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SCOPE OF WORK <br />The proposed TIF District consists of seven (7) parcels with two (2) residential and five (5) <br />commercial structures. All of the buildings in the proposed TIF District received an on -site <br />interior and exterior inspection on August 13 and August 14, 2009. Building code and <br />Condition Deficiency reports are located in Appendix B. <br />CONCLUSION <br />After inspecting and evaluating the properties within the proposed TIF District and applying <br />current statutory criteria for a Redevelopment District under Minnesota Statutes, Section <br />469.174, Subdivision 10, it is our professional opinion that the proposed TIF District qualifies as <br />a Redevelopment District. <br />The remainder of this report describes our process and findings in detail. <br />PART 2 — MINNESOTA STATUTE 469.174, SUBDIVISION 10 REQUIREMENTS <br />The properties were inspected in accordance with the following requirements under Minnesota <br />Statutes, Section 469.174, Subdivision 10(c), which states: <br />Interior Inspection <br />"The municipality may not make such determination [that the building is structurally <br />substandard] without an interior inspection of the property..." <br />Exterior Inspection and Other Means <br />"An interior inspection of the property is not required, if the municipality finds that <br />(1) the municipality or authority is unable to gain access to the property after using its best <br />efforts to obtain permission from the party that owns or controls the property; and <br />(2) the evidence otherwise supports a reasonable conclusion that the building is structurally <br />substandard." <br />Documentation <br />"Written documentation of the findings and reasons why an interior inspection was not <br />conducted must be made and retained under section 469.175, subdivision 3(1)." <br />Qualification Requirements <br />Minnesota Statutes, Section 469.174, Subdivision 10 (a) (1) requires two tests for occupied <br />parcels: <br />A. Coverage Test <br />..."parcels consisting of 70 percent of the area of the district are occupied by buildings, <br />streets, utilities, or paved or gravel parking lots" <br />The coverage required by the parcel to be considered occupied is defined under <br />Minnesota Statutes, Section 469.174, Subdivision 10(e), which states: "For purposes of <br />this subdivision, a parcel is not occupied by buildings, streets, utilities, or paved or gravel <br />Page 4 <br />