VII.2. Resolution Approving Transfer of Excess Fee Revenues to Westbrooke Patio Homes; Harkess (CR2016-065)
June 21, 2016 Council Report 2016-065
RESOLUTION APPROVING TRANSFER OF EXCESS FEE REVENUES
TO WESTBROOKE PATIO HOMES
Proposed Action
Staff recommends that the Council approve the following motion: Move to approve Resolution 2016-048
transferring excess Revenue Fees to Supplemental Project Funds.
Overview
In 1997, the City of Hopkins and Westbrooke Patio Homes entered into an agreement to fund certain
improvements at Westbrooke. The original projects have been completed and there now exists excess fee
revenues from the sale of bonds used to fund these improvements. There will be approximately $980,000 in
excess fee revenues by the time all bonds are paid and all fees are collected in 2019. Westbrook Patio Homes
was notified of the availability of these funds and the board has identified capital improvements for the years
2016-2019. The board has been doing the identified improvements and these funds will allow them to
accelerate the project.
Enclosed is a schedule of how the funds will be used, the associated costs along with a map of the project
showing which units will receive improvements identified by year.
Primary Issues to Consider
What projects are authorized by the original agreement and Ordinance 95-759?
What options does the Council have for distributing excess Fee Revenues?
Is there a deadline for distributing the excess Fee Revenues?
Supporting Information
Resolution 2016-048
Westbrook Patio Homes Letter dated 6-7-2016
Westbrooke Patio Homes Condominiums approved reserve expenses
Westbrooke Patio Homes Condominiums – map of scheduled improvements
______________________________________
Christine M. Harkess, CPA, CGFM
Finance Director
Financial Impact: $ 980,000 excess bond proceeds
Budgeted: Y/N Yes
Source: HIA Bond Funds
Related Documents: Originating Ordinance
N o t e s :
Council Report 2016-065
Page Two
Primary Issues to Consider
What improvements are authorized by the original agreement and Ordinance 97-796?
Replacement of Roofs, including gable areas on 40 buildings
Extend soffits on main buildings
Remove fireplace chimney housing and add rain collars
Install gutters and downspouts
Install draft walls in attics, insulate, and reroute exhaust vents
Replace flat roofs on garage buildings
What options does the Council have for distributing excess Fee Revenues?
The Council has two options for distributing the excess fee revenues:
The Council can pass a resolution disbursing all or part of the excess funds to the Association to be
deposited in an "Excess Revenue Subaccount" of a Replacement Reserve Fund. Money in the Excess
Revenue Subaccount could only be spent for improvements, authorized by Ordinance 97-796, as determined
by the Association. The Association would have to submit plans and written estimates to the City Building
Official prior to undertaking the improvements.
and/or
The Council can pass a resolution specifying additional improvements, as authorized by Ordinance 97-796,
and transfer all or a portion of the excess money into a supplemental project fund. This fund would be used
to reimburse the Association for the money it spent on the specified improvements.
Is there a deadline for distributing the excess Fee Revenues?
There is no deadline in the Agreement or the Ordinance on when the excess Fee Revenues need to be
disbursed.
Staff Recommendation:
Staff recommends adoption of Resolution 2016-048 transferring excess bond funds as they become available
to Westbrook Patio Homes for use in the projects identified by the Association Board.
1
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2016-048
RESOLUTION APPROVING TRANSFER OF EXCESS FEE REVENUES
TO WESTBROOKE PATIO HOMES
WHEREAS, by Ordinance No. 97-796 adopted February 4, 1997, the City Council established
Housing Improvement Area No. 2 in order to facilitate certain improvements to property known
as the Meadow Creek Condominiums, and
WHEREAS, Minnesota State Statutes authorized the City to issue Housing Improvement Bonds
(the "Bonds") in the amount necessary to defray the expense to be incurred in making the
housing improvements; and
WHEREAS, the City of Hopkins, in April 1997, entered into a Development Agreement (the
"Agreement") with Westbrooke Patio Homes Association, Inc; and
WHEREAS, Bonds were issued and fees were charged to each housing unit in Housing
Improvement Area No. 2 in order to finance certain improvements as defined in Ordinance No.
97-796; and
WHEREAS, the Housing Improvements that were funded by the Bonds have been completed
and paid for; and
WHEREAS, the one Bond has been paid in full and the second Bond issue will be called in
2018 and the City has determined that it has excess Fee Revenues as defined in the Agreement;
and
WHEREAS, the City Council may, by resolution, specify additional housing improvements (as
defined in Ordinance No. 97-796) and transfer all or any portion of such excess Fee Revenues
into a project fund (the "Supplemental Project Fund"); and
WHEREAS, amounts in the Supplemental Project Fund shall be disbursed to the Association to
pay the cost of the housing improvements specified by the Association in accordance with the
Development Agreement dated April 9, 1997;
NOW, THEREFORE, the City Council of the City of Hopkins, Minnesota hereby resolves as
follows:
The City of Hopkins shall transfer all such excess Fee Revenues that remain for the projects as
specified by the Association and as defined in the Development Agreement dated April 9, 1997
to the Westbrooke Patio Homes Association to be used for projects specified by Ordinance No.
2
97-759 adopted February 4, 1997. All remaining funds shall be disbursed in accordance with
the provisions of the Agreement as they become available from 2016-2019.
Adopted by the City Council of Hopkins, Minnesota, this 21st day of June 2016.
CITY OF HOPKINS, MINNESOTA
Molly Cummings, Mayor
ATTEST:
Amy Domeier, City Clerk