12-4-25
Housing and Redevelopment Authority
Meeting
December 04, 2025
7:00 PM
Fridley City Hall, 7071 University Avenue N.E.
Agenda
Call to Order
Roll Call
Action Items
1.Approval of Expenditures
2.Approval of the Minutes from the HRA Meeting of October 2, 2025
3.Approval of 2026 Budget
4.Approval of TIF District #27 Rivers Edge
Informational Items
5.Homeowner Grant Programs Update
6.Update on Housing Programs
Adjournment
Accessibility Notice:
If you need free interpretation or translation assistance, please contact City staff.
Si necesita ayuda de interpretación o traducción gratis, comuníquese con el personal de la ciudad.
Yog tias koj xav tau kev pab txhais lus los sis txhais ntaub ntawv dawb, ces thov tiv tauj rau Lub Nroog cov
neeg ua hauj lwm.
Haddii aad u baahan tahay tarjumaad bilaash ah ama kaalmo tarjumaad, fadlan la xiriir shaqaalaha
Magaalada.
Upon request, accommodation will be provided to allow individuals with disabilities to participate in any City of
Fridley services, programs or activities. Hearing impaired persons who need an interpreter or other persons who
require auxiliary aids should contact CityClerk@FridleyMN.govor (763) 572-3450.
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AGENDA REPORT
Meeting Date:December 4, 2025 Meeting Type:Housing & Redevelopment Authority
Submitted By:Stacy Stromberg, Assistant Executive Director
Title
Approval of Expenditures
Background
Recommendation
Staff recommends the HRA approve the expenditures for the periodSeptember 30ththrough
November31, 2025.
Attachments and Other Resources
Check Reports
Vision Statement
We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses.
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AGENDA REPORT
Meeting Date:November 6, 2025 Meeting Type:Housing & Redevelopment Authority
Submitted By:Stacy Stromberg, Assistant Executive Director
Title
Approval of the Minutes from the HRA Meeting of October 2, 2025
Background
Recommendation
Staff recommends the HRA approve the minutes from the HRA meeting of October 2, 2025.
Attachments and Other Resources
HRA Minutes October 2,2025
Vision Statement
We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses.
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Housing and Redevelopment Authority
October 2,2025
7:00 PM
Fridley City Hall, 7071 University Avenue NE
Minutes
Call to Order
Chairperson Showaltercalled the Housing and Redevelopment Authority meeting to order at 7:00 p.m.
Present
Elizabeth Showalter
Troy Brueggemeier
Frank Inamagua
Rachel Schwankl
Absent
Gordon Backlund
Others Present
Stacy Stromberg, HRA Assistant Executive Director
Joe Starks, Finance Director
Paul Bolin, Community Development Director
Action Items
1. Approval of Expenditures
Motionby Commissioner Brueggemeierto approve the expenditures. Seconded by Commissioner
Schwankl.
Upon a voice vote, all voting aye, Chair Showalterdeclared the motion carried unanimously.
2.ApprovalSeptember 4,2025, Meeting Minutes
Motionby Commissioner Inamaguato approve the meeting minutesof September 4,2025,as presented.
Seconded by Commissioner Brueggemeier.
Upon a voice vote, all voting aye, Chair Showalterdeclared the motion carried unanimously.
Informational Items
3.Proposed 2026 HRA Budget
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Housing and Redevelopment Authority Minutes Page 2
10/2/2025
Joe Starks, Finance Director, stated that he would introduce the 2026 draft HRA budget tonight, and
the HRA would consider formal adoption at its November meeting. He presented details of the
proposed 2026 budget, as well as other items of interest related to the budget.
Commissioner Schwankl referenced the proposed increase for CEE and asked if the City is looking to
enter into a contract with them. Paul Bolin, Community Development Director, commented that the
City has worked with CEE since 1996, and the fee is directly related to the number of loans issued. He
explained that CEE previously did underwriting, but five years ago also took over the loan servicing.
Chair Showalter asked how the administrative fees for the LAHA-funded programs are being funded.
Mr. Bolin replied that those fees are being paid through less restricted funds.
4. Update on Housing Programs
Stacy Stromberg, Assistant HRA Executive Director, provided an update on the September loan
activity, as well as year-to-date information on the loans and programs.
Adjournment
Motion by Commissioner Brueggemeier to adjourn the meeting. Seconded by Commissioner Schwankl.
Upon a voice vote, all voting aye, Chairperson Showalter declared the motion carried and the meeting
adjourned at 7:16 p.m.
Respectfully submitted,
Paul Bolin, Staff Liaison
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AGENDA REPORT
Meeting Date:December 4, 2025 Meeting Type:Housing & Redevelopment Authority
Submitted By:Paul Bolin, Assistant Executive Director
Joe Starks, Finance Director/City Treasurer
Title
Proposed 2026 HRA Budget
Background
Staffwill again present the Proposed 2026 HRABudget for the Authority to reviewand approve. The
nd
budget was previously presented at the October 2meeting and the authority reviewed cash and fund
nd
balances at the October 2workshop.The proposed budgetincludes the General Fund, Housing Loan
Program Fund and the various TIF Funds. The General Fund covers the bulk of the administrative and
overhead costs of the Authority. It is also used to provide internal loans for development projects. The
Housing Loan Program Fund covers the housing related programs and services (e.g., CEE programs).The
budgets for TIF Funds are largely driven from the cash flow projections as presented at October
work session.
Recommendation
Staff recommend the approval of the 2026HRA Budget.
Attachments and Other Resources
Proposed 2026HRA Budget
Vision Statement
We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses.
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AGENDA REPORT
Meeting Date:December 4, 2025 Meeting Type:Housing & Redevelopment Authority
Submitted By:Paul Bolin,Executive Director
Title
Approval of Resolution 2025-10 -Redevelopment TIF Assistance
Background
Please see attached Staff report, memorandum from Northland Financialand TIF Plan.
Recommendation
Staff recommend the approval of HRA Resolution No. 2025-10, approving TIF assistance.
This item will receive a public hearing and consideration for approval at the December 22, 2025, City
Council meeting.
Attachments and Other Resources
Staff Report
Memorandum from Northland Public Finance
TIF Plan for Proposed District #27
HRA Resolution No. 2025-10
Vision Statement
We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses.
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Resolution No. 2025 - 10
Authorizing Modification of The Redevelopment Plan for Redevelopment Project No. 1
and the Tax Increment Financing Plans for Tax Increment Financing Districts Nos. 6,11-13
and 17-26 to Reflect Increased Project Costs and Increased Bonding Authority within
Redevelopment Project No. 1, Creating Tax Increment Financing District No. 27, and
Adopting a Tax Increment Financing Plan Relating Thereto
Whereas, It has been proposed that the Housing and Redevelopment Authority in and for the
approve and adopt the proposed modifications to its Redevelopment
osts and
increased bonding authority, pursuant to and in accordance with Minnesota Statutes, Sections
469.001 to 469.047, inclusive, as amended and supplemented from time to time; and,
Whereas, It has been further proposed that the Authority approve and adopt the proposed
modifications to the Tax Increment Financing Plans (the "Existing Plans") for Tax Increment
Financing Districts Nos. 6, 11-13 and 17-26 (the "Existing Districts") reflecting increased project
costs and increased bonding authority within the Project Area, pursuant to Minnesota Statutes,
Section 469.174 through 469.1799, inclusive, as amended and supplemented from time to time;
and,
Whereas, It has been further proposed that the Authority approve the creation of proposed Tax
Increment Fina
pursuant to and in accordance with Minnesota Statutes, Sections 469.174 to 469.1799, inclusive,
as amended and supplemented from time to time; and,
Whereas, The Authority has investigated the facts and has caused to be prepared with respect
thereto, a modified Redevelopment Plan for the Project Area and modified Existing Plans for the
Existing Districts reflecting increased project costs and increased bonding authority within the
Project Area and Proposed Plan for the Proposed District, defining more precisely the property to
be included the public costs to be incurred, and other matters relating thereto; and,
Whereas, The Authority has performed all actions required by law to be performed prior to the
approval and adoption of the modifications to the Redevelopment Plan and Existing Plans and the
approval and adoption of the Proposed Plan; and,
Whereas, The Authority hereby determines that it is necessary and in the best interests of the City
and the Authority at this time to approve and adopt the modifications to the Redevelopment Plan
and Existing Plans, to create the Proposed District and to approve and adopt the Proposed Plan
relating thereto.
Now, therefore be it resolved that, the Authority hereby finds, determines and declares as
follows:
1. That the assistance to be provided through the adoption and implementation of the
modified Redevelopment Plan, modified Existing Plans and Proposed Plan (collectively,
Area.
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2. That the Plans conform to the general plan for the development and redevelopment of
the City as a whole in that they are consistent with the City's comprehensive plan.
3. That the Plans afford maximum opportunity consistent with the sound needs of the City
as a whole for the development and redevelopment of the Project Area by private
enterprise and it is contemplated that the development and redevelopment thereof will
be carried out pursuant to redevelopment contracts with private developers.
4. That the modifications to the Redevelopment Plan reflecting increased project costs
and increased bonding authority within the Project Area are hereby approved and
adopted by the Commissioners of the Authority and are forwarded to the Fridley City
Council for public hearing, review and approval.
5. The modifications to the Existing Plans reflecting increased project costs and increased
bonding authority within the Project Area are hereby approved and adopted by the
Commissioners of the Authority and are forwarded to the Fridley City Council for public
hearing, review and approval.
6. The creation of the Proposed District within the Project Area and the adoption of the
Proposed Plan relating thereto are hereby approved and adopted by the
Commissioners of the Authority and are forwarded to the Fridley City Council for public
hearing, review and approval.
7. Upon approval and adoption of the Plans, the Authority shall cause said Plans to be
filed with the Minnesota Department of Revenue, the Office of the State Auditor and
Anoka County.
Passed and adopted by the Housing and Redevelopment Authority in and for the City of
Fridley this 4th day of December 2025.
_______________________________________________
Elizabeth Showalter Chairperson
Attest:
__________________________________________________
Paul Bolin Executive Director
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CERTIFICATION
I, Wally Wysopal, Executive Director of the Housing and Redevelopment Authority in and for the
City of Fridley, Minnesota, hereby certify that the foregoing is a true and correct copy of Resolution
th
No. 2025-10 adopted by the Authority on the 4 day of December, 2025.
_________________________________________
Paul Bolin - Executive Director
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DRAFT
MODIFIED AND RESTATED REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT NO. 1
AND
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING (REDEVELOPMENT)
DISTRICT NO. 27
(RIVER EDGE BUSINESS CENTER)
WITHIN REDEVELOPMENT PROJECT NO. 1
PROPOSED TO BE ADOPTED BY
CITY OF FRIDLEY, MINNESOTA
AND
FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY (HRA)
PUBLIC HEARING DATE: DECEMBER 22, 2025
PLAN APPROVED BY HRA DATE: _______________, 2025
PLAN APPROVED BY CITY COUNCIL DATE: ________________, 2025
PLAN CERTIFICATION REQUEST DATE: ______________, 2025
PLAN CERTIFIED DATE: __________________, 2025
Northland Securities, Inc.
150 South Fifth Street, Suite 3300
Minneapolis, MN 55402
(800) 851-2920
Member NASD and SIPC
Registered with SEC and MSRB
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
TABLE OF CONTENTS
.........................................................1
Section 1.01 Introduction ......................................................................................1
Section 1.02 .........................................................................................4
Section 1.03 Plan Preparation ...............................................................................5
...........................5
Section 2.01 Enabling Act; Statutory Authority .................................................5
....................................6
..............................................................6
..........................................................................7
...................................................................7
...................................................................8
.........................................8
.........................8
..............................................9
...........................................................9
.......................9
.....................................................................................9
................................................................9
.....................................................10
Section 4.01 Statutory Authority ........................................................................10
Section 4.02 ...................................................................10
4.02.1 ....................................................................................10
4.02.2 ..................................................10
4.02.3 .......................................................................................10
4.02.4 ............................................................................10
4.02.5 Need for Tax Increment Financing .........................................................10
Section 4.03 .................................................10
4.03.1 ................................................................................................10
4.03.2 ........................................................................11
4.03.3 ..........................................................................................11
Section 4.04 ......................................................11
4.04.1 ..........................................................................11
........................................................................12
4.04.3 .......................................................................12
4.04.4 ...................................................12
....................................13
4.04.5 ...........................................................................13
4.04.6 ...................................................................................13
4.04.7 ...............................................................................13
4.04.8 ............................................................................14
4.04.9 .................................14
4.04.10 ..................................................................15
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
......................................................15
Section 5.01 ..................................................................15
Section 5.02 ..................15
......................................16
Section 5.04 Four .........................................................16
Section 5.05 ...........................................................16
Section 5.06 ...................17
Section 5.07 ......................................................17
..........................................................................................................................18
..................................................................18
................................................................19
..........................................20
..........................21
.......................................22
...........................................24
DRAFT NOVEMBER 21, 2025 II
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
ARTICLE I
INTRODUCTION AND DEFINITIONS
SECTION 1.01 INTRODUCTION
Tax Increment Financing Plan.
Redevelopment Project No. 1:
•
•
•
•
DRAFT NOVEMBER 21, 2025 1
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•
•
•
•
Financing Plan.
•
•
•
•
of a Tax Increment Financing Plan.
•
the adoption of a Tax Increment Financing Plan.
•
adoption of a Tax Increment Financing Plan.
•
adoption of a Tax Increment Financing Plan.
•
•
•
DRAFT NOVEMBER 21, 2025 2
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
•
and the adoption of a Tax Increment Financing Plan.
•
Tax Increment Financing Plan.
•
•
•
•
•
Financing Plan.
•
•
•
•
authority.
•
of a Tax Increment Financing Plan.
•
the adoption of a Tax Increment Financing Plan.
•
DRAFT NOVEMBER 21, 2025 3
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
Financing Plan.
•
and the adoption of a Tax Increment Financing Plan.
•
•
•
a Tax Increment Financing Plan.
•
adoption of a Tax Increment Financing Plan.
•
•
SECTION 1.02 DEFINITIONS
1.
2.
3.
4.
5.
6.
7.
DRAFT NOVEMBER 21, 2025 4
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
SECTION 1.03 PLAN PREPARATION
ARTICLE II
STATEMENT OF PUBLIC PURPOSE AND AUTHORITY
SECTION 2.01 ENABLING ACT; STATUTORY AUTHORITY
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SECTION 2.02 STATEMENT AND FINDING OF PUBLIC PURPOSE
commerce by the Authority.
SECTION 2.03 BOUNDARIES OF PROJECT AREA
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ARTICLE III
REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1
SECTION 3.01 STATEMENT OF OBJECTIVES
1.
2.
3.
them;
4.
5.
6.
7.
8.
9.
10.
11.
12.
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
13.
•
•
•
•
•
SECTION 3.02 DEVELOPMENT ACTIVITIES
a.
b.
c.
d.
e.
f.
g.
h.
Plan incurred or to be incurred by it.
i.
SECTION 3.03 PAYMENT OF PUBLIC DEVELOPMENT COSTS
SECTION 3.04 ENVIRONMENTAL CONTROLS; LAND USE REGULATIONS
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SECTION 3.05 PARK AND OPEN SPACE TO BE CREATED
SECTION 3.06 PROPOSED REUSE OF PROPERTY
SECTION 3.07 ADMINISTRATION AND MAINTENANCE OF PROJECT AREA
following year.
SECTION 3.08 AMENDMENTS
SECTION 3.09 FINDINGS AND DECLARATION
a.
b.
c.
whole.
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
ARTICLE IV
TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING
DISTRICT NO. 27
SECTION 4.01 STATUTORY AUTHORITY
SECTION 4.02 PLANNED DEVELOPMENT
4.02.1 Project Description
4.02.2 City Plans and Development Program
4.02.3 Land Acquisition
4.02.4 Development Activities
4.02.5 Need for Tax Increment Financing
•
•
SECTION 4.03 TAX INCREMENT FINANCING DISTRICT
4.03.1 Designation
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
4.03.2 Boundaries of TIF District
•
•
•
•
4.03.3 Type of District
.............................................................................................................4
...........................................................................
..............................................................
.......................................................................................
.................................................................................1
.....................................................................1
...............................................................
SECTION 4.04 PLAN FOR USE OF TAX INCREMENT
4.04.1 Estimated Tax Increment
2026.
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
example.
4.04.2 Fiscal Disparities Election
4.04.3 Public Development Costs
4.04.4 Estimated Sources and Uses of Funds
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
FIGURE 4
ESTIMATED SOURCES AND USES OF FUNDS
Total
Estimated Tax Increment Revenues (from tax increment generated by the district)
Tax increment revenues distributed from the county$4,702,288
Interest and investment earnings$50,000
Sales/lease proceeds$0
Market value homestead credit$0
Total Estimated Tax Increment Revenues$4,752,288
Estimated Project/Financing Costs (to be paid or financed with tax increment)
Project costs
Land/building acquisition$978,900
Site improvements/preparation costs$3,253,159
Utilities$0
Subtotal$4,232,059
Administrative costs$470,229
Estimated Tax Increment Project Costs$4,702,288
Estimated financing costs
Interest expense$50,000
Total Estimated Project/Financing Costs to be Paid from Tax Increment$4,752,288
Estimated Financing
Total amount of bonds to be issued$4,702,288
4.04.5 Administrative Expense
TIF Act.
4.04.6 County Road Costs
4.04.7 Bonded Indebtedness
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4.04.8 Duration of TIF District
4.04.9 Estimated Impact on Other Taxing Jurisdictions
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
4.04.10 Prior Planned Improvements
ARTICLE V
ADMINISTERING THE TIF DISTRICT
SECTION 5.01 FILING AND CERTIFICATION
1.
2.
3.
SECTION 5.02 MODIFICATIONS OF THE TAX INCREMENT FINANCING PLAN
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SECTION 5.03 CORRECTING REDEVELOPMENT CONDITIONS
SECTION 5.04 FOUR-YEAR KNOCKDOWN RULE
SECTION 5.05 POOLING AND FIVE-YEAR RULE
•
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•
or replacement fund.
•
•
SECTION 5.06 FINANCIAL REPORTING AND DISCLOSURE REQUIREMENTS
SECTION 5.07 BUSINESS SUBSIDY COMPLIANCE
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
Exhibit I
Fridley HRA
Tax Increment Financing District No. 27
Present Value Analysis As Required By Section
469.175(3)(2) of the TIF Act
1
1 Estimated Future Market Value w/ Tax Increment Financing39,700,762
2 Payable 2025 Market Value5,121,100
3 Market Value Increase (1-2)34,579,662
4 Present Value of Future Tax Increments3,281,085
5 Market Value Increase Less PV of Tax Increments31,298,576
1
6 Estimated Future Market Value w/o Tax Increment Financing7,088,800
7 Payable 2025 Market Value5,121,100
8 Market Value Increase (6-7)1,967,700
2
9 Increase in MV From TIF29,330,876
1
Assume approximately 3.00% annual appreciation over 12 year life of district.
2
Statutory compliance achieved if increase in market value from TIF (Line 9) is
greater than or equal to zero.
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
Exhibit II
Fridley, MN
Tax Increment Financing District No. 27 (Redevelopment)
River Edge Business Center
Projected Tax Increment Financing (TIF) Cash Flow
Captured
TIF Taxes Taxable Original FD Tax Estimated Available
Net Tax Net Tax PV Available
District Payable Market Value Net Tax Capacity Original TIF from
CapacityCapacity TIF
YearYear(TMV)CapacityContributedTax RateDistrict
for TIF
1202824,378,574486,821101,672163,879221,270107.05%236,006220,076
2202929,541,095590,072101,672194,775293,625107.05%313,179498,044
3203030,427,328607,797101,672196,725309,400107.05%330,005776,831
4203131,340,148626,053101,672198,695325,686107.05%347,3761,056,153
5203232,280,352644,857101,672200,684342,501107.05%365,3101,335,742
6203333,248,763664,225101,672202,693359,860107.05%383,8251,615,346
7203434,246,226684,175101,672204,723377,780107.05%402,9381,894,730
8203535,273,612704,722101,672206,773396,278107.05%422,6682,173,672
9203636,331,821725,886101,672208,843415,371107.05%443,0332,451,966
10203737,421,775747,686101,672210,934435,080107.05%464,0542,729,418
11203838,544,429770,139101,672213,046455,421107.05%485,7503,005,847
12203939,700,762793,265101,672215,179476,415107.05%508,1423,281,085
TOTAL = 4,702,288
Key Assumptions:
1 Taxable market value (TMV) annual growth assumption equal to approximately 3.00%.
2Original Tax Rate estimated based on Pay 2025 tax rates.
3Election for captured tax capacity is 100.00%. Property Class = Commercial.
4Base Tax Capacity is calculated based on a TMV = $5,121,100, which is equal to the County's preliminary
estimated Pay 2026 TMV for the four parcels included in the TIF District.
5Present Value (PV) calculated based on 5.0% rate and 6/1/2027 dated date.
6Fiscal Disparities (FD) tax capacity is to be paid (contributed) from the property within the TIF District.
7Available TIF from District is after deducting State Auditor Fee (0.36% of tax increment from property).
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
Exhibit III
Fridley HRA
Tax Increment Financing District No. 27
Impact on Other Taxing Jurisdictions
(Taxes Payable 2025)
Annual Tax Increment
Estimated Annual Captured Tax Capacity (Full Development)$476,415
Payable 2025 Local Tax Rate107.045%
Estimated Annual Tax Increment$509,978
Percent of Tax Base
Net Tax Captured
Percent of
Capacity Tax
Total NTC
(NTC)Capacity
Fridley, MN58,545,562476,4150.81%
Anoka County614,373,779476,4150.08%
School Districts73,452,793476,4150.65%
Dollar Impact of Affected Taxing Jurisdictions
Net Tax Tax
Added Local
Capacity % of TotalIncrement
Tax Rate
(NTC)Share
Fridley, MN44.394%41.472%211,4990.361%
Anoka County30.245%28.254%144,0920.023%
School Districts26.553%24.805%126,5020.172%
Other5.853%5.468%27,885
Totals107.045%100.000%509,978
NOTE NO. 1: Assuming that ALL of the captured tax capacity would be available to all taxing jurisdictions even
if the City does not create the Tax Increment District, the creation of the District will reduce tax capacities and
increase the local tax rate as illustrated in the above tables.
NOTE NO. 2: Assuming that NONE of the captured tax capacity would be available to the taxing jurisdiction if
the City did not create the Tax Increment District, then the plan has virtually no initial effect on the tax
capacities of the taxing jurisdictions. However, once the District is established, allowable costs paid from the
increments, and the District is terminated, all taxing jurisdictions will experience an increase in their tax base.
DRAFT NOVEMBER 21, 2025 20
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
12028 24,378,574 486,821 101,672 221,270 236,859 98,231 66,923 58,754 12,951
22029 29,541,095 590,072 101,672 293,625 314,311 130,352 88,807 77,966 17,186
32030 30,427,328 607,797 101,672 309,400 331,197 137,355 93,578 82,155 18,109
42031 31,340,148 626,053 101,672 325,686 348,631 144,585 98,504 86,479 19,063
52032 32,280,352 644,857 101,672 342,501 366,630 152,050 103,589 90,944 20,047
62033 33,248,763 664,225 101,672 359,860 385,212 159,756 108,840 95,554 21,062
72034 34,246,226 684,175 101,672 377,780 404,394 167,711 114,259 100,312 22,112
82035 35,273,612 704,722 101,672 396,278 424,195 175,923 119,854 105,224 23,194
92036 36,331,821 725,886 101,672 415,371 444,634 184,400 125,629 110,294 24,311
102037 37,421,775 747,686 101,672 435,080 465,731 193,149 131,590 115,527 25,465
112038 38,544,429 770,139 101,672 455,421 487,505 202,180 137,742 120,928 26,655
122039 39,700,762 793,265 101,672 476,415 509,978 211,499 144,092 126,502 27,885
Total 4,719,277 1,957,191 1,333,407 1,170,639 258,040
Note: The Estimated Total Tax Increment shown above is before deducting the State Auditor's fee, which is payable at a rate of
0.36% of the Total Tax Increment collected. Exhibit II provides Estimated Total Tax Increment after deducting for the State
Auditor's fee.
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EXHIBIT V
Boundaries of Redevelopment Project No. 1 and Boundaries of TIF District No. 26
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EXHIBIT V - continued
Boundaries of Redevelopment Project No. 1 and Existing TIF Districts within Boundaries
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EXHIBIT VI
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REPORT OF INSPECTION PROCEDURES AND RESULTS
FOR
DETERMINING QUALIFICATIONS
OF A
TAX INCREMENT FINANCING DISTRICT
7350 COMMERCE LANE
REDEVELOPMENT TIF DISTRICT
Prepared for
CITY OF FRIDLEY
FRIDLEY, MINNESOTA
NOVEMBER 6, 2025
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Table of Contents
Part 1: Executive Summary......................................................................................................................................2
Purpose of the Evaluation........................................................................................................................................................2
Scope of Work.........................................................................................................................................................................3
Conclusion...............................................................................................................................................................................3
Part 2: Minnesota Statute 469.174, Subdivision 10 Requirements.......................................................................3
Interior Inspection....................................................................................................................................................................3
Exterior Inspection and Other Means......................................................................................................................................3
Documentation.........................................................................................................................................................................3
Qualification Requirements......................................................................................................................................................3
1. Coverage Test....................................................................................................................................................................3
2. Condition of Buildings Test.................................................................................................................................................4
3. Distribution of Substandard Buildings.................................................................................................................................5
Report by LHB, Inc.
Part 3: Procedures Followed....................................................................................................................................5
Part 4: Findings.........................................................................................................................................................5
1. Coverage Test.....................................................................................................................................................................5
2. Condition of Building Test....................................................................................................................................................7
3. Distribution of Substandard Structures................................................................................................................................8
Part 5: Team Credentials..........................................................................................................................................9
Appendices................................................................................................................................................................9
APPENDIX A Property Condition Assessment Summary Sheet
APPENDIX B Building Code, Condition Deficiency and Context Analysis Report
APPENDIX C Building Replacement Cost Report
Code Deficiency Cost Report
Photographs
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Part 1: Executive Summary
Purpose of the Evaluation
LHB was hired by the City of Fridleyto inspect and evaluate the properties within a Tax Increment Financing Redevelopment
District (“TIF District”) proposed to be established by the City. The proposed TIF District is locatedat7350CommerceLane
NE(Diagram 1). The purpose of LHB’s work is to determine whether the proposed TIF District meets the statutory
requirements for coverage, and whetheronebuilding onfourparcels, located within the proposed TIF District, meetsthe
qualifications required for a Redevelopment District.
Report by LHB, Inc.
Diagram 1: Proposed TIF District
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Scope of Work
The proposed TIF District consists of fourparcelswith onebuilding. Thebuilding wasinspected onSeptember24, 2025.
Building Code and Condition Deficiency reportsareinAppendix B.
Conclusion
After inspecting and evaluating the properties within the proposed TIF District and applying current statutory criteria for a
Redevelopment District under Minnesota Statutes, Section 469.174, Subdivision 10, it is our professional opinion that the
proposed TIF District qualifies as a Redevelopment District because:
The proposed TIF District has a coverage calculation of 92.6percent which is above the 70 percent requirement.
100percent of the buildings are structurally substandard which is above the 50percent requirement.
The substandard buildings are reasonably distributed.
The remainder of this report describes our process and findings in detail.
Part 2:Minnesota Statute 469.174, Subdivision 10
Requirements
Report by LHB, Inc.
The properties were inspected in accordance with the following requirements under Minnesota Statutes, Section 469.174,
Subdivision 10(c), which states:
Interior Inspection
“The municipality may not make such determination \[that the building is structurally substandard\] without an interior
inspection of the property...”
Exterior Inspection and Other Means
“An interior inspection of the property is not required, if the municipality finds that
(1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain
permission from the party that owns or controls the property; and
(2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard.”
Documentation
“Written documentation of the findings and reasons why an interior inspection was not conducted must be made and
retained under section 469.175, subdivision 3(1).”
Qualification Requirements
Minnesota Statutes, Section 469.174, Subdivision 10 (a) (1)requires three tests for occupied parcels:
1. COVERAGE TEST
a.Minnesota Statutes, Section 469.174, Subdivision 10(a)(1) states:
“Parcelsconsisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, or paved or
gravel parking lots…”
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b.The coverage required by the parcel to be considered occupied is defined under Minnesota Statutes, Section
469.174, Subdivision 10(e), which states:
“For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots,
or other similar structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved or
gravel parking lots, or other similar structures.”
2. CONDITION OF BUILDINGS TEST
a.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;”
b.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.”
i.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 Walser Auto Sales, Inc. vs. City of Richfield case filed November 13, 2001.
c.Buildings are not eligible to be considered structurally substandard unless they meet certain additional criteria, as set
Report by LHB, Inc.
forth in Subdivision 10(c) which states:
“A building is not structurally substandard if it followsthe 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 abuilding is not disqualified as structurally
substandard under the preceding sentence based onreasonably 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.”
i.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:
1)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.
2)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…”
3)Chapter 11 of the 2015 Minnesota Residential Code incorporates Minnesota Rules, Chapters, 1322 and
1323 Minnesota Energy Code.
4)The Senior Building Code Representative for the Construction Codes and Licensing Division of the
Minnesota Department of Labor and Industry confirmed that the Minnesota Energy Code is being enforced
throughout the State of Minnesota.
5)In a January 2002 report to the Minnesota Legislature, the Management Analysis Division of the Minnesota
Department of Administration confirmed that the construction cost of new buildings complying with the
Minnesota Energy Code is higher than buildings built prior to the enactment of the code.
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6)Proper TIF analysis requires a comparison between the replacement value of a new building built under
current code standards with the repairs that would be necessary to bring the existing building up to current
code standards. Foran equal comparison to be made, all applicable code chapters should be applied to
both scenarios. Since current construction estimating software automatically applies the construction cost
of complying with the Minnesota Energy Code, energy code deficiencies should also be identified in the
existing structures.
3. DISTRIBUTION OF SUBSTANDARD BUILDINGS
a.Minnesota Statutes, Section 469.174, Subdivision 10, defines a Redevelopment District and requires one or more of
the following conditions“reasonably distributed throughout the district.”:
“(1) Parcels consisting of 70 percent of the area of the district are occupied bybuildings, streets, utilities, paved
or gravel parking lots, or other similar structures and more than 50 percent of the buildings, not including
outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance.
(2)the property consists of vacant, unused, underused, inappropriately used, or infrequently used rail yards, rail
storage facilities, or excessive or vacated railroad rights-of-way.
(3)tank facilities, or property whose immediately previous use was for tank facilities…”
b.Our interpretation of the distribution requirement is that the substandard buildings must be reasonably distributed
throughout the district as compared to the location of all buildings in the district. For example, if allthe buildings in a
district are located on one half of the area of the district, with the other half occupied by parking lots (meeting the
required 70 percent coverage for the district), we would evaluate the distribution of the substandard buildings
compared with only the half of the district where the buildings are located. If allthe buildings in a district are located Report by LHB, Inc.
evenly throughout the entire area of the district, the substandard buildings must be reasonably distributed throughout
the entire area of the district. We believe this is consistent with the opinion expressed by the State of Minnesota
Court of Appeals in the Walser Auto Sales, Inc. vs. City of Richfield case filed November 13, 2001.
Part 3: Procedures Followed
LHB inspected onebuildingonSeptember24, 2025.
Part 4: Findings
1.Coverage Test
a.The total square foot area of the parcel in the proposed TIF District was obtained from City records, GIS mapping
and site verification.
b.The total square foot area of buildings and site improvements on the parcels in the proposed TIF District was
obtained from City records, GIS mapping and site verification.
c.The percentage of coverage for each parcel in the proposed TIF District was computed to determine if the 15 percent
minimum requirement was met. The total square footage of parcels meeting the 15 percent requirement was divided
into the total square footage of the entire district to determine if the 70 percent requirement was met.
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FINDING
The proposed TIF District met the coverage test under Minnesota Statutes, Section 469.174, Subdivision 10(e),
which resulted in parcels consisting of92.6percent of the area of the proposed TIF District being occupied by
buildings, streets, utilities, paved or gravel parking lots, or other similar structures (Diagram 2). This exceeds the 70
percent area coverage requirement for the proposed TIF District under Minnesota Statutes, Section 469.174,
Subdivision (a) (1).
Report by LHB, Inc.
Diagram 2 –Coverage Diagram
Shaded area depicts a parcel more than 15 percent occupied by buildings, streets, utilities,
paved or gravel parking lots or other similar structures
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2.Condition of Building Test
a.BUILDING INSPECTION
i.The first step in the evaluation process is the building inspection. After an initial walk-thru, the inspector makes a
judgment whethera building “appears” to have enough defects or deficiencies of sufficient total significance to
justify substantial renovation or clearance. If it does, the inspector documents with notes and photographs code
and non-code deficiencies in the building.
b.REPLACEMENT COST
i.The second step in evaluating a building to determine if it is substandard to a degree requiring substantial
renovation or clearance is to determine its replacement cost. This is the cost of constructing a new structure of
the same square footage and typeon site. Replacement costs were researched using R.S. Means Cost Works
square foot models for2025.
ii.The replacementcost was calculated by first establishing building use (office, retail, residential, etc.), building
construction type (wood, concrete, masonry, etc.), and building size to obtain the appropriate median
replacement cost, which factors in the costs of construction inFridley, Minnesota.
iii.Replacement cost includes labor, materials, and the contractor’s overhead and profit. Replacement costs do not
include architectural fees, legal fees or other “soft” costs not directly related to construction activities.
Replacement cost for each building is tabulated in Appendix A.
c.CODE DEFICIENCIES
Report by LHB, Inc.
i.The next step in evaluating a building is to determine what code deficiencies exist with respect to such building.
Code deficiencies are those conditions for a building which are not in compliance with current building codes
applicable to new buildings inthe State of Minnesota.
ii.Minnesota Statutes, Section 469.174, Subdivision 10(c), specifically provides that a building cannot be
considered structurally substandard if its code deficiencies are not at least 15 percent of the replacement cost of
the building. As a result, it was necessary to determine the extent of code deficiencies for each building in the
proposed TIF District.
iii.The evaluation was made by reviewing all available information with respect to such buildings contained in City
Building Inspection records and making interior and exterior inspections of the buildings. LHB utilizes the current
Minnesota State Building Code as the official code for our evaluations. The Minnesota State Building Code is a
series of provisional codes written specifically for Minnesotarequirements, adoption of several international
codes, and amendments to the adopted international codes.
iv.After identifying the code deficiencies in each building, we used R.S. Means Cost Works2025; Unit and
Assembly Costs to determine the cost of correcting the identified deficiencies. We were then able to compare
the correction costs with the replacement cost of each building to determine if the costs for correcting code
deficiencies meet the required 15 percent threshold.
FINDING
Oneout of onebuilding(100percent) in the proposed TIF District contained code deficiencies exceeding the 15
percent threshold required by Minnesota Statutes, Section 469.174, Subdivision 10(c). Building Code, Condition
Deficiency and Context Analysis reports for the building(s)in the proposed TIF District can be found in Appendix B of
this report.
d.SYSTEM CONDITION DEFICIENCIES
i.If a building meets the minimum code deficiency threshold under Minnesota Statutes, Section 469.174,
Subdivision 10(c), then forsuch building to be “structurally substandard” under Minnesota Statutes, Section
469.174, Subdivision 10(b), the building’s defects,or deficiencies should be of sufficient total significance to
justify “substantial renovation or clearance.” Based on this definition, LHB re-evaluated each of the buildings
that met the code deficiency threshold under Minnesota Statutes, Section 469.174, Subdivision 10(c), to
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determine if the total deficiencies warranted “substantial renovation or clearance” based on the criteria we
outlined above.
ii.System condition deficiencies are a measurement of defects or substantial deterioration in site elements,
structure, exterior envelope, mechanical and electrical components, fire protection and emergency systems,
interior partitions, ceilings, floors,and doors.
iii.The evaluation of system condition deficiencies was made by reviewing all available information contained in
City records andmaking interior and exterior inspections of the buildings. LHB only identified system condition
deficiencies that were visible upon our inspection of the building or contained in City records. We did not
consider the amount of “service life” used up fora particular component unless it was an obvious part of that
component’s deficiencies.
iv.After identifying the system condition deficiencies in each building, we used our professional judgment to
determine if the list of defects or deficiencies is of sufficient total significance to justify “substantial renovation or
clearance.”
FINDING
In our professional opinion, oneout of onebuildings (100percent) in the proposed TIF District are structurally
substandard to a degree requiring substantial renovation or clearance, because of 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. This exceeds the 50 percent requirement of Subdivision
10a(1).
3.Distribution of Substandard Structures
Report by LHB, Inc.
Much of this report has focused on the condition of individual buildings as they relate to requirements identified by
Minnesota Statutes, Section 469.174, Subdivision 10. It is also important to look at the distribution of substandard
buildings throughoutthe geographic area of the proposed TIF District (Diagram 3).
FINDING
The parcels with substandard buildings are reasonably distributed compared to all parcels that contain buildings.
Diagram 3 –Substandard Buildings
Shaded yellowarea depicts parcels with buildings.
Shaded orange area depicts substandard buildings.
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Part 5: Team Credentials
Michael A. Fischer, AIA, LEED AP -Project Principal/TIF Analyst
Michael is a Principal and Vice President at LHB, with over 39-years of experience serving as a Project Principal, Project
Manager, Project Designer and Project Architect on planning, urban design, educational, commercial, and governmental
projects, he has become an expert on Tax Increment Finance District (TIF) analysis assisting over 130cities with strategic
planning for TIF Districts.
Michael completed a two-year Bush Fellowship, studying at MIT and Harvard in 1999, earning master’s degrees in City
Planning and Real Estate Development from MIT. He has served on more than 50 committees, boards,and community task
forces, including a term as a City Council President, Chair of a Metropolitan Planning Organization, and Chair of the Edina
Planning Commission. Most recently, he served as a member of the Edina city counciland Secretary of the Edina HRA.
Michael has also managed and designedseveral award-winning architectural projectsand was one of four architects in the
Country to receive the AIA Young Architects Citation in 1997.
Phil Fisher –Inspector
For 35 years, Phil Fisher worked in the field of Building Operations in Minnesota including White Bear Lake Area Schools. At
the University of Minnesota,he earned his Bachelor of Science in Industrial Technology. He is a Certified Playground Safety Report by LHB, Inc.
Inspector, Certified Plant Engineer, and is trained in Minnesota Enterprise Real Properties (MERP) Facility Condition
Assessment (FCA). His FCA training was recently applied to the Minnesota Department of Natural Resources Facilities
Condition Assessment project involving over 2,000 buildings.
Appendices
APPENDIX A Property Condition Assessment Summary Sheet
APPENDIX B Building Code, Condition Deficiency and Context Analysis Report
APPENDIX C Building Replacement Cost Report
Code Deficiency Cost Report
Photographs
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APPENDIX A
Property Condition Assessment Summary Sheet
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APPENDIX B
Building Code, Condition Deficiency and Context Analysis Report
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7350 Commerce LaneRedevelopment TIF District
Building Code, Condition Deficiency and Context Analysis Report
ParcelRich’s
7350 Commerce Lane Northeast, Fridley, Minnesota 55432
Address:
11-30-24-23-0026
Parcel ID:
Inspection Date(s) & Time(s):September 24, 2025, 1:30 PM
Inspection Type:Interior and Exterior
Summary ofDeficiencies:It is our professional opinion that this building is Substandard because:
-Substantial renovation is required to correct Conditions found.
-Building Code deficiencies total more than 15% of replacement cost, NOT
including energy code deficiencies.
Estimated Replacement Cost:$24,123,070
Estimated Cost to Correct Building Code Deficiencies:$9,862,025
Percentage of Replacement Cost for Building Code Deficiencies:40.9%
Report by LHB, Inc.
DEFECTS IN STRUCTURAL ELEMENTS
1.Exterior concrete block and mortar are cracked and damaged allowing for water intrusion which is contrary to code.
2.Exterior walls show signs of differential settlement that should be corrected per code.
3.Steel lintels should be protected from rusting, per code.
4.Interior support columns and beams should be protected from rusting per code.
COMBINATION OF DEFICIENCIES
1.Essential Utilities and Facilities
a.The staff lounge does not comply with accessibility code.
2.Light and Ventilation
a.The electrical system is not fully code compliant.
b.The lighting system does not comply with code.
c.The HVAC system does not comply with code.
3.Fire Protection/Adequate Egress
a.Exterior exit doors are illegally chained and locked which is contrary to code.
b.Thresholds do not comply with code for maximum height.
c.Exterior stairs do not comply with code.
d.Sidewalks are damaged creating an impediment to emergency egress which is contrary to code.
e.Exterior electrical transformers are not properly protected per code.
f.Interior stairs do not comply with code.
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g.Fire caulking should be installed per code.
h.Concrete flooring is damaged creating an impediment to emergency egress which is contrary to code.
i.Not all door hardware is code compliant.
j.Emergency lighting is not fully code compliant.
k.The emergency notification system is not fully code compliant.
l.Elevated platforms are not code compliant.
m.Emergency exit signs do not comply with code.
4.Layout and Condition of Interior Partitions/Materials
a.Interior wood doors should be refinished.
b.Carpet is stained and should be cleaned.
c.Interior walls should be repaired and repainted.
5.Exterior Construction
a.Parking lots should have cracks filled and seal coated.
b.Exterior painted surfaces should be repainted.
c.Windows are failing, allowing for water intrusion which is contrary to code.
d.Exterior caulking is failing, allowing for water intrusion which is contrary to code.
Report by LHB, Inc.
e.Exterior painted metal surfaces should be repainted.
f.Exterior door metal door stiles are rusting and should be repainted.
g.Exterior metal stairs should be protected from rusting per code.
h.Roofing materials are failing, allowing for water intrusion which is contrary to code.
DESCRIPTION OF CODE DEFICIENCIES
1.Repair or replace damaged exterior concrete block and mortar to prevent water intrusion per code.
2.Repair exterior foundations where differential settlement is observed by cracked concrete blocks,per code.
3.Protect steel lintels from rusting, per code.
4.Protect interior steel beams and columns from rusting per code.
5.Modify staff lounge to comply with code.
6.Upgrade electrical system to comply with code.
7.Install a code compliant HVAC system.
8.Install a code compliant lighting system.
9.Unchain exterior doors to comply with code.
10.Modify thresholds to comply with code.
11.Modify exterior stairs to comply with code.
12.Repair or replace damaged sidewalks to create a code required unimpeded means for emergency egress.
13.Properly protect exterior electrical transformers to comply with code.
14.Modify interior stairs to comply with code.
15.Install code required fire caulking.
16.Repair damaged concrete flooring to create a code required unimpeded means for emergency egress.
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17.Modify non-compliant door hardware to comply with code.
18.Install a code compliant emergency lighting.
19.Install a code compliant emergency notification system.
20.Modify elevated platforms to comply with code.
21.Install code compliant emergency exit signs.
22.Replace failed windows to prevent water intrusion, per code.
23.Replace failed exterior caulking to prevent water intrusion, per code.
24.Exterior metal stairs should be protected from rusting per code.
25.Replace failed roofing materials to prevent water intrusion per code.
OVERVIEW OF DEFICIENCIES
This former bakery facility exhibits several critical deficiencies in both structural condition and code compliance. The exterior
concrete block and mortar are cracked and damaged, resulting in water intrusion, while differential settlement in the exterior
walls requires correction to meet code standards. Steel lintels, as well as interior support columns and beams, need protection
from rusting. Several essential utilities and facilities do not comply with current codes, including the staff lounge’s lack of
accessibility and inadequacies in the electrical, lighting, and HVAC systems. Fire protection and egress measures are
compromised by illegally chained and locked exterior exit doors, non-compliant thresholds and stairs, as well as damaged
sidewalks and concrete flooring that impede emergency exits. Additional concerns include unprotected exterior electrical
transformers, the absence of fire caulking, and non-compliant emergency lighting, notification systems, elevated platforms,
Report by LHB, Inc.
and exit signage. Interior surfaces such as wood doors, carpets, and walls require maintenance and repair, while exterior
construction issues include deteriorating parking lots, failing windows and caulking, rusting and peeling painted surfaces, and
compromised roofing materials—allcontributing to ongoing water intrusion and further jeopardizing code compliance.
ENERGY CODE DEFICIENCIES
In addition to the building code deficiencies listed above, the existing building does not comply with the current energy code.
These deficiencies are not included in the estimated costs to correct code deficiencies and are not considered in determining
whetherthe building is substandard.
M:\\25Proj\\250581\\300 Design\\Reports\\Building Reports\\D- 7350 Commerce LN NE Building Report Redevelopment District.docx
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APPENDIX C
Building Replacement Cost Report
Code Deficiency Cost Report
Photographs
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7350 Commerce Lane Redevelopment TIF District
Replacement Cost Report
Replacement Cost Report
7350 Commerce Lane TIF District
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Parcel -7350 Commerce Ln NE, Fridley, MN 55432
LHB Project No. 250581.00
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
Report by LHB, Inc.
7350 Commerce Lane TIF DistrictReplacement Cost Report
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LHB Project No. 250581.00Parcel - 7350 Commerce Ln NE, Fridley, MN 55432
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
Report by LHB, Inc.
7350 Commerce Lane TIF DistrictReplacement Cost Report
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LHB Project No. 250581.00Parcel - 7350 Commerce Ln NE, Fridley, MN 55432
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7350 Commerce Lane Redevelopment TIF District
Code Deficiency Cost Report
Parcel - 7350 Commerce Lane Northeast, Fridley, Minnesota 55432Building Name or Type
Parcel ID 10-30-24-23-0026Rich's
Unit
Code Related Cost ItemsUnit CostUnitsTotal
Quantity
Accessibility Items
Staff Lounge
Modify staff lounge to comply with accessibility code
$ Lump11,000.00$ 1,000.00
Structural Elements
Exterior Concrete Block and Mortar
Repair damaged concrete block and mortar to prevent water intrusion
per code
$ 1 .25SF160,000$ 200,000.00
Differential Settlement
Correct differential settlement issues on exterior footing per code
$ 0 .50SF160,000$ 80,000.00
Steel Lintels
Protect steel lintels from rusting per code
$ Lump12,500.00$ 2,500.00
Report by LHB, Inc.
Interior Structural Support Columns and Beams
Protect structural support columns and beams from rusting per code
$ 0 .05SF160,000$ 8,000.00
Exiting
Exterior Doors
Remove non-code compliant chain and lock on exterior door$ 2 5.00Lump1$25.00
Thresholds
Modify thresholds to comply with code for maximum height$ 5 00.00Lump1$500.00
Exterior Stairs
Modify exterior stairs to comply with code$ Lump15,000.00$ 5,000.00
Sidewalks
Repair or replace damaged sidewalks to create a code required
unimpeded means for emergency egress
$ 8 .00SF5,000$ 40,000.00
Interior Stairs
Modify interior stairs to comply with code
$ Lump110,000.00$ 10,000.00
Concrete Flooring
Repair or replace damaged concrete flooring to create a code required
unimpeded means for emergency egress
$ 1 1.86SF5,000$ 59,300.00
Door Hardware
Install code compliant door hardware where needed
$ Lump11,000.00$ 1,000.00
Emergency Lighting System
Modify emergency lighting system to comply with code
$ 0 .75SF160,000$ 120,000.00
Emergency Notification System
Install a code compliant emergency notification system
$ 0 .58SF160,000$ 92,800.00
Elevated Platform
Modify elevated platform to comply with code
$ 1 00.00EA1$100.00
7350 Commerce Lane TIF DistrictCode Deficiency Cost Report
Page 1 of 2
LHB Project No. 250581.00Parcel - 7350 Lommerce LN NE, Fridley, MN 55432
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
Unit
Code Related Cost ItemsUnit CostUnitsTotal
Quantity
Emergency Exit Signs
Install code compliant emergency exit signs
$ 0 .20SF160,000$ 32,000.00
Fire Protection
Electrical Transformer
Properly protect exterior electrical transformer to comply with code
$ Lump12,500.00$ 2,500.00
Fire Caulking
Install code required fire caulking
$ 0 .04SF160,000$ 6,400.00
Exterior Construction
Windows
Replace failed windows to prevent water intrusion per code
$ 3 .74SF160,000$ 598,400.00
Exterior Caulking
$-
Replace failed exterior caulking to prevent water intrusion per code
$ 0 .15SF160,000$ 24,000.00
Exterior Metal Stairs
Protect exterior metal stairs from rusting to comply with code
$ Lump12,500.00$ 2,500.00
Roof Construction
Roofing Materials
Report by LHB, Inc.
Replace failed roofing materials to prevent water intrusion per code
$ 0 .75SF160,000$ 120,000.00
Mechanical - Electrical
Mechanical
Install a code compliant HVAC system
$ 3 0.28SF160,000$ 4,844,800.00
Electrical
Upgrade electrical system to comply with code
$ 4 .82SF160,000$ 771,200.00
Install a code compliant lighting system
$ 1 7.75SF160,000$ 2,840,000.00
Total Code Improvements9,862,025$
7350 Commerce Lane TIF DistrictCode Deficiency Cost Report
Page 2 of 2
LHB Project No. 250581.00Parcel - 7350 Lommerce LN NE, Fridley, MN 55432
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
Report by LHB, Inc.
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Report by LHB, Inc.
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Report by LHB, Inc.
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Report by LHB, Inc.
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Report by LHB, Inc.
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Report by LHB, Inc.
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
Report by LHB, Inc.
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
Report by LHB, Inc.
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
Report by LHB, Inc.
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
Report by LHB, Inc.
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Report by LHB, Inc.
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
Report by LHB, Inc.
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
Report by LHB, Inc.
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
Report by LHB, Inc.
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
Report by LHB, Inc.
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
Report by LHB, Inc.
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TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 27
Prepared by:
701 Washington Avenue North, Suite 200, Minneapolis, MN 55401
LHBcorp.com
LHB Project No. 250581.00
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AGENDA REPORT
Meeting Date:December 4, 2025 Meeting Type:Housing & Redevelopment Authority
Submitted By:Paul Bolin, Executive Director
Stacy Stromberg, Assistant Executive Director
Nancy Abts, Senior Planner
Title
Homeowner GrantPrograms Update
Background
Staffwill provide an update on the 2025 December
Meeting.
Attachments and Other Resources
Vision Statement
We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses.
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AGENDA REPORT
Meeting Date:December 4,2025 Meeting Type:Housing & Redevelopment Authority
Submitted By:Stacy Stromberg, Asst. Executive Director
Title
Update on Housing Programs
Background
On a monthly basis, staff will provide updates from
loan programs, remodeling advisor visits and Home Energy Squad Visits.
Attachments and Other Resources
Chart of Loans Issued & Remodeling Advisor Visits
Vision Statement
We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses.
98
Fridley Loan Summary Report
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Activity for Period 10/16/2025 - 11/15/2025
Application packets requested/mailed:
This period:0Year-to-Date:8
17
Residential Advisor Visits:This period:1Year-to-Date:
Applications received and processed in your City/Neighborhood this period:
33
This period:Year-to-Date:
Closed Loans
UnitsUnits
FHF
0.00
00
0.00
2-4 Unit Revolving
0.00
0.00
Total00
UnitsUnits
Fridley
00
61,312.57
244
Closed End########################################
1,186,018.07
0.00
06
50,000.00
Down Payment
Assistance
11,221.00
17
95,124.00
Home Betterment
Deferred
0.00
00
0.00
Last Resort
0.00
01
Last Resort Emergency 3,670.00
Deferred
0.00
00
0.00
Mobile Home Closed End
0.00
00
0.00
Multi Family Exterior
Closed End
20,000.00
18
Senior Deferred140,990.20
1,475,802.27
92,533.57
Total466
This period:UnitsYear-to-Date:Units
Leveraged Funds
0.0007,705.001
CEE
0.000157,132.003
MHFA FUF
0.00164,837.004
0
Total
99
#
Types of Improvements Financed YTD# of Projects%of TotalTypes of Properties Financed YTD% of Total
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Commercial -Non-residential
11.41
44.04
Additions/Finishing off unused space
Condominium
11.41
11.01
Air Conditioning
Single Family Residence
6388.73
33.03
Bathrooms
Townhouse
68.45
11.01
Deck
66.06
Down Payment Assistance
44.04
Driveways
77.07
Electrical
22.02
Flooring/Carpet/Tile
11.01
Foundations/Basement
44.04
Garage
88.08
Heating System
22.02
Insulation
55.05
Kitchens
22.02
Landscaping
1010.10
Other Exterior Improvements
99.09
Other Interior Improvements
Patio11.01
44.04
Plumbing
11.01
Radon Mitigation
1111.11
Roof
22.02
Sidewalks, Steps
44.04
Siding, Stucco, Exterior Paint
22.02
Solar-PV
11.01
Thermostat
44.04
Windows, Doors, Storm Windows, Storm Doors
100