CR 98-203 Ordinance 99-822 Establishing Housing Improvements Area 3-Valley Park Condominiums
CITY OF
~
HOPKINS
. December 8, 1998 Council Rpt #98-203
ORDINANCE NO. 99-822 ESTABLISHING HOUSING IMPROVEMENT AREA NO.3-
VALLEY PARK CONDOMINIUMS
Proposed Action
Staff recommends approval of the following motion: Following the public hearing. approve
Ordinance 99-822 for first reading.
With approval of this motion, staffwill schedule Ordinance 99-822 for a second reading,
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.
The Valley Park Condominiums Board of Directors have identified the improvements proposed
to be financed though the creation of a housing improvement area and have held a series of
informational owner meetings. In October 1998, the Association members voted on the
proposed program and in November submitted the required petitions to hold public hearings on
. the creation of the housing improvement area and the setting of the fees. Petitions were signed
by more than 50 percent of the owners.
The first step in providing financing to the Valley Park Condominium Association is the
establishment of the housing improvement area. This requires a public hearing and the adoption
of an ordinance. The next step is a second public hearing on the proposed fees for the area and
the adoption ofa 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
o What is the process for establishing a housing improvement area and setting the fees?
o What is the risk to the City?
o What are the proposed improvements?
o How are the fees paid?
o What are the major concerns regarding the project?
o What is the timeline for the project?
Supportine Information
.0 O!:dinance 99-822
-' 0 Plan f~r /Hoysing,lmprovement Area No_ 3
0' . / /,/
.'( /.11,.; ;. /."
'--.-/ ( ( / I'?r /-\_// I( / 'l<(;;>-
. Kersten Elverum, I;:lousing Coordinator
. Housing Imp. Area
Council Rpt. 98-203
Page 2
Analvsis of the Issues
o What is the process for establishing a housing improvement area and setting the fees?
The process involves two steps:
o adoption of an ordinance by the City to establish the housing improvement area
o adoption of a resolution by the City to set the fees in the amount necessary to produce
the revenue required to pay for the housing improvements
Both steps require a public hearing and either step can be stopped by the formal objection of at
least 35 percent of the owners within the housing improvement area before the effective date of
the ordinance or the resolution (45 days after adoption).
The public hearing on December 15, 1998, will focus on establishing the housing improvement
area. A second public hearing in January will discuss the fees for the area.
o What is the risk to the City?
. The source of funds for the project is City-issued general obligation bonds, backed by the full
faith and credit of the City of Hopkins. However, the financing has been structured to
reasonably assure that the City is protected against compensating for any delinquencies that may
be experienced in the collection of the fees. This is being accomplished by setting the fees at
105 percent of what is required to retire the bonds and by requiring the Association to cover any
delinquencies through a development agreement.
Staff is in the process of preparing a map which will identify the current housing improvement
areas, the date they were established and the total City investment in the areas. This map will be
available at the December 15, 1998 meeting.
o What are the proposed improvements?
The improvements that have been identified by the Valley Park Condominium Association for
capital improvement project include the following:
Mansard Replacement Sidewalk Replacement
Replace Patio Doors and Rails Rebuild Parking Lots
Replace Downspouts Construct Trash Buildings
Upgrade Entries Rehabilitate Garages
Repair and Paint Stucco Timbers
.
-- ---
. Housing Imp. Area
Council Rpt. 98-203
Page 3
o How are the fees paid?
Upon successful passage by the City of the ordinance and resolution setting the fees, owners will
be given 30 days to prepay a portion or the entire amount of the fee. If an owner chooses not to
prepay, payment of the fee will then be made twice annually for the term of the district. This
will be accomplished through a fee on an owner's property tax statement (including interest and
associated financing costs). The total fee for each property within the Housing Improvement
Area is anticipated to be approximately $8,900.
o What are the major concerns regarding the project?
There have been no concerns regarding the proposed project voiced to staff by owners and the
results ofthe association vote indicate that the project has significant support.
o What is the timeline for the project?
The following is the anticipated timeline for the project:
e December 15, 1998 Public hearing before the City Council on establishing the housing
improvement area
First reading of the ordinance to establish the housing
improvement area
January 5,1999 Second reading and adoption of the ordinance to establish the
housing improvement area
Public hearing before the City Council on setting the fees for the
housing improvement area
Resolution setting fees adopted
February 20, 1999 45-day objection period expires, the ordinance establishing the
housing improvement area and the resolution setting the fees go
into effect if not vetoed by a minimum of 3 5 percent of the owners
February 22, 1999-
March 23, 1999 Prepayments accepted
February 22, 1999 Construction begins
May 15,2000 First installment of fee is due, as shown on property tax statement
This timeline is subject to change.
e
. Housing Imp. Area
Council Rpt. 98-203
Page 4
Alternatives:
The Council has the following alternatives following the public hearing:
o Approve Ordinance 99-822 establishing Housing Improvement Area No.3 for a first
reading.
o Amend Ordinance 99-822 and approve first reading.
o Delay adoption of ordinance until a later date. This alternative will delay the
construction timeline for the project.
o Deny establishment of the housing improvement area.
.
.
. CITY OF HOPKINS
ORDINANCE NO. 99-822
AN ORDINANCE ESTABLISHING HOUSING IMPROVEMENT AREA NO.3
(VALLEY PARK) 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 from 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 detemlined a need to establish Housing Improvement Area No. 3
(Valley Park) as further defmed herein, in order to facilitate certain improvements to property
. known as the "Valley Park Condominiums," all in accordance with the Housing hnprovement Act.
1.04. The City has consulted with the Westbrooke-West Condominium Association, Inc.,
d.h.a. Valley Park Condominium Association (the "Condominium Association") and with residents
in Housing Improvement Area No. 3 regarding the establishment of Housing Improvement Area
No.3 and the housing improvement" to be constructed and financed under this ordinance.
Section 2. Findings.
2.01. The Council finds that, in accordance with Section 23 of the Housing Improvement
Act, owners of at least 25 percent of the housing units within Housing Improvement Area No.3
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 December 15, 1998 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.3, were given an
opportunity to be heard.
2.03. The Council finds that, without establishment of Housing Improvement Area No.3,
the Housing Improvements (as hereinafter defined) could not be made by the condominium
association for, or the housing unit owners in, the Valley Park Condominiums.
. 2.04. The Council further finds that designation of Housing Improvement Area No. 3 is
needed to maintain and preserve the housing units within such area.
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-- ..- - ---
.. Section 3. Housin,g Improvement Area Defined.
3.01. Housing Improvement Area No.3 (Valley Park) is hereby defined as the area of the
City legally described as follows:
Condominium No. 459, Westbrooke-West Condominium, Hennepin County, Minnesota.
3.02. Housing hnprovement Area NO.3 contains 176 housing units as of the date of
adoption of this ordinance, along with certain garages and other common area.
Section 4. Housing Improvements Defined.
4.01. For the purposes of this ordinance and Housing Improvement Area No.3, the term
"Housing Improvement.'\" shall mean the following improvements to housing units, garages, and
common areas within Housing Improvement Area NO.3:
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 Sidewalks 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
4_02. Housing Improvements shall also be 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.3; and
(c) costs of issuance of bonds to ftnance 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 [mprovement Area No.3, at a rate, term or amount sutIicient to produce revenues
required to provide the Housing Improvement'\ (hereinafter referred to as the "Housing
. hnprovemem Fee"), subject to the tenus and conditions set forth in this Section.
5.02. Except as otherwise provided in Section 5.04 hereof, the Housing Improvement Fee
shall be imposed on the basis of each housing unit's Percent of Undi vjded Interest in Common
SJB-153914
HPI10-59
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. Elements, Votes and Facilities, as described in Exhibit A to Condominium No. 459, Declaration for
Condominium, Westbrooke-West Condominium, dated as of October 13, 1983 .
5.03. The 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. The Housing Improvement Fee shall be prepayable in full by housing unit owners
within 30 days after the effective date of the resolution setting the Housing Improvement Fee, after
which 30-day period the Housing Improvement Fee shall not be prepayable. If the Housing
Improvement Fee is prepaid, the resolution setting the Housing Improvement Fee may provide for a
credit, representing a reasonable allocation of the amount necessary to pay costs of issuance of
bonds to be issued under Section () hereof.
5.05. The resolution imposing the Housing Improvement Fee may provide that any fee 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. I 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. The Housing hnprovement 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 42RA05. 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. The Housing hnprovement Fee shall not exceed the amount specit1ed 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 the Condominium Association for construction of all
or part of the Housing hnprovemenlii 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 may 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 ReporLii.
7.01. On August 15, 1999 and each August 15 thereafter unti1 there are no longer any
outst,mding bonds (including refunding bonds) issued under the Housing Improvement Act in
. connection with Housing hnprovement Area No.3, Val1ey Park (and any successor in interest) shall
submit to the City Clerk a copy of the condominium association's audited financial statements.
SJB-153914
HPllO-59
. 7.02. The Condominium Association (and any successor in interest) shall also submit to the
City any other rcports or information at the times and as required by any contract entered into
bctween 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 auth0l1zed and
directed to mail to the owner of each housing unit in Housing Improvement Area NO.3: 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.3 file an objection with the City Clerk before the effective date of this
ordinance; and notice that a copy of this ordinance is on me 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 the 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 December 15,
1998, and finally read, approved and adopted and ordered published at a regular meeting of said
Council on January _,1999.
City Clerk Mayor
Approved as to fOlm:
City Attorney
e
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HPllO-59
J
WESTBROOKE-WEST CONDOMINIUM
] EXHIBIT A
. (Page 1 of 6)
] Percent of Undivided
Floor Plan ,\dd,-ess: Interest in Common Elemel
]. Unit No. Hopkins. Minnesota Votes, & Facilities
1 920-4 Ninth Avenue South .4695
]1: 2 920-3 Ninth Avenue South .4695
3 920-2 Ninth Avenue South .6184
4 920-1 Ninth Avenue South .6134
5 920-8 Ninth Avenue South .5000
]1 6 920-7 Ninth Avenue South .5000
7 920-6 Ninth Avenue South . 6553
i 8 920-5 Ninth Avenue South .6553
1 9 918-4 Ninth Avenue South .6184
Ji 10 \ 918-3 Ninth Avenue South .6184
I 11 918-2 Ninth Avenue South .1.1695
1 12 918-1 Ninth Avenue South .1+695
1i 13 918-8 Ninth Avenue South .6553
14 918-7 Ninth Avenue South .6553
I 15 918-6 Ninth Avenue South .5000
I 16 918-5 Ninth Avenue South .5000
]! 17 914-4 Ninth Avenue South .4695
18 914-3 Ninth Avenue South .4695
, 19 914-2 Ninth Avenue South
I .6134
I
Je 20 914-1 Ninth Avenue South .6184
21 914-8 Ninth Avenue South .5000
22 914-7 Ninth Avenue South .5000
I 23 914-6 Ninth Avenue South
JI .6553
24 914-5 Ninth Avenue South .6553
25 912-4 Ninth Avenue South .6184
26 912-3 Ninth Avenue South .6184
JI 27 912-2 Ninth Avenue South .4695
28 912-1 Ninth Avenue South .4695
29 912-8 Ninth Avenue South .6553
J 30 912-7 Ninth Avenue South .6553
31 912-6 Ninth Avenue S-outh .5000
I 32 912- 5 Ninth Avenue South .5000
, 33 906--4 Ninth Avenue South .4695
] " 34 906-3 Ninth Avenue South .1+695
35 --ASSOC IA TIQN-- 906-2 Ninth Avenue South --CARET AKER---- .5184
36 906-1 Ninth Avenue South .6184
l: 37 906-8 Ninth Avenue South .5000
38 906-7 Ninth Avenue South .5000
... 39
906-6 Ninth Avenue South .6553
40 906-5 Ninth Avenue South .6553
l 41 908-4 Ninth Avenue South .6184
i
... [12 908-3 Ninth Avenue South .6184
43 908-2 Ninth Avenue South .4695
44 908-1 Ninth Avenue South . i.l695
.
-. Subtotal 24.6078
.- I
.-
-.J .'
WESTBROOKE-WEST CONDOMiNiUM
~] EXHIBIT A
! (Page 2 of 6)
Perce:ll elf IJndivided
Floor Plan Address; ;nle'-\~sl in I~illllmon Elemer
U nit No. Hopkins, Minnesota VOles, & F <ILl I i 1 i es
j 45 908-8 Ninth Avenue South .6553
46 908-7 Ninth Avenue South .6553
r] q7 908-6 Ninth Avenue South .5000
48 908-5 Ninth Avenue South .5000
! 49 902-4 Ni nth Avenue South .4695
~] \ 50 901-3 Ninth Avenue South .4695
51 902-2 Ninth Avenue South .6184
..' . 52 902-1 Ninth Avenue South .6184
53 902-8 Ninth Avenue South .5000
[J; 54 1 902-7 Ninth Avenue South .5000
55 902-6 Ninth Avenue South .6553
56 902-5 Ninth Avenue South .6553
57 900-4 Ninth Avenue South .618/1
58 900-3 Ninth Avenue South .6184
S9 900-2 Ninth Avenue South .4695
60 900-1 Ninth Avenue South .4695
61 900-8 Ninth Avenue South .6553
62 900-7 Ninth Avenue South .6553
63 900-6 Ninth Avenue South .5000
1\ 64 900-5 Ninth Avenue South .5000
65 901-4 Eleventh Avenue South .4695
~ 66 901-3 Eleventh Avenue South .4695
67 901-2 Eleventh Avenue South .6184
68 901- 1 Eleventh Avenue South .6184
69 901-8 Eleventh Avenue South .5000
JI 70 901-7 Eleventh Avenue South .5000
71 901-6 Eleventh Avenue South .6553
72 901-5 Eleventh Avenue South .6553
j 73 903-4 Eleventh Avenue South .6184
JI 74 903-3 Eleventh Avenue South .6184
75 903-2 Eleventh Avenue South .4595
76 903-1 Eleventh Avenue South .4695
'J I 77 903-8 Eleventh Avenue South .6553
78 90]-7 Eleventh Avenue South .6553
79 903-6 Eleventh Avenue South .5000
80 903- 5 Eleventh Avenue South .5000
] 81 907-4 Eleventh Avenue South .4695
82 907-3 Eleventh Avenue South .4695
83 907-2 E!eventh Avenue South .6184
84 907-1 Eleventh Avenue South .51 B4
-J 85 907-8 Eleventh Avenue South .5000
86 907-7 Eleventh Avenue South .5000
87 907-6 Eleventh Avenue South .6553
I 88 907-5 Eleventh Avenue South .6553
~ Subtotal 24.7426
__ 1 --=-~ - - ."--
--
I
I
,
WEST3ROOKE-WEST -CONDOMI N IUM
. EXHIBIT A
(Page 3 of 6l
Percent of Undivided
Floor Plan Address; I ntel ~st in Common Element
Unit No. Hopki ns, Mi nnesota Votes, & F<Jc!lities
89 909-4 Eleventh Avenue South .6 lUll
90 909-3 Eleventh Avenue South .6184
91 909-2 Eleventh Avenue South .4695
92 909-1 Eleventh Avenue South .4695
i 93 909-8 Eleventh Avenue South .6553
I 94 909-7 Eleventh Avenue South _.6553
I 909-6 Eleventh Avenue South .5000
95
\ 96 909-5 Eleventh Avenue South .5000
\ 91 915-4 Eleventh Avenue South .4695
'-.
98 915-3 Eleventh Avenue South .4695
99 1 915-2 Eleventh Avenue South .6184
100 915-1 Eleventh Avenue South .6184
101 915-8 Eleventh Avenue South .5000
102 915-7 Eleventh Avenue South .5000
103 915- 6 Eleven th A venue South .6553
10fl 915-5 Eleventh Avenue South .6553
.~ 105--ASSOCIATION-917-4 Eleventh Avenue South -CARETAKER---.6184
106 917-3 Eleventh Avenue South .6184
107 917-2 Eleventh Avenue South .4695
108 917- 1 Eleventh Avenue South .4695
I 109 917-8 Eleventh Avenue South .6553
110 917-7 Eleventh Avenue South .6553
111 917-6 Eleventh Avenue South .5000
112 917-5 Eleventh Avenue South .5000
113 921-4 Eleventh Avenue South .4695
114 921-3 Eleventh Avenue South .4695
115 921-2 Eleventh Avenue South .6184
I 116 911-1 Eleventh Avenue South .6184
117 921-8 Eleventh Avenue South .5000
118 921-7 Eleventh Avenue South .5000
I 119 921-6 Eleventh Avenue South .6553
120 921-5 Eleventh Avenue South .6553
121 923-4 Eleventh Avenue South .618~
122 923-3 Eleventh Avenue South .6184
J 123 923-2 Eleventh Avenue South .4695
124 923-1 Eleventh Avenue South .4695
125 923-8 Eleventh Avenue South .6553
J 126 923-7 Eleventh Avenue South .6553
127 923-6 Eleventh Avenue South .5000
128: 923-5 Eleventh Avenue South .5000
129 927-4 Eleventh Avenue South .4695
] 130 927-3 Eleventh Avenue South .4695
131 927-2 Eleventh Avenue South .6184
132 927-1 Eleventh Avenue South .6184
1
.. 5u btotal
24.6078
.. 1
-~~-- '-
..
l
r .
WESTBROOKE-WEST CONDOMiNIUM
. EXHIBIT A
(Page 4 of 6)
Ji Percent of Undivided
r Floor Plan Address: I nterest in COmnlon Elemfc
Unit No. Hopkins, Minnesota Votes. & Facilities
r] :
133 927-8 Eleventh Avenue South .5000
l - 134 927-7 Eleventh Avenue South .5000
rJ I 13S 927-6 Eleventh Avenue South .6553
136 927-5 Eleventh Avenue South .6553
137 929-4 Eleventh Avenue South .6184
~\ 138 929-3 Eleventh Avenue South .6134
139 929-2 Eleventh Avenue South .4695
1QO 929-1 Eleventh Avenue South .4695
'.L.,,:-. 141 929-8 Eleventh Avenue South .6553
- 929-7 Eleventh Avenue South
1 '&2 \ .6553
143 929-6 Eleventh Avenue South .5000
( 144 929-5 Eleventh Avenue South .5000
145 933-4 Eleventh Avenue South .4695
J 146 933-3 Eleventh Avenue South .4695
f 1Ll7 933-2 Eleventh Avenue South .6184
148 933-1 Eleventh Avenue South .6184
~i 1L~9 933-8 Eleventh Avenue South .5000
150 933-7 Eleventh Avenue South .5000
151 933-6 Eleventh Avenue South .6553
,I 152 933- 5 Eleventh Avenue South .6553
153 935-4 Eleventh Avenue South .6184
154 935-3 Eleventh Avenue South .6184
! I 155 935-2 Eleventh Avenue South .4695
L I 156 935-1 Eleventh Avenue South ./+695
j, 157 935-8 Eleventh Avenue South .6553
1 1sa 935-7 Eleventh Avenue South .6553
J 159 935-6 Eleventh Avenue South .5000
160 935-5 Eleventh Avenue South .5000
161 939- 4 Eleventh Avenue South .Q695
162 939- 3 Eleventh Avenue South .4695
] 163 939-2 Eleventh Avenue South .6184
1611 939-1 Eleventh Avenue South .6184
165 939-8 Eleventh Avenue South .5000
Jl 166 939-7 Eleventh Avenue South .5000
167 939-6 Eleventh Avenue South .6553
168 939-5 Eleventh Avenue South .6553
\ 169 941-4 Eleventh Avenue South .6184
J; 170 941-3 Eleventh Avenue South .6134
171 941-2 Eleventh Avenue South .4695
I 172 941-1 E:evenlh Avenue South
.4695
I] : 173 941-8 Eleventh Avenue South .6553
174 941-7 Eleventh Avenue South .6553
175 941-6 Eleventh Avenue South .5000
I 176 914 1-5 Eleventh Avenue South .5000
I J ; Subtotal 24.7426
~!
,'"
I
- -, \
!
...
.
-
i .
J. WESTBROOKE-WEST CONDOMINIUM
EXHIBIT A
] (Page 5 of 6)
]
-
_ Garage Number -- -... Garage Number On Percentage
} Per Floor Plan G araqe Door
I
1 177 64 .0203
178 63 .0203
179 62 .0203
I 180 61 .0203
I
JI .........--.. -181 \ . 60 .0203
182 59 .0203
183 58 .0203
164 57 .0203
] 185 56 .0203
186 55 .0203
187 54 . 0203
] 18B 53 .0203
189 46- .0203
+ 190 45 .0203
191 44 . 0203
192 43 .0203
193 42 .0203
194 41 .0203
J1 195 52 .0203
196 Sl .0203
197 50 .0203
J 198 ---ASSOCIATION------- 49 ----MAINTENANCE ---- .0203
199 48 .0203
200 47 .0203
201 33 .0203
J 202 34 .0203
203 3S .0203
204 ---ASSOCIA TIQN------- 36 ----CARETAKER------- .0203
J 205 37 .0203
206 38 .0203
207 39 .0203
206 40 .0203
J 209 25 .0203
210 26 .0203
211 27 .0203
] 212 -28 .0103
213 29 .0203
214 30 .0203
215 31 .0203
216 32 .0203
217 7 .0203
218 8 .0203
219 9 .0203
Subtotal 0.8729
..
I l" . " ~
.
. .
.
\
I. WEST8ROOKE-WEST CONDOMINIUM
EXHlBIT A
-
- .
I - , (Page 5 of t:.)
--'
"'-
.;...."..
"""'I"
I , ,
-
Garage Number Garaae Number On
Per Floor Plan Garaqe Door Percentage
I
220 10 .0203
I 221 11 .0203
222 12 .0203
, ; ;'L... 223 1 .0203
.r--~'... ~ 224 2 .0203
I 225 1 3 .0203
226 ~ . 0203
227 5 .0203
I 228 6 .0203
229 13 .0203
230 ----ASSQCIATION------14 -.>.-MAINTENANCE------ .0203 ;
231 15 .0203
I 232 15 .0203
233 . 17 .0203
234 18 .0203
:. 235 24 - .0203
236 23 .0203
237 22 .0203
238 21 .0203
239 20 .0203
240 ---ASSOCIA T ION------- 19 ---CARET AKER-------- .0203
Subtotal 0.4263
I
I
GRANO TOTAL 100%
II
\ .-t-;_
I i ..'\'. L
i ') d~- - .
~
I I Carages Assigned to the Westbrooke-V/est Condominium Association are
! as follows:
Garage If 19 & #36 - Caretaker Garages (Floor Plan #240 & 1t204)
Garage #14 & #49 - Maintenance Garages (Floor Plan #230 & #'198)
I Condominiums Assigned to the Westbrooke-West Condominium Association
are as follows:
i iDS - 906-2 Ninth Avenue South
. ,_', .105 - 911-4 Eleventh Avenue South
\)~(: .;- <::~, "-
, . ,. - ~ ' ......
"'~--". --,-, -.'
. ,'.,",,!:: .', -1-"'1: .~- ~~' . .
\ "J;/;: :'-'1"1.r"",,':-~"'I..,_fi.~'=i_.~' ;tr"~; ......~,-''T
'-.. '.u; '~:'"-I'''''''. ~,_~ -.'-~-""'.F- .",.....
I
.
Plan for
Housing I mprovement Area No.3
(Valley Park Condominiums)
City of Hopkins, Minnesota
Draft for Hearing on Area Ordinance
. December 10, 1998
Prepared By
EHLERS
& ASSOCIATES INC
.
. Housil1g Improvement Area No.3
1. Purpose
The purpose of this plan is to provide the information required by State Law and the
City of Hopkins to establish a housing improvement area and to create a plan for
financing improvements to housing units in the area.
In 1994, the City of Hopkins received special legislative authority to establish housing
improvement areas. On June 7, 1994, the City Council adopted Resolution #94-55
approving the special legislation and making it effective.
The legislation does not require a specific plan for the housing improvement area, but
does set forth requirements for using these powers. This plan has been prepared to
serve as a reference for decision making. It contains the information needed to
comply with statutory requirements. It also contains information needed by the City
Council and the property owners to understand the implications of establishing an
area and undertaking improvements.
2. Definitions
. Certain terms are used throughout this plan and have the following meaning:
A. Act. The special legislation relating to the Hopkins Housing Improvement
Area, Minnesota Laws 1994, Chapter 587, Article 9, Sections 22 through 33.
B. Area. Housing Improvement Area No.3.
C. Association. Valley Park Condominium Association, the homeowners
association representing property owners in the Area.
D. Bonds. Bonds issued by the City to finance the Project and secured by fees
collected from the Area.
E. illY. The City of Hopkins.
F. Fees. Revenues collected from the Area to pay for the cost of the Project.
G. Ordinance. The ordinance adopted by the City establishing Housing
Improvement Area No.3.
H. Project. The improvements to housing units in the Area proposed to be
undertaken through this plan.
e I. Project Costs. The total cost of designing, building and financing the Project.
including the costs establishing the Area and local administration.
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. HOu<ing h"pmwm,,,' A,,,, No. J
J. Resolution. The resolution adopted by the City imposing fees on units in the
Area.
3. Housing Improvement Area No.3
A. Oescri ption of Area
The Westbraoke neighborhood is located in the southern part of Hopkins. The
neighborhood contains almost 1.300 condominium and townhouse units
located in five housing developments. Each development is represented by a
separate homeowners association. Housing Improvement Area No.3 covers
the housing units, garage units and common property of the Valley Park
Condominiums. The boundaries of the Area are shown in Figure 1.
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~g e~. ''-. ,,'}C.'.
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-. "II Condo No. 459 ~. ").., ,~":-.-
~'.' .. _ ~ Westbrooke. West '. ~ 41'.ltflJ: "'<:\
~,::" -,' Condominium {I 1 i'ti'On, ",,-
- Wi: "
m 1\. ' _;oft
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ffi\, l. """L _~OLO ~s;,rTlEn~,:';.J, dii
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Figure 1
Housing Improvement Area No.3
There are 176 housing uni ts in the Area.
.
Page 2
. Housing Impm'vement A rea No.3
Adequacy of Petition
B.
The City has received sufficient petitions from property owners in the Area to
initiate the process to establish a housing improvement area. As of the date of
this Plan, the City has received petitions signed by persons representing over
50% of the owners of housing units that would be subject to fees within the
Area. The petition exceeds the 25% owner threshold required by the Act to
initiate the process.
c. Ordinance Establishing Area
On December 15, 1998, the City will conduct a public hearing on the adoption
of an ordinance to establish the Area. Notice of the hearing was mailed to the
owner of each housing unit proposed for inclusion in the area and published
in the Hopkins-Minnetonka Sun-Sailor pursuant to the statutory requirements.
4. Findings
The City has carefully investigated the need for the proposed housing improvement
area and the alternatives to the proposed plan of finance. These efforts enable the
. City to find that:
. Proposed improvements could not be made without the creation of the Area.
. The creation of the Area is needed to maintain and preserve housing units.
The follOWing documents provide information supporting these findings:
. Letter to Jim Kerrigan and Kersten Elverum, Westbrooke Rehabilitation
Financing Analysis, prepared by Springsted Incorporated. February 14, 1992.
. Housing Improvements in the Westbrooke Neighborhood. Creating a plan of
Action, Hoisington Koegler Group, November 1993.
. Memorandum to Mayor and City Council from Kersten Elverum on
Westbrooke Work Plan. April 26, 1993.
. Preliminary Application - Housing Improvement Area Financing.
5. Description of Improvements
The City has consulted with residents of the Area and the Association to define the
Project and develop a list of proposed improvements. Figure 2 contains a list of the
. type of improvements proposed to be made. This list was provided by the
Association.
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. Housing Improvement Area No.3
Mansard Replacement
Replace Patio Doors and Rails
Replace Downspouts
Upgrade Entries
Repair and Paint Stucco Timbers
Sidewalk Replacement
Rebuild Parking Lots
Construct Trash Buildings
Rehabilitate Garages
Figure 2
List of Improvements
. The total cost of these improvements including engineering and construction
contingency is estimated to be $1.419,650. The estimated costs are based upon the
best information now available. It is anticipated that the items of cost of each
improvement may decrease or increase, but that the total cost of improvements will
not exceed the amount stated here.
All of the proposed improvements are to be made to the common elements of
condominiums in the Association. The City is not aware of any units that have
completed the proposed improvements.
6. Fees
A. Basis for imposing fees.
The City will impose fees on the housing units in the Area at a rate, term and
amount sufficient to produce revenue required to finance the Project. Each
unit will be levied a fee representing an equal. pro-rata share of the total costs.
The fees will be imposed according to percent of undivided interest in the
property of the Association. [The calculation of Total and Annual Fees will be
added to the plan prior to the hearing on the fees.]
.
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. Housing Improvement Area No.3
B. Amount to be charged against properties in area.
Construction Costs $1.345.150
Professional Services 74,500
City Administration 10,000
Finance/Legal 35,000
Underwriter's Discount 31.000
Capitalized Interest 77.000
Other 1.350
Total Costs $1,575,000
Figure 3
Total Costs To Be Charged Through Fees
. The amount to be charged against properties in the Area equals the estimated
cost of improvements (see Figure 2) plus the costs related to financing the
Project and city administrative costs. The Project Costs are described in Figure
3.
The resolution imposing the fees will be based on estimated costs and terms
of financing. The fees will not exceed this amount. The City reserves the
right to reduce the fees if actual project costs reasonably allow for lower fees
prior to the time that the fees are first certified to the County for initial
collection.
c. Ability To Prepay
The Total Fee may be prepaid within thirty (30) days of the effective date of
the resolution imposing the fees. The summary of the resolution sent to each
property owner shall contain the specific dates for the prepayment period.
The City may allow a credit for the prepayment. If allowed. the City will use
prepaid fees to reduce the size of the Bonds. Units that exercise the option to
prepay shall not be subject to additional fees for this Project.
D. Annual Fee.
. All units not exercising the ability to prepay shall pay fees on an annual basis
as described in this section. The Annual Fee for each unit represents the
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. HOUSIng lmprovemem A /'ea No.3
payment of the Total Fee plus interest in equal annual installments over a _-
year period. The rate of interest used to determine the Annual Fee will be
equal to the average interest rate on the Bonds plus an amount needed to
produce total fee revenue collected from all units in each year that equals
105% of the average annual debt service on the Bonds. The City will provide
each property owner subject to the Annual Fee a written statement of the
applicable amount within thirty (30) days of the issuance of the Bonds.
The fees will be imposed in 1999 for initial collection with taxes payable 2000,
The City anticipates that fees will remain in effect for a period of
years. through taxes payable 20_. The City. in consultation with the
Association. may reduce or eliminate the final year of fee collection if
revenues from the fees are not needed to pay debt service on the Bonds.
The estimated Total and Annual Fees for various types of units in the
Association appear in Figure 4. The Total Fee may be less, but will not be
more, than the amount shown. The Annual Fee is a current estimate, for
illustration purposes only. The actual Annual Fee could be somewhat higher
or lower, depending on the actual interest rates on the Bonds.
.
Figure 4
Total and Annual Fees
. E. Units proposed to be exempt from portion of the fee.
No units are proposed to be exempt from any portion of the fee.
Page 6
.--
. Housing Improvement Area No. J
Adequacy of Petition
F.
The City has received a petition to conduct a public hearing on imposing fees
on units in Housing Improvement Area No.3. As of the date of this Plan, the
City has received petitions signed by persons representing over 50% of the
owners of housing units that would be subject to fees within the Area. The
petition exceeds the 25% owner threshold required by the Act to initiate the
process.
G. Resolution Imposing Fees
On January _' 1998, the City will conduct a public hearing on the adoption of
a resolution imposing fees. Notice was mailed to the owner of each housing
unit proposed for inclusion in the area and published in the Hopkins-
Minnetonka Sun-Sailor pursuant to statutory requirements.
7. Finance Plan
The City will issue Bonds to finance the Project. The Bonds will be taxable general
obligations of the City. backed by the City's full faith and credit. Revenue to pay debt
. service will come from revenue collected through the payment of Annual Fees.
It is anticipated the Bonds will be issued in the second quarter of 1999.
The Project will be undertaken by the Association. The City will disburse funds to the
Association in accordance with the Development Agreement.
The City anticipates that m(!lnies collected from the payment of Annual Fees
remaining after the payment of all principal. interest and related costs on the Bonds
will be paid to the Association for construction of future housing improvements.
This issue will be addressed in the Development Agreement.
The preliminary analysis of the finance plan appears in Appendix A.
8. Agreements With Association
A. Development Agreement
The City and the Association shall enter into agreements necessary to execute
this plan and to provide for the administration of the Project.
B. long Range Finance Plan
. Prior to the adoption of the Resolution. the Association shall submit to the
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. JlolIsing Improvement Area No.3
City a financial plan prepared by an independent third party that provides for
the Association to finance maintenance and operation of the common
elements and a long-range plan to conduct and finance capital improvements.
c. Annual Reports
At a minimum, the Association must. by August 15, annually submit a copy of
its audited financial statements to the City. The City may in the Ordinance
and/or in the Development Agreement require the submission of other reports
and information.
.
.
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