IV.5. Resolution Approving Transfer of Excess Fee Revenues to Westbrooke Patio Homes; Bishop
August 20, 2019 Council Report 2019-083
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 2019-062
transferring excess Revenue Fees to Supplemental Project Funds.
Overview
In 1999, the City of Hopkins and Valley Park Condominiums entered into an agreement to fund certain
improvements at Valley Park. 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 $270,000 in
excess fee revenues by the time all bonds are paid and all fees are collected in 2019. Valley Park
Condominiums was notified of the availability of these funds and has identified qualifying capital
improvements exceeding the available fee revenue.
Enclosed is an engineering report identifying recommended repairs, quotes supporting cost of repairs and
project specifications.
Primary Issues to Consider
What projects are authorized by the original agreement and Ordinance 99-822?
What options does the Council have for distributing excess Fee Revenues?
Is there a deadline for distributing the excess Fee Revenues?
Supporting Information
♦ Resolution 2019-062
♦ Valley Park Letter dated April 22, 2019
♦ Quotes for mansard roof replacement
♦ Building Maintenance Priority Review (engineering report)
______________________________________
Nick Bishop, CPA
Finance Director
Financial Impact: $ 270,000 Excess Fee Revenue__
Budgeted: Y/N No – Debt Service Fund
Source: Housing Improvement Bond Funds
Related Documents: Originating Ordinance
Notes: Revenue can only be used for this purpose__
Council Report 2019-083
Page Two
Primary Issues to Consider
What improvements are authorized by the original agreement and Ordinance 99-822?
Replacement of Mansard Roofs
Replacement of Patio Doors and Upper Patio Door Railings
Replacement of Downspouts
Redesign and Upgrading of Building Entrances
Repair and Painting of Stucco Timbers
Temporary Sidewalk and Barricades, Demolition of Old Trash Sheds, and Related Rehab of Garages
Construction of New Trash/Recycling Buildings
Rebuilding of Parking Lots
Replacement of Concrete Sidewalks
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 99-822, 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 99-822,
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 2019-062 transferring excess bond funds as they become available
to Valley Park Condominiums for use in the projects identified by the Association Board.
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CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2019-062
RESOLUTION APPROVING TRANSFER
OF EXCESS FEE REVENUES TO
VALLEY PARK CONDOMINIUMS
WHEREAS, by Ordinance No. 99-822 adopted January 5, 1999, the City Council established
Housing Improvement Area No. 3 in order to facilitate certain improvements to property known
as the Valley Park 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 March 1999, entered into a Development Agreement (the
"Agreement") with Westbrooke-West Condominium Association, Inc.; and
WHEREAS, Bonds were issued and fees were charged to each housing unit in Housing
Improvement Area No. 3 in order to finance certain improvements as defined in Ordinance No.
99-822; and
WHEREAS, the Housing Improvements that were funded by the Bonds have been completed
and paid for; and
WHEREAS, the Bond was called in 2019 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. 99-822) 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 March 2, 1999;
NOW, THEREFORE, the City Council of the City of Hopkins, Minnesota hereby resolves as
follows:
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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 March 2, 1999
to Valley Park Condominiums to be used for projects specified by Ordinance No. 99-822
adopted January 5, 1999. All remaining funds shall be disbursed in accordance with the
provisions of the Agreement.
Adopted by the City Council of Hopkins, Minnesota, this 20th day of August 2019.
CITY OF HOPKINS, MINNESOTA
Jason Gadd, Mayor
ATTEST:
Amy Domeier, City Clerk