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Memo- 2nd Reading Ordinance 97-796 To: From: Date: Honorable Mayor Redepenning and Hopkins City Council Kersten Elverum{IAf Friday, January 3~: 1997 Second Reading - OrdinancE~ No. 97-796 Subject: Attached is Ordinance Number 97-796, establishing Housing Improvement Area No.2- Westbrooke Patio Homes. There have been no changes to the ordinance since the first reading. The recommended action is: Approve second readina of Ordinance 97-796 establishina Housina Improvement Area NO.2 - Westbrooke Patio Homes. . CITY OF HOPKINS ORDINANCE NO. 97-796 AN ORDINANCE ESTABLISHING HOUSING IMPROVEMENT AREA NO.2 PURSUANT TO 1994 MINNESOTA LAWS, CHAPTER 587, ARTICLE 9, SECTIONS 22 THROUGH 31 BE IT ORDAINED by the Council of the City of Hopkins as follows: Section 1. Recitals. 1.01. The City of Hopkins ("City") is authorized under 1994 Minnesota Laws, Chapter 587, Article 9, Sections 22 through 31 (the "Housing Improvement Act") to establish by ordinance a housing improvement area within which housing improvements are made or constructed and the costs of the improvements are paid in whole or in part fi'om fees imposed within the area. 1.02. By Resolution No. 94-55 adopted June 7, 1994, the Council approved the Housing Improvement Act. 1.03. The City has detennined a need to e:stablish Housing Improvement Area No.2 as further defined herein, in order to facilitate certain improvements to property known as the "W.:stbrooke Patio Homes," all in accordance with the Housing Improvement Act. 1.04. The City has consulted with the Westbrooke Patio Homes Association, Inc. and with residents in Housing Improvement Area No. 2 regarding the establishment of Housing Improvement Area No.2 and the housing improvements to be constructed and financed under this ordinance. Section 2. Findings. 2.01. The Council finds that, in accordanl:e with Section 23 of the Housing Improvement Act, owners of at least 25 percent of the housing units within Housing Improvement Area No.2 have filed a petition with the City Clerk requesting a public hearing regarding establishment of such housing improvement area. 2.02. The Council has on January 21, 1997 conducted a public hearing, duly noticed in accordance with the Housing Improvement Act, regarding adoption of this ordinance at which all persons, including owners of property within Housing Improvement Area No.2, were given an opportunity to be heard. 2.03. The Council finds that, without establishment of Housing Improvement Area No.2, the Housing Improvements (as hereinafter defined) could not be made by the homeowners association for, or the housing unit oWners in, the Westbrooke Patio Homes 2.04. The Council further finds that designation of Housing Improvement Area No.2 is needed to maintain and preserve the housing units within such area. SJB1l6192 HPllO-55 Section 3. Housing Improvement Area Defined. 3.01. Housing Improvement Area No.2 is hereby defined as the area of the City legally described in Exhibit A attached hereto. 3.02. Housing Improvement Area No. 2 contains 328 housing units as of the date of adoption of this ordinance. Section 4. Housin~ Improvements Defined. 4.01. For the purposes of this ordinance and Housing Improvement Area No.2, the term "Housing Improvements" shall mean the following improvements to housing units, garages, and common areas within Housing Improvement Area No.2: Phase One: Replace roofs, including gable areas, on 40 buildings Extend soffits on main buildings Remove fireplace chimney housings and add rain collars Install gutters and downspouts Install draft walls in attics, insulate, and reroute exhaust vents Replace flat roofs on garage buildings Phase Two: Building exteriors Streets, driveway, and parking area improvements 4.02. Housing Improvements shall also bl' deemed to include: (a) all costs of architectural and engineering services in connection with the activities described in Section 4.01; (b) all administration, legal and consultant costs in connection with Housing Improvement Area No.2; and (c) costs of issuance of bonds to finance Housing Improvements under the Housing Improvement Act, subject to the terms of Section 5.04 hereof. Section 5. Housing Improvement Fee. 5.01. The City may, by resolution adopted in accordance with the petition, hearing and notice procedures required under the Housing Improvement Act, impose a fee on the housing units within Housing Improvement Area No.2, at a rate, term or amount sufficient to produce revenues required to provide the Housing Improvements (hereinafter referred to as the "Housing Improvement Fee"), subject to the terms and conditions set forth in tins Section. The Housing Improvement Fee may be SJB1l6192 HPllO-55 2 imposed in phases, with one fee imposed for the improvements described as Phase One under Section 4.01, and a subsequent fee imposed for Phase Two. 5.02. Any Housing Improvement Fee shall be imposed on the basis of the total cost of the Housing Improvements to be financed by the Housing Improvement Fee, divided by the number of housing units in Housing Improvement Area No. :2 as of the date of any fee resolution. 5.03. Any Housing Improvement Fee shall be imposed and payable for a period no greater than 20 years after the first installment is due and payable. 5.04. Any Housing Improvement Fee shall be prepayable in full or in part by housing unit owners within 30 days after the effectivt1 date of the resolution setting the Housing Improvement Fee, provided that if only a portion is prepaid, the prepayment amount must be at least 25% of the total fee for that unit. After such 3D-day period the Housing Improvement Fee (or unpaid portion thereof) shall not be prepayable. 5.05. The resolution imposing any Housing Improvement Fee may provide that any fee (or portion thereof) not prepaid by the housing unit owner shall be deemed to include interest on unpaid Housing Improvements costs at a rate that will produce total fee revenue collected from all units in Housing Improvement Area No.2 in an amount that equals 105 percent of the debt service payable each year on the bonds to be issued under Section 6 hereof. 5.06. Any Housing Improvement Fee shall be collected at the same time and in the same manner as provided for payment and collection of ad valorem taxes, in accordance with Section 26 of the Housing Improvement Act and Minnesota Statutes, Section 428A05. As set forth in Section 26 of the Housing Improvement Act, the Housing Improvement Fee is not included in the calculation of levies or limits on levies imposed under any law or charter. 5.07. Any Housing Improvement Fee shall not exceed the amount specified in the notice of public hearing regarding the approval of such fee; provided, however, that the Housing Improvement Fee may be reduced after approval of the resolution setting the Housing Improvement Fee, in the manner specified in such resolution. Section 6. Issuance of Bonds. 6.01. At any time after a contract with Westbrooke Patio Homes Association, Inc. for construction of all or part of the Housing Improvements has been entered into or the work has been ordered, and the 30-day period for prepayment of the Housing Improvement Fee has expired as described in Section 5.04 hereof: the Council InlI.y issue bonds in the principal amount necessary to finance the cost of the Housing Improvements that have not been prepaid together with costs of issuance of the bonds. Such bonds shall be issued pursuant to and in accordance with Section 27 of the Housing Improvement Act. Section 7. Annual Reports. SJB1l6192 HPllO-55 3 7.01. On August 15, 1997 and each August 15 thereafter until there are no longer any outstanding bonds (including refunding bonds) issued under the Housing Improvement Act in connection with Housing Improvement Area No.2, the Westbrooke Patio Homes Association, Inc. (and any successor in interest) shall submit to the City Clerk a copy of the association's audited financial statements. 7.02. Westbrooke Patio Homes Association, Inc. (and any successor in interest) shall also submit to the City any other reports or information at the times and as required by any contract entered into between that entity and the City. Section 8. Notice of Right to File Objections. 8.01. Within five days after the adoption of this ordinance, the City Clerk is authorized and directed to mail to the owner of each housing unit in Housing Improvement Area No.2: a summary of this ordinance; notice that owners subject to the proposed Housing Improvement Fee have a right to veto this ordinance if owners of at least 35 percent of the housing units within Housing Improvement Area No.2 file an objection with the City Clerk before the effective date of this ordinance; and notice that a copy of this ordinance is on file with the City Clerk for public inspection. Section 9. Amendment. 9.01. This ordinance may be amended by the Council upon compliance with the public hearing and notice requirements set forth in Section 24 of me Housing Improvement Act. Section 10. Effective Date. 10.1. This ordinance shall be effective 45 days after adoption hereof, or 20 days after the date of publication of this ordinance, whichever is later. First read at a regular meeting of the Council of the City of Hopkins held on January 21, 1997, and finally read, approved and adopted and ordert:d published at a regular meeting of said Council on February 4, 1997. City Clerk Mayor Approved as to form: City Attorney SJB1l6192 HPllO-55 4 EXHJBIT A Description of HousilBg Improvement Area No.2 Lots 2 through 181, inclusive, Block 1 and Lots 2 through 331, inclusive, Westbrooke Patio Homes, according to the recorded plat thereof, Hennepin County, Minnesota. SJB1l6192 HPllO-55 5