HomeMy WebLinkAbout24-142 - ADMIN Resolution - City Council - 2024/11/04
Resolution No. 24 -142
Designating building as structurally substandard
Whereas, under Minnesota Statutes, Section 469.174, subdivision 10(d), the City of St.
Louis Park, Minnesota or the St. Louis Park Economic Development Authority (the “authority”)
is authorized to deem parcels as occupied by structurally substandard buildings before the
demolition or removal of the buildings, subject to certain terms and conditions as described in
this resolution; and
Whereas, the authority is considering creating a tax increment financing district on
property within the city including the property described in Exhibit A attached hereto
(collectively, the “property”) to be designated a redevelopment district (the “proposed TIF
district”) as defined in Minnesota Statutes, Section 469.174, Subd. 10 (the “redevelopment
district act”); and
Whereas, in order to designate the property as part of a redevelopment tax increment
financing district pursuant to the redevelopment district act, the authority must find that (1)
70% of the property within the proposed TIF district are occupied by buildings, streets, utilities,
paved or gravel parking lots, or other similar structures, and (2) more than 50% of the buildings,
not including outbuildings, are structurally substandard to a degree requiring substantial
renovation or clearance (“substandard building condition”); and
Whereas, under Minnesota Statutes, Section 469.174, subdivision 10(d), the authority is
authorized to deem parcels as occupied by structurally substandard buildings before the
demolition or removal of buildings if it finds by resolution that the parcel is occupied, for
purposes of the redevelopment district act, by a structurally substandard building or that a
parcel meets the requirements of paragraph (e) of the redevelopment district act and that
following demolition or removal, the authority intends to include the parcel within a
redevelopment district; and
Whereas, the authority obtained a blight study for the property and determined that
the building located thereon meets the substandard building conditions; and
Whereas, under the redevelopment district act, a parcel is deemed to be occupied by a
structurally substandard building if substandard building conditions exists within the period up
to 3 years prior to the filing of the request for certification of the parcel as part of the tax
increment financing district with the county auditor; and if certain other conditions are met,
Now, therefore, be it resolved, by the city council of the City of St. Louis Park, Minnesota
as follows:
1. The city finds that the building is structurally substandard to a degree requiring
substantial renovation or clearance, based upon the analysis of such buildings by LHB, Inc. in a
report dated February 28, 2022 and on file in city hall.
Docusign Envelope ID: 74DD26EE-DF11-4148-A89C-B25C733908E8
2. Based on the inspection report and other information available to the city
council, the city finds that: (a) the substandard building is structurally substandard within the
meaning of the redevelopment district act, paragraph (b), because it contains defects in
structural elements or a combination of deficiencies in essential utilities and facilities, including
plumbing and electrical, light and ventilation, fire protection including adequate egress, or
similar factors which defects or deficiencies are of sufficient total significance to justify
substantial renovation or clearance; and (b) that the substandard building is not in compliance
with the building code applicable to new buildings and could not be modified to satisfy the
building code at a cost of less than 15% of the cost of constructing a new structure of the same
square footage and type on the property. The reasons and supporting facts for this
determination are included in, and the city has relied on the finding set forth in, the inspection
report. The city has further determined that there have been no improvements to the
substandard building since the date of the inspection report.
3. After the date of approval of this resolution, the building on the property may be
demolished or removed by the authority, or such demolition or removal may be financed by the
authority or may be undertaken by a developer under a development agreement with the
authority.
4. The authority intends to include the property in a redevelopment tax increment
financing district, and to file the request for certification of such district with the
Auditor/Treasurer of Hennepin County, Minnesota, as the county auditor (the “county
auditor/treasurer”), within three (3) years after the date of demolition of the buildings on the
property.
5. Upon filing the request for certification of the new tax increment financing
district, the authority will notify the county auditor/treasurer that the original tax capacity of
the property must be adjusted to reflect the greater of (a) the current net tax capacity of the
parcel, or (b) the estimated market value of the parcel for the year in which the buildings were
demolished or removed, but applying class rates for the current year, all in accordance with
Minnesota Statutes, Section 469.174, subdivision 10(d).
6. City staff and consultants are authorized to take any actions necessary to carry
out the intent of this resolution.
Reviewed for administration: Adopted by the city council November 4, 2024:
Kim Keller, city manager Nadia Mohamed, mayor
Attest:
Melissa Kennedy, city clerk
Docusign Envelope ID: 74DD26EE-DF11-4148-A89C-B25C733908E8
EXHIBIT A
Potential property to be included in redevelopment TIF district
5950 36th Street W
Parcel ID 16-117-21-34-0610
Docusign Envelope ID: 74DD26EE-DF11-4148-A89C-B25C733908E8