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Proposal for Investigative Services — Life Fitness Renewal <br />June 15, 2015 <br />Page 3 <br />SCOPE OF SERVICES <br />LHB will provide the following services based upon the terms and conditions described <br />below. <br />1. Survey the TIF District to determine if it meets applicable coverage test. <br />A. To meet the coverage test, parcels consisting of 70 percent of the area of the <br />district must be "occupied" by buildings, streets, utilities, or paved or gravel <br />parking lots. <br />B. A parcel is not considered "occupied" unless at least 15% of its total area <br />contains improvements. <br />2. Conduct a visual review of building(s) interior and exterior: <br />A. Obtain property owner's consent for inspection. <br />B. Document property conditions relative to Minnesota Statutes Section <br />469.174 Subdivision 10. <br />3. Estimate building(s) replacement cost: <br />A. Replacement cost is the cost of constructing a new structure of the same <br />square footage and type on the site. <br />B. A base cost will be calculated by establishing the building class, type and <br />construction quality. <br />C. Identify amenities, which increase the value of the building over the standard <br />construction quality level. <br />D. Review building permits for each parcel. <br />E. The base cost and cost of amenities will be totaled to determine the <br />replacement cost for the property. <br />4. Evaluate building(s) existing condition: <br />A. "Structurally substandard shall mean containing defects in structural <br />elements or a combination of deficiencies in essential utilities and facilities, <br />light and ventilation, fire protection including adequate egress, layout and <br />condition of interior partitions, or similar factors, which defects or <br />deficiencies are of sufficient total significance to justify substantial <br />renovation or clearance." <br />5. Determine Building(s) Code Deficiencies: <br />A. Determine technical conditions, which are not in compliance with current <br />building code applicable to new buildings. <br />B. Provide opinion of probable cost to correct identified deficiencies. <br />C. Compare cost of deficiency corrections to replacement value of building. <br />6. Prepare and deliver report: <br />A. Prepare a written narrative analysis of the District describing why the <br />property within the District does or does not meet the criteria as "structurally <br />substandard" as established in Minnesota Statutes Section 469.174, <br />subdivision 10. <br />B. Deliver final reports via email PDF. <br />