None observed. Combination of Deficiencies 1. Essential Utilities and Facilities a. Current forced air heating system and controls do not meet current code and need to be replaced. b. Basement bathroom is non - compliant with codes and needs to be modified. c. Ceiling mounted gas heater located in attached garage does not meet current code and needs to be replaced. d. Provide AFCI protected receptacles in living room, bedrooms and hallway per electrical code. e. Provide GFCI protected receptacles in Kitchen to meet current electrical code. f. Basement wall outlets are loose and have unprotected wiring and need to be repaired per electrical code. g. Electrical outlets adjacent to main electrical panel are damaged and need to be repaired per electrical code. Beaudry Redevelopment TIF District #24 Page 1 of 3 Building Report LHB Project No. 170323 Parcel F, Residence 2. Light and Ventilation a. HVAC system does not meet mechanical /building code. 3. Fire Protection /Adequate Egress a. Current wood handicap ramp lacks code - compliant protective handrails. b. Replace entrance door hardware with code - compliant egress style. c. Rear entrance concrete steps are not level with door threshold as per code. d. There is no code - compliant emergency egress window in basement to provide secondary exit. e. R3 Residential Group classification requires automatic fire sprinkler system building -wide. 4. Layout and Condition of Interior Partitions /Materials a. Interior walls and ceilings should be repaired /repainted. b. Exposed copper piping should be attached to walls. c. Kitchen casework should be painted. d. Baseboard should be replaced where missing. e. Door trim should be installed. f. Water stained floor should be re -sanded and finished. g. Miscellaneous debris should be removed from basement. h. Ceiling tile should be replaced in basement. i. Basement fire place brick should be cleaned. 5. Exterior Construction a. Wood soffits and eaves on rear of house need to be painted /covered to prevent water intrusion. b. Wood windows need to be painted and caulked to prevent water intrusion. c. Wood siding on rear of house is peeling and needs to be painted to prevent water intrusion. Description of Code Deficiencies I. Current wood handicap ramp lacks code - compliant protective handrails. 2. Replace entrance door hardware with code - compliant style. 3. Replace non - compliant rear entrance concrete steps level with threshold per code. 4. Wood soffits and eaves on rear of house need to be painted /covered to prevent water intrusion. 5. Wood windows need to be painted and caulked to prevent water intrusion. 6. Wood siding on rear of house needs to be painted to prevent water intrusion. 7. Replace non - compliant forced air heating system and controls to meet code. 8. Modify non - compliant basement bathroom per code. 9. Replace non - complaint ceiling mounted gas heater located in attached garage to meet code. 10. Provide AFCI protected receptacles per code. 11. Provide GFCI protected receptacles in Kitchen. 12. Repair non - compliant basement wall outlets that are loose and have unprotected wiring. 13. Repair electrical outlets adjacent to main electrical panel that are damaged and are not code compliant. 14. Install code - required automatic fire sprinkler system. 15. Install code - required basement emergency egress window. Beaudry Redevelopment TIF District #24 Page 2 of 3 Building Report LHB Project No. 170323 Parcel F, Residence Overview of Deficiencies This house was built in 1966 as a single- family home, then converted to a transitional home for three individuals. The home is a single story with an unfinished basement. Most original wood - framed windows have been replaced with vinyl, but there are still two old wood windows that exist and need maintenance. The house has a wood handicap ramp at the front entrance but lacks code - compliant handrails. The interior of the house has seen some updates on finishes but most are dated. Electrical system needs updating to provide code - compliant GFCI and AFCI receptacles. The mechanical heating system does not meet current ventilation and heating codes and needs to be replaced. 0: \17Proj \170323 \400 Design \406 Reports \Building Reports \170323 1214 6th St Building Reportdocx Beaudry Redevelopment TIF District #24 Page 3 of 3 Building Report LHB Project No. 170323 Parcel F, Residence Beaudry Redevelopment TIF District #24 Building Code, Condition Deficiency and Context Analysis Report June 5, 2017 Parcel No. & Building Name: G Residence Address: 1206 6th Street Elk River, MN 55330 Parcel ID: 75- 410 -0710 Inspection Date(s) & Time(s): May 5, 2017 9:50 am exterior and May 16, 2017 9:30 am interior Inspection Type: Interior and Exterior Summary of Deficiencies: It is our professional opinion that this building is Substandard because: - Substantial renovation is required to correct Conditions found. - Building Code deficiencies total more than 15% of replacement cost, NOT including energy code deficiencies. Estimated Replacement Cost: $128,746 Estimated Cost to Correct Building Code Deficiencies: $22,345 Percentage of Replacement Cost for Building Code Deficiencies: 17.36% Defects in Structural Elements 1. There are both vertical and horizontal cracks on interior walls indicative of differential settling. Combination of Deficiencies 1. Essential Utilities and Facilities a. There are ungrounded electrical outlets that are not code compliant. b. There are no code required Arc Fault Circuit Interrupters installed. 2. Light and Ventilation a. There is a light on the second floor that is not code compliant. b. There is a dryer vent that is not code compliant. c. The HVAC system is not code compliant. 3. Fire Protection /Adequate Egress a. Smoke detectors are not code compliant. b. There are no code required carbon monoxide detectors. 4. Layout and Condition of Interior Partitions /Materials a. Interior walls and ceilings need to be repaired /repainted. b. Interior windows are water stained indicative of water intrusion, contrary to code. c. The stairway to the second floor is not code compliant for stair tread rise and run. d. Carpet is torn and damaged. Beaudry Redevelopment TIF District #24 Page 1 of 2 Building Report LHB Project No. 170323 Parcel G, Residence 5. Exterior Construction a. Front steps are not code compliant for rise to threshold. b. Front door does not have code required flashing. c. Windows are rotting allowing for water intrusion contrary to code. d. Siding is damaged and in need of paint. e. Windows do not comply with code for flashing. f. Roof rafters appear to be compromised and in need of repair. g. Southern door step to threshold does not comply with code for maximum height. Description of Code Deficiencies 1. Light fixture on the second floor needs to be installed properly to comply with code. 2. The dryer vent needs to be installed properly to comply with code. 3. The HVAC system needs to be replaced to comply with code. 4. Code compliant smoke detectors need to be installed. 5. Code required carbon monoxide detectors need to be installed. 6. Code required AFCI electrical outlets need to be installed. 7. Ungrounded electrical outlets need to be replaced to comply with code. 8. Windows need to be replaced to prevent water intrusion per code. 9. The stairway to the second floor is not code compliant for rise and run of treads. 10. Southern entrance steps need to be modified to comply with code for proper rise. 11. Flashing needs to be installed above all exterior doors and windows to comply with code. Overview of Deficiencies This single- family dwelling needs repair /repainting of both interior and exterior surfaces. The carpeting should be replaced. Electrical code issues include, improper installation of light fixtures, and ungrounded electrical outlets. The dryer vent should be replaced to comply with code. Code requires proper installation of smoke detectors and carbon monoxide detectors. Windows should be replaced to comply with code to prevent water intrusion. The interior stairway should be modified to comply with code required rise and run of stair treads. The southern entrance steps need to be modified to comply with code for maximum rise. Code required flashing needs to be installed over doors and windows. 0: \17Pioj \170323 \400 Design \406 Reports \Building Reports \170323 1206 6th Street Building Reportdocx Beaudry Redevelopment TIF District #24 Page 2 of 2 Building Report LHB Project No. 170323 Parcel G, Residence Beaudry Redevelopment TIF District #24 Building Code, Condition Deficiency and Context Analysis Report June 1, 2017 Parcel No. & Building Name: Address: Parcel ID: Inspection Date(s) & Time(s) Inspection Type: Summary of Deficiencies: Estimated Replacement Cost: Residence 623 Proctor Ave NW Elk River, MN 55330 75- 410 -0720 May 5, 2017 9:00 am exterior and May 16, 2017 8:00 am interior Interior and Exterior It is our professional opinion that this building is Substandard because: - Substantial renovation is required to correct Conditions found. - Building Code deficiencies total more than 15% of replacement cost, NOT including energy code deficiencies. Estimated Cost to Correct Building Code Deficiencies: Percentage of Replacement Cost for Building Code Deficiencies: Defects in Structural Elements 1. Foundation is cracked and allowing for water intrusion. Combination of Deficiencies 1. Essential Utilities and Facilities a. There are no code required Arc Fault Circuit Interrupters in the home. b. There are ungrounded electrical outlets in the home, contrary to code. 2. Light and Ventilation a. The light in the second -floor bathroom is missing a protective globe. b. The fIVAC system does not meet mechanical /building code requirements. 3. Fire Protection /Adequate Egress a. There are no code compliant smoke detectors in the home. b. There are no code required carbon monoxide detectors in the home. c. There is no code required fire extinguisher in the home. 4. Layout and Condition of Interior Partitions /Materials a. Interior walls should be repaired /repainted. b. Interior flooring should be replaced. c. Interior ceiling should be repaired /replaced. d. Stairway to the second floor is not code compliant for rise and run. $158,279 $52,250 33.01% Beaudry Redevelopment TIF District #24 Page 1 of 2 Building Report LHB Project No. 170323 Parcel I, Residence e. A code required stair railing should be installed. f. Second floor bathroom should be repaired /repainted. g. The basement floor to ceiling height is not code compliant. 5. Exterior Construction a. Roof has failed and is allowing for water intrusion contrary to code. There is evidence of water intrusion on the second -floor ceiling. b. Windows are damaged and allowing for water intrusion contrary to code. c. Exterior wood siding is damaged and allowing for water intrusion contrary to code. d. Gutters need to be painted. e. Soffit and fascia have holes from woodpeckers which is allowing for water intrusion, contrary to code. f. Chimney is damaged and missing mortar, allowing for water intrusion and contrary to code. Description of Code Deficiencies 1. f VAC system is not mechanical /building code compliant. 2. Code compliant smoke detectors should be installed. 3. Code required carbon monoxide detectors should be installed. 4. Code required fire extinguisher should be installed. 5. Code required AFCI's should be installed. 6. Code compliant, grounded electrical outlets should be installed. 7. Stairway to second floor should be made code compliant for rise and run of stair treads. 8. Stairway to second floor should have a code required handrail installed. 9. Basement floor to ceiling height should be corrected to comply with code. 10. Replace roof to prevent water intrusion per code. 11. Replace windows to prevent water intrusion per code. 12. Repair wood siding to prevent water intrusion per code. 13. Repair soffit and facia to prevent water intrusion per code. 14. Repair foundation cracks to prevent water intrusion per code. 15. Repair chimney to prevent water intrusion per code. Overview of Deficiencies This one and a half story residential dwelling is currently being rented. The interior and exterior surfaces should be repaired and repainted. The flooring should be replaced. There are no code compliant smoke detectors, carbon monoxide detectors or fire extinguishers installed. Access to the second -floor lacks code compliant rise and run of the stair treads. There is no code required hand railing on the second -floor stairway. There are no code required AFCI's. The electrical outlets do not have code required grounding. The roof and windows should be replaced to become code compliant. The wood siding, soffit and fascia should be repaired to prevent water intrusion per code. The foundation and chimney should be repaired to prevent water intrusion per code. 0: \17Pioj \170323 \400 Design \406 Reports \Building Reports \170323 623 Pfoctor Ave Building Reportdocx Beaudry Redevelopment TIF District #24 Page 2 of 2 Building Report LHB Project No. 170323 Parcel I, Residence Beaudry Redevelopment TIF District #24 Building Code, Condition Deficiency and Context Analysis Report May 30, 2017 Parcel No. & Building Name: J Residence Address and Parcel ID: 633 Proctor Ave NW Elk River, MN 55330 Parcel ID: 75- 410 -0725 Inspection Date(s) & Time(s): May 5, 2017 8:40 am Inspection Type: Interior and Exterior Summary of Deficiencies: It is our professional opinion that this building is Substandard because: - Substantial renovation is required to correct Conditions found. - Building Code deficiencies total more than 15% of replacement cost, NOT including energy code deficiencies. Estimated Replacement Cost: $145,530 Estimated Cost to Correct Building Code Deficiencies: $24,741 Percentage of Replacement Cost for Building Code Deficiencies: 17% Defects in Structural Elements 1. Investigate and repair plaster cracking in upper walls of kitchen that are showing signs of wall settlement. Combination of Deficiencies 1. Essential Utilities and Facilities a. Outlets throughout the house are old and ungrounded. They need to be replaced with grounded outlets to meet code. b. New GFCI and AFCI protected receptacles need to be installed in areas of house per electrical code. c. Various areas in basement have non - metallic sheathed electrical wiring improperly installed, which needs to be re- routed to meet current electrical code. d. Much of the current household wiring is original non - grounded wiring, which will need to be updated /replaced. 2. Light and Ventilation a. The forced -air furnace does not meet current heating and ventilation code and needs to be replaced along with any control equipment. Beaudry Redevelopment TIF District #24 Page 1 of 3 Building Report LHB Project No. 170323 Parcel J, Residence 3. Fire Protection /Adequate Egress a. Current smoke alarms have been disconnected and are not hardwired. New hardwired smoke detectors need to be installed per current code. b. New CO detectors need to be installed in house per current code. 4. Layout and Condition of Interior Partitions /Materials a. Basement partitions have wood 2X4 sill plates running through doorways and need to be removed. b. Current entrance door hardware does not meet code and needs to be updated. c. Basement stairs do not meet code required height and width of stair risers and treads. Several of the wood treads are cracked and pose stability issues. d. Visible repairs have been made to kitchen ceiling and upper wall gypsum board, indicating some type of repairs have recently been made. e. Old floor the in several areas of house is suspected of containing asbestos but needs to be confirmed. 5. Exterior Construction a. Chimney requires tuck pointing and repair to prevent water intrusion. b. CMU block basement walls have cracked and spalling joints and need to be repaired to prevent water intrusion, which is causing efflorescent on inside of basement walls. c. Install guards around open window well at side walkway to prevent potential tripping hazard d. Concrete front, side and rear entrance stairs need to be replaced as they do not meet code - required tread and rise measurements. e. Roof asphalt shingles starting to curl and showing overall deterioration. Consideration of roof replacement in near future. f. Siding, soffits and fascia is dirty and not well maintained. Description of Code Deficiencies 1. Investigate and repair plaster cracking in upper walls of kitchen that are showing signs of wall settlement. 2. Replace non - grounded outlets throughout house to meet code. 3. Provide GFCI protected receptacles per code. 4. Provide AFCI required receptacles. 5. Replace code deficient furnace to meet current ventilation codes. 6. Replace existing thermostat with energy code compliant one. 7. Modify non - metallic sheathed electrical cable which is installed improperly. 8. Provide code - compliant hardwired smoke detectors. 9. Provide code - compliant CO detectors throughout house. 10. Remove 2X4 wood wall plates in basement room doorways. 11. Repair /tuckpoint chimney to prevent water intrusion. 12. Repair cracked and spalling block foundation to prevent water intrusion causing efflorescence on inside of basement walls. 13. Install guards around open window well at side walkway to prevent tripping hazard 14. Replace door hardware on entrance doors to meet proper code 15. Replace non - compliant front, side and rear entrance stairs to meet proper tread and rise. 16. Modify basement stairway to meet proper rise and tread on stairs per code Beaudry Redevelopment TIF District #24 Page 2 of 3 Building Report LHB Project No. 170323 Parcel J, Residence Overview of Deficiencies This single- family house was built in 1951 and includes an unfinished basement. The roof is in fair condition with the asphalt shingles starting to curl. The house has original non - grounded electrical receptacles and lacks proper GFCI and AFCI receptacles. The basement wall has evidence of water intrusion with signs of efflorescence and peeling paint. Several areas of the house contain older 9x9 floor tiles, which are suspected to be asbestos containing, but cannot be verified without future testing. Exterior of the house is lacking proper maintenance as evidenced by dirty soffits and siding. Exterior sidewalks have recently been replaced, but all three concrete entrance steps do not meet required rise and tread measurements per code. The current heating system does not meet current heating and ventilation codes and needs to be replaced. 0: \17Proj \170323 \400 Design \406 Reports \Building Reports \170323 633 Pfoctof Ave Building Repoftdocx Beaudry Redevelopment TIF District #24 Page 3 of 3 Building Report LHB Project No. 170323 Parcel J, Residence APPENDIX C Building Replacement Cost Reports Code Deficiency Cost Reports Photographs Beaudry Redevelopment TIF District #24 Replacement Cost Report RSMear-is dat3 Square Foot Cost Estimate Report hw, - t.%_&F4®«r4 Estimate Name: 706 Quinn Avenue NW City of Elk River 706 Quinn Avenue NW, Elk River, Minnesota , 55330 Economy 2 Story with Wood Siding - Wood Building Type: Frame Location: ELK RIVER, MN Story Count: 2 Story Height (L.F.): 8 Floor Area (S.F.): Labor Type: Basement Included: Data Release: Cost Per Square Foot: Building Cost: 2600 R ES No Year 2017 Quarter 2 $109.41 $309,564.68 Date: 5/23/2017 ,4 r�� l y I k ON Costs are derived from a building model with basic components. Scope differences and market conditions can cause costs to vary significantly. of Total Cost Per S.F. Cost Footing excavation, building, 26'x 46', 4' deep 1.16 3027.89 Footing systems, 10" thick by 20" wide footing 1.28 3320.39 Block wall systems, 8" wall, grouted, full height 4.53 11771.35 Block wall systems, 8" wall, grouted, full height 3.96 10299.93 Floor slab systems, 4" thick slab 2.16 5618.31 Floor framing systems, 2" x 8 ", 16" OC 4.07 10578.74 Floor framing, wood joists, #2 or better, pine, 2" x 8 ", 16" OC 0.98 2558.54 Floor framing, bridging, wood 1" x 3 ", joists 16" OC 0.20 514.35 Box sills, #2 or better pine, 2" x 8" 0.15 382.16 Girders, including lally columns, 3 pieces spiked together, 2" x 8" 0.81 2100.36 Exterior wall framing systems, 2" x 4 ", 16" OC 4.10 10655.55 Exterior wall framing systems, 2" x 4 ", 16" OC 0.19 504.78 Truss roof framing systems, 24" OC, 4/12 pitch, 1' overhang, 26' span 3.61 9393.54 Furring, 1" x 3 ", 16" OC 1.01 2621.58 Partition framing systems, 2" x 4 ", 16" OC 2.67 6939.77 Painting, 2 coats 0.46 1199.62 Wood siding systems, 1/2" x 8" beveled cedar siding, "A" grade 9.19 23898.17 Wood siding systems, 1/2" x 8" beveled cedar siding, "A" grade 0.44 1132.11 Non -rigid insul, batts, fbgls, kraft faced, 3 -1/2" thick, R13, 15" W 0.69 1794.37 Non -rigid insul, batts, fbgls, kraft faced, 12" thick, R38, 23" wide 0.81 2118.66 Sliding window systems, builder's quality wood window, 3'x 2' 6.05 15734.24 Beaudry Redevelopment TIF District #24 Replacement Cost Report LHB Project No. 170323 Page 1 of 2 Parcel A, Residence Door systems, solid core birch, flush, 3' x 6' -8" 1.07 2779.03 Storm door, al, combination, storm & screen, anodized, 3' -0" x 6' -8" 0.32 843.77 05 Roofing �® Gable end roofing, asphalt, roof shingles, class A 2.75 7142.34 0.� Wall system, 1/2" drywall, taped & finished 7.87 20450.09 Wall system, 1/2" drywall, taped & finished 2.82 7323.98 1/2" gypsum wallboard, taped & finished ceilings 2.74 7119.71 Suspended ceiling 2' x 4' grid, film faced fiberglass, 5/8" thick 2.64 6864.57 Lauan, flush door, hollow core, interior 6.54 17012.45 Carpet, Olefin, 15 oz 2.11 5478.05 Carpet, tile, foam backed, needle punch 2.94 7637.64 Padding, sponge rubber cushion, minimum 0.76 1988.46 Underlayment plywood, 1/2" thick 2.16 5614.49 Resilient flooring, vinyl sheet goods, backed, .070" thick, minimum 1.24 3218.07 Resilient flooring, sleepers, treated, 16" OC, 1" x 3" 0.54 1400.22 Stairways 14 risers, oak treads, box stairs 1.56 4050.41 Basement stairs, open risers 0.44 1145.68 07 Specialties Kitchen, economy grade 1.07 2771.93 Sinks, stainless steel, single bowl 16" x 20" 0.65 1697.03 Water heater, electric, 30 gallon 0.58 1509.99 0:� •� Three fixture bathroom with wall hung lavatory 1.89 4911.06 Furnace, gas heating only, 100 MBH, area to 1200 SF 0.43 1115.05 Intermittent pilot, 100 MBH furnace 0.10 256.72 Supply duct, rectangular, area to 1200 SF, rigid fiberglass 0.82 2141.80 Return duct, sheet metal galvanized, to 1500 SF 1.01 2628.82 Lateral ducts, flexible round 6" insulated, to 1200 SF 0.91 2366.43 Register elbows, to 1500 SF 0.52 1345.85 Floor registers, enameled steel w /damper, to 1500 SF 0.33 851.87 Return air grille, area to 1500 SF 12" x 12" 0.10 255.71 Thermostat, manual, 1 set back 0.05 136.00 Plenum, heating only, 100 MBH 0.07 170.31 Fire sprinkler system /residential, includes emergency notification 8.80 22880.00 09 Electrical 100 amp electric service 0.50 1302.92 Duplex receptacles using non - metallic sheathed cable 0.86 2235.42 Wiring device systems, economy to 1200 S.F. 2.02 5246.76 Light fixture systems, economy to 1200 S.F. 0.53 1365.40 SubTotal 100% $99.46 $281,422.44 Contractor Fees (General Conditions,Overhead,Profit) 10.00% $9.95 $28,142.24 Architectural Fees 0.00% $0.00 $0.00 User Fees 0.00% $0.00 $0.00 Total Building Cost � = Beaudry Redevelopment TI District #24 Replacement Cost Report LHB Project No. 170323 Page 2 of 2 Parcel A, Residence Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report Parcel A - 706 Quinn Ave NW Elk River, MN 55330 - Parcel ID 75- 403 -0030 Residence Accessibility Items Bathroom Modify fixture location to comply with code for proper distancing $ 15.00 SF Structural Elements Foundation Rebuild foundation walls to comply with code $ 4.53 SF Exiting Stairway Modify stair treads to comply with code Floor to Ceiling Height Modify floor to ceiling height in second floor bathroom to comply with code Modify floor to ceiling height in basement to comply with code Emergency Egress Windows Install emergency egress windows in basement Fire Protection Smoke Detectors Install code compliant smoke detectors Arc Fault Circuit Interrupters Install code required AFCI's Building Sprinkler System and Emergency Notification System Install code required building sprinkler system Exterior Construction Roof Construction $ 125.00 EA 70 $ 1,050.00 1000 $ 4,530.00 10 $ 1,250.00 $ 20.00 SF 70 $ 1,400.00 $ 20.00 SF 2600 $ 52,000.00 $ 1,500.00 EA 3 $ 4,500.00 $ 250.00 EA 10 $ 2,500.00 $ 250.00 EA 16 $ 4,000.00 $ 8.80 SF 2600 $ 22,880.00 Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report LHB Project No. 170323 Page 1 of 2 Parcel A, Residence Mechanical- Electrical Mechanical HVAC system should be replaced per code $ 4.34 SF 2600 $ 11,284.00 Electrical Carbon Monoxide Detectors Install code required carbon monoxide detectors $ 250.00 EA 8 $ 2,000.00 Total Code Improvements $ 107,394 Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report LHB Project No. 170323 Page 2 of 2 Parcel A, Residence Beaudry Redevelopment TIF District #24 Photos: Parcel A, 706 Quinn Avenue P1130820.JPG P 1130821.J PG P1130823.JPG P1130824.JPG P1130826.JPG P1130827.JPG P1130829.JPG P 1130830.J PG Page 1 of 8 P 1130822.J PG P1130825.JPG P 1130828.J PG P1130831.JPG P1130832.JPG P 1140048.J PG P 1140049.J PG P1140050.JPG P 1140051.J PG P1140052.JPG P1140053.JPG P1140054.JPG P 1140055.J PG P1140056.JPG P1140057.JPG P 1140058.J PG Beaudry Redevelopment TI District #24 Page 2 of 8 Photos LHB Project No. 170323 Parcel A, Residence P1140059.JPG P 1140060.J PG P 1140061.J PG P1140062.JPG P1140065.JPG �S P1140068.JPG P 1140063.J PG P 1140064.J PG P 1140066.J PG I rA P 1140067.J PG P 1140069.J PG P 1140070.J PG Beaudry Redevelopment TI District #24 Page 3 of 8 Photos LHB Project No. 170323 Parcel A, Residence P1140071.JPG P 1140072.J PG P1140074.JPG P1140077.JPG P 1140075.J PG P 1140078.J PG P 1140073.J PG i P1140076.JPG P 1140079.J PG k P1140080.JPG P 1140081.J PG P 1140082.J PG Beaudry Redevelopment TI District #24 Page 4 of 8 Photos LHB Project No. 170323 Parcel A, Residence P1140083.JPG P 1140084.J PG P 1140085.J PG P1140086.JPG P1140087.JPG P1140088.JPG P1140089.JPG MIMI MM190 P 1140090.J PG 'JiINII 191999 P 1140091.J PG I'JifiC[�UIrL!<11Y Beaudry Redevelopment TI District #24 Page 5 of 8 Photos LHB Project No. 170323 Parcel A, Residence P1140095.JPG P 1140096.J PG P 1140097.J PG P1140098.JPG 21CIII01*.1911e3 P 00- P1140100.JPG P1140101.JPG sr J& P1140104.JPG P1140102.JPG P1140103.JPG P1140105.JPG P 1140106.J PG Beaudry Redevelopment TI District #24 Page 6 of 8 Photos LHB Project No. 170323 Parcel A, Residence P1140107.JPG P1140108.JPG P 1140109.J PG P1140110.JPG P1140111.JPG P1140113.JPG P1140114.JPG P1140117.JPG 21MOSfiE:OM P1140112.JPG P1140115.JPG P1140119.JPG Beaudry Redevelopment TI District #24 Page 7 of 8 Photos LHB Project No. 170323 Parcel A, Residence 4 P1140120.JPG P1140121.JPG P 1140122.J PG P1140123.JPG P1140124.JPG P1140125.JPG P1140126.JPG P1140127.JPG P1140128.JPG P1140129.JPG P1140130.JPG P1140131.JPG Beaudry Redevelopment TI District #24 Page 8 of 8 Photos LHB Project No. 170323 Parcel A, Residence Beaudry Redevelopment TIF District #24 Replacement Cost Report R r-i5 duta Square Foot Cost Estimate Report 01(w, tbro LJLe%r4 Estimate Name: 634 Quinn Ave NW City of Elk River Date: 6/2/2017 Beaudry Redevelopment TIF District #24 Replacement Cost Report LHB Project No. 170323 Page 1 of 2 Parcel B, Residence 634 Quinn Ave, Elk River, Minnesota , 55330 Economy 1 Story with Wood Siding - Wood Building Type: Frame Location: MINNEAPOLIS, MN Story Count: 1 i ' -- - Story Height (L.F.): 8 _• Floor Area (S.F.): 930; -- Labor Type: RES -= Basement Included: No Data Release: Year 2017 Quarter Costs are derived from a building model with basic components. Cost Per Square Foot: $126.37 Scope differences and market conditions can cause costs to vary significantly. Building Cost: $117,525.95 of Total Cost Per S.F. Cost 01 Site Work Footing excavation, building, 26'x 46', 4' deep 3.26 3,027.89 02 Foundation Footing systems, 10" thick by 20" wide footing 3.09 2,877.19 Block wall systems, 8" wall, grouted, full height 10.97 10,200.14 Floor slab systems, 4" thick slab 4.32 4,019.26 03 Framing Exterior wall framing systems, 2" x 4 ", 16" OC 4.96 4,616.63 Exterior wall framing systems, 2" x 4 ", 16" OC 0.47 437.4 Truss roof framing systems, 24" OC, 4/12 pitch, 1' overhang, 26' span 7.23 6,719.99 Partition framing systems, 2" x 4 ", 16" OC 3.11 2,896.02 14 Exterior � 0 Metal & plastic siding systems, vinyl clapboard siding, 8" wide, white 0.63 589.73 Metal & plastic siding systems, vinyl clapboard siding, 8" wide, white 6.69 6,224.45 Non -rigid insul, batts, fbgls, kraft faced, 3 -1/2" thick, R13, 15" W 0.84 777.43 Non -rigid insul, batts, fbgls, kraft faced, 12" thick, R38, 23" wide 1.63 1,515.66 Sliding window systems, builder's quality wood window, 3'x 2' 7.33 6,817.04 Door systems, solid core birch, flush, 3' x 6' -8" 2.99 2,779.03 Storm door, al, combination, storm & screen, anodized, 3' -0" x 6' -8" 0.91 843.77 05 Roofing � �. Gable end roofing, asphalt, roof shingles, class A 5.49 5,109.52 0. Interiors Wall system, 1/2" drywall, taped & finished 9.18 8,533.98 Wall system, 1/2" drywall, taped & finished 3.41 3,173.20 1/2" gypsum wallboard, taped & finished ceilings 2.74 2,546.67 Beaudry Redevelopment TIF District #24 Replacement Cost Report LHB Project No. 170323 Page 1 of 2 Parcel B, Residence Z* ** Indicates Assemblies or Components have been customized. Beaudry Redevelopment TIF District #24 Replacement Cost Report LHB Project No. 170323 Page 2 of 2 Parcel B, Residence Lauan, flush door, hollow core, interior 7.14 6,638.43 Carpet, Olefin, 15 oz 2.11 1,959.46 Padding, sponge rubber cushion, minimum 0.76 711.26 Underlayment plywood, 1/2" thick 2.16 2,008.26 Resilient flooring, vinyl sheet goods, backed, .070" thick, minimum 1.24 1,151.08 Resilient flooring, sleepers, treated, 16" OC, 1" x 3" 1.08 1,001.69 07 Specialties Kitchen, economy grade 2.98 2,771.93 Sinks, stainless steel, single bowl 16" x 20" 1.82 1,697.03 Water heater, electric, 30 gallon 1.62 1,509.99 0: Mechanical � �E Three fixture bathroom with wall hung lavatory 5.28 4,911.06 Furnace, gas heating only, 100 MBH, area to 1200 SF 1.2 1,115.05 Intermittent pilot, 100 MBH furnace 0.28 256.72 Supply duct, rectangular, area to 1200 SF, rigid fiberglass 0.82 766.11 Return duct, sheet metal galvanized, to 1500 SF 1.01 940.31 Lateral ducts, flexible round 6" insulated, to 1200 SF 0.91 846.46 Register elbows, to 1500 SF 0.52 481.4 Floor registers, enameled steel w /damper, to 1500 SF 0.33 304.71 Return air grille, area to 1500 SF 12" x 12" 0.1 91.47 Thermostat, manual, 1 set back 0.15 136 Plenum, heating only, 100 MBH 0.18 170.31 09 Electrical 100 amp electric service 1.4 1,302.92 Wiring device systems, economy to 1200 S.F. 2.02 1,876.73 Light fixture systems, economy to 1200 S.F. 0.53 488.39 SubTotal 100% $114.88 $106,841.77 Contractor Fees (General Conditions,Overhead,Profit) 10.00% $11.49 $10,684.18 Architectural Fees 0.00% $0.00 $0.00 User Fees 0.00% $0.00 $0.00 Z* ** Indicates Assemblies or Components have been customized. Beaudry Redevelopment TIF District #24 Replacement Cost Report LHB Project No. 170323 Page 2 of 2 Parcel B, Residence Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report Parcel B - 634 Quinn Ave NW, Elk River, MN 55330 - Parcel ID 75- 403 -0020 Residence Accessibility Items Modify threshold between entryway and kitchen to meet code compliance. $ 225.00 Lump 1 $ 225.00 Structural Elements Roof is showing a protrusion mid -roof running from ridge to entryway addition indicating structure settlement or heaving - investigate and repair. $ 1,500.00 Lump 1 $ 1,500.00 NW corner of house is not sitting tight to foundation wall indicating structural movement of house /foundation wall. $ 1,200.00 Lump 1 $ 1,200.00 Replace and modify existing temporary basement floor jacks with structurally designed system. $ 3,200.00 Lump 1 $ 3,200.00 Exiting Replace front wood entrance steps to meet proper egress codes. $ 650.00 Lump 1 $ 650.00 Install code - compliant rear entrance steps to replace existing loose patio blocks. $ 1,200.00 Lump 1 $ 1,200.00 Install code - compliant sidewalk at side entrance to replace existing partial concrete and uneven gravel surface to eliminate tripping hazard. $ 9.84 Sf 150 $ 1,476.00 Fire Protection All smoke detectors have been disabled- install code compliant hardwired detectors. $ 250.00 Ea 7 $ 1,750.00 No CO detectors present- install code compliant detectors. $ 250.00 Ea 4 $ 1,000.00 Enclose underside of basement stairs with fire -code compliant $ 4.25 Sf 42 $ 178.50 Exterior Construction Replace missing sections of vinyl siding to prevent water intrusion. $ 7.56 Sf 50 $ 378.00 NW corner of foundation wall has been spay foamed to seal gap between house and foundation- foam deteriorated allowing weather intrusion. $ 354.00 Lump 1 $ 354.00 Roof Construction Several asphalt roof shingle tabs missing resulting in possible water intrusion. $ 5.50 Sf 45 $ 247.50 Chimney base roof flashing improperly installed allowing possible water intrusion. $ 325.00 Lump 1 $ 325.00 Chimney masonry is deteriorated and missing and brick work cracked allowing water intrusion. $ 9.50 Sf 36 $ 342.00 Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report LHB Project No. 170323 Page 1 of 2 Parcel B, Residence Mechanical- Electrical Reroute portions of electrical wiring in basement area that is improperly installed. Correct open slots in circuit breaker box. Install code - required AFCI receptacles in living room, bedrooms and hallways. Replace current forced -air system with code compliant version including controls. Modify /correct improperly installed basement plumbing to meet current plumbing code. Install code - compliant vacuum breaker on utility sink hose connections. $ 325.00 Lump 1 $ 325.00 $ 55.00 Ea 1 $ 55.00 $ 250.00 Ea 7 $ 1,750.00 $ 2,300.00 Lump 1 $ 2,300.00 $ 425.00 Lump 1 $ 425.00 $ 150.00 Ea 1 $ 150.00 Total Code Improvements $ 19,031 Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report LHB Project No. 170323 Page 2 of 2 Parcel B, Residence Beaudry Redevelopment TIF District #24 Photos: Parcel B, 634 Quinn Avenue IMG_0233.JPG IMG_0234.JPG IMG_0236.JPG IMG_0237.JPG IMG_0239.JPG I M G_0240. JPG I M G_0242.J PG IMG_0243.JPG Page 1 of 6 I MG_0235.J PG I MG_0238.JPG I M G_0241.J PG 61 � I MG_0244.J PG IMG_0245.JPG IMG_0246.JPG I MG_0247.J PG IMG_0248.JPG IMG_0249.JPG I MG_0250.J PG IMG_0251.JPG IMG_0252.JPG I MG_0253.J PG IMG_0254.JPG IMG_0255.JPG I MG_0256.J PG Beaudry Redevelopment TI District #24 Page 2 of 6 Photos LHB Project No. 170323 Parcel B, Residence IMG_0257.JPG 3 u IMG_0260.JPG IMG_0263.JPG X53 P1130768.JPG Beaudry Redevelopment TI District #24 LHB Project No. 170323 IMG_0258.JPG f IMG_0261.JPG I MG_0259.J PG I MG_0262.JPG .i IMG_0264.JPG IMG_0265.JPG P 1130769.J PG Page 3 of 6 P 1130770.J PG Photos Parcel B, Residence P1130771.JPG P1130772.JPG P 1130773.J PG P1130774.JPG P1130775.JPG P1130776.JPG P1130777.JPG P1130778.JPG P 1130779.J PG P1130780.JPG P1130781.JPG P 1130782.J PG Beaudry Redevelopment TI District #24 Page 4 of 6 Photos LHB Project No. 170323 Parcel B, Residence P1130783.JPG P1130784.JPG INV P 1130785.J PG P1130786.JPG P1130787.JPG P1130789.JPG I'JifiBI�I/E.3►�1JY P1130790.JPG P1130788.JPG L7 P 1130791.J PG P1130793.JPG P 1130794.J PG Beaudry Redevelopment TI District #24 Page 5 of 6 Photos LHB Project No. 170323 Parcel B, Residence P1130795.JPG P1130796.JPG P 1130797.J PG P1130798.JPG P1130799.JPG P1130800.JPG P1130801.JPG P1130804.JPG .o- 1 s T4. I. v LIM: P1130802.JPG P1130803.JPG Beaudry Redevelopment TI District #24 Page 6 of 6 Photos LHB Project No. 170323 Parcel B, Residence Beaudry Redevelopment TIF District #24 Replacement Cost Report RSMeaTi5 data Square Foot Cost Estimate Report Date: 6/1/2017 INIUM WiM ULP04 Estimate Name: 620 Quinn Ave NW- Elk River City of Elk Rvier 620 Quinn Ave. NW, Elk River, Minnesota , 55330 Economy 1 Story with Wood Siding - Wood Building Type: Frame Location: MINNEAPOLIS, MN- -- �r- Story Count: 1 Story Height (L.F.): 8� I � Floor Area (S.F.): 992 Labor Type: RESa- -_:_.. —v� Basement Included: No Data Release: Year 2017 Quarter Costs are derived from a building model with basic components. Cost Per Square Foot: $121.21 Scope differences and market conditions can cause costs to vary significantly. Building Cost: $120,241.35 of Total Cost Per S.F.� Cost 0 � � '• Footing excavation, building, 26'x 46', 4' deep 3.05 3,027.89 02 Foundation Footing systems, 10" thick by 20" wide footing 2.97 2,944.58 Block wall systems, 8" wall, grouted, full height 10.52 10,439.06 Floor slab systems, 4" thick slab 4.32 4,287.21 03 Framing �® Exterior wall framing systems, 2" x 4 ", 16" OC 4.76 4,724.77 Exterior wall framing systems, 2" x 4 ", 16" OC 0.45 447.65 Truss roof framing systems, 24" OC, 4/12 pitch, 1' overhang, 26' span 7.23 7,167.99 Partition framing systems, 2" x 4 ", 16" OC 2.67 2,647.79 04� 0 Metal & plastic siding systems, vinyl clapboard siding, 8" wide, white 6.42 6,370.25 Metal & plastic siding systems, vinyl clapboard siding, 8" wide, white 0.61 603.55 Non -rigid insul, batts, fbgls, kraft faced, 3 -1/2" thick, R13, 15" W 0.8 795.64 Non -rigid insul, batts, fbgls, kraft faced, 12" thick, R38, 23" wide 1.63 1,616.70 Sliding window systems, builder's quality wood window, 3'x 2' 7.03 6,976.71 Door systems, solid core birch, flush, 3' x 6' -8" 2.8 2,779.03 Storm door, al, combination, storm & screen, anodized, 3' -0" x 6' -8" 0.85 843.77 05 Roofing Gable end roofing, asphalt, roof shingles, class A 5.49 5,450.16 0. Interiors Wall system, 1/2" drywall, taped & finished 7.87 7,802.49 Wall system, 1/2" drywall, taped & finished 3.27 3,247.52 1/2" gypsum wallboard, taped & finished ceilings 2.74 2,716.44 Beaudry Redevelopment TIF District #24 Replacement Cost Report LHB Project No. 170323 Page 1 of 2 Parcel C, Residence Z* ** Indicates Assemblies or Components have been customized. Beaudry Redevelopment TIF District #24 Replacement Cost Report LHB Project No. 170323 Page 2 of 2 Parcel C, Residence Lauan, flush door, hollow core, interior 7.14 7,080.99 Carpet, Olefin, 15 oz 2.11 2,090.09 Padding, sponge rubber cushion, minimum 0.76 758.67 Underlayment plywood, 1/2" thick 2.16 2,142.15 Resilient flooring, vinyl sheet goods, backed, .070" thick, minimum 1.24 1,227.82 Resilient flooring, sleepers, treated, 16" OC, 1" x 3" 1.08 1,068.47 07 Specialties Kitchen, economy grade 2.79 2,771.93 Sinks, stainless steel, single bowl 16" x 20" 1.71 1,697.03 Water heater, electric, 30 gallon 1.52 1,509.99 0:� Three fixture bathroom with wall hung lavatory 4.95 4,911.06 Furnace, gas heating only, 100 MBH, area to 1200 SF 1.12 1,115.05 Intermittent pilot, 100 MBH furnace 0.26 256.72 Supply duct, rectangular, area to 1200 SF, rigid fiberglass 0.82 817.18 Return duct, sheet metal galvanized, to 1500 SF 1.01 1,002.99 Lateral ducts, flexible round 6" insulated, to 1200 SF 0.91 902.89 Register elbows, to 1500 SF 0.52 513.49 Floor registers, enameled steel w /damper, to 1500 SF 0.33 325.02 Return air grille, area to 1500 SF 12" x 12" 0.1 97.56 Thermostat, manual, 1 set back 0.14 136 Plenum, heating only, 100 MBH 0.17 170.31 09 Electrical 100 amp electric service 1.31 1,302.92 Wiring device systems, economy to 1200 S.F. 2.02 2,001.84 Light fixture systems, economy to 1200 S.F. 0.53 520.95 SubTotal 100% $110.19 $109,310.32 Contractor Fees (General Conditions,Overhead,Profit) 10.00% $11.02 $10,931.03 Architectural Fees 0.00% $0.00 $0.00 User Fees 0.00% $0.00 $0.00 Z* ** Indicates Assemblies or Components have been customized. Beaudry Redevelopment TIF District #24 Replacement Cost Report LHB Project No. 170323 Page 2 of 2 Parcel C, Residence Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report Parcel C - 620 Quinn Ave NW, Elk River, MN 55330 - Parcel ID 75- 403 -0010 Residence Accessibility Items Front door needs to be replaced to meet proper accessibility into house. $ 825.00 Ea 1 $ 825.00 Structural Elements Structural code issues: Missing and evidence of rotted subsiding and framing allowing water intrusion $ 4.70 SF 600 $ 2,820.00 Eves and soffits improperly installed and maintained with evidence of water intrusion and deterioration. $ 8,500.00 Lump 1 $ 8,500.00 Exiting Rear door has been removed and boarded up- install new code - required door. Demo and framing for new $ 250.00 Lump 1 $ 250.00 Installation $ 825.00 Ea 1 $ 825.00 Windows have been removed and boarded up restricting proper egress. $ 675.00 Ea 7 $ 4,725.00 Fire Protection Unable to verify $ - Exterior Construction Sections of soffits are open allowing water intrusion and animal habitat. $ 4.25 Sf 225 $ 956.25 House siding has been remove removed in sections, plywood ill - fitted, Tyvek sheeting missing and torn- lacks code required water tight exterior $ 6.42 Sf 965 $ 6,195.30 Remove vegetative vine growth that is present on several exterior walls creating damage to siding. $ 275.00 Lump 1 $ 275.00 Remove numerous tree and shrub growth that is against house siding and roof edge causing damage to siding. $ 325.00 Lump 1 $ 325.00 Roof Construction Replace roof due to poor substrate, soffits and eaves. $ 6.19 SF 990 $ 6,128.10 Mechanical- Electrical Unable to assess $ - Total Code Improvements $ 31,825 Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report LHB Project No. 170323 Page 1 of 1 Parcel C, Residence Beaudry Redevelopment TIF District #24 Photos: Parcel C, 620 Quinn Avenue IMG_0266.JPG IMG_0267.JPG IMG_0269.JPG IMG_0270.JPG I M G_0272.J PG P1130805.JPG P1130807.JPG P 1130808.J PG Page 1 of 2 i- I MG_0268.JPG mi I MG_0271.JPG P 1130806.J PG P 1130809.J PG P1130810.JPG P1130811.JPG P1130812.JPG P1130813.JPG P1130816.JPG P1130819.JPG P1130814.JPG P 1130815.J PG P1130817.JPG P 1130818.J PG Beaudry Redevelopment TI District #24 Page 2 of 2 Photos LHB Project No. 170323 Parcel C, Residence Beaudry Redevelopment TIF District #24 Replacement Cost Report RSMear-is dat3 Square Foot Cost Estimate Report ikw, - t&%_&1%E3Le1W4 Estimate Name: 1234 6th Street Footing systems, 10" thick by 20" wide footing City of Elk River 1,996.88 1234 6th Street NW, Elk River, Minnesota , 8.85 55330 Block wall systems, 8" wall, grouted, full height Economy 1 -1/2 Story with Wood Siding - Wood Building Type: Frame Location: ELK RIVER, MN Story Count: 1.5 Story Height (L.F.): 8 Floor Area (S.F.): Labor Type: Basement Included: Data Release: Cost Per Square Foot: Building Cost: 800 RES No Year 2017 Quarter 2 $160.91 $128,746.99 Date: 5/24/2017 Costs are derived from a building model with basic components. Scope differences and market conditions can cause costs to vary significantly. of Total Cost Per S.F. Cost Footing excavation, building, 26'x 46', 4' deep 3.78 3,027.89 Footing systems, 10" thick by 20" wide footing 2.5 1,996.88 Block wall systems, 8" wall, grouted, full height 8.85 7,079.27 Block wall systems, 8" wall, grouted, full height 7.74 6,194.36 Floor slab systems, 4" thick slab 2.7 2,160.89 Floor framing systems, 2" x 8 ", 16" OC 3.05 2,441.25 Floor framing, wood joists, #2 or better, pine, 2" x 8 ", 16" OC 1.23 984.06 Floor framing, bridging, wood 1" x 3 ", joists 16" OC 0.25 197.83 Box sills, #2 or better pine, 2" x 8" 0.18 146.99 Exterior wall framing systems, 2" x 4 ", 16" OC 0.76 606.69 Exterior wall framing systems, 2" x 4 ", 16" OC 6.01 4,806.17 Gable end roof framing systems, 2" x 8" rafters, 16" OC, 4/12 pitch 6.76 5,409.70 Furring, 1" x 3 ", 16" OC 0.76 604.98 Partition framing systems, 2" x 4 ", 16" OC 3.74 2,989.44 Wood siding systems, 1/2" x 8" beveled cedar siding, "A" grade 1.7 1,360.68 Wood siding systems, 1/2" x 8" beveled cedar siding, "A" grade 13.47 10,779.25 Non -rigid insul, batts, fbgls, kraft faced, 3 -1/2" thick, R13, 15" W 1.01 809.35 Non -rigid insul, batts, fbgls, kraft faced, 12" thick, R38, 23" wide 1.02 814.87 Sliding window systems, builder's quality wood window, 3'x 2' 8.87 7,096.91 Door systems, solid core birch, flush, 3' x 6' -8" 2.32 1,852.69 Storm door, al, combination, storm & screen, anodized, 3' -0" x 6' -8" 0.7 562.51 Beaudry Redevelopment TIF District #24 Replacement Cost Report LHB Project No. 170323 Page 1 of 2 Parcel D, Residence Beaudry Redevelopment TI District #24 Replacement Cost Report LHB Project No. 170323 Page 2 of 2 Parcel D, Residence Gable end roofing, asphalt, roof shingles, class A 3.98 3,186.58 0.� •� �: Wall system, 1/2" drywall, taped & finished 4.13 3,303.48 Wall system, 1/2" drywall, taped & finished 11.01 8,809.27 1/2" gypsum wallboard, taped & finished ceilings 2.74 2,190.68 Lauan, flush door, hollow core, interior 9.81 7,851.90 Carpet, Olefin, 15 oz 2.11 1,685.56 Padding, sponge rubber cushion, minimum 0.76 611.83 Underlayment plywood, 1/2" thick 2.16 1,727.54 Resilient flooring, vinyl sheet goods, backed, .070" thick, minimum 1.24 990.18 Resilient flooring, sleepers, treated, 16" OC, 1" x 3" 0.67 538.55 Stairways 14 risers, oak treads, box stairs 5.06 4,050.41 Basement stairs, open risers 1.43 1,145.68 07 Specialties Kitchen, economy grade 3.46 2,771.93 Sinks, stainless steel, single bowl 16" x 20" 2.12 1,697.03 Water heater, electric, 30 gallon 1.89 1,509.99 0:� �. Three fixture bathroom with wall hung lavatory 6.14 4,911.06 Furnace, gas heating only, 100 MBH, area to 1200 SF 1.39 1,115.05 Intermittent pilot, 100 MBH furnace 0.32 256.72 Supply duct, rectangular, area to 1200 SF, rigid fiberglass 0.82 659.02 Return duct, sheet metal galvanized, to 1500 SF 1.01 808.87 Lateral ducts, flexible round 6" insulated, to 1200 SF 0.91 728.13 Register elbows, to 1500 SF 0.52 414.11 Floor registers, enameled steel w /damper, to 1500 SF 0.33 262.11 Return air grille, area to 1500 SF 12" x 12" 0.1 78.68 Thermostat, manual, 1 set back 0.17 136 Plenum, heating only, 100 MBH 0.21 170.31 0• Electrical 100 amp electric service 1.63 1,302.92 Duplex receptacles using non - metallic sheathed cable 0.21 171.96 Wiring device systems, economy to 1200 S.F. 2.02 1,614.39 Light fixture systems, economy to 1200 S.F. 0.53 420.12 SubTotal 100% $146.28 $117,042.72 Contractor Fees (General Con ditions,Overhead,Profit) 10.00% $14.63 $11,704.27 Architectural Fees 0.00% $0.00 $0.00 User Fees 0.00% $0.00 $0.00 Beaudry Redevelopment TI District #24 Replacement Cost Report LHB Project No. 170323 Page 2 of 2 Parcel D, Residence Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report Parcel D - 1234 6th Street NW Elk River, MN 55330 - Parcel ID 75 -41 -0745 Residence Accessibility Items Bathroom Modify bathroom so fixtures comply with code for proper spacing $ 6.14 SF Front Steps Modify front steps to comply with code for proper rise and run $ 1,000.00 Lump Structural Elements Exiting Stairways Modify basement stairway to comply with code Modify second floor stairway to comply with code Side Entrance Modify side entrance to comply with code for door at landing Floor to Ceiling Height Modify second floor to comply with code for proper height from floor to ceiling Fire Protection Smoke Detectors Install code required smoke detectors Arc Fault Circuit Interrupters Install code required AFCI's Exterior Construction Windows Replace windows to prevent water intrusion per code Roof Construction Mechanical- Electrical Mechanical Replace HVAC system to comply with code $ 250.00 EA $ 250.00 EA $ 2,500.00 Lump $ 20.00 SF 800 $ 4,912.00 1 $ 1,000.00 13 $ 3,250.00 13 $ 3,250.00 1 $ 2,500.00 400 $ 8,000.00 $ 250.00 EA 6 $ 1,500.00 $ 250.00 EA 8 $ 2,000.00 $ 8.87 SF $ 5.78 SF 800 $ 7,096.00 800 $ 4,624.00 Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report LHB Project No. 170323 Page 1 of 2 Parcel D, Residence Electrical Install code required carbon monoxide detectors Install code compliant grounded electrical fixtures Install code compliant circuit box Install code complinat exhaust in bathroom $ 250.00 EA 4 $ 1,000.00 $ 2.76 SF 800 $ 2,208.00 $ 1.63 SF 800 $ 1,304.00 $ 200.00 EA 1 $ 200.00 Total Code Improvements $ 42,844 Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report LHB Project No. 170323 Page 2 of 2 Parcel D, Residence Beaudry Redevelopment TIF District #24 Photos: Parcel D, 1234 6th Street P1130723.JPG -- P1130724.JPG P1130726.JPG A-9 P1130727.JPG P1130729.JPG P1130730.JPG P1130732.JPG ii P1130733.JPG Page 1 of 4 P 1130725.J PG P1130728.JPG P1130731.JPG P 1130734.J PG P1130735.JPG P1130736.JPG P 1130737.J PG P113073&JPG P1130739.J PG P 1130740.J PG P1130741.JPG P1130742.JPG P1130743.JPG P1130744.JPG P1130745.JPG P 1130746.J PG Beaudry Redevelopment TI District #24 Page 2 of 4 Photos LHB Project No. 170323 Parcel D, Residence P1130747.JPG P1130750.JPG P1130753.JPG P1130756.JPG Beaudry Redevelopment TI District #24 LHB Project No. 170323 Iw - - - . A F P1130748.JPG P 1130749.J PG P1130751.JPG P 1130752.J PG P 1130754.J PG I'JifiBi�lrb'1/�11Y P1130755.JPG A P 1130758.J PG Page 3 of 4 Photos Parcel D, Residence P1130759.JPG I P1130762.JPG i P1130760.JPG P 1130761.J PG P 1130763.J PG P 1130764.J PG P1130765.JPG P1130766.JPG P 1130767.J PG Beaudry Redevelopment TI District #24 Page 4 of 4 Photos LHB Project No. 170323 Parcel D, Residence Beaudry Redevelopment TIF District #24 Replacement Cost Report RS M ea r-i5 duta Square Foot Cost Estimate Report 01(w, , tbro LJLe%r4 3,027.89 Estimate Name: 1214 6th Street NW- Elk River Elk River 1214 6th Street NW, Elk River, Minnesota , 2.44 55330 Economy 1 Story with Wood Siding - Wood Building Type: Frame Location: MINNEAPOLIS, MN Story Count: 1 Story Height (L.F.): 8 Floor Area (S.F.): Labor Type: Basement Included: Data Release: Cost Per Square Foot: Building Cost: 1450 R ES No Year 2017 Quarter 2 $117.21 $169,960.69 Date: 6/2/2017 ffI I '4 Costs are derived from a building model with basic components. Scope differences and market conditions can cause costs to vary significantly. of Total Cost Per S.F. Cost Gable end roofing, asphalt, roof shingles, class A 5.49 7,966.46 Beaudry Redevelopment TIF District #24 Replacement Cost Report LHB Project No. 170323 Page 1 of 2 Parcel F, Residence Footing excavation, building, 26'x 46', 4' deep 2.09 3,027.89 02 Foundation Footing systems, 10" thick by 20" wide footing 2.44 3,538.91 Block wall systems, 8" wall, grouted, full height 8.65 12,546.04 Block wall systems, 8" wall, grouted, full height 7.57 10,977.79 Floor slab systems, 4" thick slab 4.32 6,266.58 03 Framing 11 Floor framing, wood joists, #2 or better, pine, 2" x 8 ", 16" OC 1.97 2,853.76 Floor framing, bridging, wood 1" x 3 ", joists 16" OC 0.4 573.69 Box sills, #2 or better pine, 2" x 8" 0.29 426.26 Exterior wall framing systems, 2" x 4 ", 16" OC 3.92 5,678.40 Exterior wall framing systems, 2" x 4 ", 16" OC 0.37 538 Truss roof framing systems, 24" OC, 4/12 pitch, 1' overhang, 26' span 7.23 10,477.41 Partition framing systems, 2" x 4 ", 16" OC 2.34 3,386.48 14 Exterior Walls Metal & plastic siding systems, vinyl clapboard siding, 8" wide, white 0.5 725.36 Metal & plastic siding systems, vinyl clapboard siding, 8" wide, white 5.28 7,656.00 Non -rigid insul, batts, fbgls, kraft faced, 3 -1/2" thick, R13, 15" W 0.66 956.23 Non -rigid insul, batts, fbgls, kraft faced, 12" thick, R38, 23" wide 1.63 2,363.12 Sliding window systems, builder's quality wood window, 3'x 2' 5.78 8,384.87 Door systems, solid core birch, flush, 3' x 6' -8" 1.92 2,779.03 Storm door, al, combination, storm & screen, anodized, 3' -0" x 6' -8" 0.58 843.77 Gable end roofing, asphalt, roof shingles, class A 5.49 7,966.46 Beaudry Redevelopment TIF District #24 Replacement Cost Report LHB Project No. 170323 Page 1 of 2 Parcel F, Residence `� ** Indicates Assemblies or Components have been customized. Beaudry Redevelopment TIF District #24 Replacement Cost Report LHB Project No. 170323 Page 2 of 2 Parcel F, Residence Wall system, 1/2" drywall, taped & finished 6.88 9,979.25 Wall system, 1/2" drywall, taped & finished 2.69 3,903.00 1/2" gypsum wallboard, taped & finished ceilings 2.74 3,970.61 Lauan, flush door, hollow core, interior 6.54 9,487.71 Carpet, Olefin, 15 oz 2.11 3,055.07 Padding, sponge rubber cushion, minimum 0.76 1,108.95 Underlayment plywood, 1/2" thick 2.16 3,131.16 Resilient flooring, vinyl sheet goods, backed, .070" thick, minimum 1.24 1,794.69 Resilient flooring, sleepers, treated, 16" OC, 1" x 3" 1.08 1,561.78 Basement stairs, open risers 0.79 1,145.68 07 Specialties Kitchen, economy grade 1.91 2,771.93 Sinks, stainless steel, single bowl 16" x 20" 1.17 1,697.03 Water heater, electric, 30 gallon 1.04 1,509.99 0: Mechanical Three fixture bathroom with wall hung lavatory 3.39 4,911.06 Furnace, gas heating only, 100 MBH, area to 1200 SF 0.77 1,115.05 Intermittent pilot, 100 MBH furnace 0.18 256.72 Supply duct, rectangular, area to 1200 SF, rigid fiberglass 0.82 1,194.47 Return duct, sheet metal galvanized, to 1500 SF 1.01 1,466.07 Lateral ducts, flexible round 6" insulated, to 1200 SF 0.91 11319.74 Register elbows, to 1500 SF 0.52 750.57 Floor registers, enameled steel w /damper, to 1500 SF 0.33 475.08 Return air grille, area to 1500 SF 12" x 12" 0.1 142.61 Thermostat, manual, 1 set back 0.09 136 Plenum, heating only, 100 MBH 0.12 170.31 09 Electrical 100 amp electric service 0.9 1,302.92 Duplex receptacles using non - metallic sheathed cable 0.34 498.67 Wiring device systems, economy to 1200 S.F. 2.02 2,926.08 Light fixture systems, economy to 1200 S.F. 0.53 761.47 SubTotal 100% $106.56 $154,509.72 Contractor Fees (General Conditions,Ove rhea d,Profit) 10.00% $10.66 $15,450.97 Architectural Fees 0.00% $0.00 $0.00 User Fees 0.00% $0.00 $0.00 `� ** Indicates Assemblies or Components have been customized. Beaudry Redevelopment TIF District #24 Replacement Cost Report LHB Project No. 170323 Page 2 of 2 Parcel F, Residence Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report Parcel F - 1214 6TH Street NW, Elk River, MN 55330 - Parcel ID 75- 410 -0705 Accessibility Items Current wood handicap ramp lacks code - compliant protective handrails. $ 12.50 LF 75 $ 937.50 Modify bathroom fixtures to comply with ADA code for proper spacing and clearances. $ 3.39 SF 1400 $ 4,746.00 Structural Elements None $ - Exiting Replace entrance door hardware with code - compliant style. $ 150.00 Ea 2 $ 300.00 Replace non - compliant rear entrance concrete steps level with threshold per code. $ 2,200.00 Lump 1 $ 2,200.00 Install code - required basement egress window $ 3,025.00 Lump 1 $ 3,025.00 Fire Protection Install code - required building -wide automatic fire sprinkler system $ 1.61 SF 2800 $ 4,508.00 Exterior Construction Wood soffits and eaves on rear of house need to be painted /covered to prevent water intrusion. $ 256.00 Lump 1 $ 256.00 Wood windows need to be painted and caulked to prevent water intrusion. $ 78.00 Ea 2 $ 156.00 Wood siding on rear of house needs to be painted to prevent water intrusion. $ 2.25 SF 400 $ 900.00 Roof Construction None $ - Mechanical- Electrical Replace non - compliant forced air heating system and controls to meet code. $ 4.85 SF 1400 $ 6,790.00 Modify non - compliant basement bathroom per code. $ 1,600.00 Lump 1 $ 1,600.00 Replace non - complaint ceiling mounted gas heater located in attached garage to meet code. $ 1,100.00 Lump 1 $ 1,100.00 Provide AFCI protected receptacles per code Living Room $ 250.00 Ea 8 $ 2,000.00 Bedrooms $ 250.00 Ea 6 $ 1,500.00 Hallways $ 250.00 Ea 2 $ 500.00 Provide GFCI protected receptacles in Kitchen $ 250.00 Ea 2 $ 500.00 Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report LHB Project No. 170323 Page 1 of 2 Parcel F, Residence Repair non - compliant basement wall outlets that are loose and have unprotected wiring. $ 85.00 Ea 2 $ 170.00 Repair electrical outlets adjacent to main electrical panel that are damaged and are not code compliant. $ 35.00 Ea 2 $ 70.00 Total Code Improvements $ 31,259 Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report LHB Project No. 170323 Page 2 of 2 Parcel F, Residence Beaudry Redevelopment TIF District #24 Photos: Parcel F, 1214 6th Street IMG_0148.JPG IMG_0149.JPG IMG_0151.JPG IMG_0152.JPG IMG_0154.JPG IMG_0155.JPG IMG_0157.JPG IMG_0158.JPG Page 1 of 8 I MG_0150.J PG I MG_0153.J PG IMG_0156.JPG I MG_0159.J PG IMG_0160.JPG NA IMG 0163.JPG IMG_0161.JPG EL IMG_0164.JPG I MG_0162.J PG I MG_0165.J PG IMG_0166.JPG IMG_0167.JPG I MG_0168.J PG IMG_0169.JPG IMG_0170.JPG IMG_0171.JPG Beaudry Redevelopment TI District #24 Page 2 of 8 Photos LHB Project No. 170323 Parcel F, Residence IMG_0172.JPG IMG_0173.JPG I MG_0174.J PG : -a . IMG_0175.JPG IMG_0178.JPG IMG_0176.JPG I M G_0179. JPG IMG_0177.JPG �A 9 - i IMG_0180.JPG IMG_0181.JPG Beaudry Redevelopment TI District #24 LHB Project No. 170323 IMG_0182.JPG Page 3 of 8 IMG_0183.JPG Photos Parcel F, Residence IMG_0184.JPG IMG_0185.JPG INV t + I MG_0186.J PG P1130674.JPG P 1130675.J PG P 1130676.J PG P1130677.JPG P1130678.JPG P 1130679.J PG P1130680.JPG P 1130681.J PG P 1130682.J PG Beaudry Redevelopment TI District #24 Page 4 of 8 Photos LHB Project No. 170323 Parcel F, Residence T P1130683.JPG P1130684.JPG P 1130685.J PG P1130686.JPG P1130689.JPG o�. P1130692.JPG P1130687.J PG FAA P 1130690.J PG P1130691.JPG P1130693.JPG P1130694.JPG Beaudry Redevelopment TI District #24 Page 5 of 8 Photos LHB Project No. 170323 Parcel F, Residence P1130695.JPG ril I P 1130696.J PG i P1130698.JPG P1130699.JPG P1130701.JPG �--i P 1130702.J PG 77J P 1130697.J PG P 1130700.J PG P 1130703.J PG P1130704.JPG P1130705.JPG P 1130706.J PG Beaudry Redevelopment TI District #24 Page 6 of 8 Photos LHB Project No. 170323 Parcel F, Residence L P1130707.JPG P1130708.JPG P 1130709.J PG P1130710.JPG P1130711.JPG P 1130712.J PG P1130713.JPG P1130714.JPG P1130715.JPG P1130716.JPG P1130717.JPG P 1130718.J PG Beaudry Redevelopment TI District #24 Page 7 of 8 Photos LHB Project No. 170323 Parcel F, Residence P1130719.JPG P1130722.JPG d. �1 � P1130720.JPG FM I t r P 1130721.J PG 1 Beaudry Redevelopment TI District #24 Page 8 of 8 Photos LHB Project No. 170323 Parcel F, Residence Beaudry Redevelopment TIF District #24 Replacement Cost Report RSMear-is data Square Foot Cost Estimate Report ik+crw; °, t&%_&1WE3Lt1W4 Estimate Name: 1206 6th Street Footing systems, 10" thick by 20" wide footing City of Elk River 1996.88 1206 6th Street NW, Elk River, Minnesota , 8.85 55330 Block wall systems, 8" wall, grouted, full height Economy 1 -1/2 Story with Wood Siding - Wood Building Type: Frame Location: ELK RIVER, MN Story Count: 1.5 Story Height (L.F.): 8 Floor Area (S.F.): Labor Type: Basement Included: Data Release: Cost Per Square Foot: Building Cost: 800 RES No Year 2017 Quarter 2 $160.93 $128,746.99 Date: 5/24/2017 Costs are derived from a building model with basic components. Scope differences and market conditions can cause costs to vary significantly. of Total Cost Per S.F. Cost Footing excavation, building, 26'x 46', 4' deep 3.78 3027.89 Footing systems, 10" thick by 20" wide footing 2.50 1996.88 Block wall systems, 8" wall, grouted, full height 8.85 7079.27 Block wall systems, 8" wall, grouted, full height 7.74 6194.36 Floor slab systems, 4" thick slab 2.70 2160.89 Floor framing systems, 2" x 8 ", 16" OC 3.05 2441.25 Floor framing, wood joists, #2 or better, pine, 2" x 8 ", 16" OC 1.23 984.06 Floor framing, bridging, wood 1" x 3 ", joists 16" OC 0.25 197.83 Box sills, #2 or better pine, 2" x 8" 0.18 146.99 Exterior wall framing systems, 2" x 4 ", 16" OC 0.76 606.69 Exterior wall framing systems, 2" x 4 ", 16" OC 6.01 4806.17 Gable end roof framing systems, 2" x 8" rafters, 16" OC, 4/12 pitch 6.76 5409.70 Furring, 1" x 3 ", 16" OC 0.76 604.98 Partition framing systems, 2" x 4 ", 16" OC 3.74 2989.44 Wood siding systems, 1/2" x 8" beveled cedar siding, "A" grade 1.70 1360.68 Wood siding systems, 1/2" x 8" beveled cedar siding, "A" grade 13.47 10779.25 Non -rigid insul, batts, fbgls, kraft faced, 3 -1/2" thick, R13, 15" W 1.01 809.35 Non -rigid insul, batts, fbgls, kraft faced, 12" thick, R38, 23" wide 1.02 814.87 Sliding window systems, builder's quality wood window, 3'x 2' 8.87 7096.91 Door systems, solid core birch, flush, 3' x 6' -8" 2.32 1852.69 Storm door, al, combination, storm & screen, anodized, 3' -0" x 6' -8" 0.70 562.51 Beaudry Redevelopment TIF District #24 Replacement Cost Report LHB Project No. 170323 Page 1 of 2 Parcel G, Residence Beaudry Redevelopment TI District #24 Replacement Cost Report LHB Project No. 170323 Page 2 of 2 Parcel G, Residence Gable end roofing, asphalt, roof shingles, class A 3.98 3186.58 0.� •� �: Wall system, 1/2" drywall, taped & finished 4.13 3303.48 Wall system, 1/2" drywall, taped & finished 11.01 8809.27 1/2" gypsum wallboard, taped & finished ceilings 2.74 2190.68 Lauan, flush door, hollow core, interior 9.81 7851.90 Carpet, Olefin, 15 oz 2.11 1685.56 Padding, sponge rubber cushion, minimum 0.76 611.83 Underlayment plywood, 1/2" thick 2.16 1727.54 Resilient flooring, vinyl sheet goods, backed, .070" thick, minimum 1.24 990.18 Resilient flooring, sleepers, treated, 16" OC, 1" x 3" 0.67 538.55 Stairways 14 risers, oak treads, box stairs 5.06 4050.41 Basement stairs, open risers 1.43 1145.68 07 Specialties Kitchen, economy grade 3.46 2771.93 Sinks, stainless steel, single bowl 16" x 20" 2.12 1697.03 Water heater, electric, 30 gallon 1.89 1509.99 0:� �. Three fixture bathroom with wall hung lavatory 6.14 4911.06 Furnace, gas heating only, 100 MBH, area to 1200 SF 1.39 1115.05 Intermittent pilot, 100 MBH furnace 0.32 256.72 Supply duct, rectangular, area to 1200 SF, rigid fiberglass 0.82 659.02 Return duct, sheet metal galvanized, to 1500 SF 1.01 808.87 Lateral ducts, flexible round 6" insulated, to 1200 SF 0.91 728.13 Register elbows, to 1500 SF 0.52 414.11 Floor registers, enameled steel w /damper, to 1500 SF 0.33 262.11 Return air grille, area to 1500 SF 12" x 12" 0.10 78.68 Thermostat, manual, 1 set back 0.17 136.00 Plenum, heating only, 100 MBH 0.21 170.31 0• Electrical 100 amp electric service 1.63 1302.92 Duplex receptacles using non - metallic sheathed cable 0.21 171.96 Wiring device systems, economy to 1200 S.F. 2.02 1614.39 Light fixture systems, economy to 1200 S.F. 0.53 420.12 SubTotal 100% $146.30 $117,042.72 Contractor Fees (General Con ditions,Overhead,Profit) 10.00% $14.63 $11,704.27 Architectural Fees 0.00% $0.00 $0.00 User Fees 0.00% $0.00 $0.00 Beaudry Redevelopment TI District #24 Replacement Cost Report LHB Project No. 170323 Page 2 of 2 Parcel G, Residence Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report Parcel G - 1206 6th Street NW Elk River, MN 55330 - Parcel ID 75- 410 -0710 Residence Accessibility Items Front Steps Modify front steps to comply with code for rise of threshold Structural Elements Exiting Stairway Modify second floor stairway to comply with code for proper rise and run of treads Fire Protection Smoke Detectors Install code compliant smoke detectors Arc Fault Circuit Interrupters Install code required AFCI's Exterior Construction Windows Replace windows to prevent water intrusion per code Flashing Install flashing over doors and windows to comply with code Roof Construction Mechanical- Electrical Mechanical Install dryer vent per code Replace HVAC system to comply with code Electrical Install electrical fixture on second floor per code Install code required carbon monoxide detectors Install code compliant grounded electrical outlets $ 800.00 Lump 1 $ 800.00 $ 250.00 EA 13 $ 3,250.00 $ 250.00 EA 5 $ 1,250.00 $ 250.00 EA 8 $ 2,000.00 $ 8.87 SF 800 $ 7,096.00 $ 500.00 Lump 1 $ 500.00 $ 250.00 Lump 1 $ 250.00 $ 5.78 SF 800 $ 4,624.00 $ 75.00 Lump 1 $ 75.00 $ 250.00 EA 4 $ 1,000.00 $ 125.00 EA 12 $ 1,500.00 Total Code Improvements $ 22,345 Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report -HB Project No. 170323 Page 1 of 1 Parcel G, Residence Beaudry Redevelopment TIF District #24 Photos- Parcel G, 1206 6th Street P1130658.JPG P 1130659.J PG P1130661.JPG P1130664.JPG it P1130667.JPG P1130662.JPG P1130665.JPG P 1130668.J PG Page 1 of 5 P 1130660.J PG P 1130663.J PG P1130666.JPG k P 1130669.J PG P1130670.JPG P 1130671.J PG P 1130672.J PG P1130673.JPG P1140013.JPG P1140015.JPG P1140016.JPG P1140017-JPG P1140019.JPG P 1140020.J PG P 1140018.J PG r` V, i. P 1140021.J PG Beaudry Redevelopment TI District #24 Page 2 of 5 Photos LHB Project No. 170323 Parcel G, Residence N I1. P1140022.JPG P1140023.JPG P 1140024.J PG P1140025.JPG P1140026.JPG P 1140027.J PG P1140028.JPG P1140029.JPG P1140030.JPG P1140031.JPG P 1140032.J PG P 1140033.J PG Beaudry Redevelopment TI District #24 Page 3 of 5 Photos LHB Project No. 170323 Parcel G, Residence P1140034.JPG s. 4 _ <T P1140035.JPG P 1140036.J PG P1140037.JPG P 1140038.J PG P 1140039.J PG P1140040.JPG P 1140041.J PG P 1140042.J PG P1140043.JPG P 1140044.J PG P 1140045.J PG Beaudry Redevelopment TI District #24 Page 4 of 5 Photos LHB Project No. 170323 Parcel G, Residence P1140046.JPG P1140047.JPG Beaudry Redevelopment TI District #24 Page 5 of 5 Photos LHB Project No. 170323 Parcel G, Residence Beaudry Redevelopment TIF District #24 Replacement Cost Report RSMeams dlait3 Square Foot Cost Estimate Report Lw, t i%A1NC3Le1W4 Estimate Name: 623 Proctor Avenue NW City of Elk River 623 Proctor Avenue NW, Elk River, Minnesota , 55330 Economy 2 Story with Wood Siding - Wood Building Type: Frame Location: ELK RIVER, MN Story Count: 2 Story Height (L.F.): 8 Floor Area (S.F.): Labor Type: Basement Included: Data Release: Cost Per Square Foot: Building Cost: 1200 R ES No Year 2017 Quarter 2 $131.88 $158,279.20 Date: 5/23/2017 Costs are derived from a building model with basic components. Scope differences and market conditions can cause costs to vary significantly. of Total Cost Per S.F. Cost Footing excavation, building, 26'x 46', 4' deep 2.52 3027.89 Footing systems, 10" thick by 20" wide footing 1.83 2196.56 Block wall systems, 8" wall, grouted, full height 6.49 7787.20 Block wall systems, 8" wall, grouted, full height 5.68 6813.80 Floor slab systems, 4" thick slab 2.16 2593.07 Floor framing systems, 2" x 8 ", 16" OC 4.07 4882.49 Floor framing, wood joists, #2 or better, pine, 2" x 8 ", 16" OC 0.98 1180.87 Floor framing, bridging, wood 1" x 3 ", joists 16" OC 0.20 237.39 Box sills, #2 or better pine, 2" x 8" 0.15 176.38 Exterior wall framing systems, 2" x 4 ", 16" OC 5.87 7049.05 Exterior wall framing systems, 2" x 4 ", 16" OC 0.28 333.93 Truss roof framing systems, 24" OC, 4/12 pitch, 1' overhang, 26' span 3.61 4335.48 Furring, 1" x 3 ", 16" OC 1.01 1209.96 Partition framing systems, 2" x 4 ", 16" OC 3.11 3736.80 Wood siding systems, 1/2" x 8" beveled cedar siding, "A" grade 13.17 15809.56 Wood siding systems, 1/2" x 8" beveled cedar siding, "A" grade 0.62 748.93 Non -rigid insul, batts, fbgls, kraft faced, 3 -1/2" thick, R13, 15" W 0.99 1187.04 Non -rigid insul, batts, fbgls, kraft faced, 12" thick, R38, 23" wide 0.81 977.84 Sliding window systems, builder's quality wood window, 3'x 2' 8.67 10408.81 Door systems, solid core birch, flush, 3' x 6' -8" 1.54 1852.69 Storm door, al, combination, storm & screen, anodized, 3' -0" x 6' -8" 0.47 562.51 Beaudry Redevelopment TIF District #24 Replacement Cost Report LHB Project No. 170323 Page 1 of 2 Parcel I, Residence Beaudry Redevelopment TI District #24 Replacement Cost Report LHB Project No. 170323 Page 2 of 2 Parcel I, Residence Gable end roofing, asphalt, roof shingles, class A 2.75 3296.47 0.� Wall system, 1/2" drywall, taped & finished 9.18 11011.58 Wall system, 1/2" drywall, taped & finished 4.04 4845.10 1/2" gypsum wallboard, taped & finished ceilings 2.74 3286.02 Lauan, flush door, hollow core, interior 7.85 9422.28 Carpet, Olefin, 15 oz 2.11 2528.33 Padding, sponge rubber cushion, minimum 0.76 917.75 Underlayment plywood, 1/2" thick 2.16 2591.30 Resilient flooring, vinyl sheet goods, backed, .070" thick, minimum 1.24 1485.26 Resilient flooring, sleepers, treated, 16" OC, 1" x 3" 0.54 646.25 Stairways 14 risers, oak treads, box stairs 3.38 4050.41 Basement stairs, open risers 0.95 1145.68 07 Specialties Kitchen, economy grade 2.31 2771.93 Sinks, stainless steel, single bowl 16" x 20" 1.41 1697.03 Water heater, electric, 30 gallon 1.26 1509.99 0:� Three fixture bathroom with wall hung lavatory 4.09 4911.06 Furnace, gas heating only, 100 MBH, area to 1200 SF 0.93 1115.05 Intermittent pilot, 100 MBH furnace 0.21 256.72 Supply duct, rectangular, area to 1200 SF, rigid fiberglass 0.82 988.53 Return duct, sheet metal galvanized, to 1500 SF 1.01 1213.30 Lateral ducts, flexible round 6" insulated, to 1200 SF 0.91 1092.20 Register elbows, to 1500 SF 0.52 621.16 Floor registers, enameled steel w /damper, to 1500 SF 0.33 393.17 Return air grille, area to 1500 SF 12" x 12" 0.10 118.02 Thermostat, manual, 1 set back 0.11 136.00 Plenum, heating only, 100 MBH 0.14 170.31 09 Electrical 100 amp electric service 1.09 1302.92 Duplex receptacles using non - metallic sheathed cable 0.17 206.35 Wiring device systems, economy to 1200 S.F. 2.02 2421.58 Light fixture systems, economy to 1200 S.F. 0.53 630.18 SubTotal 100% $119.89 $143,890.18 Contractor Fees (General Con ditions,Overhead,Profit) 10.00% $11.99 $14,389.02 Architectural Fees 0.00% $0.00 $0.00 User Fees 0.00% $0.00 $0.00 Beaudry Redevelopment TI District #24 Replacement Cost Report LHB Project No. 170323 Page 2 of 2 Parcel I, Residence Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report Parcel I - 623 Proctor Ave NW Elk River, MN 55330Address - Parcel 75 -41 -0720 Accessibility Items Stairway Modify second floor stair treads to comply with code for rise and run Install code required hand rail on second floor stairway Structural Elements Foundation Repair foundation cracks to prevent water intrusion per code Exiting Basement Floor to Ceiling Height Modify basement floor to ceiling height to comply with code Fire Protection Smoke Detectors Install code compliant smoke detectors Carbon Monoxide Detectors Install code required carbon monoxide detectors Fire Extinguisher Install code required fire extinguisher Arc Fault Circuit Interrupters Install code required AFCI's Exterior Construction Windows Replace windows to prevent water intrusion per code Exterior Siding System Repair wood siding to prevent water intrusion per code Repair soffit and fascia to prevent water intrusion per code Chimney Repair chimney to prevent water intrusion per code Roof Construction Roofing Material Replace roofing material to prevent water intrusion per code $ 1,500.00 Lump 1 $ 1,500.00 $ 150.00 EA 1 $ 150.00 $ 500.00 Lump $ 20.00 SF 1 $ 500.00 1200 $ 24,000.00 $ 250.00 EA 5 $ 1,250.00 $ 250.00 EA 3 $ 750.00 $ 50.00 EA 1 $ 50.00 $ 250.00 EA 6 $ 1,500.00 $ 8.67 SF 1200 $ 10,404.00 $ 1,000.00 Lump 1 $ 1,000.00 $ 500.00 SF 1 $ 500.00 $ 500.00 Lump 1 $ 500.00 $ 2.75 SF 1200 $ 3,300.00 Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report LHB Project No. 170323 Page 1 of 2 Parcel I, Residence Mechanical- Electrical Mechanical Replace HVAC system to comply with code Electrical Install code compliant ground fault circuit interrupters $ 5.08 SF 1200 $ 6,096.00 $ 250.00 EA 3 $ 750.00 Total Code Improvements $ 52,250 Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report LHB Project No. 170323 Page 2 of 2 Parcel I, Residence Beaudry Redevelopment TIF District #24 Photos: Parcel I, 623 ProctorAvenue P1130605.JPG P1130606.JPG P1130607.JPG P1130608.JPG P1130609.JPG P1130610.JPG P1130611.JPG P1130612.JPG P 1130613.J PG P1130614.JPG P1130615.JPG Page 1 of 5 P 1130616.J PG P1130617.JPG P1130618.JPG P1130619.JPG P1130620.JPG P 1130621.J PG P 1130622.J PG P1130623.JPG P1130624.JPG P 1130625.J PG P1130626.JPG P1130627.JPG P 1130628.J PG Beaudry Redevelopment TI District #24 Page 2 of 5 Photos LHB Project No. 170323 Parcel I, Residence !3 JAR r d P1130629.JPG P1130985.JPG P1130983.JPG A P 1130986.J PG 5 IP 2 P1130984.JPG AJ U P 1130987.J PG 219IMM-1111110 I P1130991.JPG P 1130989.J PG P 1130992.J PG P 1130990.J PG P 1130993.J PG Beaudry Redevelopment TI District #24 Page 3 of 5 Photos LHB Project No. 170323 Parcel I, Residence P1130994.JPG i r ' P1130997.JPG P1130995.JPG P1130996.JPG P 1130998.J PG P1140001.JPG P 1140002.J PG P1130999.JPG i 1201111U Plae1 P1140004.JPG P 1140005.J PG P 1140006.J PG Beaudry Redevelopment TI District #24 Page 4 of 5 Photos LHB Project No. 170323 Parcel I, Residence P1140007.JPG P1140008.JPG P1140009.JPG ,1l P1140010.JPG P1140011.JPG P1140012.JPG Beaudry Redevelopment TI District #24 Page 5 of 5 Photos LHB Project No. 170323 Parcel I, Residence Beaudry Redevelopment TIF District #24 Replacement Cost Report RS M ea r-i5 duta Square Foot Cost Estimate Report Lens , Mv�iW ®L1%r4 02 Foundation Estimate Name: 633 Proctor Ave NW Footing systems, 10" thick by 20" wide footing Mendota Heights 3,087.06 633 Proctor Ave NW, Elk River, Minnesota , 10.52 55330 Block wall systems, 8" wall, grouted, full height Economy 1 Story with Wood Siding - Wood Building Type: Frame Location: MINNEAPOLIS, MN Story Count: 1 Story Height (L.F.): 8 Floor Area (S.F.): Labor Type: Basement Included: Data Release: Cost Per Square Foot: Building Cost: 1040 RES No Year 2017 Quarter 2 $139.93 $145,530.89 Date: 5/30/2017 i €III i Costs are derived from a building model with basic components. `Scope differences and market conditions can cause costs to vary significantly. of Total Cost Per S.F. Cost Footing excavation, building, 26'x 46', 4' deep 2.91 3,027.89 02 Foundation Footing systems, 10" thick by 20" wide footing 2.97 3,087.06 Block wall systems, 8" wall, grouted, full height 10.52 10,944.17 Block wall systems, 8" wall, grouted, full height 9.21 9,576.15 Floor slab systems, 4" thick slab 4.32 4,494.65 03 Framing �® Floor framing, wood joists, #2 or better, pine, 2" x 8 ", 16" OC 1.97 2,046.83 Floor framing, bridging, wood 1" x 3 ", joists 16" OC 0.4 411.48 Box sills, #2 or better pine, 2" x 8" 0.29 305.73 Exterior wall framing systems, 2" x 4 ", 16" OC 4.76 4,953.39 Exterior wall framing systems, 2" x 4 ", 16" OC 0.45 469.31 Truss roof framing systems, 24" OC, 4/12 pitch, 1' overhang, 26' span 7.23 7,514.83 Partition framing systems, 2" x 4 ", 16" OC 2.67 2,775.91 L, Exterior Walls Wood siding systems, 1/2" x 8" beveled cedar siding, "A" grade 1.01 1,052.55 Wood siding systems, 1/2" x 8" beveled cedar siding, "A" grade 10.68 11,109.42 Non -rigid insul, batts, fbgls, kraft faced, 3 -1/2" thick, R13, 15" W 0.8 834.14 Non -rigid insul, batts, fbgls, kraft faced, 12" thick, R38, 23" wide 1.63 1,694.93 Sliding window systems, builder's quality wood window, 3'x 2' 7.03 7,314.30 Door systems, solid core birch, flush, 3' x 6' -8" 2.67 2,779.03 Storm door, al, combination, storm & screen, anodized, 3' -0" x 6' -8" 0.81 843.77 05 Roofing Gable end roofing, asphalt, roof shingles, class A 5.49 5,713.87 Beaudry Redevelopment TIF District #24 Replacement Cost Report LHB Project No. 170323 Page 1 of 2 Parcel J, Residence 0 ** Indicates Assemblies or Components have been customized. Beaudry Redevelopment TIF District #24 Replacement Cost Report LHB Project No. 170323 Page 2 of 2 Parcel J, Residence Wall system, 1/2" drywall, taped & finished 7.87 8,180.03 Wall system, 1/2" drywall, taped & finished 3.27 3,404.66 1/2" gypsum wallboard, taped & finished ceilings 2.74 2,847.88 Lauan, flush door, hollow core, interior 7.14 7,423.62 Carpet, Olefin, 15 oz 2.11 2,191.22 Padding, sponge rubber cushion, minimum 0.76 795.38 Underlayment plywood, 1/2" thick 2.16 2,245.80 Resilient flooring, vinyl sheet goods, backed, .070" thick, minimum 1.24 1,287.23 Resilient flooring, sleepers, treated, 16" OC, 1" x 3" 1.08 1,120.17 Basement stairs, open risers 1.1 1,145.68 07 Specialties �® Kitchen, economy grade 2.67 2,771.93 Sinks, stainless steel, single bowl 16" x 20" 1.63 1,697.03 Water heater, electric, 30 gallon 1.45 1,509.99 0: Mechanical Three fixture bathroom with wall hung lavatory 4.72 4,911.06 Furnace, gas heating only, 100 MBH, area to 1200 SF 1.07 1,115.05 Intermittent pilot, 100 MBH furnace 0.25 256.72 Supply duct, rectangular, area to 1200 SF, rigid fiberglass 0.82 856.72 Return duct, sheet metal galvanized, to 1500 SF 1.01 1,051.53 Lateral ducts, flexible round 6" insulated, to 1200 SF 0.91 946.57 Register elbows, to 1500 SF 0.52 538.34 Floor registers, enameled steel w /damper, to 1500 SF 0.33 340.75 Return air grille, area to 1500 SF 12" x 12" 0.1 102.28 Thermostat, manual, 1 set back 0.13 136 Plenum, heating only, 100 MBH 0.16 170.31 09 Electrical 100 amp electric service 1.25 1,302.92 Duplex receptacles using non - metallic sheathed cable 0.34 357.67 Wiring device systems, economy to 1200 S.F. 2.02 2,098.70 Light fixture systems, economy to 1200 S.F. 0.53 546.16 SubTotal 100% $127.21 $132,300.81 Contractor Fees (General Conditions,Ove rhea d,Profit) 10.00% $12.72 $13,230.08 Architectural Fees 0.00% $0.00 $0.00 User Fees 0.00% $0.00 $0.00 0 ** Indicates Assemblies or Components have been customized. Beaudry Redevelopment TIF District #24 Replacement Cost Report LHB Project No. 170323 Page 2 of 2 Parcel J, Residence Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report Parcel J - 633 Proctor Ave NW, Elk River, MN 55330 - Parcel ID 75- 410 -0725 Residence Accessibility Items Install guards around open window well at side walkway to prevent tripping hazard $ 475.00 Lump 1 $ 475.00 Remove 2X4 wood wall plates in basement room doorways $ 125.00 Lump 1 $ 125.00 Replace door hardware on entrance doors to meet proper code $ 250.00 Ea 3 $ 750.00 Structural Elements Investigate and repair plaster cracking in upper walls of kitchen that are showing signs of wall settlement $ 1,850.00 Lump 1 $ 1,850.00 Exiting Exterior Stairs Replace non - compliant front, side and rear entrance stairs to meet proper tread and rise. $ 1,800.00 Ea 3 $ 5,400.00 Modify basement stairway to meet proper rise and tread on stairs per code $ 1,900.00 Lump 1 $ 1,900.00 Fire Protection Provide code - compliant hardwired fire and CO detectors throughout house: $ - Smoke detectors $ 250.00 Ea 5 $ 1,250.00 CO detectors $ 250.00 Ea 3 $ 750.00 Exterior Construction Repair /tuck point chimney to prevent water intrusion $ 9.50 Sf 24 $ 228.00 Repair cracked and spalling block foundation to prevent water intrusion causing efflorescent on inside of basement walls $ 8.75 Sf 150 $ 1,312.50 Roof Construction None $ - Mechanical- Electrical Outlets: Replace non - grounded outlets throughout house to meet code $ 125.00 Ea 24 $ 3,000.00 Provide GFCI protected receptacles per code: $ - Bathroom $ 250.00 Ea 1 $ 250.00 Kitchen $ 250.00 Ea 2 $ 500.00 Other wet locations $ 250.00 Ea 2 $ 500.00 Provide AFCI required receptacles: Living Room $ 250.00 Ea 8 $ 2,000.00 Bedrooms $ 250.00 Ea 4 $ 1,000.00 Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report LHB Project No. 170323 Page 1 of 2 Parcel J, Residence Hallways $ 250.00 Ea 1 $ 250.00 Forced -air furnace: Replace code deficient furnace to meet current ventilation codes $ 2,300.00 Lump Replace existing thermostat with energy code compliant one $ 150.00 Ea Modify nonmetallic sheathed electrical wiring that is improperly installed as per code $ 750.00 Lump 1 $ 2,300.00 1 $ 150.00 1 $ 750.00 Total Code Improvements $ 24,741 Beaudry Redevelopment TIF District #24 Code Deficiency Cost Report LHB Project No. 170323 Page 2 of 2 Parcel J, Residence Beaudry Redevelopment TIF District #24 Photos: Parcel J, 633 Proctor Avenue t� IMG_0033.JPG w IMG_0036.JPG IMG_0034.JPG I MG_0035.J PG r IMG_0037.JPG I MG_0038.J PG IMG_0039.JPG IMG_0042.JPG IMG_0040.JPG I MG_0041.J PG IMG_0043.JPG Page 1 of 9 I MG_0044.J PG Beaudry Redevelopment TIF District #24 Photos: Parcel J, 633 Proctor Avenue I M G_0045.J PG t' I M G_0048.J PG IMG_0046.JPG I MG_0047.J PG IMG_0049.JPG I MG_0050.J PG I M G_0051.J PG IMG_0052.JPG I MG_0053.J PG IMG_0054.JPG IMG_0055.JPG Page 2 of 9 I MG_0056.J PG Beaudry Redevelopment TIF District #24 Photos: Parcel J, 633 Proctor Avenue 1. m IMG_0057.JPG IMG_0058.JPG I M G_0060.J PG IMG_0061.JPG I MG_0059.J PG I MG_0062.J PG IMG_0063.JPG IMG_0064.JPG I MG_0065.JPG I M G_0066.J PG IMG_0067.JPG Page 3 of 9 I MG_0068.J PG Beaudry Redevelopment TIF District #24 Photos: Parcel J, 633 Proctor Avenue I M G_0069.J PG IMG_0070.JPG IMG_0072.JPG IMG_0073.JPG IMG_0071.JPG I MG_0074.J PG I M G_0075.J PG IMG_0076.JPG IMG_0077.JPG IMG_0078.JPG IMG_0079.JPG Page 4 of 9 I MG_0080.J PG Beaudry Redevelopment TIF District #24 Photos- Parcel J, 633 Proctor Avenue P1130552.JPG P1130553.JPG P 1130554.J PG P1130555.JPG P1130558.JPG 1! --- P1130556.JPG P 1130557.J PG 4 _yam JPG P1130559.JPG P1130560 P1130561.JPG P1130562.JPG Page 5 of 9 P 1130563.J PG Beaudry Redevelopment TIF District #24 Photos- Parcel J, 633 Proctor Avenue j. :- P1130564.JPG P1130565.JPG 6 P 1130566.J PG P1130567.JPG UIP-Z11.7:%191Y P 1130569.J PG P1130570.JPG P1130573.JPG P 1130571.J PG P1130572 -JPG P1130574.JPG Page 6 of 9 P 1130575.J PG Beaudry Redevelopment TIF District #24 Photos: Parcel J, 633 Proctor Avenue P1130576.JPG P1130577.JPG P 1130578.J PG P1130579.JPG I'JifP- 1111:3111111 P1130581.JPG P1130582.JPG P1130583.J PG P1130584.JPG P1130585.JPG P1130586.JPG Page 7 of 9 P 1130587.J PG Beaudry Redevelopment TIF District #24 Photos: Parcel J, 633 Proctor Avenue P1130588.JPG P1130589.JPG P 1130590.J PG P1130591.JPG P1130592.JPG P 1130593.J PG P1130594.JPG P1130595.JPG P 1130596.J PG P1130597.JPG P1130598.JPG Page 8 of 9 P 1130599.J PG Beaudry Redevelopment TIF District #24 Photos: Parcel J, 633 Proctor Avenue P1130600.JPG P 1130601.J PG P1130603.JPG P 1130604.J PG Page 9 of 9 P 1130602.J PG RESOLUTION NO. 17 -01 CITY OF ELK RIVER RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ELK RIVER ELK RIVER CONCERNING DEVELOPMENT DISTRICT NO. I AND A PROPOSED TAX INCREMENT FINANCING DISTRICT OF THE CITY OF ELK RIVER WHEREAS, the proposal by the City of Elk River, Minnesota to amend the Development Program for Development District No. 1 (the "Program ") to reflect increased public development and redevelopment costs and activities, establish Tax Increment Financing (Redevelopment) District No. 24 (Beaudry Redevelopment Project), and adopt the Tax Increment Financing Plan relating thereto (the "TIF Plan" and, together with the Program, the "Plans "), all pursuant to and in conformity with applicable law, including Minnesota Statutes, 469.124 to 469.133 and Sections 469.174 to 469.1794, as amended, has been submitted to the City of Elk River Planning Commission (the "Commission "); and WHEREAS, the Commission has reviewed the Plans to determine the consistency of the Plans with the comprehensive plan for the City of Elk River. NOW THEREFORE, BE IT RESOLVED AND DETERMINED by the City of Elk River Planning Commission that the Plans are consistent with the comprehensive plan for the City of Elk River and conform to general plans for development or redevelopment of the City as a whole. Adopted this 27`s day of June, 2017. •uiug Commission Chair 1ffct 501899vl !SB EL185 -52 ver City of Mk Dearer Cuter Council Resolution 17 -36 Resolution Approving The Modification Of The Development Program For A Development District No. 1, Establishing A Tax Increment Financing District, Approving A Tax Increment Financing Plan Therefor And Authorizing The Execution Of Related Agreements BE IT RESOLVED by the City Council (the "Council ") of the City of Elk River, Minnesota (the "City "), as follows: Section 1. Recitals. 1.01. It has been proposed that the City modify the Development Program (the "Program Modification ") for Development District No. 1 (the "Development District "), establish Tax Increment Financing (Redevelopment) District No. 24 (I'he Truck Shop Project) within the Development District (the "TIF District ") and adopt the related Tax Increment Financing Plan therefor (the "TIF Plan ") all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.124 through 469.133 and Sections 469.174 through 469.1794, as amended (the "TIF Act "), all as reflected in that certain document entitled "Modification to the Development Program for Development District No. 1 and the Tax Increment Financing Plan for Tax Increment Financing (Redevelopment) District No. 24 Within Municipal Development District No. 1 (The Truck Shop Project) ", and presented for the Council's consideration. 1.02. The City has performed all actions required by law to be performed prior to the modification and approval of the Program Modification and the TIF Plan, including without limitation, delivery of the Program Modification and the TIF Plan to the Board of Sherburne County (the "County ") and the Board of Independent School District No. 728 (the "School District "), and the holding of a public hearing by the City thereon on date hereof following notice thereof published in the City's official newspaper at least 10 but not more than 30 days prior to the public hearing. 1.03. Certain information and material (collectively, the "Materials ") relating to the TIF Plan and to the activities contemplated therein have heretofore been prepared and submitted to the Council and /or made a part of the City files and proceedings on the TIF Plan. The Materials include information and /or substantiation constituting or relating to (1) the "studies and analyses" on why the new Tax Increment District meets the requirements to be a redevelopment tax increment financing district, including a "Report of Inspection Procedures and Results for Determining Qualifications of a Tax Increment Financing District as a Redevelopment District", dated June 15, 2017, prepared by LHB, Inc., Minneapolis, Minnesota, (2) why the new Tax Increment District meets the so -called "but for" test; and (3) the bases for the other findings and determinations made in this resolution. The Council hereby confirms, ratifies and adopts the Materials, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein. 5023200 7SB EL185 -52 1.04. The TIF District is being established to facilitate the demolition of existing blighted buildings, facilitate the construction of an approximately 7,216 square foot facility to operate a light maintenance facility for the Beaudry Oil existing fleet, provide necessary public infrastructure and facilitate future development in the TIF District (collectively, the "Development "). Section 2. Findings for the Adoption and A1broval of the Program Modification and TIF Plan. 2.01. The Council hereby finds that: (a) the land within the Development District would not be available for redevelopment without the financial aid to be sought under the Program Modification; (b) the Program Modification will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Development District by private enterprise; and (c) the Program Modification conforms to the general plan for the development of the City as a whole. 2.02. The Council finds that the Development District constitutes a "blighted area" as well as, in part, an area that is underused or inappropriately used, within the meaning of Minnesota Statues, Section 469.002, subd. 11 and Section 469.028, subd. 4. 2.03. The Council further finds that the demolition, clearance, and related activities to redevelop the Development District, all in accordance with the Program Modification, constitute a "redevelopment project" within the meaning of Minnesota Statues, Sections 469.002, subd. 14 and Section 469.028, subd. 4. 2.04. The City Council hereby finds that the TIF District is in the public interest and is a redevelopment district, as defined in Minnesota Statutes, Section 469.174, Subdivision 10 for the following reasons: The TIF District is, pursuant to Minnesota Statutes, Section 469.174, Subdivision 10, a "redevelopment district" because it consists of a project or portions of a project within which the following conditions, reasonably distributed throughout the District, exist: (1) parcels consisting of at least 70% of the area of the TIF District are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and (2) more than 50% of the buildings located within the TIF District are deemed "structurally substandard" (within the meaning of Minnesota Statutes, Section 469.174, Subdivision 10(b) and (c)) to a degree requiring substantial renovation or clearance. The TIF District consists of 12 parcels, and the parcels are "occupied" as defined in Minnesota Statutes, Section 469.174, Subd. 10(e), in that at least 15% of the area of the parcels are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures. In addition, 8 of 12 buildings in the TIF District (which is more than 50% of the buildings) are structurally substandard to a degree requiring substantial renovation or clearance. In addition, the costs of bringing the structurally substandard buildings into compliance with building codes applicable to new buildings would exceed 15% of the cost of constructing new structures of the same size and type on the site. The Materials, including without limitation the supporting facts for these determinations, is on file with the staff of the City. There have been no building permits issued or improvements made to the buildings since the date of the report. 2 502320v3 JSB ELI 85-52 2.05. The City Council hereby makes the following additional findings: (a) The City Council further finds that the proposed Program Modification, in the opinion of City Council, would not occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary. The specific basis for such finding being: The property on which the proposed Development will occur would not be developed in the reasonably foreseeable future. The demolition and redevelopment costs are higher than for new development and the costs of the public necessary to enable development in this area would make development infeasible. (b) The City Council further funds that the TIF Plan conforms to the general plan for the development or redevelopment of the City as a whole. The specific basis for such finding being: The TIF Plan will generally complement and serve to implement policies adopted in the City's comprehensive plan. The construction of the Development contemplated is or will be in substantial accordance with the existing zoning or any permitted exception for the property and is consistent with other uses in the area. (c) The City Council further finds that the TIF Plan will afford maximum opportunity consistent with the sound needs of the City as a whole for the development of the Development District by private enterprise. The specific basis for such finding being: The Development proposed to occur within the TIF District will afford maximum opportunity for the development of the applicable parcels consistent with the needs of the City and the removal of blighted buildings will increase the potential for future redevelopment. The Development will increase the taxable market valuation of the City. (d) For purposes of compliance with Minnesota Statutes, Section 469.175, Subdivision 3(b)(2), the City Council hereby finds that the increased market value of the property to be developed within the TIF District that could reasonably be expected to occur without the use of tax increment financing is $0 (other than amounts due to inflation), which is less than the market value estimated to result from the proposed development ($2,829,727 approximately), after subtracting the present value of the projected tax increments for the maximum duration of the TIF District (i.e., $731,388 approximately), which is approximately $2,098,339. In making these findings, the City Council has noted that the property has been declining for several years and would likely continue to do so if tax increment financing is not available. Thus, the use of tax increment financing will be a positive net gain to the City, the School District, and the County, and the tax increment assistance does not exceed the benefit which will be derived therefrom. 2.06. The City elects to retain all of the captured tax capacity to finance the costs of the TIF Distract and the Development District. 3 5023200 !SB ELI 85-52 2.07. The provisions of this Section 2 are hereby incorporated by reference into and made a part of the TIF Plan. 2.08. The Council further finds that the Program Modification and TIF Plan are intended and in the judgment of the Council its effect will be to promote the public purposes and accomplish the objectives specified therein. 2.09. The TIF District is hereby established and the Program Modification and TIF Plan, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and shall be placed on file in the office of the City Clerk. City staff shall, in writing, request the Sherburne County Auditor to certify the new TIF District and file the Program Modification and TIF Plan with the Commissioner of Revenue and the Office of the State Auditor. Section 3. A xoval of Related Agteements. 3.01. The City Council hereby authorizes City staff and consultants to negotiate the terms of a development agreement with a developer in connection with the Development of the TIF District (the "Development Agreement ") and the Mayor and City Clerk are authorized to execute the Development Agreement on behalf of the City, and to carry out, on behalf of the City, the City's obligations thereunder, together with any related documents necessary in connection therewith (collectively, the "Documents "). 3.02. The approval hereby given to the Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the City and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the City. The execution of any instrument by the appropriate officers of the City herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. In the event of absence or disability of the officers, any of the Documents authorized by this Resolution to be executed may be executed without further act or authorization of the City Council by any duly designated acting official, or by such other officer or officers of the City Council as, in the opinion of the City Attorney, may act in their behalf. Adopted this 3rd day of July, 2017. ATTEST: _.1 Tina Allard, City Clerk 4 5023200 J5B EL185 -52 lJ. u tzIMO r