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SCOPE �F WORK <br />The praposed TIF District <br />buildxngs. <br />consists of two {2) parcels, with three (3} Senior Residential <br />Two buildings in the pro�osed TIF District received an an-site interior and exterior inspection. <br />One af the buildings (McKnight Building) was not inspected thoroughly after a cursory re�iew <br />detercnined it would nat likeIy be found substa�dard. Building code and Condition Deficiency <br />reports for each building inspected by LHB are located in Appendix B. <br />CONCLUSTON <br />After inspecting and evaiUating the praperties within the proposed T�� District and applying <br />current statutory criteria for a Renewal and Renovation District under Minnesota Statutes, <br />Section 469174, Subdivision IOa, it is our professional opinion that the proposed TI�' Disnict <br />qualifies as a Renewal and Renovation District because: <br />• The proposed TIF Distric# has a caverage calculation of 100 percent which is above the <br />70 percent requirement. <br />• 33 percent af the buildings are structurally substandard which is above tk�e 20 percent <br />requirement. <br />• 50 percent of the other buildings r�quire substantial renovation or clearance which is <br />above the 30 percent requirement. <br />• The substandard buildings are reasanably distributed throughout the geographic area of <br />the proposecf TIF District. <br />The rem.ainder of this report describes our process and findings in detail. <br />PART 2— MINNESOTA STATUTE 469.174 SUBDIVISION 10a RE UIREMENTS <br />The properties were inspected in accordance with the following requirements under Mznnesota <br />Statutes, Section 469174, Subdivision 10(c), which states: <br />Interior �nspection <br />"The municipality may not make such determination [that the building is structurally <br />substandard� without a.n interior inspecEion. of the prop�rty..." <br />Exterior Ins�ection and O�her Means <br />"An interior inspection. o�the properry is not reguired, if the municipality finds that <br />(1) the municipality or authority is unable to gain access to th� property after using its best <br />efforts to obtain perznission from the party that owns or controls the property; and <br />{2) the evidence otherwise supports a reasonable conclusion that the building is structurally <br />substandard." <br />Page 4 <br />