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CR 99-14 Ordinance 99-824 Amending Ordinance 97-796 Creating Housing Improvement Area 2- Westbrooke Patio Homes CITY Or: - Council Rpt #99-014 January 13, 1999 HOPKINS e ORDINANCE 99-824 AMENDING ORDINANCE NO. 97-796 CREATING HOUSING IMPROVEMENT AREA NO.2 - WESTBROOKE PATIO HOMES ProDosed Action Following the public hearing, staff recommends approval of the following motion: Approve first reading of Ordinance No.99-824 amending Ordinance No, 97-796 establishing Housing Improvement Area NO.2 - Westbrooke Patio Homes, With this motion, staffwill schedule Ordinance 99-824 for a second reading on February 2, 1999. Overview The City of Hopkins has the authority to establish housing improvement areas under the Housing Improvement Act (1994 Minnesota Laws, Chapter 587, Article 9, Sections 22 through 31). Within a housing improvement area, the City can sell bonds to pay for various improvements to individual housing units and common areas, Those bonds are then repaid through fees imposed on the owners of the units. In 1997, the City of Hopkins created a Housing Improvement Area for the Westbrooke Patio Homes and financed a $2.3 million improvement project. This project, considered phase I of a two-phase capitol improvement project, involved redesigning and replacing the roofs, insulating and constructing draft stops in the attics. The Westbrooke Patio Homes Board of Directors has identified the phase II improvements proposed again to be financed through a housing improvement area and has held a series of informational . owner meetings. In November 1998, the Association members voted on the proposed program and in December submitted the required petitions to hold a public hearing regarding setting fees for the proposed project. Petitions were signed by more than 37 percent of the owners. The first step in providing financing to the Westbrooke Patio Homes is amending the Ordinance which established Housing Improvement Area No.2, to include an updated list of improvements. This requires a public hearing and the adoption of an ordinance. The next step is a public hearing on the proposed fees for the area and the adoption of a resolution setting the fees. Both of these actions can be stopped if vetoes are filed by at least 35 percent of the owners. Primary Issues to Consider The housing improvement area for the Westbrooke Patio Homes has already been established. However, in order to finance additional improvements, the ordinance that established the area must be amended to include a current list of improvements to be undertaken. Also, there has been some discussion regarding the length of the prepayment period and the possibility of extending the period from 30 to 90 days. The ordinance has been amended to allow staff to continue to research this issue. A detailed description of the project including the costs of the improvements and the proposed fee to be charged to owners will be discussed at the February 16, 1999, City Council meeting. -- CITY OF HOPKINS ". ORDINANCE NO. 99-824 AN ORDINANCE AMENDING ORDINANCE NO.97-796 RELATED TO 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 undcr 1994 Minnesota Laws, Chapter 587, Articlc 9, Sections 22 through 31 (the "Housing hnprovement Act") to establish by ordinance a housing improvement area within which housing improvements are made or constructed and thc costs of the improvements arc paid in whole or in part from fees imposed within the area. 1.02. By Resolution No. 94-55 adopted June 7, 1994, the Council approved the Housing 1m provement Act. un. By Ordinance No. 97-796 (the "Enabling Ordinance") approved February 4, 1997, the . City establish Housing hnprovement Area NO.2 consisting of the property described in Exhibit A hereto, in order to facilitate certain improvements to property known as the "Westbrooke Patio Homes," all in accordance with the Housing hnprovemcnt Act. 1.04. The City is authorized to amend the Enabling Ordinance upon compliance with the public hearing and notice requirements set forth in Section 24 of the Housing hnprovement Act. 1.05. The City has consultcd with the Westbrooke Patio Homcs Association, Inc. and with residents in Housing Improvement Area No. 2 regarding thc modification of the Enabling Ordinancc in connection with certain Phase II housing improvements to be constructed and financed Wlder the Enabling Ordinance. 1.06. The Council has on January 19, 1999 conducted a public hearing, duly noticed in accordance with the Housing hnprovement Act, regarding adoption of this amendment to the Enabling Ordinance at which all persons, including owners of property within Housing Improvement Area No.2, wcrc givcn an opportunity to be heard. Section 2. Enabling Ordinance Amended. 2.01. Section 4.01 of the Enabling Ordinance is modified as follows (additions underlined, deletions shown as strike-out): 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: SJE-154022 HPI10-58 Phase One: .. Replace roofs, including gable areas, on 40 buildings Extend soffits on main buildings Remove tireplace 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: Bulldinb exteriors Driyeway nnd pnrldng improvements Street and drive replacement, including parking Curb, guttcr and concrete Drainage and utility, including storm drains, rctaining wall reolacement, silt fencing, sanitary sewer work Landscaping rcpairs and corrections Building exteriors: residing Fencing, including privacy and oatio fences, deck railings Reolace gas meter bollards Furnace duct chasing modifications Contingency. including wall reoairs. insulation and sheathing . 2.02. Section 5.04 of the Enabling Ordinance is modified as follows (additions underlined, deletions shown as strike out): 5.04. Any Housing Improvement Fee shall be prepayable in full or in part by housing unit owners within 30 days after the effective date of the resolution setting the Housing Improvement Fee, or such greater period specified in the fee resolution, 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 30 day prepayment period the Housing Improvement Fee (or unpaid portion thereoO shall not be prepayable. 2.03. Section 6.01 of the Enabling Ordinance is modified as follows (additions underlined, deletions shown as strike out): 6.01. At any timc aftcr 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 ordcred, and the 30 day period for prepayment of the Housing Improvement Fee prepayment period has expircd as described in Section 5.04 hereof, the Council may issue bonds in the principal amount necessary to finance the cost of the Housing hnprovemcnts 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 3. Notice of Right to File Objections. Within five days after the adoption of this . amendment to the Enabling Ordinance, the City Clerk is authorized and directed to mail to the SJB116192 HPllO-55 2 -. owner of each housing unit in Housing Improvement Area No.2: a summary of this ordinance amendment; notice that owners subject to the proposed Housing Improvement Fce in connection with Phase IT of the Housing Improvements have a right to veto this amendment to the Enabling Ordinance if owners of at least 35 percent of thc housing units within Housing Improvement Area No.2 file an objection with the City Clerk before the elIective date of this ordinance; and notice that a copy of this ordinance is on me with the City Clerk for public inspection. Section 4. Ordinancc in effect. The Enabling Ordinance remains in effect and is not modified except as expressly provided herein. Section 5. Effective Date. This amendment to the Enabling Ordinance shall be etIective 45 days after adoption hereof, or 20 days aftcr the date of publication of this ordinance, whichever is ] ater. First read at a regular mceting of the Council of the City of Hopkins held on January 19, 1999, and fmally read, approved and adopted and ordercd published at a regular meeting of said Council on February 2, 1999. City Clerk Mayor Approved as to form: -- City Attorney . SJB116192 HPllO-55 3 EXHffiIT A .. Description of Housing 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 - . SJB116192 HPllO-55 4 --