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TIF Analysis Findings for 6336 Highway 10 NW Page: 3 City of Ramsey Findings The parcel is covered by buildings, parking lots or other improvements, exceeding the 15 percent parcel requirement. 2. 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;" 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." 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 walserAuto Sales, Inc. vs. City of Richfield case filed November 13, 2001. Findings The office building and repair garage at 6336 Highway 10 NW exceed the criteria required to be determined substandard buildings(see the attached Building Code, Condition Deficiency and Context Analysis Reports). We determined the small shed structure was not a building for purposes of this TIF analysis. 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. • 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. PERFORMANCE DRIVEN DESIGN L14BC0 RP.COM