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__ _ ___. _..........._... cost of less than 15 percent of the cost of canstructing a new structure of the sanne sqUare footage and type on the site. The municipality may �nd that a building is not disq�aalified as structura�ly substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age af the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence." "Items of evidence that sUpport such a conclusiot� [that the building is not disqualified] include recent fire or police inspections, on-site property appraisals or hoUsing inspections, exterior e�idence of deterioration, or other similar reliable evidence." LHB counts energ� 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 ter� buildzng code areas highlighted by the Minnesota Department of Labor and Tndustxy website where minimum construction standards are required by law. • The index page of the 2007 Minnesota Building Code lists the Minnesota Energy Cade as a"Required Enforcement" area campared to an additional list of "Optional Enforcement" chapters. • The Senior Building Code Repres�ntative for the Construction Cades 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 repor� to the Minnesota Legislatnre, the Management Analysis Division of the Minnesota Department of Administration confir�ned that the construction cost of new buildings complying wi�h 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, a]I applicable code chapters shouId be applied to bath scenarias. Since current constructian estimating software automatically applies the construction cost of comp�ying with the Minnesota Energy Code, energy code deficiencies should also be identified in the existing structures. PART 3 — PROCEDUR,ES FOLLOWED A. LHB was able to schedule interior and exterzar inspections %r three buildings in the proposed TrF District on October 29, 20IQ. After a cursory review o� all three buildings, it was determined that the McKnight building would not be found substandard, so no further inspections were conducted in that building. Page 6