7.2. HRSR 10-07-2019
Request for Action
To Item Number
Housing and Redevelopment Authority 7.2
Agenda Section Meeting Date Prepared by
General Business October 7, 2019 Amanda Othoudt, EDD
Item Description Reviewed by
Main and Gates Redevelopment Findings of Fact - Cal Portner, City Administrator
Resolution
Reviewed by
Action Requested
Approve, by motion, a resolution finding parcels are occupied by structurally substandard buildings.
Background/Discussion
At their April 3, 2017, meeting, the HRA directed staff to move forward with the steps necessary to
create a redevelopment plan for the property located at the intersection of Main Street, Gates Avenue
rd
NW and 3 Street. As part of this project, the HRA or the city may incur certain costs related to the
creation of a TIF District which may be financed on a temporary basis from available HRA funds.
The HRA is proposing to reimburse itself for the costs advances including administrative costs incurred
prior to the establishment of the TIF District, subject to the limitations of the TIF Act, and certain costs
incurred in connection with a study of blighting conditions, engineering, land and building acquisition,
demolition and site preparation costs in an aggregate amount not to exceed the greater of $1,100,000.
In order to create a Redevelopment TIF District, the city and the HRA must make a determination that
before the demolition or removal of any substandard building, certain conditions existed. Minnesota
Statutes, Section 46.174 requires that for a redevelopment district, “The total coverage of the proposed
TIF District have 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.”
The HRA engaged LHB, Inc. to conduct an inspection on the properties owned by the HRA to
determine if the proposed district meets these requirements. On September 6, 2019, LHB, Inc. found the
buildings to be substandard under the definition set forth in the Minnesota Statutes, Sections 469.174 to
469.1794, as amended.
Resolutions must be adopted by the HRA and City designating the buildings located at 326 Gates Ave
NW, 414, 426 and 430 Main Street NW as structurally substandard so that they can be demolished before
the creation of a TIF District.
The HRA will have three years from the approval of the resolution to certify the TIF district. Activity
must occur before or within five years after certification of the district.
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
Following approval of the resolutions this evening, the Elk River Police Department and Elk River Fire
Department will conduct trainings in the vacant buildings owned by the HRA. The HRA can engage a
demolition contractor to demo the properties, or allow the Elk River Fire Department to conduct
controlled burns on the properties, which greatly reduces the cost of demolition.
Financial Impact
N/A
Attachments
LHB, Inc. TIF Analysis Findings Report ( September 6, 2019)
Resolution
\\\\Dc3-elkr\\shared\\Departments\\Community Development\\Economic Development\\HRA\\Administrative\\Agenda\\2019\\10-07-2019\\7.2 sr Main
and Gates Findings of Fact - Resolution.docx
September 6, 2019
Amanda Othoudt, Economic Development Director
City of Elk River
13065 Orono Parkway
Elk River, Minnesota 55330
TIF ANALYSIS FINDINGS FOR 326 GATES AVE NW, 414, 426 AND 430 MAIN ST NW
LHB was hired to inspect three residential buildings at 326 Gates Avenue Northwest, 414, and 426,
Main Street Northwest and a former office at 430 Main Street Northwest in Elk River, Minnesota, in
order to determine if they meet the definition of “Substandard” as defined by Minnesota Statutes,
Section 469.174, subdivision 10. The building parcels may potentially be part of a future
Redevelopment TIF District, so will need to be compliant with all of the statutes pertaining to a
Redevelopment District.
The parcels are bounded by 3rd Street Northwest, Gates Avenue Northwest and Main Street
Northwest (see Diagram 1).
Diagram 1
TIF Analysis for 326 Gates Ave NW, 414, 426 and 430 Main St NW Page: 2
Date: September 6, 2019
CONCLUSION
After inspecting and evaluating the buildings on August 14, 2019 and applying current statutory criteria for a
Redevelopment District under Minnesota Statutes, Section 469.174, Subdivision 10, it is our professional opinion that
the buildings qualify as substandard.
The remainder of this letter and attachments describe our process and findings in detail.
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).”
Qualification Requirements
Minnesota Statutes, Section 469.174, Subdivision 10 (a) (1) requires two tests for occupied parcels:
1. 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.”
The LHB team reviewed the following parcels:
75-401-0105 (326 Gates Avenue NW):
• The parcel is approximately 7,840 square feet and is 35.5 percent covered by buildings, parking
lots or other improvements.
75-401-0130 (430 Main Street NW):
• The parcel is approximately 8,712 square feet and is 65.4 percent covered by buildings, parking
lots or other improvements.
75-401-0135 (426 Main Street NW):
• The parcel is approximately 8,712 square feet and is 21.7 percent covered by buildings, parking
lots or other improvements.
TIF Analysis for 326 Gates Ave NW, 414, 426 and 430 Main St NW Page: 3
Date: September 6, 2019
75-401-0145 (414 Main Street NW):
• The parcel is approximately 8,712 square feet and is 41.7 percent covered by buildings, parking
lots or other improvements.
Findings:
The parcels are covered by buildings, parking lots or other improvements, exceeding the 15 percent parcel
requirement.
2. 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;”
a. 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.”
i. 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 Walser Auto
Sales, Inc. vs. City of Richfield case filed November 13, 2001.
Findings:
The three residential buildings at 326 Gates Avenue Northwest, 414, and 426, Main Street
Northwest and former office at 430 Main Street Northwest exceed the criteria required to be
determined substandard buildings (see the attached Building Code, Condition Deficiency and
Context Analysis Reports).
b. 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.”
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.
TIF Analysis for 326 Gates Ave NW, 414, 426 and 430 Main St NW Page: 4
Date: September 6, 2019
• 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.
Findings:
The buildings have code deficiencies exceeding the 15 percent building code deficiency criteria
required to be determined substandard (see the attached Building Code, Condition Deficiency
and Context Analysis Reports).
TEAM CREDENTIALS
Michael A. Fischer, AIA, LEED AP - Project Principal/TIF Analyst
Michael has 31 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, Philip 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.
TIF Analysis for 326 Gates Ave NW, 414, 426 and 430 Main St NW Page: 5
Date: September 6, 2019
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.
Attachments
We have attached Building Code, Condition Deficiency and Context Analysis Reports, Replacement
Cost Reports, Code Deficiency Reports, and thumbnail photo sheets of the buildings.
Please contact me at (612) 752-6920 if you have any questions.
LHB INC.
MICHAEL A. FISCHER, AIA, LEED AP
PRINCIPAL
M:\19Proj\190549\300 Design\Reports\Letter of Finding\190549 Elk River Main and Gates Letter of Finding.docx
Main and Gates TIF Analysis Page 1 of 2 Building Report
LHB Project No. 190549 326 Gates Ave NW - Residence
Main and Gates TIF Analysis
Building Code, Condition Deficiency and Context Analysis Report
Building Name: Residence
Address: 326 Gates Ave NW, Elk River, MN 55330
Parcel ID: 75-401-0105
Inspection Date(s) & Time(s): August 14, 2019 10:00 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: $165,096
Estimated Cost to Correct Building Code Deficiencies: $31,730
Percentage of Replacement Cost for Building Code Deficiencies: 19.22%
Defects in Structural Elements
1. None observed.
Combination of Deficiencies
1. Essential Utilities and Facilities
a. None observed.
2. Light and Ventilation
a. The HVAC system does not comply with code.
3. Fire Protection/Adequate Egress
a. Exterior stairways do not comply with code.
b. Interior stairways do not comply with code.
c. Smoke detectors do not comply with code.
d. There are no code-required Arc Fault Circuit Interrupters
e. There are no code-required carbon monoxide detectors.
4. Layout and Condition of Interior Partitions/Materials
a. Flooring is of irregular heights and does not comply with code for emergency egress.
b. Interior ceiling tile is water stained from a roof leak and should be replaced.
c. There is mold present on the basement walls.
Main and Gates TIF Analysis Page 2 of 2 Building Report
LHB Project No. 190549 326 Gates Ave NW - Residence
5. Exterior Construction
a. Front door threshold is rotting, and allowing for water intrusion, contrary to code.
b. Windows are failing, allowing for water intrusion, and do not comply with code.
c. Roofing material is failing, allowing for water intrusion, contrary to code.
d. Chimney is cracked, allowing for water intrusion, contrary to code.
Description of Code Deficiencies
1. The HVAC system does not comply with code.
2. Exterior stairways do not comply with code for proper rise or run.
3. The interior stairways do not comply with code for proper rise or run.
4. Smoke detectors do not comply with code.
5. There are no code-required Arc Fault Circuit Interrupters.
6. There are no code-required carbon monoxide detectors.
7. Flooring is of irregular height, creating an impediment to emergency egress, which is contrary to
code.
8. Front door threshold is rotting, allowing for water intrusion, contrary to code.
9. Windows are failing, allowing for water intrusion, contrary to code.
10. Roofing material is failing, allowing for water intrusion, contrary to code.
11. Chimney is cracked, allowing for water intrusion, contrary to code.
Overview of Deficiencies
This 1939 building was originally constructed as a residential dwelling. The roofing material is failing,
allowing for water intrusion. Exterior stairways do not comply with code. Several of the windows are failing,
allowing for water intrusion. The HVAC system does not comply with code. The smoke detectors are not
code-compliant. There are no code-required AFCI’s or carbon monoxide detectors in the building. Interior
stairways do not comply with code. Flooring is of irregular heights and is an impediment to emergency
egress, contrary to code. Windows and roofing material are failing, allowing for water intrusion, contrary to
code. The chimney is cracked allowing for water intrusion.
M:\19Proj\190549\300 Design\Reports\Building Reports\326 Gates Ave NW\326 Gates Ave NW Building Report.docx
Main and Gates TIF Analysis
Replacement Cost Report
Square Foot Cost Estimate Report Date:8/20/2019
Estimate Name:326 Gates Ave NW
Building Type:Economy 1‐1/2 Story with Stucco on Wood Frame
Location:ELK RIVER, MN
Story Count:1.5
Story Height (L.F.):8.00
Floor Area (S.F.):1201
Labor Type:RES
Basement:Unfinished
Data Release:Year 2019
Cost Per Square Foot:$137.47
Building Cost:$165,096.98
% of Total Cost Per S.F. Cost
01 Site Work 2.08% $2.49 $2,990.39
0104034 Footing excavation, building, 26' x 46', 4' deep $2.49 $2,990.39
02 Foundation 16.12% $19.27 $23,140.35
0204030 Footing systems, 10" thick by 20" wide footing $2.19 $2,628.88
0208034 Block wall systems, 8" wall, grouted, full height $7.66 $9,200.56
0208034 Block wall systems, 8" wall, grouted, full height $6.70 $8,050.49
0220034 Floor slab systems, 4" thick slab $2.71 $3,260.42
03 Framing 18.26% $21.83 $26,220.23
0302028 Floor framing systems, 2" x 8", 16" OC $3.14 $3,768.66
0302106 Floor framing, wood joists, #2 or better, pine, 2" x 8", 16" OC $1.29 $1,552.81
0302112 Floor framing, bridging, wood 1" x 3", joists 16" OC $0.25 $298.50
0302119 Box sills, #2 or better pine, 2" x 8" $0.19 $233.42
0308026 Exterior wall framing systems, 2" x 4", 16" OC $0.68 $819.14
0308026 Exterior wall framing systems, 2" x 4", 16" OC $5.40 $6,489.19
0312046 Gable end roof framing systems, 2" x 8" rafters, 16" OC, 4/12 pitch $6.95 $8,344.85
0316138 Furring, 1" x 3", 16" OC $0.77 $928.35
0348026 Partition framing systems, 2" x 4", 16" OC $3.15 $3,785.31
04 Exterior Walls 15.93% $19.04 $22,865.13
0402148 Stucco, 2 coats $0.70 $836.61
0402148 Stucco, 2 coats $5.52 $6,627.60
0402155 Painting, lath, metal lath expanded 2.5 lb/SY, painted $0.15 $177.60
0402155 Painting, lath, metal lath expanded 2.5 lb/SY, painted $1.17 $1,406.97
0420043 Non‐rigid insul, batts, fbgls, kraft faced, 3‐1/2" thick, R13, 15" W $0.87 $1,048.47
0420051 Non‐rigid insul, batts, fbgls, kraft faced, 12" thick, R38, 23" wide $0.98 $1,181.66
0440026 Sliding window systems, builder's quality wood window, 3' x 2' $7.57 $9,093.56
0452046 Door systems, solid core birch, flush, 3' x 6'‐8" $1.60 $1,916.64
0460025 Storm door, al, combination, storm & screen, anodized, 3'‐0" x 6'‐8" $0.48 $576.02
05 Roofing 3.32% $3.97 $4,770.35
Costs are derived from a building model with basic components.
Scope differences and market conditions can cause costs to vary significantly.
Main and Gates TIF Analysis
LHB Project No. 190549 Page 1 of 2
Replacment Cost Report
326 Gates Ave NW - Residence
0504034 Gable end roofing, asphalt, roof shingles, class A $3.97 $4,770.35
06 Interiors 29.30% $35.03 $42,066.47
0604026 Wall system, 1/2" drywall, taped & finished $9.19 $11,032.35
0604026 Wall system, 1/2" drywall, taped & finished $3.55 $4,266.42
0608026 1/2" gypsum wallboard, taped & finished ceilings $2.75 $3,304.74
0620026 Lauan, flush door, hollow core, interior $8.19 $9,840.87
0660017 Carpet, Olefin, 15 oz $2.07 $2,491.75
0660027 Padding, sponge rubber cushion, minimum $0.77 $924.97
0660038 Underlayment plywood, 1/2" thick $2.11 $2,537.92
0664029 Resilient flooring, vinyl sheet goods, backed, .070" thick, minimum $1.40 $1,676.34
0664048 Resilient flooring, sleepers, treated, 16" OC, 1" x 3" $0.67 $807.64
0690036 Stairways 14 risers, oak treads, box stairs $3.33 $4,002.43
0690137 Basement stairs, open risers $0.98 $1,181.05
07 Specialties 4.13% $4.94 $5,932.69
0708026 Kitchen, economy grade $2.37 $2,851.72
0712035 Sinks, stainless steel, single bowl 16" x 20" $1.42 $1,703.51
0712039 Water heater, electric, 30 gallon $1.15 $1,377.47
08 Mechanical 7.69% $9.20 $11,044.18
0812046 Three fixture bathroom with wall hung lavatory $3.97 $4,766.85
0860101 Furnace, gas heating only, 100 MBH, area to 1200 SF $1.00 $1,196.44
0860109 Intermittent pilot, 100 MBH furnace $0.23 $282.15
0860111 Supply duct, rectangular, area to 1200 SF, rigid fiberglass $0.85 $1,024.78
0860121 Return duct, sheet metal galvanized, to 1500 SF $1.02 $1,230.28
0860123 Lateral ducts, flexible round 6" insulated, to 1200 SF $0.91 $1,094.40
0860135 Register elbows, to 1500 SF $0.52 $626.98
0860137 Floor registers, enameled steel w/damper, to 1500 SF $0.34 $404.81
0860139 Return air grille, area to 1500 SF 12" x 12" $0.10 $116.67
0860143 Thermostat, manual, 1 set back $0.10 $125.58
0860147 Plenum, heating only, 100 MBH $0.15 $175.25
09 Electrical 3.16% $3.77 $4,532.82
0910036 100 amp electric service $1.02 $1,226.27
0930018 Duplex receptacles using non‐metallic sheathed cable $0.21 $254.98
0935112 Wiring device systems, economy to 1200 S.F. $2.00 $2,407.52
0945112 Light fixture systems, economy to 1200 S.F. $0.54 $644.04
100% $119.54 $143,562.59
15.0 % $17.93 $21,534.39
0.0 % $0.00 $0.00
0.0 % $0.00 $0.00
Total Building Cost $137.47 $165,096.98
User Fees
Contractor Fees (General Conditions,Overhead,Profit)
Architectural Fees
SubTotal
Main and Gates TIF Analysis
LHB Project No. 190549 Page 2 of 2
Replacment Cost Report
326 Gates Ave NW - Residence
Main and Gates TIF Analysis
Code Deficiency Cost Report
326 Gates Ave NW Elk River, MN 55330Address - PID 75-401-0105
Code Related Cost Items Unit Cost Units
Unit
Quantity Total
Accessibility Items
Threshold
Replace rotting exterior threshold to prevent water intrusion, per
code 250.00$ EA 1 250.00$
Structural Elements
-$
Exiting
Stairways
Modify exterior stairways to comply with code 0.37$ SF 1201 444.37$
Modify interior stairways to comply with code 0.98$ SF 1201 1,176.98$
Interior Flooring
Modify irregular flooring levels to comply with code for emergency
egress 4.68$ SF 1201 5,620.68$
Fire Protection
Smoke Detectors
Install code compliant smoke detectors 250.00$ EA 4 1,000.00$
Arc Fault Circuit Interrupters
Install code required AFCI's 250.00$ EA 6 1,500.00$
Carbon Monoxide Detectors
Install code required carbon monoxide detectors 250.00$ EA 2 500.00$
Exterior Construction
Windows
Replace failed windows to prevent water intrusion per code 7.57$ SF 1201 9,091.57$
Chimney
Repair cracks in chimney to prevent water intrusion per code 100.00$ Lump 1 100.00$
Roof Construction
Roofing Material
Remove failed roofing material 0.84$ SF 1201 1,008.84$
Install new roofing material to prevent water intrusion per code 3.97$ SF 1201 4,767.97$
Mechanical- Electrical
Mechanical
The HVAC system does not comply with code 5.22$ SF 1201 6,269.22$
Total Code Improvements 31,730$
Main and Gates TIF Analysis
LHB Project No. 190549 Page 1 of 1
Code Deficiency Cost Report
326 Gates Ave NW - Residence
Main and Gates TIF Analysis
Photos: 326 Gates Avenue NW - Residence
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Main and Gates TIF Analysis
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Main and Gates TIF Analysis Page 1 of 2 Building Report
LHB Project No. 190549 430 Main St NW – Former Office
Main and Gates TIF Analysis
Building Code, Condition Deficiency and Context Analysis Report
Building Name: Former Office
Address: 430 Main Street NW, Elk River, MN 55330
Parcel ID: 75-401-0130
Inspection Date(s) & Time(s): August 14, 2019 9:00 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: $280,670
Estimated Cost to Correct Building Code Deficiencies: $58,710
Percentage of Replacement Cost for Building Code Deficiencies: 20.92%
Defects in Structural Elements
1. None observed
Combination of Deficiencies
1. Essential Utilities and Facilities
a. There is no code-compliant access into the building.
b. There is no code-required accessible parking designated.
2. Light and Ventilation
a. The HVAC system does not comply with code.
b. The electrical wiring does not comply with code.
3. Fire Protection/Adequate Egress
a. Exterior stairways are not code-compliant.
b. Thresholds are not code-compliant.
c. Interior stairway does not comply with code.
d. Smoke detectors are not code-compliant.
e. There is no code-required emergency notification system.
f. Emergency lighting is not code-compliant.
g. There is no code-required building sprinkler system.
h. The building does not have code-required fire proofing.
4. Layout and Condition of Interior Partitions/Materials
a. Windowsills should be refinished.
b. Floor tile should be repaired.
Main and Gates TIF Analysis Page 2 of 2 Building Report
LHB Project No. 190549 430 Main St NW – Former Office
5. Exterior Construction
a. Windows are failing, allowing for water intrusion, contrary to code.
b. Wood siding should be repainted.
Description of Code Deficiencies
1. There is no code-required accessible route into the building.
2. There is no code-required accessible parking.
3. The HVAC system does not comply with code.
4. The electrical wiring does not comply with code.
5. Exterior stairways are not code-compliant.
6. Thresholds are not code-compliant.
7. Interior stairway does not comply with code.
8. Smoke detectors are not code-compliant.
9. Emergency lighting does not comply with code.
10. There is no code-required emergency notification system.
11. There is no code-required building sprinkler system.
12. Code-required fire proofing should be installed.
13. Windows are failing, allowing for water intrusion, contrary to code.
Overview of Deficiencies
This building was constructed in 1920 as a residential dwelling. It was most recently used as an office space.
The interior was remodeled, and interior surfaces are in good condition, but it does not comply with life
safety codes for a commercial space. Access into the building does not comply with code. The exterior and
interior stairways do not comply with code. Windows are failing, allowing for water intrusion, contrary to
code.
M:\19Proj\190549\300 Design\Reports\Building Reports\430 Main Street NW\430 Main Street NW Building Report.docx
Main and Gates TIF Analysis
Replacement Cost Report
Square Foot Cost Estimate Report Date:8/20/2019
Estimate Name:430 Main St NW
Building Type:Office, 1 Story with Vinyl Clapboard / Wood Frame
Location:ELK RIVER, MN
Story Count:1
Story Height (L.F.):8
Floor Area (S.F.):1096
Labor Type:OPN
Basement Included:Yes
Data Release:Year 2019
Cost Per Square Foot:$256.09
Building Cost:$280,670.39
% of Total Cost Per S.F. Cost
A Substructure 22.01% $49.02 $53,726.78
A1010 Standard Foundations $8.64 $9,465.54
A10101102700 Strip footing, concrete, reinforced, load 11.1 KLF, soil bearing capacity
6 KSF, 12" deep x 24" wide
$4.92 $5,389.39
A10102107410 Spread footings, 3000 PSI concrete, load 100K, soil bearing capacity 6
KSF, 4' ‐ 6" square x 15" deep
$3.72 $4,076.15
A1030 Slab on Grade $5.73 $6,276.05
A10301202240 Slab on grade, 4" thick, non industrial, reinforced $5.73 $6,276.05
A2010 Basement Excavation $3.97 $4,349.61
A20101104620 Excavate and fill, 10,000 SF, 8' deep, sand, gravel, or common earth,
on site storage
$3.97 $4,349.61
A2020 Basement Walls $30.69 $33,635.58
A20201107260 Foundation wall, CIP, 12' wall height, pumped, .444 CY/LF, 21.59 PLF,
12" thick
$30.69 $33,635.58
B Shell 28.18% $62.75 $68,774.21
B1010 Floor Construction $29.15 $31,947.76
B10102030860 Cast‐in‐place concrete column, 12" square, tied, 200K load, 12' story
height, 142 lbs/LF, 4000PSI
$8.40 $9,203.22
B10102103450 Wood column, 8" x 8", 20' x 20' bay, 10' unsupported height, 133
BF/MSF, 160 PSF total allowable load
$0.45 $492.92
B10102221720 Flat slab, concrete, with drop panels, 6" slab/2.5" panel, 12" column,
15'x15' bay, 75 PSF superimposed load, 153 PSF total load
$14.26 $15,624.25
B10107203700 Fireproofing, gypsum board, fire rated, 2 layer, 1" thick, 14" steel
column, 3 hour rating, 22 PLF
$6.05 $6,627.38
B1020 Roof Construction $7.46 $8,172.21
B10201027100 Wood roof, truss, 4/12 slope, 24" O.C., 30' to 43' span $7.46 $8,172.21
B2010 Exterior Walls $13.06 $14,311.32
B20101484850 Wood siding, 2"x6" studs 16"OC, insulated wall, 8" plain vinyl siding $11.45 $12,554.38
B20101907600 Insulation, fiberglass batts, 6" thick, R19 $1.60 $1,756.94
B2020 Exterior Windows $6.13 $6,713.36
Costs are derived from a building model with basic components.
Scope differences and market conditions can cause costs to vary significantly.
Main and Gates TIF Analysis
LHB Project No. 190549 Page 1 of 3
Replacement Cost Report
430 Main St NW - Fomer Office
B20201066550 Windows, aluminum, awning, insulated glass, 4'‐5" x 5'‐3" $6.13 $6,713.36
B2030 Exterior Doors $4.08 $4,475.01
B20301106950 Door, aluminum & glass, with transom, narrow stile, double door,
hardware, 6'‐0" x 10'‐0" opening
$2.13 $2,338.12
B20301107300 Door, aluminum & glass, with transom, bronze finish, hardware, 3'‐0"
x 10'‐0" opening
$1.10 $1,209.20
B20302203450 Door, steel 18 gauge, hollow metal, 1 door with frame, no label, 3'‐0"
x 7'‐0" opening
$0.85 $927.69
B3010 Roof Coverings $2.88 $3,154.54
B30101401100 Asphalt roofing, strip shingles, inorganic, Class A, 4" slope, 210‐235
lbs/SQ
$2.18 $2,384.56
B30106100200 Gutters, box, aluminum, .032" thick, 5", enameled finish $0.56 $610.54
B30106200200 Downspout, aluminum, rectangular, 2" x 3", enameled, .024" thick $0.15 $159.45
C Interiors 9.85% $21.94 $24,050.42
C1010 Partitions $4.33 $4,746.05
C10101241200 Wood partition, 5/8"fire rated gypsum board face, none base,2 x 4,@
16" OC framing,same opposite face, 0 insul
$1.77 $1,944.01
C10101241425 Wood partition, 5/8" fire rated gypsum board face, 1/4"sound
deadening gypsum board, 2x4 @ 16" OC framing, same opposite face,
sound attenuation insul
$1.31 $1,432.50
C10101280700 Gypsum board, 1 face only, exterior sheathing, fire resistant, 5/8" $0.76 $829.71
C10101280960 Add for the following: taping and finishing $0.49 $539.84
C1020 Interior Doors $3.93 $4,310.91
C10201022600 Door, single leaf, kd steel frame, hollow metal, commercial quality,
flush, 3'‐0" x 7'‐0" x 1‐3/8"
$3.93 $4,310.91
C1030 Fittings $0.40 $433.13
C10301100420 Toilet partitions, cubicles, ceiling hung, plastic laminate $0.40 $433.13
C3010 Wall Finishes $1.58 $1,728.33
C30102300140 Painting, interior on plaster and drywall, walls & ceilings, roller work,
primer & 2 coats
$0.67 $739.27
C30102300140 Painting, interior on plaster and drywall, walls & ceilings, roller work,
primer & 2 coats
$0.90 $989.06
C3020 Floor Finishes $5.26 $5,759.68
C30204100080 Carpet tile, nylon, fusion bonded, 18" x 18" or 24" x 24", 35 oz $3.15 $3,453.95
C30204101600 Vinyl, composition tile, maximum $0.91 $999.72
C30204101720 Tile, ceramic natural clay $1.19 $1,306.01
C3030 Ceiling Finishes $6.45 $7,072.31
C30302106000 Acoustic ceilings, 3/4" fiberglass board, 24" x 48" tile, tee grid,
suspended support
$6.45 $7,072.31
D Services 39.95% $88.97 $97,509.80
D2010 Plumbing Fixtures $3.10 $3,396.52
D20101102080 Water closet, vitreous china, bowl only with flush valve, wall hung $1.48 $1,620.35
D20102102000 Urinal, vitreous china, wall hung $0.20 $217.70
D20103101560 Lavatory w/trim, vanity top, PE on CI, 20" x 18"$0.56 $613.28
D20104404340 Service sink w/trim, PE on CI,wall hung w/rim guard, 24" x 20" $0.54 $595.85
D20108202080 Water cooler, electric, floor mounted, dual height, 14.3 GPH $0.32 $349.34
D2020 Domestic Water Distribution $1.71 $1,871.72
Main and Gates TIF Analysis
LHB Project No. 190549 Page 2 of 3
Replacement Cost Report
430 Main St NW - Fomer Office
D20202501860 Gas fired water heater, commercial, 100< F rise, 100 MBH input, 91
GPH
$1.71 $1,871.72
D3050 Terminal & Package Units $21.92 $24,026.73
D30501553840 Rooftop, multizone, air conditioner, offices, 10,000 SF, 31.66 ton $21.92 $24,026.73
D4010 Sprinklers $3.63 $3,973.39
D40104100620 Wet pipe sprinkler systems, steel, light hazard, 1 floor, 10,000 SF $3.63 $3,973.39
D4020 Standpipes $1.60 $1,751.89
D40203101540 Wet standpipe risers, class III, steel, black, sch 40, 4" diam pipe, 1
floor
$1.60 $1,751.89
D5010 Electrical Service/Distribution $32.43 $35,540.16
D50101200320 Overhead service installation, includes breakers, metering, 20'
conduit & wire, 3 phase, 4 wire, 120/208 V, 400 A
$6.75 $7,401.88
D50102300320 Feeder installation 600 V, including RGS conduit and XHHW wire, 400
A
$8.76 $9,602.00
D50102400240 Switchgear installation, incl switchboard, panels & circuit breaker,
120/208 V, 3 phase, 600 A
$16.91 $18,536.28
D5020 Lighting and Branch Wiring $17.04 $18,671.62
D50201100640 Receptacles incl plate, box, conduit, wire, 16.5 per 1000 SF, 2.0 W per
SF, with transformer
$4.99 $5,464.04
D50201350320 Miscellaneous power, 1.2 watts $0.34 $378.10
D50201400280 Central air conditioning power, 4 watts $0.62 $680.22
D50201452080 Motor installation, three phase, 460 V, 15 HP motor size $4.75 $5,204.96
D50202100520 Fluorescent fixtures recess mounted in ceiling, 1.6 watt per SF, 40 FC,
10 fixtures @32watt per 1000 SF
$6.34 $6,944.30
D5030 Communications and Security $7.55 $8,277.78
D50303101020 Telephone wiring for offices & laboratories, 8 jacks/MSF $1.69 $1,851.93
D50309100452 Communication and alarm systems, fire detection, addressable, 25
detectors, includes outlets, boxes, conduit and wire
$3.11 $3,403.10
D50309100460 Fire alarm command center, addressable without voice, excl. wire &
conduit
$0.93 $1,019.15
D50309200110 Internet wiring, 8 data/voice outlets per 1000 S.F. $1.83 $2,003.59
E Equipment & Furnishings 0.00% $0.00 $0.00
E1090 Other Equipment $0.00 $0.00
F Special Construction 0.00% $0.00 $0.00
G Building Sitework 0.00% $0.00 $0.00
100% $222.68 $244,061.21
15.0 % $33.40 $36,609.18
0.0 % $0.00 $0.00
0.0 % $0.00 $0.00
Total Building Cost $256.09 $280,670.39
User Fees
Contractor Fees (General Conditions,Overhead,Profit)
Architectural Fees
SubTotal
Main and Gates TIF Analysis
LHB Project No. 190549 Page 3 of 3
Replacement Cost Report
430 Main St NW - Fomer Office
Main and Gates TIF Analysis
Code Deficiency Cost Report
430 Main Street NW, Elk River, MN 55330 - PID 75-401-0130
Code Related Cost Items Unit Cost Units
Unit
Quantity Total
Accessibility Items
Parking
Create a code required parking space 100.00$ EA 1 100.00$
Building Access
Create a code compliant route into the building 1,500.00$ Lump 1 1,500.00$
Structural Elements
-$
Exiting
Stairways
Modify exterior stairway to comply with code 1,500.00$ Lump 1 1,500.00$
Modify interior stairway to comply with code 1.01$ SF 1096 1,106.96$
Threshold
Modify thresholds to comply with code for maximum height 500.00$ EA 1 500.00$
Fire Protection
Smoke Detectors
Install code compliant smoke detectors 3.11$ SF 1096 3,408.56$
Emergency Lighting
Install code compliant emergency lighting system 500.00$ EA 2 1,000.00$
Emergency Notification System
Install code compliant emergency lighting system 0.93$ SF 1096 1,019.28$
Building Sprinkler System
Install code required emergency notification system 5.23$ SF 1096 5,732.08$
Fire Proofing
Install code required fire proofing 6.05$ SF 1096 6,630.80$
Exterior Construction
Windows
Replace failed windows to prevent water intrusion per code 6.13$ SF 1096 6,718.48$
Roof Construction
-$
Mechanical- Electrical
Mechanical
Install a code compliant HVAC system 21.92$ SF 1096 24,024.32$
Electrical
Install code compliant electrical wiring 4.99$ SF 1096 5,469.04$
Total Code Improvements 58,710$
Main and Gates TIF Analysis
LHB Project No. 190549 Page 1 of 1
Code Deficiency Cost Report
430 Main St NW - Fomer Office
Main and Gates TIF Analysis
Photos: 430 Main Street NW - Former Offi ce
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Main and Gates TIF Analysis
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Main and Gates TIF Analysis Page 1 of 2 Building Report
LHB Project No. 190549 426 Main St NW - Residence
Main and Gates TIF Analysis
Building Code, Condition Deficiency and Context Analysis Report
Building Name: Residence
Address: 426 Main Street NW, Elk River, MN 55330
Parcel ID: 75-401-0135
Inspection Date(s) & Time(s): August 14, 2019 9:20 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: $141,791
Estimated Cost to Correct Building Code Deficiencies: $42,712
Percentage of Replacement Cost for Building Code Deficiencies: 30.12%
Defects in Structural Elements
1. The center floor beam is cracked and supported with a temporary screw jack.
Combination of Deficiencies
1. Essential Utilities and Facilities
a. None observed.
2. Light and Ventilation
a. The HVAC system is not code-compliant.
3. Fire Protection/Adequate Egress
a. Exterior stairways do not comply with code.
b. Interior stairways do not comply with code.
c. Basement floor to ceiling height does not comply with code.
d. Smoke detectors are not code-compliant.
e. There are no code-required Arc Fault Circuit Interrupters in the building.
f. There are no code-required carbon monoxide detectors in the building.
4. Layout and Condition of Interior Partitions/Materials
a. Plaster ceilings are cracked.
b. Plaster ceilings are water damaged.
c. Plaster ceilings should be repainted.
d. Interior doors and walls should be repainted.
Main and Gates TIF Analysis Page 2 of 2 Building Report
LHB Project No. 190549 426 Main St NW - Residence
5. Exterior Construction
a. Widows are failing, allowing for water intrusion, contrary to code.
b. Roofing material is failing, allowing for water intrusion, contrary to code.
Description of Code Deficiencies
1. The HVAC system does not comply with code.
2. Exterior stairways do not comply with code.
3. Interior stairway does not comply with code.
4. Basement floor to ceiling height does not comply with code.
5. Current smoke detectors do not comply with code.
6. There are no code-required Arc Fault Circuit Interrupters in the building.
7. There are no code-required carbon monoxide detectors in the building.
8. Windows have failed, allowing for water intrusion, contrary to code.
9. Roofing material is failing allowing for water intrusion, contrary to code.
Overview of Deficiencies
This residential dwelling was constructed in 1926. Other than electric and HVAC it does not look like any
remodeling has taken place. Interior surfaces show wear and need to be repainted/refinished. The exterior
stairways do not comply with code. The interior stairways do not comply with code. The Basement floor to
ceiling height does not comply with code. The main supporting beam under the main floor has failed and is
being supported by a temporary screw jack. Current smoke detectors do not comply with code. Code-
required AFCI’s are not present. Code-required carbon monoxide detectors are not present. Windows are
failing, allowing for water intrusion, contrary to code. The roofing material is failing allowing for water
intrusion, contrary to code.
M:\19Proj\190549\300 Design\Reports\Building Reports\426 Main Street NW\426 Main Street NW Building Report.docx
Main and Gates TIF Analysis
Replacement Cost Report
Square Foot Cost Estimate Report Date:8/20/2019
Estimate Name:426 Main St NW
Building Type:Economy 1 Story with Stucco on Wood Frame
Location:ELK RIVER, MN
Story Count:1
Story Height (L.F.):8.00
Floor Area (S.F.):993
Labor Type:RES
Basement:Unfinished
Data Release:Year 2019
Cost Per Square Foot:$142.79
Building Cost:$141,791.03
% of Total Cost Per S.F. Cost
01 Site Work 2.43% $3.01 $2,990.39
0104034 Footing excavation, building, 26' x 46', 4' deep $3.01 $2,990.39
02 Foundation 21.95% $27.25 $27,058.37
0204030 Footing systems, 10" thick by 20" wide footing $3.03 $3,007.77
0208034 Block wall systems, 8" wall, grouted, full height $10.60 $10,526.61
0208034 Block wall systems, 8" wall, grouted, full height $9.28 $9,210.78
0220034 Floor slab systems, 4" thick slab $4.34 $4,313.20
03 Framing 14.61% $18.14 $18,015.06
0302106 Floor framing, wood joists, #2 or better, pine, 2" x 8", 16" OC $2.07 $2,054.21
0302112 Floor framing, bridging, wood 1" x 3", joists 16" OC $0.40 $394.89
0302119 Box sills, #2 or better pine, 2" x 8" $0.31 $308.79
0308026 Exterior wall framing systems, 2" x 4", 16" OC $4.98 $4,949.64
0308026 Exterior wall framing systems, 2" x 4", 16" OC $0.47 $468.95
0316042 Truss roof framing systems, 24" OC, 4/12 pitch, 1' overhang, 26' span $7.21 $7,155.96
0348026 Partition framing systems, 2" x 4", 16" OC $2.70 $2,682.63
04 Exterior Walls 16.02% $19.89 $19,747.06
0402148 Stucco, 2 coats $5.09 $5,055.22
0402148 Stucco, 2 coats $0.48 $478.95
0402155 Painting, lath, metal lath expanded 2.5 lb/SY, painted $1.08 $1,073.17
0402155 Painting, lath, metal lath expanded 2.5 lb/SY, painted $0.10 $101.68
0420043 Non‐rigid insul, batts, fbgls, kraft faced, 3‐1/2" thick, R13, 15" W $0.81 $799.72
0420051 Non‐rigid insul, batts, fbgls, kraft faced, 12" thick, R38, 23" wide $1.57 $1,563.22
0440026 Sliding window systems, builder's quality wood window, 3' x 2' $6.99 $6,936.13
0452046 Door systems, solid core birch, flush, 3' x 6'‐8" $2.90 $2,874.96
0460025 Storm door, al, combination, storm & screen, anodized, 3'‐0" x 6'‐8" $0.87 $864.02
05 Roofing 4.41% $5.48 $5,440.24
0504034 Gable end roofing, asphalt, roof shingles, class A $5.48 $5,440.24
06 Interiors 24.14% $29.97 $29,760.89
Costs are derived from a building model with basic components.
Scope differences and market conditions can cause costs to vary significantly.
Main and Gates TIF Analysis
LHB Project No. 190549 Page 1 of 2
Replacement Cost Report
426 Main St NW - Residence
0604026 Wall system, 1/2" drywall, taped & finished $7.87 $7,818.58
0604026 Wall system, 1/2" drywall, taped & finished $3.28 $3,254.22
0608026 1/2" gypsum wallboard, taped & finished ceilings $2.75 $2,732.40
0620026 Lauan, flush door, hollow core, interior $7.45 $7,396.85
0660017 Carpet, Olefin, 15 oz $2.07 $2,060.20
0660027 Padding, sponge rubber cushion, minimum $0.77 $764.78
0660038 Underlayment plywood, 1/2" thick $2.11 $2,098.38
0664029 Resilient flooring, vinyl sheet goods, backed, .070" thick, minimum $1.40 $1,386.02
0664048 Resilient flooring, sleepers, treated, 16" OC, 1" x 3" $1.08 $1,068.43
0690137 Basement stairs, open risers $1.19 $1,181.05
07 Specialties 4.81% $5.97 $5,932.69
0708026 Kitchen, economy grade $2.87 $2,851.72
0712035 Sinks, stainless steel, single bowl 16" x 20" $1.72 $1,703.51
0712039 Water heater, electric, 30 gallon $1.39 $1,377.47
08 Mechanical 8.33% $10.34 $10,265.19
0812046 Three fixture bathroom with wall hung lavatory $4.80 $4,766.85
0860101 Furnace, gas heating only, 100 MBH, area to 1200 SF $1.20 $1,196.44
0860109 Intermittent pilot, 100 MBH furnace $0.28 $282.15
0860111 Supply duct, rectangular, area to 1200 SF, rigid fiberglass $0.85 $847.30
0860121 Return duct, sheet metal galvanized, to 1500 SF $1.02 $1,017.21
0860123 Lateral ducts, flexible round 6" insulated, to 1200 SF $0.91 $904.86
0860135 Register elbows, to 1500 SF $0.52 $518.40
0860137 Floor registers, enameled steel w/damper, to 1500 SF $0.34 $334.70
0860139 Return air grille, area to 1500 SF 12" x 12" $0.10 $96.46
0860143 Thermostat, manual, 1 set back $0.13 $125.58
0860147 Plenum, heating only, 100 MBH $0.18 $175.25
09 Electrical 3.31% $4.12 $4,086.65
0910036 100 amp electric service $1.23 $1,226.27
0930018 Duplex receptacles using non‐metallic sheathed cable $0.34 $337.31
0935112 Wiring device systems, economy to 1200 S.F. $2.00 $1,990.57
0945112 Light fixture systems, economy to 1200 S.F. $0.54 $532.50
100% $124.17 $123,296.55
15.0 % $18.62 $18,494.48
0.0 % $0.00 $0.00
0.0 % $0.00 $0.00
Total Building Cost $142.79 $141,791.03
Contractor Fees (General Conditions,Overhead,Profit)
Architectural Fees
SubTotal
User Fees
Main and Gates TIF Analysis
LHB Project No. 190549 Page 2 of 2
Replacement Cost Report
426 Main St NW - Residence
Main and Gates TIF Analysis
Code Deficiency Cost Report
426 Main Street NW, Elk River, MN 55330 - PID 75-401-0135
Code Related Cost Items Unit Cost Units
Unit
Quantity Total
Accessibility Items
-$
Structural Elements
-$
Exiting
Stairways
Modify exterior stairways to comply with code 1,000.00$ Lump 1 1,000.00$
Modify interior stairways to comply with code 1.19$ SF 993 1,181.67$
Basement Floor to Ceiling Height
Modify basement floor to ceiling height to comply with code 20.00$ SF 993 19,860.00$
Fire Protection
Smoke Detectors
Install code compliant smoke detectors 250.00$ EA 3 750.00$
Arc Fault Circuit Interrupters
Install code compliant AFCI's 250.00$ EA 4 1,000.00$
Carbon Monoxide Detectors
Install code compliant carbon monoxide detectors 250.00$ EA 2 500.00$
Exterior Construction
Windows
Replace failed windows to prevent water intrusion per code 6.99$ SF 993 6,941.07$
Roof Construction
Roofing Material
Remove failed roofing material 0.55$ SF 993 546.15$
Install new roofing material to prevent water intrusion per code 5.48$ SF 993 5,441.64$
Mechanical- Electrical
Mechanical
Install code compliant HVAC system 5.53$ SF 993 5,491.29$
Total Code Improvements 42,712$
Main and Gates TIF Analysis
LHB Project No. 190549 Page 1 of 1
Code Deficiency Cost Report
426 Main St NW - Residence
Main and Gates TIF Analysis
Photos: 426 Main Street NW - Residence
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Main and Gates TIF Analysis Page 1 of 2 Building Report
LHB Project No. 190549 414 Main St NW - Residence
Main and Gates TIF Analysis
Building Code, Condition Deficiency and Context Analysis Report
Building Name: Residence
Address: 414 Main St NW, Elk River, MN 55330
Parcel ID: 75-401-0145
Inspection Date(s) & Time(s): August 14, 2019 9:40 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: $163,564
Estimated Cost to Correct Building Code Deficiencies: $47,651
Percentage of Replacement Cost for Building Code Deficiencies: 29.13%
Defects in Structural Elements
1. None observed.
Combination of Deficiencies
1. Essential Utilities and Facilities
a. None observed.
2. Light and Ventilation
a. The HVAC system does not comply with code.
3. Fire Protection/Adequate Egress
a. Front entrance stairs do not comply with code.
b. There are no code-compliant smoke detectors in the building
c. There are no code-required Arc Fault Circuit Interrupters in the building.
d. There are no code-required carbon monoxide detectors in the building.
e. Interior stairways do not comply with code.
4. Layout and Condition of Interior Partitions/Materials
a. Interior surfaces should be repainted/refinished.
b. Ceiling tile is stained and should be replaced.
c. Wood floors should be refinished.
d. Glass windows are cracked and should be replaced.
e. Plaster ceilings are cracked/damaged and should be repaired/repainted.
f. Basement floor to ceiling height does not comply with code.
Main and Gates TIF Analysis Page 2 of 2 Building Report
LHB Project No. 190549 414 Main St NW - Residence
5. Exterior Construction
a. Wood fascia boards are rotting, allowing for water intrusion, contrary to code.
b. Wood trim and siding should be repainted.
c. The front porch does not comply with code
d. Windows are failing, allowing for water intrusion, contrary to code.
e. Roofing material is failing, allowing for water intrusion, contrary to code.
Description of Code Deficiencies
1. The HVAC system does not comply with code.
2. Front entrance stairway does not comply with code for proper rise.
3. Current smoke detectors do not comply with code.
4. There are no code-required AFCI’s in the building.
5. There are no code-required carbon monoxide detectors in the building.
6. Interior stairways do not comply with code.
7. Basement floor to ceiling height does not comply with code.
8. Wood fascia boards are rotting, allowing for water intrusion, contrary to code.
9. The front porch does not comply with code.
10. Windows are failing, allowing for water intrusion, contrary to code.
11. Roofing material is failing, allowing for water intrusion, contrary to code.
Overview of Deficiencies
This residential dwelling was constructed in 1920. Exterior wood surfaces should be repainted. The front
entrance stairway does not comply with code for proper rise. The front porch does not comply with code.
Current smoke detectors do not comply with code. There are no code-required AFCI’s in the building.
There are no carbon monoxide detectors in the building. All interior surfaces should be repainted/refinished.
Interior stairways do not comply with code. The basement floor to ceiling height does not comply with code.
Windows and roofing material has failed, allowing for water intrusion, contrary to code.
M:\19Proj\190549\300 Design\Reports\Building Reports\414 Main Street NW\414 Main Street NW Building Report.docx
Main and Gates TIF Analysis
Replacement Cost Report
Square Foot Cost Estimate Report Date:8/20/2019
Estimate Name:414 Main St NW
Building Type:Economy 2 Story with Wood Siding ‐ Wood Frame
Location:ELK RIVER, MN
Story Count:2
Story Height (L.F.):8.00
Floor Area (S.F.):1064
Labor Type:RES
Basement:Unfinished
Data Release:Year 2019
Cost Per Square Foot:$153.73
Building Cost:$163,564.96
% of Total Cost Per S.F. Cost
01 Site Work 2.10% $2.81 $2,990.39
0104034 Footing excavation, building, 26' x 46', 4' deep $2.81 $2,990.39
02 Foundation 13.15% $17.58 $18,706.15
0204030 Footing systems, 10" thick by 20" wide footing $2.04 $2,168.09
0208034 Block wall systems, 8" wall, grouted, full height $7.13 $7,587.87
0208034 Block wall systems, 8" wall, grouted, full height $6.24 $6,639.39
0220034 Floor slab systems, 4" thick slab $2.17 $2,310.80
03 Framing 15.72% $21.01 $22,357.55
0302028 Floor framing systems, 2" x 8", 16" OC $4.18 $4,451.68
0302106 Floor framing, wood joists, #2 or better, pine, 2" x 8", 16" OC $1.03 $1,100.54
0302112 Floor framing, bridging, wood 1" x 3", joists 16" OC $0.20 $211.56
0302119 Box sills, #2 or better pine, 2" x 8" $0.16 $165.44
0308026 Exterior wall framing systems, 2" x 4", 16" OC $6.71 $7,135.67
0308026 Exterior wall framing systems, 2" x 4", 16" OC $0.32 $338.03
0316042 Truss roof framing systems, 24" OC, 4/12 pitch, 1' overhang, 26' span $3.60 $3,833.81
0316138 Furring, 1" x 3", 16" OC $1.03 $1,096.60
0348026 Partition framing systems, 2" x 4", 16" OC $3.78 $4,024.22
04 Exterior Walls 22.45% $30.00 $31,925.30
0408034 Wood siding systems, 1/2" x 8" beveled cedar siding, "A" grade $15.65 $16,653.79
0408034 Wood siding systems, 1/2" x 8" beveled cedar siding, "A" grade $0.74 $788.93
0420043 Non‐rigid insul, batts, fbgls, kraft faced, 3‐1/2" thick, R13, 15" W $1.08 $1,152.92
0420051 Non‐rigid insul, batts, fbgls, kraft faced, 12" thick, R38, 23" wide $0.79 $837.50
0440026 Sliding window systems, builder's quality wood window, 3' x 2' $9.40 $9,999.50
0452046 Door systems, solid core birch, flush, 3' x 6'‐8" $1.80 $1,916.64
0460025 Storm door, al, combination, storm & screen, anodized, 3'‐0" x 6'‐8" $0.54 $576.02
05 Roofing 2.05% $2.74 $2,914.61
0504034 Gable end roofing, asphalt, roof shingles, class A $2.74 $2,914.61
06 Interiors 30.07% $40.19 $42,762.15
Costs are derived from a building model with basic components.
Scope differences and market conditions can cause costs to vary significantly.
Main and Gates
LHB Project No. 190549 Page 1 of 2
Replacement Cost Report
414 Main St NW - Residence
0604026 Wall system, 1/2" drywall, taped & finished $4.41 $4,691.46
0604026 Wall system, 1/2" drywall, taped & finished $11.02 $11,728.65
0608026 1/2" gypsum wallboard, taped & finished ceilings $2.75 $2,927.77
0620026 Lauan, flush door, hollow core, interior $10.24 $10,897.88
0660017 Carpet, Olefin, 15 oz $2.07 $2,207.51
0660027 Padding, sponge rubber cushion, minimum $0.77 $819.46
0660038 Underlayment plywood, 1/2" thick $2.11 $2,248.41
0664029 Resilient flooring, vinyl sheet goods, backed, .070" thick, minimum $1.40 $1,485.12
0664048 Resilient flooring, sleepers, treated, 16" OC, 1" x 3" $0.54 $572.41
0690036 Stairways 14 risers, oak treads, box stairs $3.76 $4,002.43
0690137 Basement stairs, open risers $1.11 $1,181.05
07 Specialties 4.17% $5.58 $5,932.70
0708026 Kitchen, economy grade $2.68 $2,851.72
0712035 Sinks, stainless steel, single bowl 16" x 20" $1.60 $1,703.51
0712039 Water heater, electric, 30 gallon $1.29 $1,377.47
08 Mechanical 7.40% $9.90 $10,531.10
0812046 Three fixture bathroom with wall hung lavatory $4.48 $4,766.85
0860101 Furnace, gas heating only, 100 MBH, area to 1200 SF $1.12 $1,196.44
0860109 Intermittent pilot, 100 MBH furnace $0.27 $282.15
0860111 Supply duct, rectangular, area to 1200 SF, rigid fiberglass $0.85 $907.88
0860121 Return duct, sheet metal galvanized, to 1500 SF $1.02 $1,089.94
0860123 Lateral ducts, flexible round 6" insulated, to 1200 SF $0.91 $969.56
0860135 Register elbows, to 1500 SF $0.52 $555.46
0860137 Floor registers, enameled steel w/damper, to 1500 SF $0.34 $358.63
0860139 Return air grille, area to 1500 SF 12" x 12" $0.10 $103.36
0860143 Thermostat, manual, 1 set back $0.12 $125.58
0860147 Plenum, heating only, 100 MBH $0.16 $175.25
09 Electrical 2.89% $3.86 $4,110.45
0910036 100 amp electric service $1.15 $1,226.27
0930018 Duplex receptacles using non‐metallic sheathed cable $0.17 $180.72
0935112 Wiring device systems, economy to 1200 S.F. $2.00 $2,132.89
0945112 Light fixture systems, economy to 1200 S.F. $0.54 $570.57
100% $133.68 $142,230.40
15.0 % $20.05 $21,334.56
0.0 % $0.00 $0.00
0.0 % $0.00 $0.00
Total Building Cost $153.73 $163,564.96
User Fees
Contractor Fees (General Conditions,Overhead,Profit)
Architectural Fees
SubTotal
Main and Gates
LHB Project No. 190549 Page 2 of 2
Replacement Cost Report
414 Main St NW - Residence
Main and Gates TIF Analysis
Code Deficiency Cost Report
414 Main Street NW, Elk River, MN 55330 - PID 75-401-0145
Code Related Cost Items Unit Cost Units
Unit
Quantity Total
Accessibility Items
-$
Structural Elements
-$
Exiting
Stairway
Modify exterior stairway to comply with code SF 1064 -$
Modify interior stairway to comply with code SF 1064 -$
Basement Floor to Ceiling Height
Modify basement floor to ceiling height to comply with code 20.00$ SF 1064 21,280.00$
Fire Protection
Smoke Detectors
Install code compliant smoke detectors 250.00$ EA 3 750.00$
Arc Fault Circuit Interrupters
Install code required AFCI's 250.00$ EA 6 1,500.00$
Carbon Monoxide Detectors
Install code required carbon monoxide detectors 250.00$ EA 1 250.00$
Exterior Construction
Wood Fascia Boards
Replace/repair damaged fascia boards to prevent water intrusion
per code 500.00$ Lump 1 500.00$
Front Porch
Modify front porch to comply with code 15.00$ SF 260 3,900.00$
Windows
Replace failed windows to prevent water intrusion per code 9.40$ SF 1064 10,001.60$
Roof Construction
Roofing Material
Remove failed roofing material 0.75$ SF 1064 798.00$
Install new roofing material to prevent water intrusion per code 2.74$ SF 1064 2,915.36$
Mechanical- Electrical
Mechanical
Replace HVAC system to comply with code 5.41$ SF 1064 5,756.24$
Total Code Improvements 47,651$
Main and Gates
LHB Project No. 190549 Page 1 of 1
Code Deficiency Cost Report
414 Main St NW - Residence
Main and Gates TIF Analysis
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HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF ELK RIVER, MINNESOTA
SHERBURNE COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 19-06
RESOLUTION FINDING PARCELS ARE OCCUPIED BY
STRUCTURALLY SUBSTANDARD BUILDINGS
WHEREAS, it has been proposed that the City of Elk River, Minnesota, (the “City”) or the Housing
and Redevelopment Authority in and for the City of Elk River, Minnesota (the “HRA”), create one or
more tax increment financing districts within the City to be designated as redevelopment districts or
renewal and renovation districts as defined in Minnesota Statutes, Section 469.174, Subd. 10 and Subd.
10a (the “TIF District”); and
WHEREAS, in order to create this type of TIF District, the City and the HRA must make a
determination that before the demolition or removal of any substandard building, certain conditions
existed; and
WHEREAS, under Minnesota Statutes, Section 469.174, subd. 10(d), the City and the HRA are
authorized to deem parcels as occupied by structurally substandard buildings despite prior demolition or
removal of the buildings, subject to certain terms and conditions as described in this resolution; and
WHEREAS, in order to deem a parcel as being occupied by a structurally substandard building,
the City or the HRA must first pass a resolution before the demolition or removal that the parcel was
occupied by one or more structurally substandard buildings and that after demolition and clearance the
City or the HRA intended to include the parcel within the proposed tax increment financing district; and
WHEREAS, there exists in the City on each of the parcels described in Exhibit A attached hereto
(collectively, the “Parcels”) one structurally substandard building to be demolished or removed (the
“Substandard Building Condition”); and
WHEREAS, a parcel is deemed to be occupied by a structurally substandard building if the
Substandard Building Condition is met within three years of the filing of the request for certification of
the parcel as part of the tax increment financing district with the county auditor, and if certain other
conditions are met; and
WHEREAS, the HRA intends to cause demolition of buildings located on the Parcels, and the City or
the HRA may in the future include the Parcels in a redevelopment or renewal and renovation tax
increment financing district; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners (the “Board”) of the
Housing and Redevelopment Authority in and for the City of Elk River, Minnesota that:
1. The Board has received from LHB, Inc. the “TIF Analysis Findings for 326 Gates Ave
NW, 414, 426 and 430 Main Street NW”, dated September 6, 2019 (the “Inspection Report”), finding
that, based on an inspection of the buildings located on the Parcels, such buildings were determined to be
substandard under the definition set forth in the Minnesota Statutes, Sections 469.174 to 469.1794, as
amended (the “TIF Act”). Based on the Inspection Report and other information available to the Board,
the Board finds that the buildings on the Parcels are structurally substandard to a degree requiring
substantial renovation or clearance and at least 15% of the area of each of the Parcels identified on
Exhibit A attached hereto are occupied within the meaning of Minnesota Statutes, Section 469.174, Subd.
10.
2. After the date of approval of this resolution, the buildings on the Parcels may be
demolished or removed by the City or the HRA, or such demolition or removal may be financed by the
City and the HRA, or may be undertaken by a developer under a development agreement with the City or
the HRA.
3. The City and the HRA intends to include the Parcels in a TIF District, and to file the
request for certification of such district with the Sherburne County auditor within 3 years after the date of
demolition of the buildings on the Parcels.
4. Upon filing the request for certification of a new tax increment financing district, the City
or the HRA will notify the Sherburne County auditor that the original tax capacity of the Parcel must be
adjusted to reflect the greater of (a) the current net tax capacity of the parcel, or (b) the estimated market
value of the Parcel for the year in which the building was demolished or removed, but applying class rates
for the current year, all in accordance with Minnesota Statutes, Section 469.174, subd. 10(d).
5. City and HRA staff and consultants are authorized to take any actions necessary to carry
out the intent of this resolution.
6. The HRA authorizes expenditure of available tax increments and other available funds to
pay the costs of such demolition or removal, in such amounts as determined necessary for such purpose
by the City’s Finance Director.
7. On December 1, 2017, City Council of the City and the Board adopted interfund loan
resolutions (collectively, the “Interfund Loan Resolution”) authorizing the payment of certain costs by the
HRA and the City, including the costs of demolition of the buildings on the Parcels, in an amount not to
exceed the greater of $1,100,000 or the adopted and, if applicable, amended Tax Increment Financing
Plan budget for the TIF District pursuant to Minnesota Statutes, Section 469.178, Subd. 7. Payments of
principal of and interest on the Interfund Loan (as defined in the Interfund Loan Resolution) shall be paid
from Available Tax increment (as defined in the Interfund Loan Resolution). This resolution
supplements, but does not supersede, the Interfund Loan Resolutions.
Approved by the Board of Commissioners of the Housing and Redevelopment Authority in and for the
City of Elk River, Minnesota this 7th day of October, 2019.
ATTEST:
__________________________________ _____________________________________
Chair Secretary
EXHIBIT A
PARCEL IDENTIFICATION NUMBERS
75-401-0105
75-401-0130
75-401-0135
75-401-0145