Economic Development Authority - Erik Thorvig, Community Development Director
Title
Title
Resolution Certifying 10524 Nassau Street as a Substandard Building for Tax Increment Financing (TIF) Purposes
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Background
A portion of the industrial park, generally located at 105th Ave and Nassau Street, has been identified as a redevelopment area in the 2040 Comprehensive Plan. The area includes older industrial buildings that are obsolete, blighted and/or have extensive outside storage which is not consistent with the vision. The city is currently in the process of a creating a redevelopment master plan for the area with the vision focusing on destination uses that will capitalize on tourism at the National Sports Center and serve Blaine residents.
The City of Blaine EDA has been active in purchasing property in the area since 2016. Property purchases have occurred when willing sellers have either offered or listed their properties for sale. Purchase of property is a useful tool by the EDA to assist in redevelopment. The EDA purchased the property at 10524 Nassau St. in July 2021. Demolition is scheduled for April.
As the city explores redevelopment options in the area, tax increment financing (TIF) could be a tool the EDA utilizes to assist in demolition, property acquisition, construction of structured parking and other public infrastructure costs that are identified in the ultimate redevelopment master plan. The EDA can capture TIF and utilize it for the aforementioned purposes rather than providing it to a developer.
Minnesota State Statute 469 outlines requirements for establishment of a TIF district. To establish a redevelopment TIF district, more than 50% of the buildings within the proposed district must be structurally substandard. Structurally substandard is defined as 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. 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.
A municipality may not make a substandard determination without hiring an independent, expert architect that completes an analysis of the building and provides a report of written findings that determines the building meets applicable standards for it to be declared substandard. The city hired LHB Architects to inspect the building and have made the determination it meets the statutory requirements to be deemed substandard.
The building is going to be demolished in April. For the building to qualify as substandard if a future TIF district is created, a resolution, prior to demolition, must be adopted by the EDA determining that the building meets the necessary criteria for a substandard building outlined in Minnesota Statute 469. The determination is valid for three years.
This action does not obligate the EDA to create a TIF district, however, preserves the opportunity for the building to be counted towards the 50% substandard building count if a TIF district is ultimately created.
Strategic Plan Relationship
The Strategic Plan and 2040 Comprehensive Plan have identified the area north of 105th Avenue as a redevelopment area.
Financial Impact
The cost of inspecting the building to determine its substandard status was $3,500.
Staff Recommendation
By motion, adopt the attached resolution.
Attachment List
Site Location Map
Letter of Finding
Body
BE IT RESOLVED by the Board of Commissions (the “Board) of the Blaine Economic Development Authority (the “EDA”), as follows:
WHEREAS it is one of the goals and purposes of the Blaine EDA to improve the community, strengthen the tax base and enhance employment opportunities; and
WHEREAS the property at 10524 Nassau Street has been designated in planning documents by the City as part of an area to be redeveloped within the City of Blaine; and
WHEREAS the property at 10524 Nassau Street is owned by the Blaine Economic Development Authority; and
WHEREAS the structure on the property has been inspected and evaluated by a third-party architect for the purpose of determining and certifying that the structure is substandard per Minnesota Statute 469.
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Blaine Economic Development Authority, City of Blaine, Minnesota, that the structure at 10524 Nassau Street has been determined to be substandard per Minnesota Statute 469 and that this resolution, upon passage, shall serve as certification of that determination.
PASSED by the Blaine Economic Development Authority this 21st day of March, 2022.