090919 EDA Meeting Packet
EDA MEETING
City Hall, 4401 Xylon Avenue North
Monday, September 9, 2019
President Kathi Hemken
Commissioner John Elder
Commissioner Cedrick Frazier
Commissioner Andy Hoffe
Commissioner Jonathan London
1. Call to order – EDA Meeting of September 9, 2019
2. Roll call
3. Approval of Minutes:
August 26, 2019
4. Resolution authorizing the proposed levy of a special benefit levy pursuant to
Minnesota Statutes, Section 469.033, subdivision 6 and approval of a preliminary
budget for fiscal year 2020
5. Resolution adopting a modification to the redevelopment plan for Redevelopment
Project No. 1, establishing the Automotive Concepts Tax Increment Financing
District therein, and adopting a tax increment financing plan therefor, and Resolution
authorizing an interfund loan for advance of certain costs in connection with the
Automotive Concepts Tax Increment Financing District
6. Adjournment
EDA Meeting
Page 1 August 26, 2019
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes August 26, 2019
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to
order at 7:16 p.m.
ROLL CALL Present:
Kathi Hemken, President
John Elder, Commissioner
Cedrick Frazier, Commissioner
Andy Hoffe, Commissioner
Jonathan London, Commissioner
Staff Present:
Kirk McDonald, City Manager
Jeff Alger, Community Development Specialist
Dan Boyum, City Engineer
Tim Fournier, Police Chief
Beth Kramer, Administrative Specialist
Susan Rader, Director of Parks and Recreation
Jeff Sargent, Director of Community Development
Stacy Woods, Assistant City Attorney
APPROVAL OF
MINUTES
Item 3
Motion was made by Commissioner London, seconded by Commissioner Frazier,
to approve the minutes of August 12, 2019. All present voted in favor. Motion
carried.
IMP. PROJECT
1038
Item 4
President Hemken introduced for discussion EDA Item 4, Resolution approving
purchase agreement for the acquisition of 6027 West Broadway (improvement
project no. 1038).
Mr. Jeff Alger, community development specialist, explained that 6027 West
Broadway is located in a prime redevelopment area and that since 2014, the ci ty
has acquired and demolished five homes in the area, resulting in six new homes.
Mr. Alger noted the subject property is the lowest-valued single-family home in
the city with a 2018 assessed value of $93,000 and 2019 assessed value of $115,000.
Mr. Alger noted the home has two bedrooms, one bathroom and less than 800
square feet of above-grade living space, sits on a quarter-acre parcel and has a
detached single-car garage. Mr. Alger reported that an appraisal valued the
property at $145,000 and staff has had several meetings with the property owner
before reaching an agreement, contingent on EDA approval, of the city purchasing
the home for $141,000 and splitting closing costs evenly with the property owner,
estimated to be $1,300 per party.
Mr. Alger noted there are two potential configurations for a new home on the
property based on setbacks and lot size. Mr. Alger reported expenses associated
EDA Meeting
Page 2 August 26, 2019
with the project are estimated to be $163,512 with revenue from the sale price
being $60,000, resulting in a loss of $103,512. He noted the funding gap would
come from the EDA budget.
Mr. Alger noted the timeline for the project is not set, due to a provision in the
contract that the property owner has until May 31, 2020, to sell and vacate the
property.
President Hemken and Commissioner Elder both commented on the benefit these
projects have to area neighborhoods.
Council Member Frazier inquired if there have been recent Habitat for Humanity
opportunities in the city.
Mr. Jeff Sargent, community development director, reported in past practice, it
was not uncommon for properties such as the subject property to be purchased by
the city and sold to organizations such as Habitat for Humanity or Homes Within
Reach. He noted that the city retains more control of the project through the
current scattered site housing process.
Mr. McDonald noted that Habitat for Humanity has approached the city with
interest in purchasing a property in the past, and staff approaches the EDA when
this happens.
Council Member Elder noted he appreciates the city retaining more control of the
projects.
RESOLUTION 2019-05
Item 4
Commissioner London introduced the following resolution and moved its
adoption “RESOLUTION APPROVING PURCHASE AGREEMENT FOR THE
ACQUISITION OF 6027 WEST BROADWAY (IMPROVEMENT PROJECT NO.
1038)”. The motion for the adoption of the foregoing resolution was seconded by
Commissioner Frazier, and upon vote being taken thereon, the following voted in
favor thereof: Hemken, Elder, Frazier, Hoffe, London; and the following voted
against the same: None; Abstained: None; Absent: None; whereupon the
resolution was declared duly passed and adopted , signed by the president which
was attested to by the executive director.
ADJOURNMENT Motion was made by Commissioner Frazier, seconded by Commissioner Hoffe, to
adjourn the meeting. All present voted in favor. Motion carried. The New Hope
EDA adjourned at 7:28 p.m.
Respectfully submitted,
Beth Kramer, Administrative Specialist
I:\RFA\FINANCE\Budget\2020\q-EDA property tax levy 9.9.19.docx
Request for Action
September 9, 2019
Approved by: Kirk McDonald, City Manager
Originating Department: City Manager
By: Kirk McDonald, City Manager
Agenda Title
Resolution authorizing the proposed levy of a special benefit levy pursuant to Minnesota Statutes, Section
469.033, subdivision 6 and approval of a preliminary budget for fiscal year 2020
Requested Action
Staff requests the EDA to adopt the attached resolution establishing the EDA levy for the 2020 budget.
Background
Historically the amount of the EDA levy was included in the city’s proposed levy. At AEM’s
recommendation, beginning with the 2015 budget year, a separate resolution has been adopted by the EDA
for the EDA levy. The amount of the EDA levy was at $85,000 for several years and was increased in 2014 and
2017 and 2019. An increase of $48,000 is recommended for 2020 to support the scattered site housing program
due to a decrease in CDBG funding and program eligibility changes. Minnesota Statutes permit the EDA to
levy up to .01813% of the estimated market value in the city. The total estimated market value is estimated by
Hennepin County at $1,921,182,700 ($1,921,182,700 x .01813% = $348,310.42).
2013 - $85,000
2014 - $150,000 (an increase of $65,000 to fund the CD assistant position)
2015 - $150,000
2016 - $150,000
2017 - $200,000 (an increase of $50,000 for increased funding to scattered site housing program)
2018 - $200,000
2019 - $300,000 (an increase of $100,000 to support scattered site housing program)
2020 - $348,000 (an increase of $48,000 to support scattered site housing program)
Attachments
EDA Resolution
Hennepin County Levy Limitation
Agenda Section
EDA
Item Number
4
CITY OF NEW HOPE
ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2019-
RESOLUTION AUTHORIZING THE PROPOSED LEVY OF
A SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES,
SECTION 469.033, SUBDIVISION 6 AND APPROVAL
OF A PRELIMINARY BUDGET FOR FISCAL YEAR 2020
WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.108 (the “EDA Act”), the City Council of
the City of New Hope created the City of New Hope Economic Development Authority (the “Authority”); and
WHEREAS, pursuant to the EDA Act, the City Council granted to the Authority all of the powers and duties
of a housing and redevelopment authority under the provisions of the Minnesota Statues, Sections 469.001 to
469.047 (the “HRA Act”); and
WHEREAS, Section 469.033, subdivision 6, of the HRA Act permits the Authority to levy and collect a special
benefit levy of up to .01813 percent of estimated market value in the City upon all taxable real property within
the City; and
WHEREAS, the Authority desires to levy a special benefit levy in the amount of up to .0185 percent estimated
market value of the City for taxes payable in 2020; and
WHEREAS, pursuant to Minnesota Statues, Section 275.065, the Authority is required to adopt a proposed
budget and a proposed tax levy and submit the same to the County Auditor by September 30; and
WHEREAS, the Authority has before it the amount of the proposed levy for collection in 20 20, subject to any
adjustments in the final levy.
NOW THEREFORE BE IT RESOLVED by the members of the New Hope Economic Development Authority:
1. The proposed budget of $348,000 for the operations of the Authority in fiscal year 2020, as presented for
consideration by the City Council, is hereby in all respects approved, subject to final approval by the
Authority before certification of the tax levy under Minnesota Statutes, Section 275.07.
2. Staff of the Authority are hereby authorized and directed to file the proposed budget with the City in
accordance with Minnesota Statues, Section 469.033, Subdivision 6.
3. The proposed special benefit levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, is
hereby approved in maximum amount equal to .01813 percent of estimated market value in the City of
New Hope, currently estimated to be $1,921,182,700 with respect to taxes payable in calendar year 2019,
subject to final approval by the Authority before certification of the special benefit levy pursuant to
Minnesota Statues, Section 275.07.
4. Staff of the Authority are hereby authorized and directed to seek th e approval by resolution of the City
Council of the levy of special benefit taxes payable in 20 20 and to take such other actions as are necessary
to bring before the Board the final budget and levy to be sent to the county auditor by December 27, 2019
(five working days after December 20, 2019).
Adopted by the Economic Development Authority on September 9, 2019.
___________________________________________
President
Attest:
Executive Director
I:\RFA\COMM DEV\2019\EDA\9-9-19 Automotive Concepts TIF\Q & R - EDA Automotive Concepts TIF Approval 9-9-19.docx
Request for Action
September 9, 2019
Approved by: Kirk McDonald, City Manager
Originating Department: Community Development
By: Jeff Sargent, Director
Agenda Title
Resolution adopting a modification to the redevelopment plan for Redevelopment Project No. 1, establishing
the Automotive Concepts Tax Increment Financing District therein, and adopting a tax increment financing
plan therefor, and Resolution authorizing an interfund loan for advance of certain costs in connection with the
Automotive Concepts Tax Increment Financing District.
Requested Action
Staff requests that the Economic Development Authority (EDA) review the creation of the proposed Tax
Increment Financing District for Automotive Concepts. If acceptable, staff requests that the EDA approves the
resolution recommending to the City Council to approve the TIF plan and District after the completion of a
public hearing.
In association with the creation of the TIF District, staff requests that the EDA approve a resolution authorizing
an interfund loan for advance of certain costs in connection with the Automotive Concepts Tax Increment
Financing District.
Policy/Past Practice
The EDA has routinely reviewed TIF districts and approved interfund loans in the past to ensure that the
redevelopment of substandard properties can take place.
Background
At the April 15, 2019 work session meeting, staff discussed the possibility of creating a Tax Increment Financing
(TIF) District for the property located at 2919 Nevada Avenue. The property in question is owned by John
Prosser, who also owns the property to the south. The property to the south is the location of Automotive
Concepts, which installs automotive upgrades to various types of vehicles. These upgrades include engine
adjustments, repair work, body kits, painting, tune-ups, interior work, etc.
The owner of the subject property approached city staff with the desire to construct a new 22,500 square foot
building as an extension to his Automotive Concepts business. This new building would serve as their “clean”
facility, and would focus on body work, installation of tires and wheels, etc. They would also lease out
approximately 6,000 square feet of the building for an office use that would be compatible with their business.
The owner anticipates the building will add about 35 new jobs.
On June 24, 2019, the City Council considered and approved a Conditional Use Permit for a Planned Unit
Development to allow for the construction of the building. The applicant has been working with city staff and
Ehlers to help secure additional financing to make the project work. The property at 2919 Nevada Avenue is
the location of the former residence and business owned and operated by Ray Kmetz. It is a land-locked parcel
that has access to Nevada Avenue via a service drive. A portion of the service dri ve is also owned by Mr.
Prosser, but the other portion is owned by an adjacent business. The property itself has some challenging
topography, and the applicant would like to remove approximately 15 feet of elevation in order to make the
Agenda Section
EDA
Item Number
5
Request for Action, Page 2
property buildable. There are significant costs involved with preparing the property from a topographical and
grading/excavating perspective that have caused the owner to seek financial assistance from the city.
The city hired LHB, Inc. to perform the TIF survey to determine whether the property was TIF district eligible.
LHB concluded that the property meets the minimum requirements for slum and blight and lot coverage in
order to create a TIF district.
TIF Development Agreement
City staff is still working with the applicant to finalize the development agreement associated with the creation
of the TIF district. Once the TIF district gets established, staff will present the development agreement to the
Economic Development Authority for final approval at a later time. Ehlers has conducted an analysis of the
developer’s pro forma and determined that the redevelopment TIF district can support $150,000 of funding
over nine (9) years. The following terms will be presented to Automotive Concepts:
a. The developer is required to maintain the business (Automotive Concepts) in the space through the
term of the TIF Note and will be required to provide proof of business to the EDA annually.
b. The Developer will receive a pay-as-you-go note in the amount of $150,000
1. Term of the TIF note will be for 9 years
2. Interest will be at 4.45%
3. Developer will receive 90% of the tax increment generated (EDA retains 10% for administrative
costs)
4. Payment dates are expected to be August 1, 2021 through February 1, 2030
5. Note may be assigned to a third party and EDA consents to the assignment conditioned upon receipt
of an investment letter from the third party.
The attached memorandum from Ehlers explains the TIF agreement terms in more detail.
Interfund Loan
State Statute requires that the EDA approve a resolution authorizing an internal (interfund) loan to the
respective TIF District and set the terms for reimbursement of the costs to be repaid with tax increments from
the respective TIF District. Attached is an interfund loan for up to $25,000 that will be paid with future TIF
from the District (the EDA’s 10% admin portion). As funds are advanced they will bear an interest rate of 5%,
which is the current, maximum interest rate that can be charged. It should be noted that $25,000 is a maximum
amount and that it may never need to be drawn upon if there are no additional administrative costs charged
to the District that are not the responsibility of the developer. The memorandum from Ehlers is attached.
Recommendation
Staff recommends that the EDA approves the resolution recommending to the City Council to approve the TIF
plan and District after the completion of a public hearing.
Staff recommends that the EDA approve a resolution authorizing an interfund loan for advance of certain costs
in connection with the Automotive Concepts Tax Increment Financing District.
Attachments
Resolution creating the TIF District
Request for Action, Page 3
Resolution authorizing the interfund loan
Ehlers Memo re: Establishment of the TIF District
Ehlers Memo re: Interfund Loan
Ehlers Memo re: Automotive Concepts TIF Agreement Terms
TIF Map
TIF Plan
Automotive Concepts Business Plan
Work Session Minutes
609648v1NE395-5
ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE
CITY OF NEW HOPE, MINNESOTA
EDA RESOLUTION NO. 19-________
RESOLUTION ADOPTING A MODIFICATION TO THE
REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT
AREA NO. 1, ESTABLISHING THE AUTOMOTIVE CONCEPTS
TAX INCREMENT FINANCING DISTRICT THEREIN, AND
ADOPTING A TAX INCREMENT FINANCING PLAN
THEREFOR
BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope,
Minnesota as follows:
WHEREAS, the City of New Hope, Minnesota (the “City”) and the Economic Development
Authority in and for the City of New Hope, Minnesota (the “Authority”) have previously approved a
redevelopment plan (the “Redevelopment Plan”) for Redevelopment Project Area No. 1 (the “Project”)
within the City, pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended, and
Minnesota Statutes, Sections 469.090 through 469.1081, as amended; and
WHEREAS, the City and the Authority have determined to modify the Redevelopment Plan for
the Project and approve a tax increment financing plan (the “TIF Plan”) for the Automotive Concepts Tax
Increment Financing District (the “TIF District”), a redevelopment district, pursuant to Minnesota
Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”), all as described in a plan
document presented to the Board of Commissioners of the Authority (the “Board”) on the date hereof;
and
WHEREAS, pursuant to Section 469.175, subdivision 2a of the TIF Act, notice of the proposed
TIF Plan was presented to the commissioner of Hennepin County, Minnesota (the “County”) representing
the area to be included in the TIF District at least thirty (30) days before the publication of the notice of
public hearing; and
WHEREAS, pursuant to Section 469.174, subdivision 2 of the TIF Act, the proposed TIF Plan
and the estimates of the fiscal and economic implications of the TIF Plan were presented to the Board of
Education of Independent School District No. 281 and to the Board of Commissioners of the County on
or about August 7, 2019; and
WHEREAS, on this date the City Council of the City conducted a duly noticed public hearing on
the adoption of the modified Redevelopment Plan and the TIF Plan and transmitted the modified
Redevelopment Plan and the TIF Plan to the Board; and
WHEREAS, the Board has reviewed the contents of the modified Redevelopment Plan and the
TIF Plan.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for
the City of New Hope, Minnesota as follows:
1. The modified Redevelopment Plan is hereby approved in substantially the form now on
file with the Board.
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609648v1NE395-5
2. The creation of the TIF District and the TIF Plan therefor are hereby approved.
3. Authority staff is hereby authorized and directed to file a request for certification of the
TIF District with the County Auditor of the County and to file a copy of TIF Plan with the
Minnesota Commissioner of Revenue and the Office of the State Auditor as required by the
TIF Act.
4. The Taxpayer Services Division Manager of the County (the “County Auditor”) is
requested to certify the original net tax capacity of the TIF District, as described in the
modified Redevelopment Plan and the TIF Plan, and to certify in each year thereafter the
amount by which the original net tax capacity has increased or decreased. Authority staff
is hereby authorized and directed to forthwith transmit this request to the County Auditor
in such form and content as the County Auditor may specify, together with a list of all
properties within the TIF District for which building permits have been issued during the
eighteen (18) months immediately preceding the adoption of this resolution.
5. Authority staff, consultants, and legal counsel are authorized to take all actions necessary
to implement the modified Redevelopment Plan and the TIF Plan and to negotiate, draft,
prepare and present to the Board for its consideration all further plans, resolutions,
documents, and contracts necessary for this purpose. Approval of the modified
Redevelopment Plan and the TIF Plan does not constitute approval of any project or a
development agreement with any developer.
Dated the ___ day of September, 2019.
Kathi Hemken, President
ATTEST:
Attest:
Kirk McDonald, Executive Director
609739v1NE395-5
ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE
CITY OF NEW HOPE, MINNESOTA
EDA RESOLUTION NO. 19-________
RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR
ADVANCE OF CERTAIN COSTS IN CONNECTION WITH THE
AUTOMOTIVE CONCEPTS TAX INCREMENT FINANCING
DISTRICT
BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope,
Minnesota as follows:
WHEREAS, on the date hereof, the City of New Hope, Minnesota (the “City”) and the
Economic Development Authority in and for the City of New Hope, Minnesota (the “Authority”)
approved the establishment of the Automotive Concepts Tax Increment Financing District (the “TIF
District”), a redevelopment district, within Redevelopment Project Area No. 1 (the “Project”), pursuant to
Minnesota Statutes, Sections 469.001 through 469.047, as amended, Minnesota Statutes, Sections
469.090 through 469.1081, as amended, and Minnesota Statutes, Sections 469.174 through 469.1794, as
amended (the “TIF Act”), and adopted a Tax Increment Financing Plan for the purpose of financing
certain improvements within the Project; and
WHEREAS, the Authority may incur certain costs related to the TIF District, which costs may
be financed on a temporary basis from legally available funds of the Authority or the City; and
WHEREAS, under Section 469.178, subdivision of the TIF Act, the Authority is authorized to
advance or loan money from any fund from which such advances may be legally made in order to finance
expenditures that are eligible to be paid with tax increments under the TIF Act; and
WHEREAS, the Authority expects to incur costs related to administrative costs of the TIF
District (the “Qualified Costs”) using Authority or City funds legally authorized for such purpose, and to
reimburse such funds from tax increments from the TIF District when received; and
WHEREAS, the Authority intends to designate such advances as an interfund loan in accordance
with the terms of this resolution and the TIF Act.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for
the City of New Hope, Minnesota as follows:
1. The Authority hereby authorizes the advance of up to $25,000 in legally available
Authority or City funds to pay the Qualified Costs, together with interest at the rate of 5%
per annum (the “Interfund Loan”). Interest shall accrue on the principal amount of each
advance from the date of such advance. The interest rate is no more than the greatest of
the rate specified under Minnesota Statutes, Section 270C.40 and Section 549.09, both in
effect for calendar year 2019, and will not be adjusted.
2. Principal and interest (the “Payments”) on the Interfund Loan shall be paid semiannually
on each August 1 and February 1 (each a “Payment Date”), commencing on the first
Payment Date on which the Authority receives Available Tax Increment (defined below),
2
609739v1NE395-5
or on any other dates determined by the Executive Director, through the date of last
receipt of tax increment from the TIF District.
3. Payments on the Interfund Loan will be made solely from Available Tax Increment,
defined as tax increment from the TIF District received by the Authority from Hennepin
County, Minnesota in the six-month period before any Payment Date. Payments shall be
applied first to accrued interest, and then to unpaid principal. Payments on the Interfund
Loan may be subordinated to any outstanding or future bonds, notes or contracts secured
in whole or in part with Available Tax Increment, and are on a parity with any other
outstanding or future interfund loans secured in whole or in part with Available Tax
Increment.
4. The principal sum and all accrued interest payable under this Interfund Loan are
prepayable in whole or in part at any time by the Authority without premium or penalty.
No partial prepayment shall affect the amount or timing of any other regular payment
otherwise required to be made under this Interfund Loan.
5. This resolution is evidence of an internal borrowing by the Authority in accordance with
Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely
from Available Tax Increment pledged to the payment hereof under this resolution. The
Interfund Loan shall not be deemed to constitute a general obligation of the State of
Minnesota or any political subdivision thereof, including, without limitation, the
Authority and the City. Neither the State of Minnesota, nor any political subdivision
thereof shall be obligated to pay the principal of or interest on the Interfund Loan or other
costs incident hereto except out of Available Tax Increment. The Authority shall have no
obligation to pay any principal amount of the Interfund Loan or accrued interest thereon,
which may remain unpaid after the final Payment Date.
6. The Authority may at any time make a determination to forgive the outstanding principal
amount and accrued interest on the Interfund Loan to the extent permissible under law.
7. The Authority may from time to time amend the terms of this resolution to the extent
permitted by law, including without limitation amendment to the payment schedule and
the interest rate; provided that the interest rate may not be increased above the maximum
specified in Section 469.178. subdivision 7 of the TIF Act.
Dated the 9th day of September, 2019.
Kathi Hemken, President
ATTEST:
Attest:
Kirk McDonald, Executive Director
Memo
To: Jeff Sargent – Community Development Director
From: Stacie Kvilvang - Ehlers
Date: September 9, 2019
Subject: Establishment of Automotive Concepts TIF District
The City and EDA are creating the above referenced redevelopment TIF district to assist in
the redevelopment of the following 2 parcels for a 22,500 square foot, precast car detailing
facility that would contain office, manufacturing, and warehouse uses for the above
referenced use:
LHB completed the required inspections of the properties and building and determined that
the parcels would qualify for a redevelopment TIF district (70% site coverage and the one
building is blighted - see appendix D of the TIF plan). The term of the TIF district is 26 years
and is the maximum term of the District. However, it should be noted that even though the
term is 26 years, the EDA will be required to decertify the District when the TIF pay-as-you-
go obligation is paid in full (estimated to be 9 years). It is anticipated that the first TIF would
be in 2021 and the final TIF payment would be in 2029 (2nd half 2029 TIF payment on
February 1, 2030).
The budget outlined in the TIF plan is a maximum budget as required by law (approximately
$1.1 million) and does not coincide with the lesser amount anticipated to be provided to the
Developer. The development is expected to be valued at approximately $1.462 million and
pay approximately $57,000/year in property taxes. Of this, approximately $22,000 is TIF
($.39 per dollar of taxes paid). When the TIF district is decertified, it is estimated that the
City’s portion of the taxes will be approximately $12,456.
After review of the TIF Plan, the EDA will make a recommendation to the City Council to
approve the TIF plan and District after they hold the required public hearing.
Please contact me at 651-697-8506 with any questions.
Parcel number Address Owner
20-118-21-34-0007 2919 Nevada Ave N Nevada Hills Ent. LLC
20-118-21-34-0031 Unassigned Nevada Hills Ent. LLC
Memo
To: Jeff Sargent – Community Development Director
From: Stacie Kvilvang - Ehlers
Date: September 9, 2019
Subject: Interfund Loan - Automotive Concepts TIF District
The City’s Economic Development Authority (EDA) is overseeing the administration and
development within the above referenced TIF District. As part of this administration, the EDA
may need to loan funds from the EDA fund to this District to temporarily finance administrative
costs not covered by the Developer’s deposit.
State Statute requires that the EDA approve a resolution authorizing an internal (interfund) loan
to the respective TIF District and set the terms for reimbursement of the costs to be repaid with
tax increments from the respective TIF District. Attached is an interfund loan for up to $25,000
that will be paid with future TIF from the District (the EDA’s 10% admin portion). As funds are
advanced they will bear an interest rate of 5%, which is the current, maximum interest rate that
can be charged. It should be noted that $25,000 is a maximum amount and that it may never
need to be drawn upon if there are no additional administrative costs charged to the District that
are not the responsibility of the developer.
Completing this action provides the EDA with the most flexibility to reimburse itself in the
future if and when EDA funds are advanced and TIF funds are available from the newly
created TIF District.
Please contact me at 651-697-8506 with any questions.
Memo
To: Jeff Sargent – Community Development Director
From: Stacie Kvilvang - Ehlers
Date: September 9, 2019
Subject: Automotive Concepts - TIF Agreement Terms
The City‘s EDA received an application for public financial assistance from Nevada Hills
Enterprises, LLC (the “Developer”) to redevelop two parcels located at 2919 Nevada Avenue
North. They intend to construct a 22,500 square foot, precast car detailing facility that would
contain office, manufacturing, and warehouse uses for the above referenced use. The
Developers’ application requested that a redevelopment TIF district be established and the
EDA provide approximately $336,000 in financial assistance to address site topography
issues as follows:
Soil export: $252,515
Retaining Wall: $63,235
Testing Services: $20,500
TOTAL $336,250
Ehlers completed an analysis of the Developers proforma and determined that $150,000 in
assistance would be appropriate to assist the project in moving forward. On April 9, 2019 the
EDA authorized staff to proceed with the steps necessary to create the TIF District and to
negotiate the terms of a TIF Agreement.
Following are the main points for review and comment on the terms for the above referenced
agreement by the EDA:
1. General
a. Redevelopment Agreement with Nevada Hills Enterprises LLC.
2. Development and Timing of Construction
a. Construction of a 22,500 sq/ft commercial space for use by Automotive
Concepts
b. Must commence construction by October 1, 2019 and be substantially
complete by December 31, 2020.
3. Business Subsidy
a. Development is exempt from business subsidy requirements (job and wage
goals), since the cost of site acquisition and site preparation exceeds 70% of
the County Assessor’s estimated market value.
b. The Developer is required to maintain the business (Automotive Concepts) in
the space through the term of the TIF Note and will be required to provide proof
of business to the EDA annually.
4. Payment of Authority Costs
a. Developer has deposited $5,000 with the EDA to pay costs associated with
required blight inspection/determination, analyzing their TIF request, creating
the TIF district and development of the TIF agreement. The Redeveloper will
replenish the deposit as needed to pay 100% of the EDA’s costs (LHB, fiscal
and legal).
5. Taxes
a. Developer is required to inform the EDA of any tax petitions submitted for the
property so the EDA can adjust TIF payments accordingly until such time the
petition is stipulated or dismissed.
6. Tax Increment
a. Create a redevelopment TIF District (Automotive Concepts)
b. The Developer will receive a pay-as-you-go note in the amount of $150,000
i. Term of the TIF note will be for 9 years
ii. Interest will be at 4.45%
iii. Developer will receive 90% of the tax increment generated (EDA retains
10% for administrative costs).
iv. Payment dates are expected to be August 1, 2021 through February 1,
2030.
v. Note may be assigned to a third party and EDA consents to the
assignment conditioned upon receipt of an investment letter from the
third party.
Staff is looking for feedback on the proposed terms, which would be incorporated into the
final TIF agreement and presented at a future EDA meeting (September or October) for formal
approval.
Please contact me at 651-697-8506 with any questions.
TIF District Map
0 10.5
Miles
City of New Hope
Hennepin County, MN
Automotive Concepts TIF
District
located in Project Area No. 1
B A S S LAKERD
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Legend
Automotive Concepts TIF District
Project Area No. 1
Automotive Concepts TIF District
TIF District Plan
MODIFICATION TO THE REDEVELOPMENT
PLAN
Redevelopment Project Area No. 1
- AND -
TAX INCREMENT FINANCING PLAN
Establishment of the Automotive Concepts Tax Increment
Financing District
(a redevelopment district)
Economic Development Authority in and for the City of New Hope
City of New Hope, Hennepin County, Minnesota
Public Hearing: September 9, 2019
New Hope Economic Development Authority
Automotive Concepts Tax Increment Financing District 2
Table of Contents
Modification to the Redevelopment Plan for Redevelopment Project No. 1 ................................. 3
Foreword ................................................................................................................................... 3
Tax Increment Financing Plan for the Automotive Concepts Tax Increment Financing District ... 4
Foreword ................................................................................................................................... 4
Statutory Authority .................................................................................................................... 4
Statement of Objectives ............................................................................................................ 4
Redevelopment Plan Overview ................................................................................................. 4
Description of Property in the District and Property to be Acquired .......................................... 5
Classification of the District ....................................................................................................... 5
Duration and First Year of Tax Increment of the District ........................................................... 6
Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment
and Notification of Prior Planned Improvements ....................................................................... 6
Sources of Revenue/Bonds to be Issued .................................................................................. 7
Uses of Funds ........................................................................................................................... 8
Estimated Impact on Other Taxing Jurisdictions ....................................................................... 9
Supporting Documentation ..................................................................................................... 10
Administration of the District ................................................................................................... 11
Appendix A: Map of Redevelopment Project No. 1 and the TIF District ................................ 12
Appendix B: Estimated Cash Flow for the District .................................................................. 13
Appendix C: Findings Including But/For Qualifications .......................................................... 14
Appendix D: Redevelopment Qualifications for the District .................................................... 15
New Hope Economic Development Authority
Automotive Concepts Tax Increment Financing District 3
Modification to the Redevelopment Plan for
Redevelopment Project Area No. 1
Foreword
The following text represents a Modification to the Redevelopment Plan for Redevelopment
Project Area No. 1. This modification represents a continuation of the goals and objectives set
forth in the Redevelopment Plan for Redevelopment Project Area No. 1. Generally, the
substantive changes include the establishment of the Automotive Concepts Tax Increment
Financing District.
For further information, a review of the Redevelopment Plan for Redevelopment Project Area No.
1, is recommended. It is available from the Director of Community Development at the City of
New Hope. Other relevant information is contained in the Tax Increment Financing Plans for the
Tax Increment Financing Districts located within Redevelopment Project Area No. 1.
New Hope Economic Development Authority
Automotive Concepts Tax Increment Financing District 4
Tax Increment Financing Plan for the Automotive
Concepts Tax Increment Financing District
Foreword
The Economic Development Authority in and for the City of New Hope, Minnesota (the "EDA"),
the City of New Hope (the "City"), staff and consultants have prepared the following information
to expedite the establishment of the Automotive Concepts Tax Increment Financing District (the
"District"), a redevelopment tax increment financing district, located in Redevelopment Project
Area No. 1.
Statutory Authority
Within the City, there exist areas where public involvement is necessary to cause development
or redevelopment to occur. To this end, the EDA and City have certain statutory powers pursuant
to Minnesota Statutes ("M.S."), Sections 469.090 - 469.1081, inclusive, as amended, and M.S.,
Sections 469.174 to 469.1794, inclusive, as amended (the "Tax Increment Financing Act" or "TIF
Act"), to assist in financing public costs related to this project.
This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other
relevant information is contained in the Modification to the Redevelopment Plan for
Redevelopment Project Area No. 1.
Statement of Objectives
The District currently consists of two parcels of land and adjacent and internal rights-of-way. The
District is being created to facilitate development of a 22,500 square foot office / manufacturing
facility in the City. The EDA anticipates entering into a contract with Automotive Concepts and
development is anticipated to begin in 2019. This TIF Plan is expected to achieve many of the
objectives outlined in the Redevelopment Plan for Redevelopment Project Area No. 1.
The activities contemplated in the Modification to the Redevelopment Plan and the TIF Plan do
not preclude the undertaking of other qualified development or redevelopment activities. These
activities are anticipated to occur over the life of Redevelopment Project Area No. 1 and the
District.
Redevelopment Plan Overview
Pursuant to the Redevelopment Plan and authorizing state statutes, the EDA or City are
authorized to undertake the following activities in the District:
1. Property to be Acquired - Selected property located within the District may be
acquired by the EDA or City and is further described in this TIF Plan.
2. Relocation - Relocation services, to the extent required by law, are available
pursuant to M.S., Chapter 117 and other relevant state and federal laws.
New Hope Economic Development Authority
Automotive Concepts Tax Increment Financing District 5
3. Upon approval of a developer's plan relating to the project and completion of the
necessary legal requirements, the EDA or City may sell to a developer selected
properties that it may acquire within the District or may lease land or facilities to a
developer.
4. The EDA or City may perform or provide for some or all necessary acquisition,
construction, relocation, demolition, and required utilities and public street work
within the District.
Description of Property in the District and Property to be Acquired
The District encompasses all property and adjacent rights-of-way and abutting roadways
identified by the parcels listed below.
Please also see the map in Appendix A for further information on the location of the District.
The EDA or City may acquire any parcel within the District including interior and adjacent street
rights of way. Any properties identified for acquisition will be acquired by the EDA or City only in
order to accomplish one or more of the following: storm sewer improvements; provide land for
needed public streets, utilities and facilities; carry out land acquisition, site improvements,
clearance and/or development to accomplish the uses and objectives set forth in this plan. The
EDA or City may acquire property by gift, dedication, condemnation or direct purchase from willing
sellers in order to achieve the objectives of this TIF Plan. Such acquisitions will be undertaken
only when there is assurance of funding to finance the acquisition and related costs.
Classification of the District
The EDA and City, in determining the need to create a tax increment financing district in
accordance with the TIF Act, find that the District, to be established, is a redevelopment district
pursuant to Section 469.174, Subd. 10(a)(1) of the TIF Act.
$ The District is a redevelopment district consisting of two parcels.
$ An inventory shows that parcels consisting of more than 70 percent of the area in the District
are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar
structures.
$ An inspection of the buildings located within the District finds that more than 50 percent of the
buildings are structurally substandard as defined in the TIF Act. (See Appendix D).
Pursuant to M.S., Section 469.176, Subd. 7, the District does not contain any parcel or part of a
parcel that qualified under the provisions of M.S., Sections 273.111, 273.112, or 273.114 or
Chapter 473H for taxes payable in any of the five calendar years before the filing of the request
for certification of the District.
Parcel number Address Owner
20-118-21-34-0007 2919 Nevada Ave N Nevada Hills Ent. LLC
20-118-21-34-0031 Unassigned Nevada Hills Ent. LLC
New Hope Economic Development Authority
Automotive Concepts Tax Increment Financing District 6
Duration and First Year of Tax Increment of the District
Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration and first
year of tax increment of the District must be indicated within the TIF Plan. Pursuant to M.S.,
Section 469.176, Subd. 1b., the duration of the District will be 25 years after receipt of the first
increment by the EDA or City (a total of 26 years of tax increment). The EDA and City elect to
receive the first tax increment in 2021, which is no later than four years following the year of
approval of the District.
Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent
phases or other changes, would terminate after 2046, or when the TIF Plan is satisfied. The EDA
or City reserve the right to decertify the District prior to the legally required date.
Original Tax Capacity, Tax Rate and Estimated Captured Net Tax
Capacity Value/Increment and Notification of Prior Planned
Improvements
Pursuant to M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. 1, the Original Net
Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the
property by the assessor in 2019 for taxes payable 2020.
Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year
(beginning in the payment year 2021) the amount by which the original value has increased or
decreased as a result of:
1. Change in tax exempt status of property;
2. Reduction or enlargement of the geographic boundaries of the district;
3. Change due to adjustments, negotiated or court-ordered abatements;
4. Change in the use of the property and classification;
5. Change in state law governing class rates; or
6. Change in previously issued building permits.
In any year in which the current Net Tax Capacity (NTC) value of the District declines below the
ONTC, no value will be captured, and no tax increment will be payable to the EDA or City.
The original local tax rate for the District will be the local tax rate for taxes payable 2020, assuming
the request for certification is made before June 30, 2020. The ONTC and the Original Local Tax
Rate for the District appear in the table below.
Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the
estimated Captured Net Tax Capacity (CTC) of the District, within Redevelopment Project No. 1,
upon completion of the projects within the District, will annually approximate tax increment
revenues as shown in the table below. The EDA and City request 100 percent of the available
increase in tax capacity for repayment of its obligations and current expenditures, beginning in
the tax year payable 2021. The Project Tax Capacity (PTC) listed is an estimate of values when
the projects within the District are completed.
New Hope Economic Development Authority
Automotive Concepts Tax Increment Financing District 7
Note: Tax capacity includes a 3.0% inflation factor for the duration of the District. The tax capacity included
in this chart is the estimated tax capacity of the District in year 25. The tax capacity of the District in year
one is estimated to be $28,500.
Pursuant to M.S., Section 469.177, Subd. 4, the EDA shall, after a due and diligent search,
accompany its request for certification to the County Auditor or its notice of the D istrict
enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the
District or area of enlargement for which building permits have been issued during the eighteen
(18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S.,
Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the
District by the net tax capacity of improvements for which a building permit was issued.
The City is reviewing the area to be included in the District to determine if any building permits
have been issued during the 18 months immediately preceding approval of the TIF Plan by the
City.
Sources of Revenue/Bonds to be Issued
The total estimated tax increment revenues for the District are shown in the table below:
SOURCES
Tax Increment 983,535
Interest 98,353
TOTAL 1,081,888
The costs outlined in the Uses of Funds will be financed primarily through the annual collection of
tax increments. The EDA or City reserve the right to incur bonds or other indebtedness as a result
of the TIF Plan. As presently proposed, the projects within the District will be financed by pay-as-
you-go notes and interfund loans. Any refunding amounts will be deemed a budgeted cost without
a formal TIF Plan Modification. This provision does not obligate the EDA or City to incur debt.
The EDA or City will issue bonds or incur other debt only upon the determination that such action
is in the best interest of the City.
The EDA or City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax
increments from the District in a maximum principal amount of $687,138. Such bonds may be in
the form of pay-as-you-go notes, revenue bonds or notes, general obligation bonds, or interfund
loans. This estimate of total bonded indebtedness is a cumulative statement of authority under
Project estimated Tax Capacity upon completion $59,673
Original estimated Net Tax Capacity $2,670
Fiscal Disparities $20,361
Estimated Captured Tax Capacity $36,642
Original Local Tax Rate 149.1820%Pay 2019
Estimated Annual Tax Increment $54,663
Percent Retained by the City 100%
Project Tax Capacity
New Hope Economic Development Authority
Automotive Concepts Tax Increment Financing District 8
this TIF Plan as of the date of approval.
Uses of Funds
Currently under consideration for the District is a proposal to facilitate development of 22,500
square foot office / manufacturing facility. The EDA and City have determined that it will be
necessary to provide assistance to the project(s) for certain District costs, as described.
The EDA has studied the feasibility of the development or redevelopment of property in and
around the District. To facilitate the establishment and development or redevelopment of the
District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain
eligible expenses. The estimate of public costs and uses of funds associated with the District is
outlined in the following table.
USES
Land/Building Acquisition 50,000
Site Improvements/Preparation 400,000
Utilities 50,000
Other Qualifying Improvements 88,785
Administrative Costs (up to 10%)98,353
PROJECT COSTS TOTAL 687,138
Interest 394,750
PROJECT AND INTEREST COSTS TOTAL 1,081,888
The total project cost, including financing costs (interest) listed in the table above does not exceed
the total projected tax increments for the District as shown in the Sources of Revenue section.
Estimated costs associated with the District are subject to change among categories without a
modification to this TIF Plan. The cost of all activities to be considered for tax increment financing
will not exceed, without formal modification, the budget above pursuant to the applicable statutory
requirements. Pursuant to M.S., Section 469.1763, Subd. 2, no more than 25 percent of the tax
increment paid by property within the District will be spent on activities related to development or
redevelopment outside of the District but within the boundaries of Redevelopment Project No. 1,
(including administrative costs, which are considered to be spent outside of the District) subject
to the limitations as described in this TIF Plan.
Fiscal Disparities Election
Pursuant to M.S., Section 469.177, Subd. 3, the EDA or City may elect one of two methods to
calculate fiscal disparities.
The EDA will choose to calculate fiscal disparities by clause b (inside).
New Hope Economic Development Authority
Automotive Concepts Tax Increment Financing District 9
Estimated Impact on Other Taxing Jurisdictions
The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated
by the TIF Plan would occur without the creation of the District. However, the EDA and City have
determined that such development or redevelopment would not occur "but for" tax increment
financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated
fiscal impact of the District would be as follows if the "but for" test was not met:
Entity
2018/Pay 2019
Total Net Tax
Capacity
Estimated
Captured Tax
Capacity (CTC)
upon completion
Percent of CTC
to Entity Total
Hennepin County 1,817,980,868 36,642 0.0020%
City of New Hope 18,962,717 36,642 0.1932%
ISD 281 97,653,903 36,642 0.0375%
Impact on Tax Base
Entity
Pay 2019
Extension
Rate
Percent of Total CTC Potential Taxes
Hennepin County 41.8610%28.06%36,642 15,339
City of New Hope 67.9900%45.58%36,642 24,913
ISD 281 29.9090%20.05%36,642 10,959
Other 9.4220%6.32%36,642 3,452
Total 149.1820%100.00%54,663
Impact on Tax Rates
The estimates listed above display the captured tax capacity when all construction is completed.
The tax rate used for calculations is the Pay 2019 rate. The total net capacity for the entities listed
above are based on Pay 2019 figures. The District wi ll be certified under the Pay 2020 rates,
which were unavailable at the time this TIF Plan was prepared.
Pursuant to M.S. Section 469.175 Subd. 2(b):
(1) Estimate of total tax increment. It is estimated that the total amount of tax increment
that will be generated over the life of the District is $983,535;
(2) Probable impact of the District on city provided services and ability to issue debt. An
impact of the District on police protection is not expected. The City does not expect
that the proposed development, in and of itself, will necessitate new capital investment
in vehicles or facilities.
The probable impact of the District on fire protection is not expected to be significant.
Typically, new buildings generate few calls, if any, and are of superior construction.
The City does not expect that the proposed development, in and of itself, will
necessitate new capital investment in vehicles or facilities.
The impact of the District on public infrastructure is expected to be minimal. The
New Hope Economic Development Authority
Automotive Concepts Tax Increment Financing District 10
development is not expected to significantly impact any traffic movements in the area.
The current infrastructure for sanitary sewer, storm sewer and water will be able to
handle the additional volume generated from the proposed development. Based on
the development plans, there are no additional costs associated with street
maintenance, sweeping, plowing, lighting and sidewalks.
The probable impact of any District general obligation tax increment bonds on the
ability to issue debt for general fund purposes is expected to be minimal. It is not
anticipated that there will be any general obligation debt issued in relation to this
project, therefore there will be no impact on the City's ability to issue future debt or on
the City's debt limit.
(3) Estimated amount of tax increment attributable to school district levies. It is estimated
that 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 $197,786;
(4) Estimated amount of tax increment attributable to county levies. It is estimated that 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 $275,983;
(5) Additional information requested by the county or school district. The City is not aware
of any standard questions in a county or school district written policy regarding tax
increment districts and impact on county or school district services. The county or school
district must request additional information pursuant to M.S. Section 469.175 Subd. 2(b)
within 15 days after receipt of the tax increment financing plan.
No requests for additional information from the county or school district regarding the
proposed development for the District have been received.
Supporting Documentation
Pursuant to M.S. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification
and description of studies and analyses used to make the determination set forth in M.S. Section
469.175, Subd. 3, clause (b)(2) and the findings are required in the resolution approving the
District.
(i) In making said determination, reliance has been placed upon (1) written representation
made by the developer to such effects, (2) review of the developer’s proforma; and (3)
City staff awareness of the feasibility of developing the project site within the District,
which is further outlined in the City Council resolution approving the establishment of
the TIF District and Appendix C.
(ii) A comparative analysis of estimated market value both with and without establishment
of the TIF District and the use of tax increments has been performed. Such analysis is
included with the cashflow in Appendix B and indicates that the increase in estimated
market value of the proposed development (less the indicated subtractions) exceeds
the estimated market value of the site absent the establishment of the TIF District and
the use of tax increments.
New Hope Economic Development Authority
Automotive Concepts Tax Increment Financing District 11
Administration of the District
Administration of the District will be handled by the Director of Community Development at the
City of New Hope.
New Hope Economic Development Authority
Automotive Concepts Tax Increment Financing District 12
Appendix A: Map of Redevelopment Project Area No. 1 and the TIF
District
0 10.5
Miles
City of New Hope
Hennepin County, MN
Automotive Concepts TIF
District
located in Project Area No. 1
B A S S LAKERD
62ND AVENUE N
49TH AVENUE N
W I N N E T K A
A V E N U E
N
42ND AVENUE
36TH AVENUE N
BO
O
N
E
A
V
E
N
U
E
N
MEDICINE LAKE RD
H I G H W A Y
1 6 9
´
BROOKLYN PARK
GOLDEN VALLEY
CR
Y
S
T
A
L
PL
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M
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Legend
Automotive Concepts TIF District
Project Area No. 1
Automotive Concepts TIF District
New Hope Economic Development Authority
Automotive Concepts Tax Increment Financing District 13
Appendix B: Estimated Cash Flow for the District
8/6/2019 Base Value Assumptions - Page 1
Automotive Concepts - No Inflation
City of New Hope, MN
22,500 Sq. Ft. Commercial
ASSUMPTIONS AND RATES
DistrictType:Redevelopment
District Name/Number:Automotive Concepts
County District #:Exempt Class Rate (Exempt)0.00%
First Year Construction or Inflation on Value 2019 Commercial Industrial Preferred Class Rate (C/I Pref.)
Existing District - Specify No. Years Remaining First $150,000 1.50%
Inflation Rate - Every Year:3.00%Over $150,000 2.00%
Interest Rate:4.00%Commercial Industrial Class Rate (C/I)2.00%
Present Value Date:1-Feb-20 Rental Housing Class Rate (Rental)1.25%
First Period Ending 1-Aug-20 Affordable Rental Housing Class Rate (Aff. Rental)
Tax Year District was Certified:Pay 2020 First $150,000 0.75%
Cashflow Assumes First Tax Increment For Development:2021 Over $150,000 0.25%
Years of Tax Increment 26 Non-Homestead Residential (Non-H Res. 1 Unit)
Assumes Last Year of Tax Increment 2046 First $500,000 1.00%
Fiscal Disparities Election [Outside (A), Inside (B), or NA]Inside(B)Over $500,000 1.25%
Incremental or Total Fiscal Disparities Incremental Homestead Residential Class Rate (Hmstd. Res.)
Fiscal Disparities Contribution Ratio 35.7194%Pay 2019 First $500,000 1.00%
Fiscal Disparities Metro-Wide Tax Rate 143.9920%Pay 2019 Over $500,000 1.25%
Maximum/Frozen Local Tax Rate: 149.182%Pay 2019 Agricultural Non-Homestead 1.00%
Current Local Tax Rate: (Use lesser of Current or Max.)149.182%Pay 2019
State-wide Tax Rate (Comm./Ind. only used for total taxes)42.4160%Pay 2019
Market Value Tax Rate (Used for total taxes)0.26683%Pay 2019
Building Total Percentage Tax Year Property Current Class After
Land Market Market Of Value Used Original Original Tax Original After Conversion
Map ID PID Owner Address Market Value Value Value for District Market Value Market Value Class Tax Capacity Conversion Orig. Tax Cap.
1 20-118-21-34-0007 Nevada Hills Ent. LLC2919 Nevada Ave N 134,000 8,000 142,000 100%142,000 Pay 2020 C/I Pref.2,130 C/I Pref.2,130 1
2 20-118-21-34-0031 Nevada Hills Ent. LLC Unassigned 27,000 0 27,000 100%27,000 Pay 2020 C/I Pref.405 C/I 540
161,000 8,000 169,000 169,000 2,535 2,670
Note:
1. Base values are for pay 2020 based upon review of County website on 8-6-19.
2. Located in SD # 281 and WS # 7
Area/
Phase
Tax Rates
BASE VALUE INFORMATION (Original Tax Capacity)
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8/6/2019 Base Value Assumptions - Page 2
Automotive Concepts - No Inflation
City of New Hope, MN
22,500 Sq. Ft. Commercial
Estimated Taxable Total Taxable Property Percentage Percentage Percentage Percentage First Year
Market Value Market Value Total Market Tax Project Project Tax Completed Completed Completed Completed Full Taxes
Area/Phase New Use Per Sq. Ft./Unit Per Sq. Ft./Unit Sq. Ft./Units Value Class Tax Capacity Capacity/Unit 2019 2020 2021 2022 Payable
1 Office/Man 65 65 22,500 1,462,500 C/I Pref.28,500 1 100%100%100%100%2021
TOTAL 1,462,500 28,500
Subtotal Residential 0 0 0
Subtotal Commercial/Ind.22,500 1,462,500 28,500
Note:
1. Market values are based upon estimates.
Total Fiscal Local Local Fiscal State-wide Market
Tax Disparities Tax Property Disparities Property Value Total Taxes Per
New Use Capacity Tax Capacity Capacity Taxes Taxes Taxes Taxes Taxes Sq. Ft./Unit
Office/Man 28,500 10,180 18,320 27,330 14,658 11,452 3,902 57,343 2.55
TOTAL 28,500 10,180 18,320 27,330 14,658 11,452 3,902 57,343
Note:
1. Taxes and tax increment will vary significantly from year to year depending upon values, rates, state law, fiscal disparities and other factors
which cannot be predicted.
Total Property Taxes 57,343 Current Market Value - Est.169,000
less State-wide Taxes (11,452)New Market Value - Est.1,462,500
less Fiscal Disp. Adj.(14,658) Difference 1,293,500
less Market Value Taxes (3,902)Present Value of Tax Increment 546,893
less Base Value Taxes (2,560) Difference 746,607
Annual Gross TIF 24,770 Value likely to occur without Tax Increment is less than:746,607
WHAT IS EXCLUDED FROM TIF?MARKET VALUE BUT / FOR ANALYSIS
TAX CALCULATIONS
PROJECT INFORMATION (Project Tax Capacity)
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8/6/2019 Tax Increment Cashflow - Page 3
Automotive Concepts - No Inflation
City of New Hope, MN
22,500 Sq. Ft. Commercial
TAX INCREMENT CASH FLOW
Project Original Fiscal Captured Local Annual Semi-Annual State Admin.Semi-Annual Semi-Annual PERIOD
% of Tax Tax Disparities Tax Tax Gross Tax Gross Tax Auditor at Net Tax Present ENDING Tax Payment
OTC Capacity Capacity Incremental Capacity Rate Increment Increment 0.36%10%Increment Value Yrs.Year Date
- - - - 08/01/20
- - - - 02/01/21
100%28,500 (2,670) (9,226) 16,604 149.182%24,770 12,385 (45) (1,234) 11,106 10,466 0.5 2021 08/01/21
100%28,500 (2,670) (9,226) 16,604 149.182%24,770 12,385 (45) (1,234) 11,106 20,726 1 2021 02/01/22
100%29,355 (2,670) (9,532) 17,153 149.182%25,590 12,795 (46) (1,275) 11,474 31,118 1.5 2022 08/01/22
100%29,355 (2,670) (9,532) 17,153 149.182%25,590 12,795 (46) (1,275) 11,474 41,307 2 2022 02/01/23
100%30,236 (2,670) (9,846) 17,719 149.182%26,434 13,217 (48) (1,317) 11,853 51,625 2.5 2023 08/01/23
100%30,236 (2,670) (9,846) 17,719 149.182%26,434 13,217 (48) (1,317) 11,853 61,741 3 2023 02/01/24
100%31,143 (2,670) (10,170) 18,302 149.182%27,304 13,652 (49) (1,360) 12,243 71,985 3.5 2024 08/01/24
100%31,143 (2,670) (10,170) 18,302 149.182%27,304 13,652 (49) (1,360) 12,243 82,028 4 2024 02/01/25
100%32,077 (2,670) (10,504) 18,903 149.182%28,200 14,100 (51) (1,405) 12,644 92,198 4.5 2025 08/01/25
100%32,077 (2,670) (10,504) 18,903 149.182%28,200 14,100 (51) (1,405) 12,644 102,168 5 2025 02/01/26
100%33,039 (2,670) (10,848) 19,522 149.182%29,123 14,561 (52) (1,451) 13,058 112,262 5.5 2026 08/01/26
100%33,039 (2,670) (10,848) 19,522 149.182%29,123 14,561 (52) (1,451) 13,058 122,158 6 2026 02/01/27
100%34,030 (2,670) (11,202) 20,159 149.182%30,073 15,037 (54) (1,498) 13,484 132,177 6.5 2027 08/01/27
100%34,030 (2,670) (11,202) 20,159 149.182%30,073 15,037 (54) (1,498) 13,484 142,000 7 2027 02/01/28
100%35,051 (2,670) (11,566) 20,815 149.182%31,052 15,526 (56) (1,547) 13,923 151,943 7.5 2028 08/01/28
100%35,051 (2,670) (11,566) 20,815 149.182%31,052 15,526 (56) (1,547) 13,923 161,691 8 2028 02/01/29
100%36,103 (2,670) (11,942) 21,491 149.182%32,061 16,030 (58) (1,597) 14,375 171,559 8.5 2029 08/01/29
100%36,103 (2,670) (11,942) 21,491 149.182%32,061 16,030 (58) (1,597) 14,375 181,233 9 2029 02/01/30
100%37,186 (2,670) (12,329) 22,187 149.182%33,099 16,550 (60) (1,649) 14,841 191,025 9.5 2030 08/01/30
100%37,186 (2,670) (12,329) 22,187 149.182%33,099 16,550 (60) (1,649) 14,841 200,625 10 2030 02/01/31
100%38,302 (2,670) (12,727) 22,904 149.182%34,169 17,084 (62) (1,702) 15,321 210,341 10.5 2031 08/01/31
100%38,302 (2,670) (12,727) 22,904 149.182%34,169 17,084 (62) (1,702) 15,321 219,866 11 2031 02/01/32
100%39,451 (2,670) (13,138) 23,643 149.182%35,271 17,635 (63) (1,757) 15,815 229,505 11.5 2032 08/01/32
100%39,451 (2,670) (13,138) 23,643 149.182%35,271 17,635 (63) (1,757) 15,815 238,956 12 2032 02/01/33
100%40,634 (2,670) (13,561) 24,404 149.182%36,406 18,203 (66) (1,814) 16,324 248,519 12.5 2033 08/01/33
100%40,634 (2,670) (13,561) 24,404 149.182%36,406 18,203 (66) (1,814) 16,324 257,895 13 2033 02/01/34
100%41,853 (2,670) (13,996) 25,187 149.182%37,575 18,787 (68) (1,872) 16,848 267,382 13.5 2034 08/01/34
100%41,853 (2,670) (13,996) 25,187 149.182%37,575 18,787 (68) (1,872) 16,848 276,683 14 2034 02/01/35
100%43,109 (2,670) (14,444) 25,994 149.182%38,779 19,389 (70) (1,932) 17,388 286,094 14.5 2035 08/01/35
100%43,109 (2,670) (14,444) 25,994 149.182%38,779 19,389 (70) (1,932) 17,388 295,321 15 2035 02/01/36
100%44,402 (2,670) (14,906) 26,826 149.182%40,019 20,010 (72) (1,994) 17,944 304,656 15.5 2036 08/01/36
100%44,402 (2,670) (14,906) 26,826 149.182%40,019 20,010 (72) (1,994) 17,944 313,808 16 2036 02/01/37
100%45,734 (2,670) (15,382) 27,682 149.182%41,296 20,648 (74) (2,057) 18,516 323,066 16.5 2037 08/01/37
100%45,734 (2,670) (15,382) 27,682 149.182%41,296 20,648 (74) (2,057) 18,516 332,144 17 2037 02/01/38
100%47,106 (2,670) (15,872) 28,564 149.182%42,612 21,306 (77) (2,123) 19,106 341,326 17.5 2038 08/01/38
100%47,106 (2,670) (15,872) 28,564 149.182%42,612 21,306 (77) (2,123) 19,106 350,329 18 2038 02/01/39
100%48,519 (2,670) (16,377) 29,472 149.182%43,967 21,984 (79) (2,190) 19,714 359,436 18.5 2039 08/01/39
100%48,519 (2,670) (16,377) 29,472 149.182%43,967 21,984 (79) (2,190) 19,714 368,364 19 2039 02/01/40
100%49,975 (2,670) (16,897) 30,408 149.182%45,363 22,682 (82) (2,260) 20,340 377,395 19.5 2040 08/01/40
100%49,975 (2,670) (16,897) 30,408 149.182%45,363 22,682 (82) (2,260) 20,340 386,249 20 2040 02/01/41
100%51,474 (2,670) (17,433) 31,372 149.182%46,801 23,400 (84) (2,332) 20,985 395,205 20.5 2041 08/01/41
100%51,474 (2,670) (17,433) 31,372 149.182%46,801 23,400 (84) (2,332) 20,985 403,985 21 2041 02/01/42
100%53,018 (2,670) (17,984) 32,364 149.182%48,282 24,141 (87) (2,405) 21,649 412,865 21.5 2042 08/01/42
100%53,018 (2,670) (17,984) 32,364 149.182%48,282 24,141 (87) (2,405) 21,649 421,571 22 2042 02/01/43
100%54,609 (2,670) (18,552) 33,387 149.182%49,807 24,903 (90) (2,481) 22,332 430,376 22.5 2043 08/01/43
100%54,609 (2,670) (18,552) 33,387 149.182%49,807 24,903 (90) (2,481) 22,332 439,008 23 2043 02/01/44
100%56,247 (2,670) (19,137) 34,440 149.182%51,378 25,689 (92) (2,560) 23,037 447,738 23.5 2044 08/01/44
100%56,247 (2,670) (19,137) 34,440 149.182%51,378 25,689 (92) (2,560) 23,037 456,297 24 2044 02/01/45
100%57,935 (2,670) (19,740) 35,524 149.182%52,996 26,498 (95) (2,640) 23,762 464,952 24.5 2045 08/01/45
100%57,935 (2,670) (19,740) 35,524 149.182%52,996 26,498 (95) (2,640) 23,762 473,438 25 2045 02/01/46
100%59,673 (2,670) (20,361) 36,642 149.182%54,663 27,331 (98) (2,723) 24,510 482,019 25.5 2046 08/01/46
100%59,673 (2,670) (20,361) 36,642 149.182%54,663 27,331 (98) (2,723) 24,510 490,431 26 2046 02/01/47
Total 987,088 (3,554) (98,353) 885,181
Present Value From 02/01/2020 Present Value Rate 4.00%546,893 (1,969) (54,492) 490,431
Prepared by Ehlers & Associates, Inc. - Estimates Only N:\Minnsota\New Hope\Housing - Economic - Redevelopment\TIF\TIF Districts\Automotive Concepts - Est. 2019\TIF Plan Documents\TIF Run 8-6-19 - FINAL
New Hope Economic Development Authority
Automotive Concepts Tax Increment Financing District 14
Appendix C: Findings Including But/For Qualifications
The reasons and facts supporting the findings for the adoption of the Tax Increment Financing
Plan (TIF Plan) for the Automotive Concepts Tax Increment Financing District (the “District”), as
required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows:
1. Finding that the Automotive Concepts Tax Increment Financing District is a redevelopment
district as defined in M.S., Section 469.174, Subd. 10(a)(1).
The District consists of two parcels with plans to redevelop the area for office and
manufacturing purposes. At least 70 percent of the area of the parcels in 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 in the District, not including outbuildings, are
structurally substandard to a degree requiring substantial renovation or clearance. (See
Appendix D of the TIF Plan.)
2. Finding that the proposed development, in the opinion of the City Council, would not
reasonably be expected to occur solely through private investment within the reasonably
foreseeable future and that 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.
The proposed development, in the opinion of the City, would not reasonabl y be expected to
occur solely through private investment within the reasonably foreseeable future: This finding
is supported by the fact that the redevelopment proposed in the TIF Plan meets the City's
objectives for redevelopment but due to the high costs of demolition and site preparation (due
to the unusually steep grades) this project is feasible only through assistance, in part, from
tax increment financing. The developer was asked for and provided a letter and a proforma
as justification that the developer would not have gone forward without tax increment
assistance.
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 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: This finding
is justified on the grounds that the cost of demolition, site improvements and public
improvements and utilities add to the total redevelopment cost. The City reasonably
determines that no other redevelopment of similar scope is anticipated on this site wi thout
substantially similar assistance being provided to the development.
Therefore, the City concludes as follows:
a. The City's estimate of the amount by which the market value of the entire District will
increase without the use of tax increment financing is $0.
b. If the proposed development occurs, the total increase in market value will be
$1,293,500 (see Appendix A of the TIF Plan)
New Hope Economic Development Authority
Automotive Concepts Tax Increment Financing District 15
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 $546,893 (see Appendix A of the
TIF Plan).
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 $746,607 (the amount in clause b less the amount in clause c)
without tax increment assistance.
3. Finding that the TIF Plan for the District conforms to the general plan for the development or
redevelopment of the municipality as a whole.
The City Council reviewed the TIF Plan and found that the proposed development is
consistent with the City’s Comprehensive Plan and current zoning for the site, and that the
TIF Plan conforms to the general development plan of the City.
4. Finding that the TIF Plan for the District will afford maximum opportunity, consistent with the
sound needs of the City as a whole, for the development or redevelopment of
Redevelopment Project No. 1 by private enterprise.
The project to be assisted by the District will result in increased employment in the City and
the State of Minnesota, the renovation of substandard properties, increased tax base of the
State and add a high-quality development to the City.
New Hope Economic Development Authority
Automotive Concepts Tax Increment Financing District 16
Appendix D: Redevelopment Qualifications for the District
Report of Inspection Procedures and Results for
Determining Qualifications of a
Tax Increment Financing District as a Redevelopment District
Automotive Concepts Redevelopment TIF District
New Hope, Minnesota
April 2, 2019
Prepared For the
City of New Hope
Prepared by:
LHB, Inc.
701 Washington Avenue North, Suite 200
Minneapolis, Minnesota 55401
LHB Project No. 190152
Automotive Concepts Redevelopment TIF District
LHB Project No. 190152 Page 1 of 11 Final Report
TABLE OF CONTENTS
PART 1 – EXECUTIVE SUMMARY ................................................................................ 2
Purpose of Evaluation ................................................................................ 2
Scope of 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 ..................................................................... 8
1. Building Inspection .................................................................... 8
2. Replacement Cost ..................................................................... 8
3. Code Deficiencies ..................................................................... 8
4. System Condition Deficiencies .................................................. 9
C. Distribution of Substandard Structures ............................................... 10
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
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PART 1 – EXECUTIVE SUMMARY
PURPOSE OF EVALUATION
LHB was hired by the City of New Hope 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 on Nevada Avenue North, east of the Canadian Pacific Soo Rail Line
and north of 27th Avenue North (Diagram 1). The purpose of LHB’s work is to determine whether
the proposed TIF District meets the statutory requirements for coverage, and whether one (1) building
on two (2) parcels, located within the proposed TIF District, meet the qualifications required for a
Redevelopment District.
Diagram 1 – Proposed TIF District
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SCOPE OF WORK
The proposed TIF District consists of two (2) parcels with one (1) building. The building was
inspected on March 14, 2019. A Building Code and Condition Deficiency report for the building that
was inspected is 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.
•100 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).”
QUALIFICATION REQUIREMENTS
Minnesota Statutes, Section 469.174, Subdivision 10 (a) (1) requires three tests for occupied parcels:
Automotive Concepts Redevelopment TIF District
LHB Project No. 190152 Page 4 of 11 Final Report
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;”
1. 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 Walser 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.”
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.
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LHB Project No. 190152 Page 5 of 11 Final Report
• 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
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 Walser Auto Sales, Inc. vs. City of Richfield case filed November 13,
2001.
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LHB Project No. 190152 Page 6 of 11 Final Report
PART 3 – PROCEDURES FOLLOWED
LHB inspected one (1) building during the day of March 14, 2019.
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).
Automotive Concepts Redevelopment TIF District
LHB Project No. 190152 Page 7 of 11 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
Automotive Concepts Redevelopment TIF District
LHB Project No. 190152 Page 8 of 11 Final Report
B. CONDITION OF BUILDING TEST
1. 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.
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
2019.
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 New
Hope, 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
2019; 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
Automotive Concepts Redevelopment TIF District
LHB Project No. 190152 Page 9 of 11 Final Report
of each building to determine if the costs for correcting code deficiencies meet the required
15 percent threshold.
FINDING:
One (1) out of one (1) building (100 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.
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, one (1) out of one (1) building (100 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).
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LHB Project No. 190152 Page 10 of 11 Final Report
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.
Diagram 3 – Substandard Buildings
Shaded green area depicts parcels with buildings.
Shaded orange area depicts substandard buildings.
Automotive Concepts Redevelopment TIF District
LHB Project No. 190152 Page 11 of 11 Final Report
PART 5 - TEAM CREDENTIALS
Michael A. Fischer, AIA, LEED AP - Project Principal/TIF Analyst
Michael has 30 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.
M:\19Proj\190152\400 Design\406 Reports\Final Report\190152 New Hope Automotive Concepts TIF Final Report.docx
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
APPENDIX A
Property Condition Assessment Summary Sheet
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Property Condition Assessment Summary Sheet
APPENDIX B
Building Code, Condition Deficiency and Context Analysis Reports
Automotive Concepts Redevelopment TIF District Page 1 of 2 Building Report
LHB Project No. 190152 Parcel A – Office Building
Automotive Concepts Redevelopment TIF District
Building Code, Condition Deficiency and Context Analysis Report
Parcel No. & Building Name: Parcel A Office Building
Address and Parcel ID: 2919 Nevada Ave N, New Hope, MN 55427
PID 2011821340007
Inspection Date(s) & Time(s): March 14, 2019 1:40 PM
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: $555,710
Estimated Cost to Correct Building Code Deficiencies: $197,044
Percentage of Replacement Cost for Building Code Deficiencies: 35.46%
Defects in Structural Elements
1. None observed.
Combination of Deficiencies
1. Essential Utilities and Facilities
a. There is no code-required accessible route into the building.
b. There is no code-required accessible route to all levels of the building.
c. There is no code-required accessible restroom.
d. There is no code-required drinking fountain.
2. Light and Ventilation
a. Electrical service needs to be reconnected to the building.
b. The HVAC system does not comply with code.
c. Potable water needs to be reconnected to the building.
3. Fire Protection/Adequate Egress
a. Interior wood parquet flooring is warped, causing an impediment to emergency egress,
which is contrary to code.
b. There are no code-compliant smoke detectors.
c. There is no code-required emergency lighting.
d. There is no code-required emergency notification system.
e. There is no code-required building sprinkler system.
f. There is no code-required fire proofing in the building.
Automotive Concepts Redevelopment TIF District Page 2 of 2 Building Report
LHB Project No. 190152 Parcel A – Office Building
4. Layout and Condition of Interior Partitions/Materials
a. The basement stairway does not comply with code.
b. Interior foundation walls are cracked, allowing for water intrusion, contrary to code.
c. Interior ceiling should be scraped and repainted.
d. Interior walls should be repainted.
e. Interior carpet is stained and damaged and should be replaced.
f. There are dead animals present in the closet.
g. Basement ceiling tile is missing and should be replaced.
h. Mold is growing on the walls in the basement.
5. Exterior Construction
a. Roofing material has failed, allowing for water intrusion, contrary to code.
b. Windows have failed, allowing for water intrusion, contrary to code.
c. Gutters have failed, and should be repaired/replaced.
d. Exposed wood surfaces should be repainted.
Description of Code Deficiencies
1. A code-required accessible route into the building should be created.
2. A code-required accessible route to all levels should be created.
3. A code-required accessible restroom should be created.
4. A code-required drinking fountain should be installed.
5. A code-compliant HVAC system should be installed.
6. Damaged wood parquet flooring should be replaced to create a code-compliant means for emergency
egress.
7. Code-compliant smoke detectors should be installed.
8. Code-required emergency lighting should be installed.
9. Code-required emergency notification system should be installed.
10. Code-required building sprinkler system should be installed.
11. Fire proofing material should be applied within the building per code.
12. Basement stairway should be modified to comply with code.
13. Interior foundation walls should be repaired to prevent water intrusion per code.
14. Roofing material has failed, allowing for water intrusion, contrary to code.
15. Windows should be replaced to prevent water intrusion per code.
Overview of Deficiencies
According to staff, this commercially zoned building was most recently used as an office for a landscaping
company. The building is not code-compliant for accessibility. The building does not have code-required life
safety systems installed. The building roof has failed, allowing for water intrusion, contrary to code.
Windows have also failed and do not comply with code. The HVAC system does not comply with code.
Interior walls and ceiling should be repaired/repainted. Interior flooring is damaged and should be replaced.
M:\19Proj\190152\400 Design\406 Reports\Building Reports\2919 Nevada Ave N Building Report.docx
APPENDIX C
Building Replacement Cost Reports
Code Deficiency Cost Reports
Photographs
Automotive Concepts Redevelopment TIF District
Replacement Cost Report
Square Foot Cost Estimate Report Date:3/15/2019
2919 Nevada Ave N
City of New Hope
2919 Nevada Ave N , New Hope , Minnesota ,
55427
Building Type:
Office 1 Story with Vinyl Clapboard / Wood
Frame
Location:NEW HOPE, MN
Story Count:1
Story Height (L.F.):8
Floor Area (S.F.):2200
Labor Type:OPN
Basement Included:Yes
Data Release:Year 2019
Cost Per Square Foot:$252.60
Building Cost:$555,710.06
% of Total Cost Per S.F. Cost
19.24% 42.26 92,978.09
A1010 Standard Foundations 7.72 16,991.41
3.98 8,757.76
3.74 8,233.65
A1030 Slab on Grade 5.73 12,597.90
5.73 12,597.90
A2010 Basement Excavation 3.97 8,730.96
3.97 8,730.96
A2020 Basement Walls 24.84 54,657.82
24.84 54,657.82
23.98% 52.66 115,855.89
B1010 Floor Construction 18.99 41,767.05
8.45 18,590.13
0.45 989.43
5.19 11,418.00
4.90 10,769.49
B1020 Roof Construction 7.46 16,404.08
7.46 16,404.08
B2010 Exterior Walls 13.19 29,027.79
11.59 25,501.08
Cast‐in‐place concrete column, 12" square, tied, 200K load, 12' story height,
142 lbs/LF, 4000PSI
Estimate Name:
Costs are derived from a building model with basic components.
Scope differences and market conditions can cause costs to vary significantly.
A Substructure
Strip footing, concrete, reinforced, load 11.1 KLF, soil bearing capacity 6 KSF,
12" deep x 24" wide
Spread footings, 3000 PSI concrete, load 100K, soil bearing capacity 6 KSF, 4' ‐
6" square x 15" deep
Slab on grade, 4" thick, non industrial, reinforced
Excavate and fill, 10,000 SF, 8' deep, sand, gravel, or common earth, on site
storage
Foundation wall, CIP, 12' wall height, pumped, .444 CY/LF, 21.59 PLF, 12" thick
B Shell
Wood column, 8" x 8", 20' x 20' bay, 10' unsupported height, 133 BF/MSF, 160
PSF total allowable load
Floor, wood joist, 2 x 12 @12" O.C., 1/2" CDX subfloor
Fireproofing, gypsum board, fire rated, 2 layer, 1" thick, 14" steel column, 3
hour rating, 22 PLF
Wood roof, truss, 4/12 slope, 24" O.C., 30' to 43' span
Wood siding, 2"x6" studs 16"OC, insulated wall, 8" plain vinyl siding
Automotive Concepts Redevelopment TIF District
LHB Project No. 190152 Page 1 of 3
Replacement Cost Report
Parcel A - Office Building
1.60 3,526.71
B2020 Exterior Windows 6.20 13,636.52
6.20 13,636.52
B2030 Exterior Doors 4.08 8,982.70
2.13 4,693.31
1.10 2,427.24
0.85 1,862.15
B3010 Roof Coverings 2.74 6,037.75
2.18 4,786.52
0.45 992.12
0.12 259.11
11.70% 25.69 56,516.67
C1010 Partitions 4.35 9,559.56
1.77 3,902.21
1.31 2,875.46
0.77 1,685.35
0.50 1,096.54
C1020 Interior Doors 6.25 13,758.72
6.25 13,758.72
C3010 Wall Finishes 1.58 3,486.99
0.68 1,501.64
0.90 1,985.35
C3020 Floor Finishes 5.26 11,561.40
3.15 6,933.12
0.91 2,006.73
1.19 2,621.55
C3030 Ceiling Finishes 8.25 18,150.00
8.25 18,150.00
45.09% 99.04 217,875.49
D1010 Elevators and Lifts 33.84 74,449.60
33.84 74,449.60
D2010 Plumbing Fixtures 4.32 9,494.16
1.48 3,252.53
0.20 436.98
0.56 1,231.04
0.54 1,196.05
1.22 2,676.33
0.32 701.23
D2020 Domestic Water Distribution 1.71 3,757.10
1.71 3,757.10
D3050 Terminal & Package Units 21.92 48,228.84
Gutters, box, aluminum, .032" thick, 5", enameled finish
Insulation, fiberglass batts, 6" thick, R19
Windows, aluminum, awning, insulated glass, 4'‐5" x 5'‐3"
Door, aluminum & glass, with transom, narrow stile, double door, hardware,
6'‐0" x 10'‐0" opening
Door, aluminum & glass, with transom, bronze finish, hardware, 3'‐0" x 10'‐0"
opening
Door, steel 18 gauge, hollow metal, 1 door with frame, no label, 3'‐0" x 7'‐0"
opening
Asphalt roofing, strip shingles, inorganic, Class A, 4" slope, 210‐235 lbs/SQ
Tile, ceramic natural clay
Downspout, aluminum, rectangular, 2" x 3", enameled, .024" thick
C Interiors
framing,same opposite face, 0 insul
Wood partition, 5/8" fire rated gypsum board face, 1/4"sound deadening
gypsum board, 2x4 @ 16" OC framing, same opposite face, sound attenuation
Gypsum board, 1 face only, exterior sheathing, fire resistant, 5/8"
Add for the following: taping and finishing
Door, single leaf, kd steel frame, hollow metal, commercial quality, flush, 3'‐0"
x 7'‐0" x 1‐3/8"
Painting, interior on plaster and drywall, walls & ceilings, roller work, primer &
2 coats
Painting, interior on plaster and drywall, walls & ceilings, roller work, primer &
2 coats
Carpet tile, nylon, fusion bonded, 18" x 18" or 24" x 24", 35 oz
Vinyl, composition tile, maximum
Plaster ceilings, 2 coat perlite painted, 3/8" gypsum lath, 1" x 3" wood, 16" OC
furring, wood support
D Services
Hydraulic, passenger elevator, 3000 lb, 2 floors, 100 FPM
Water closet, vitreous china, bowl only with flush valve, wall hung
Urinal, vitreous china, wall hung
Lavatory w/trim, vanity top, PE on CI, 20" x 18"
Service sink w/trim, PE on CI,wall hung w/rim guard, 24" x 20"
Bathtub, recessed, PE on CI, mat bottom, 5' long
Water cooler, electric, floor mounted, dual height, 14.3 GPH
Gas fired water heater, commercial, 100< F rise, 100 MBH input, 91 GPH
Automotive Concepts Redevelopment TIF District
LHB Project No. 190152 Page 2 of 3
Replacement Cost Report
Parcel A - Office Building
21.92 48,228.84
D4010 Sprinklers 3.63 7,975.79
3.63 7,975.79
D4020 Standpipes 1.60 3,516.57
1.60 3,516.57
D5010 Electrical Service/Distribution 16.15 35,540.16
3.36 7,401.88
4.36 9,602.00
8.43 18,536.28
D5020 Lighting and Branch Wiring 8.32 18,297.30
4.99 10,967.97
0.34 758.96
0.62 1,365.41
2.37 5,204.96
D5030 Communications and Security 7.55 16,615.97
1.69 3,717.38
3.11 6,831.03
0.93 2,045.75
1.83 4,021.81
0% 0 0
E1090 Other Equipment 0 0
0% 0 0
0% 0 0
100% $219.65 $483,226.14
15.00% $32.95 $72,483.92
0.00% $0.00 $0.00
0.00% $0.00 $0.00
$252.60 $555,710.06
Wet pipe sprinkler systems, steel, light hazard, 1 floor, 10,000 SF
Rooftop, multizone, air conditioner, offices, 10,000 SF, 31.66 ton
Internet wiring, 8 data/voice outlets per 1000 S.F.
Wet standpipe risers, class III, steel, black, sch 40, 4" diam pipe, 1 floor
Overhead service installation, includes breakers, metering, 20' conduit & wire,
3 phase, 4 wire, 120/208 V, 400 A
Feeder installation 600 V, including RGS conduit and XHHW wire, 400 A
Switchgear installation, incl switchboard, panels & circuit breaker, 120/208 V,
3 phase, 600 A
Receptacles incl plate, box, conduit, wire, 16.5 per 1000 SF, 2.0 W per SF, with
transformer
Miscellaneous power, 1.2 watts
Central air conditioning power, 4 watts
Motor installation, three phase, 460 V, 15 HP motor size
Telephone wiring for offices & laboratories, 8 jacks/MSF
Communication and alarm systems, fire detection, addressable, 25 detectors,
includes outlets, boxes, conduit and wire
Fire alarm command center, addressable without voice, excl. wire & conduit
Architectural Fees
User Fees
Total Building Cost
E Equipment & Furnishings
F Special Construction
G Building Sitework
SubTotal
Contractor Fees (General Conditions,Overhead,Profit)
Automotive Concepts Redevelopment TIF District
LHB Project No. 190152 Page 3 of 3
Replacement Cost Report
Parcel A - Office Building
Automotive Concepts Redevelopment TIF District
Code Deficiency Cost Report
Parcel A - 2919 Nevada Ave N, New Hope, MN 55427 - PID 20.118.21.34.0007
Code Related Cost Items Unit Cost Units Unit
Quantity Total
Accessibility Items
Accessible Routes
Create a code required accessible route into building 1,000.00$ Lump 1 1,000.00$
Create a code required accessible route to all levels 33.84$ SF 2200 74,448.00$
Restroom
Install a code required accessible restroom 4.00$ SF 2200 8,800.00$
Drinking Fountain
Install a code required drinking fountain 0.32$ SF 2200 704.00$
Basement Stairway
Modify basement stairway to comply with code 3,500.00$ Lump 1 3,500.00$
Structural Elements
Foundation Walls
Repair foundation walls to prevent water intrusion per code 2.25$ SF 2200 4,950.00$
Exiting
Wood parquet Flooring
Replace damaged wood parquet flooring to create a code
required unimpeded means for egress.1.19$ SF 2200 2,618.00$
Fire Protection
Smoke Detectors
Install code compliant smoke detectors 3.11$ SF 2200 6,842.00$
Emergency Lighting
Install code required emergency lighting 1.00$ SF 2200 2,200.00$
Emergency Notification System
Install code required emergency notification system 0.93$ SF 2200 2,046.00$
Building Sprinkler System
Install code required building sprinkler system 4.93$ SF 2200 10,846.00$
Fire Proofing Material
Install code required fire proofing material 4.90$ SF 2200 10,780.00$
Exterior Construction
Windows
Replace failed windows to prevent water intrusion per code 6.20$ SF 2200 13,640.00$
Automotive Concepts Redevelopment TIF District
LHB Project No. 190152 Page 1 of 2
Code Deficiency Cost Report
Parcel A - Office Building
Code Related Cost Items Unit Cost Units Unit
Quantity Total
Roof Construction
Roofing System
Remove failed roofing system 0.75$ SF 2200 1,650.00$
Install roofing system to prevent water intrusion per code 2.18$ SF 2200 4,796.00$
Mechanical- Electrical
Mechanical
Install a code compliant HVAC system 21.92$ SF 2200 48,224.00$
Total Code Improvements 197,044$
Automotive Concepts Redevelopment TIF District
LHB Project No. 190152 Page 2 of 2
Code Deficiency Cost Report
Parcel A - Office Building
Automotive Concepts Redevelopment TIF District
Photos: Parcel A - 2919 Nevada Avenue North
Page 1 of 5
20190314_130251.jpg 20190314_130254.jpg 20190314_130309.jpg
20190314_130325.jpg 20190314_130335.jpg 20190314_130352.jpg
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20190314_130450.jpg 20190314_130513.jpg 20190314_130515.jpg
Automotive Concepts Redevelopment TIF District
Photos: Parcel A - 2919 Nevada Avenue North
Page 2 of 5
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Automotive Concepts Redevelopment TIF District
Photos: Parcel A - 2919 Nevada Avenue North
Page 3 of 5
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Automotive Concepts Redevelopment TIF District
Photos: Parcel A - 2919 Nevada Avenue North
Page 4 of 5
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Automotive Concepts Redevelopment TIF District
Photos: Parcel A - 2919 Nevada Avenue North
Page 5 of 5
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20190314_135014.jpg 20190314_135030.jpg
Automotive Concepts
Work Plan
April 15, 2019
Work Session
Minutes