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Home My WebLink AboutResolution No. 356-07 RESOLUTION FINDING A PARCEL TO BE OCCUPIED BY A STRUCTURALLY SUBSTANDARD BUILDING BE IT RESOLVED by the Common Council (the "Council") of the City of Rochester, Minnesota (the "City"), as follows: 1. Recitals. a. It has been proposed that the City create a tax increment financing district in an area within the City's area of operation to be designated a redevelopment district as defined in Minnesota Statutes, Section 469.174, Subd. 10. b. In order to create this type of tax increment financing district, the City must make a determination that before the demolition or removal of substandard buildings, certain conditions existed. c. The conditions found by the City to exist throughout the proposed tax increment financing district are that parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, or other improvements and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. d. In order to deem a parcel as being occupied by a structurally substandard building, the City must first pass a resolution before the demolition or removal that the parcel was occupied by one or more structurally substandard buildings and that after demolition and clearance, the City intended to include the parcel within the proposed tax increment financing district. e. There exists in the City's area of operation on each parcel or parcels described in Exhibit A attached here to (collectively, the "Parcels") one or more structurally substandard buildings to be demolished or removed (the "Substandard Building Condition"). f. A parcel is deemed to be occupied by a structurally substandard building if the Substandard Building Condition is met within three years of 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. • 2. Findinas. The City hereby finds that over 70% of the area of the Parcel identified on Exhibit A attached hereto contains O-J • improvements and is occupied by one or more structurally substandard buildings and that after demolition and clearance the City intends to include this Parcel within the proposed tax increment financing district. The substandard buildings, identified in a building inspection report prepared by TSP, Inc., and dated July 9, 2007, include the following addresses: 111 5th Avenue NW, 113 51h Avenue NW, 115 5t Avenue NW, 123 5th Avenue NW, 512 2nd Street NW, 514 2nd Street NW, and 516 2nd Street NW. 3. Demolition Agreement. A Demolition Agreement between the City and Brentwood Annex, LLC, a Minnesota limited liability corporation, pursuant to which the corporation will demolish the substandard buildings, at its sole expense, has been prepared and is on file with the City Clerk. The Demolition Agreement is hereby approved in substantially the form on file, and the Mayor and Clerk are authorized to sign the Agreement on behalf of the City. • PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF ROCHESTER, MINNESOTA, THIS DAY OF T" , 2007. PRESIDENT OF SAID COMMON COUNCIL ATTEST: *TYCLE-RK APPROVED THIS -InI DAY OF 2007. MAYOR OF SAID CITY (Seal of the City of Rochester, Minnesota) • Woridbrentwood resolution • CERTIFICATION The undersigned, being duly qualified and acting as the City Clerk for the City of Rochester, Minnesota, hereby certifies the following: The foregoing is a true and correct copy of a Resolution on file and of official, publicly available record in the Office of the City Clerk, which Resolution relates to finding of a parcel to be occupied by a structurally substandard building in the City's area of operation. Said Resolution was duly adopted by the governing body of the City (Common Council) at a regular or special meeting of the Common Council held on August 6, 2007. Said meeting was duly called, regularly held, open to the public, and held at the place at which meetings of the Common Council are regularly held. Councilmember Marcoux moved the adoption of the Resolution, which motion was seconded by Councilmember Nowi cki . A vote being taken on the motion, the following members of the Common Council voted in favor of the motion to adopt the Resolution: President Dennis Hanson, Councilmembers Pat Carr, Ed Hruska, Marcia Marcoux, Sandra Means, Bob Nowicki , Bruce Snyder • And the following voted against the same: None Whereupon, said Resolution was declared duly passed and adopted. The Resolution is in full force and effect and no action has been taken by the Common Council which would in any way alter or amend the Resolution. WITNESS MY HAND officially as the City Clerk of the City of Rochester this 1,16h day of August, 2007. City Cle City of Rochester, Minnesota � EXHIBIT A To Sotve.TOExcat. July 9,2007 1500 High?q 52 llar th Rcchaster,PAN 5530 i-0273 Doug Knott phone c507t 28 s-81155 City of Rochester tax t513 a 2s8-722�' 2014th Street SE Rochester,MN 55904 vr1r�1?arntstr.cxr ----- Re: City of Rochester Brentwood Bloch TIF Study ArchE3ecture Rochester,Minnesota TSP Project No. 01070242 Errc�inmsinl construclien TSP was retained by the.City of Rochester to evaluate nine properties owned by the Brentwood Partners located on the city block between 5th and 6th Avenues NW and 1st and 2nd Streets NW to determine if this aggregate group of properties would likely qualify as a"R.edevelopment District" as defined in"'Tax Increment • Finance District",MN Statute 469.174. The enclosed site plan diagram of the block labels these properties 1 through 9 with addresses as follows,. I. 111 5th Avenue N V 2. 113 5th Avenue NW 3. 1.15 5th Avenue NW 4. 1.19 5th Avenue NW 5. 123 5th Avenue NW 6. 512 2nd Street NW 7. 514 2nd Street NW 8. 516 2nd Street NW 9. 114 6th Avenue t Besides the nine structures above,the proposed Redevelopment District also includes two properties with no buildings,currently used as parking lots; A. Parking lot at the SW corner of die block B. Parking lot at the SE corner of the block TSP completed an exterior and interior visual inspection of all nine properties with the exception on one recital unit in Property 79. • i��t% �rF.to RLrctvastcf.WN (.JtYi N_a,HE RF rcP city,SD TSP Project No. 01070242—07/09/07 . Doug Knott The following resources were used in reviewing the buildings: ® Minnesota Department of Labor&Industry • R. S. Means Square Foot Costs 2007 ® Minnesota State Building Code • International Building Code ® Minnesota Accessibility Code A National Electric Code ® International Mechanical Code • International Fire Code To qualify for Redevelopment District status,,the evaluated areas must pass Coverage Test, Building Conditions Test, and Code Test requirements. Coverage Test At least 70%o of the Redevelopment District area must be occupied by buildings, • streets,utilities, paved or gravel parking lots or similar structures. Based upon our observations,the proposed Redevelopment District meets this requirement. Brflldina�Conditions Test More than 50%of the buildings,not including"outbuildings," must be structurally substandard tcs a degree requiring substantial renovation or clearance. 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.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%of the cost of constructing a new structure of the same square footage and type on the site. Lased upon our observations, it appears Properties 1,-9,2#3,,95,#r`-6,V, and#S are substandard. With.seven out of nine properties,(77.8%) Structurally Substandard, more than 50%of the nine properties with buildings are Structurally Substandard. -2- TSP Project No. 0 1070242—07/09/07 Doug Knott Replacement value was determined by applying the Building Valuation Data Cost per square foot from the May 2007 Minnesota Department of Labor&Industry Cost Table to the gross floor area of the main building on each property. This did not include the accessory buildings(outbuildings). Estimated repairs and modification to comply with the current building code to buildings on Properties#1, 92,#3f#5, #6,#7 and#S exceed 15%of the replacement cost for a new building of the same square footage on the same site. SUMaraary Based on our observations and the attached property observation report and cost studies, there is very good evidence that this proposed Tax Increment Financing District complies with the State requirements defining a TIF Redevelopment District.. • TSP,Inc. z fr•' )e F ! f Randy L. Aysllfordr AIA Enclosures 0070907C.'eVortRLA..doc _3 � ..'.. ti ). 2nd Street HW TSP Inc. v®� Architecture T Engineering C Interior€)esign `;V� E �-� Q i50D Hiahixay 52 North m m Rochester,UN 55501 Tet.(507)286.6755 Fax.(5Q7)2E P722t1 n wvm,teamts com ! ! F] 6 QQ! I here by certify that this plan, 0. { specification or report was prepared by me or under my ..w s direct supervision acid that t defy realslered Architeet Q ! ! under the Iris.of the State of � E � Flrinnesota. Asa m m�s m a o&sue- a�a m m crsa `d` Date-, Reg.No_ e ! - Q ! PROJECT TFTLE: ! & Prentvood'Partners (� to = ! o tF Assistance Study C k� 6 C Pochaster,Minnesota 1 a Street HVV I i { tlh�r{h'{DQic ) COFJCdEf--IFS PROJECT p: O1Q762QB.Q'4k =tSULT9.* RLA Proposed TIF 6C'c CFi'CKEt16'Y:� Not'to Scaie SHE£TTiFLE: -1 � City of Rochester Brentwood Partners TIF Study TSP 01070242 a E` City ofRochester f . Brentwood Partners TIF Study 111 5th Avenue NW Property General Discription Partial masonry shell of old building and ..,; Menards pole building garage and storage y t, space C ,f 4 ' 6r ". r �� . Construction Type Occupancy 5-t Main Eldo Foot Print 2.160 Replacement costa,SXXtSf S17 $36.720 Estimated Bsmt Area 0 Replacement cost(a),SXXIsf SD so Estimated 2nd Floor Area 0 Replacement cost a.SXYJsf So So Accessory Bido Foot Print 1.370 Replacement cost(a?SXXIsf so So Total Replacement Cast $36.720 TSP Esttmated Cost to Comply $8,500 %of Replacement Cost 23% Exterior Inspection Yes Interior Inspection No Exterior Condition Constructer":on: Cost Foundation Slab on Grade 1 st Floor Material Average Prean metal wall panels 1st Floor Material Poor Masonry walls 2nd Floor Material Soffits/Facias Roofing Average Prefin metal Gutters/Down Spouts None Chimney Marra Wndote,K More i • Porches None DecFs None Steps/Stoops None Code:Items Deficiencies Electrical Service Provide electrical service for fighting, cleneraf purpose power Power distribugon HVAC Unheated Bath Exhaust Fans Plumbing r4a plumbing or floor drains Stairs Building Egress Interior parth'ions Kitchen Casewosl; Roofing Demo 11,370 0 Remove existing damaged buifd'ing $8,50 . and build new end wall to storage • Building City of Rochester Brentwood Partners TIF Study TSP 01070242 • E City of Rochester 2 Brentwood Partners TIF Study 113 5th Avenue NW d Property GeneralDiscriptlon Two story wood frame house,single Family. „ate fin rental unit,4 bedrooms g ■. KA. Construction Type V-B Occupancy R-2 Main Bldo Foot Print 1.056 Replacement cost(a)SXX(sf S80 S84.480 Estimated Bsmt Area 730 Replacement cost Ca?S),YJsf $40 $29,200 Estimated 2nd Floor Area 730 Peplacement cost Cal SX"sf S80 S58.400 Accessory 61da Foot Print Total Replacement Cost $172.080 TSP Esttmated Cost to Comply $39,250 %of Replacement Cost 23% Exterior Inspection Yes Interior Inspection Yes Exterior Condition Construction Cost Foundation Poor Masonry foundation/Bsmt 1 st Floor Material Average VJd frame%,d steel siding ist Floor Material 2nd Floor Material Average Wd frame tvf steel siding Soffits/Facias Average Prefin metal Roofing Average Asphalt shingles GuttersfDown Spouts Yes Chimney Windows Average Wood tw/Alum Storms • Porches Average Yes Decks None Steps/Stoops Average: Wood Code Itams Hand rail for basement stairs S200 Provide exterior stair,2nd egrees to $8,500 3rd floor Provide enclosure for basernent wall $1,800 opening under porch on east side 4 Provide bedroom egress windows $6,000 Deficiencies Electrical Service Power distribution 15 Additional:outlets to meet spacing, $2,250 GFI and Spark protection requirements HVAC Bath Exhaust Fans Plumbing Replace tub/shower and surrounding S2,500 walls In 2nd floor bathroom Stairs Building Egress- Interior partitions Kitchen Casework P.00ding 1055 sf Reroof S10,000 Demo • Repafr foundation wall IeaPing, $8,000 regrade,apply water barrier,install fauntfatian drainage and pump system City of Rochester Prenhvood Partners Tit Study TSP 01070242 • i _ City of Rochester 3 Brentwood Partners TIF Study 115 sth Avenue NW ..• Property General Discription Two story wood frame house.converted to three apartments X Construction Type V-B Occupancy R-s Uain Blda Foot Print 1,465 Replacement cost(t S=s€ S80 $117,200 Estimated Bsmt Area 936 Replacement cost Cad SXXIsf S40 $37.440 Estimated 2nd Floor Area 936 Replacement cost(a)SY.Y,Isf $80 $74.880 Accessory Bida Foot Print Total Renlacement Cost $229.520 TSP Esttmated Cost to Comply $40,620 of Replacement Cost Is%a Exterior Inspection Yes Inferior Inspection Yes Exterior Condition Construction Cost Foundation Averaoe Stone foundation wl Bsmt 1st Floor Material Average Wood Framewlsteel siding 1st Floor Material 2nd Floor Material Average Wood Frame w/steel siding Soffrts/Facias Average Prefin metal Roofing Poor Asphalt shingles Gutter.-Oovni:Spouts; None except at porch Chimney Good Masonry • Windows Average Wd wl Alum Storms Porches Average Yes Decks Steps/Stoops Poor Yes Code Items 5 Provide bedroom egress windows S7,500 Deficiencies Electrical Service Pourer distribution 16 Additional outlets to meet spacing. 52,40 GFI and Spark protection requirements HVAC. Bath Exhaust Fans 2 Exhaust fans in bathrooms without 5800 windows Plumbing Replace tub/shower in unit 130, S6.000 j replace tub,toilet&lav in upstairs unit Stairs Provide new stair treads to second $1,120 floor,14 treads Buiidfng Earess 80 sf Repair 2nd floor exterior stair tending 5900. and deck Interior partitions Repair,interior partitions and floors 0.5,500 Kitchen Casework Roofing 1,465 sf Reroof 914.000 Demo • 160 sf Repair rotted good parch floor and 52,400 step access City of Rochester Brentwood Partners TIF Study TSP 01070242 • City of Rochester Brentwood Partners TIF Study 119 5th Avenue NW Property General Discription IWD story wood frame house,single family, ;. rental unit,four bedroom -c3 Q: Construction Type v-B Occupancy P-3- Dhain Blda Foot Print 1.560 Replacement cost SXX/sf $80 S124.800 .Estimated Ssmt Area 730 Replacement cost n SXX/sf $40 529.200 Estimated 2nd Floor Area 1,120 Replacement cost(CD SXX/sf S80 S89.600 Accessory 6ida Foot Print 1.190 so Total P.eolacement Cost 5243,500 TSP Esttmatcd Cost to Comply $17,150 %of Replacement Cost 7% Exterior Inspection Yes Interior Inspection Yes Exterior Condition Construction Cost Foundation Good rJasonryfoundation/Bsmt ist Floor Material Good Wood frame w/brick veneer 1st Floor Material Average Wood Frame w/steel siding 2nd Floor Material Poor Wood frame talstucco Soffits/Facias Poor Roofing Good Asphalt shingles Gutters/Dowry Spouts Average Yes Chimney Good Masonry • Windows Average Wd v+/Alum Storms Porches Good Wood Decks Steps/Stoops Average Precast Concrete Code Items Deficiencies Electrical Service Power distribution 9 Additional outlets to meet spacing, $1,350 GFI and Spark protection requirements HVAC Bath Exhaust Fans 1 Exhaust fans in bathrooms without 5400 windows Plumbing Stairs Building Egress Repair upper story stucco for $7,000 weather protection Interior partitions Repair interior partitions.and floors, 53,200 including ceramic the in 2nd floor bathroomn Kitchen Casework Roofing Repair soffits and facias $1,500 Demo • Repair/replace exterior,2nd egress $3,700 stair City or Rochester Brentwood Partners TIF Study TSP 01970242 i t City of Rochester .; Brentwood Partners TIF Study 123 Sth Avenue NW Property General Discription Two story wood frame house,converted to three apartments,three one bedroom urats Construction Type V-6 Occupancy R-3 Main Blda Foot Print 1,075 Replacement cost(o)SXX/sf S80 $86,000 Estimated Bsmt Area 600 Replacement cost Cr®SXXIsf $40 S24,000 Estimated 2nd Floor Area 600 Replacement cost(5 SXX/sf S80 S48,000 Accessory Bide Foot Print Total Replacement Cost $168.000 TSP Esitmated Cost to Comply $26,85 %of Replacement Cost 17% Exterior Inspection Yes Interior Inspection Yes Exterior Condition Construction Cost Foundation Average Stone foundation w/stucco 1st Floor Material Average Wood frame w/vinyl siding 1st Floor Material 2nd Floor Material Average Wood frame valvinyl siding Soffits/Facias Average Pre-fin metal Roofing Poor Asphalt shingles Gutters/Down Spouts None Chimney ? • Windows Average Wood wfalum storms Porches Average Wood Decks Steps/Stoops Average Wood Code Items Insulate and upgrade exterior access $6,000 to basement provide stair hadrail to 2nd floor S20 3 Provide bedroom egress windows $4,500 Deficiencies Electrical Service Power distribution 15 Additional outlets to meet spacing, $2,250 GFI and Spark protection requirements HVAC Provide new furnace S3,500 Bath Exhaust Fans Plumbing Stairs Building Egress Inferior partitions Repair interior partitions and floors $1,800 Kitchen Casework Roofing Reroof S8,600 Demo • City of Rochester Brentwood Partners TIF Study TSP 01070242 City of Rochester Brentwood Partners TIF Study 512 2nd Street NW r M Property General Discription Two story wood frame house,single_family, rental unit,three bedroomJ� 3 � a Construction Type v-B - Occupancy R-3 Main Bid❑Foot Print 705 Replacement cost(a?SXX/sf $80 $56,400 Estimated Hsmt Area 650 Replacement cost 0 SXX/sf 540 $26,000 Estimated 2nd Floor Area 650 Replacement cost(57 SXX/sf Sao 552,000 Accessory Bido Foot Print Total Reolacement Cost $134,400 TSP Esttmated Cost to Comply $24,160 %of Replacement Cost 18 Exterior Inspection Yes Interior Inspection Yes Exterior Condition Construction Cost Foundation Good Masonry foundation 1st Floor Material Good Wood frame w/steel siding list Floor.Material 2nd Floor Material Good Wood frame w/steel siding Soffits/Facias Good Pre-finished metal Roofing Average Asphalt shingles Gutters/Down Spouts Yes Chimney ? • Windows Good Wood wlalum storms Porches Decks Steps/Stoops Good Concrete Code Items 1 Provide exterfor stair,2nd egrees to 58,50D 3rd floor 1 Provide code railing on 2nd floor $2,.500 deck 4 Provide bedroom egress windows $6,000 Deficiencies Electrical Service Relace electrical panel withcircuit $2,500 breaket type Power distribution 13 Additional outlets to meet spacing, $1,950 GFI and Spark protection requirements HVAC Bath Exhaust Fans Plumbing Provide new water heater 51,200 Stairs Building Egress Interior partitions Kitchen Casework Roofing Derno • Upgrade deck railing to meet code $1,500 height and spacing City of Rochester Brentwood Partners TIF Study TSP 01670242 i City of Rochester 7 . ` Brenhvood Partners TIF Study 514 2nd Street NW n { Property General DEscrlption Two story wood frame house,single family rental unit Construction Type v-a Occupancy R-3 Main Bldg Foot Print 920 Replacement cost(a)SXX/sf S80 $73.600 Estimated Ssmt Area 780 Replacement cost P�SXX/sf S40 $31.200 Estimated 2nd Floor Area 780 Replacement cost(ra.SX-Vsf S80 S62,400 Accessory Rlda Foot Print 310 Replacement cost(a),SXX/sf So Total Replacement Cost $167.200 TSP Esitmated Cost to Comply $34,050 %of Replacement Cost 20% Exterior Inspection Yes Interior Inspection Tes Exterior Condition Construction Cost Foundation Poor Masonry foundation 1st Floor Material Average Wood frame w/vinyl siding 1st Floor Material 2nd Floor Material Average Wood frame W/stucco Soffits/Facias Average Pre-finished metal Roofing Poor Asphalt shingles Gutters/Down Spouts None Chimney Good Masonry wlmetal liner • Windows Average Wood w/alum storms Porches Decks Steps/Stoops Average Pre-cast concrete Code Items 3 Provide bedroom egress windows $4,500 Deficiencies Electrical Service General upgrade to electrical service $2,000 Power distribution 9 Additional outlets to meet spacing, S1,350 GFI and Spark protection requirements HVAC Bath Exhaust Fans 1 bath fan needed in toilet rooms $400 without operable windows Plumbing Stairs Building Egress Interior partitions Repair dammaged walls,ceiling and $3,500 floors Kitchen Casework Repair or replace casework 56,400 Roofing Reroof 57,400 Demo Repair foundation walls and address $8,500 water infiltration • City of Rochester Brentwood Partners TIF Study TSP 01070242 City of Rochester 8 L7,�,Ili�t�� ' Brentwood Partners TIF Study 515 2nd Street raw Property General Discri Lion Two story wood frame house,single family, p p rental unit,two bedroom YTj ii Construction Type V-B Occupancy R-3 Main Blda Foot Print 970 ReDlacement cost(E7 SYXsf $80 S77.600 Estimated Esmt Area 450 Replacement cost Ca?SXX/sf $40 S18.000 Estimated 2nd Floor Area 450 Replacement cost(al SXYJsf S80 $36.000 Accessory 61da Foot Print None SO Total Replacement Cost $131.600 TSP Esitmated Cost to Comply $39,400 %of Replacement Cost 30% Exterior Inspection Yes Interior Inspection Yes Er'erior Condition Construction Cost Foundation Poor Stone&concrete w/stucco 1 st Floor Material Average lhlood Frame w/vinyl siding 1st Floor Material 2nd Floor Material Average Wood Frame whrinyl siding Sof<ts/Facias Poor Pre finished metal Roofing Average Asphalt Shingles Gutters/Down Spouts None Chimney Metal Windows Poor Wood.wlAlum Storms • Porches None Decks None Steps/Stoops.Poor Wood Code Items Front door to narrow and steps S3,000 rotted,replace Back door not useable,replace S1.200 replace rotted wood floor joist at S7,500 foundation walls 2 Provide bedroom egress windows $3,000 Deficiencies Electrical'Service Power distribution 12 Additional outlets to meet spacing, $1,800 GFI and Spark protection requirements HVAC 1 furnace replacement S3,500 Bath Exhaust Fans 2 bath fan needed in toilet rooms S800 without operable windows Plumbing Stairs replace basement stairs S1,200 Building Egress $6,000 Interior partitions Repair dammaged walls,ceiling and S8,000 floors Kitchen Camiork replace damaged case work S3,400 Roofing Demo City of Rochester Brentwood Partners TIF Study TSP 01070242 i . ✓ City of Rochester 9 ,l Brentwood Partners TIF Study 114 6th Avenue NW Property General l Di Two story wood fame house,converted to four apartments,two effeciencies,two one bedroom units r N Construction Type v-B Occupancy R-3 Main Sida Foot Print 1,352 Replacement cost(ail SXX/sf $80 $108.160 Fstimated E3smt Area 890 Replacement cost a SXX/sf S40 S35,600 Estimated 2nd Floor Area 1.015 Replacement cost 0 SXX/sf S80 S81.200 Accessory Bida Foot Print None SO Total Renlacement Cost S224.960 TSP Esitmated Cost to Comply $6,600 %of Replacement Cost 3% Exterior Inspection Yes Interior Inspection Yes(inspected 3 of 4 units) Exterior Condition Construction Cost Foundation Good Concrete block 1st Floor Material Good Wood Frame w/vinyl siding 1 st Floor Material 2nd Floor Material Good Wood Frame wlvinyl siding Soffits/Facias Good Pre finished metal Roofing Average Asphalt Shingles Gutters/Down Spouts None Chimney Good Metal Windows Good Wood w/Alum Storms Porches Good Wood Decks None Steps/Stoops Poor Wood Code Items Repair wood steps to front porch 5800 Deficiencies Electrical Service Relpace electrical,old fuse panel in S1,200 basement stair landing Power distribution 2 Additional outlets to meet spacing, S300 GFI and Spark protection requirements HVAC Bath Exhaust Fans Plumbing Replace tub/shower and toilet and $4,300 repair floors and walls in unit 154, 2nd floor Stairs Building Egress Interior partitions Kitchen Casework Roofing Demo