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CR 95-33 Resolution 95-011 i Y \ 0 :m: February 15, 1995 .y 0 P K \ ~ c:, Council Rpt. #95-033 e RESOLUTION 95-011 AMENDING RESOLUTION 94-074- HOUSING ADVISORY BOARD FOR MEADOW CREEK CONDOMINIDMS Proposed Action Staff recommends approval of the following motion: Adopt resolution number 95-011 amending resolution 94-074 authorizing establishment of the Westbrooke Improvement Area Advisory Boards. With this motion, Meadow Creek Condominiums will appoint a five member advisory board with two owner-occupants and three investor-owners. Overview In August of 1994, the Hopkins City Council approved resolution 94-074 approving the establishment of Housing Advisory Boards for the Westbrooke Patio Homes and Meadow Creek Condominium Associations. The Advisory Boards serve to guide the process of establishing special service districts in the area and monitor the construction projects. One of the specific requirements detailed in resolution 94-074 was that a majority of the members of the advisory boards be owner-occupants. While this requirement was acceptable to the Patio e Homes whose owner-occupant ratio is above 65%, Meadow Creek Condominiums has asked that they be allowed to have only two owner-occupants out of a five-member board. This would be more reflective of the overall composition of the association which is currently 33% owner occupied. Primary Issues to Consider The requirement that the majority of the members of the Board be owner-occupants was intended to give owner-occupants more control over the improvement project. In reality, the majority of the decisions regarding the scope of the improvement project will be made by the entire membership though the association meetings, public hearing process and their ability to veto the creation of the district and the subsequent fees rather than by the Advisory Board, It is staffs opinion that the Advisory Boards should reflect the current make-up of the association and that resolution 94-074 should be amended to allow for 40% representation by owner-occupants and 60% by investor owners. Supportine Information o Resolution 94-74: ) "..6 Memo f~0m DQug Strandness, Property Manager for Meadow Creek Condominiums . /~. 'C.' . I ,/ '.,. - I 1/" ',/" -/ VL 11::; .~ /t4'''- Kers~n Elverum;lIo sing Coordinator I I . - CITY OF HOPKINS Hennepin County, Minnesota RESOLUTION NO. 95-011 RESOLUTION AMENDING RESOLUTION 94-074 AS RELATES TO THE HOUSING ADVISORY BOARD FOR THE MEADOW CREEK CONDOMINIUM ASSOCIATION WHEREAS, the City of Hopkins has secured approval of legislation allowing for the establishment of a residential special service district: and WHEREAS, this legislation allows the City Council to create an advisory board in conjunction with the creation of a housing improvement area; and WHEREAS, the City Council has previously approved Resolution 94-074, approving establishment of housing advisory boards for both the Westbrooke Patio Homes Association and the Meadow Creek Condominium Association, and that members to these advisory boards shall be appointed by the respective association boards, and that such members shall be property owners within their e respective associations, and that a majority be owners/occupants; and WHEREAS, in discussions with the Meadow Creek Condominium Association it has been determined that it will not be possible to meet the requirement that the majority of advisory board members be owners/occupants, as the majority of the owners are presently investor-owners. NOW TH EREFORE, BE IT RESOLVED by the City Council of the City of Hopkins, that Resolution 94-074 is amended to allow the majority of the members of the Meadow Creek Association Special Service District Advisory Board to be 60 percent investor-owners and 40 percent owner-occupants. Adopted this day of . 1995. Charles D. Redepenning, Mayor ATTEST: e James A. Genellie, City Clerk . CITY OF HOPKINS Hennepin County, Minnesota RESOLUTION NO: 94-74 RESOLUTION APPROVING ESTABLISHMENT OF HOUSING ADVISORY BOARD FOR THE WESTBROOKE PATIO HOMES & MEADOWCREEK CONDOMINIUM ASSOCIATION WHEREAS, the city of Hopkins has secured approval of legislation allowing for the establishment of residential special service districts; and WHEREAS, this legislation allows for the City Council to create an advisory board in conjunction with the creation of a housing improvement area; and WHEREAS, the City of Hopkins has been working with both the MeadowCreek Condominium Association and the Westbrooke Patio Homes Association concerning the creation of a special service district. NOW THEREFORE, BE IT RESOLVED by the City Council of the e City of Hopkins that the following advisory boards are authorized to be formed: 0 The Westbrooke Patio Homes Association Special Service District Advisory Board; 0 The MeadowCreek Association Special Service District Advisory Board. BE IT FURTHER RESOLVED that members to these advisory boards shall be appointed by the individual respective association board, that such members shall be property owners within their respective associations, and that a majority be owner/occupants. NOW BE IT FURTHER RESOLVED that said advisory board shall act in an advisory capacity to both the City Council of the City of Hopkins and their respective association board in connection with the planning and construction of housing improvements including, but not limited to, the following responsibilities: 0 recommending to the respective association board an individual or firm to be hired as project manager; 0 assist in the physical inventory of property and development of scope of work; e 0 coordinate activities in conjunction with preparation of a long range physical improvement plan; -- -- ~ Meadow Creek (612) 935-9565 e . ' Condominiums -~ 823 Old Settlers Tmij. Hopkins, MN 55343 February 16. 1995 City Council City of Hopkins 1010 South First Street Hopkins, MN 55343 Re: Meadow Creek Housing Improvement Area Dear Council Members: Thank you for the opportunity to appear before you next Tuesday, February 21st. Before that meeting. I would 1 i ke to take the opportunity to outline the recent history of, and some of the issues related to. the proposed Meadow Creek Housing Improvement Area. - Background Meadow Creek Condominiums has been working for over two years on the capital improvement program for which it is requesting City bond financing. Specifically: 1993: Completed an in-depth inventory of the physical needs of Meadow Creek, and a long- term replacement plan. Based on these. we identified a lis t of major improvements which could not be handled through the normal operating budget nor paid for out of the Association's replacement reserve. This 1 i s t was the first outline of the capital improvement program. January to Completed the details of the capital improve- Augus t , 1994: ment program. and undertook various engineering studies to address issues related to the program. Analyzed the options available to the Association for financing the program. September. 1994: Ma i 1 ed a detailed summary of the capital improvement program to Association members, . Meadow Creek Condominiums is {he business name of Westbrookc Condominium ASSoc13lion Letter to Hopkins Ci ty Counci.l Page '} e February 16. 1995 along wi th a description of the options for financing it. October, 1994: Held a special meeting for Association members to obtain comments and suggestions on the program and the financing options. November, 1994: Mailed a lengthy letter to Association members recommending that the capital improvement program be undertaken and that it be financed through the City of Hopkins. The letter detailed the Board's reasonlng In making its recommendation. December, 1994: Held a two-and-a-half-hour discussion of the capital improvement program and the proposed City financing. Put the program and the financing to a vote of the Association members. of the total Association membership, 47% voted for the program and the financing, and 19% voted against. e January, 1995: Made sma 11 modifications to different areas of the capital improvement program In response to concerns and suggestions put forward at the annual meeting, and finalized the construction budget for the program. Contracted wi th an engineering firm, and began the preparation of bid documents for the program. .January and Requested petitions from Association members February, 1995: to start the Ci ty financing process. We received petitions from 25% of the Association members within four ( 4 ) business days of mailing our request, and to date, we have received petitions from 55% of the members. Importance of the Capital Improvement Program Meadow C:reek Condominiums is at a critical juncture. If we can complete the capital improvement program In 1995 wi t h the assistance of the Ci ty of Hopkins, Meadow Creek wi 11 be In excellent shape. All deferred maintenance wi 1 I have been addressed, and Meadow Creek's replacement reserve will be fu 11 y funded. I f we do not complete the program in 1995, Meadow Creek wi 11 . -- ---- I Letter to Hopkins City Counci] Page 3 e February 16, 1495 continue to suffer physically and financially. In addition, we wi 11 lose our eligibility for FHA mortgage Insurance. This wi 11 immediately reduce resale values by 15% to 30%, and wi 11 undermine the trend towards rapidly increasing owner-occupancy. Advisorv Committee The Board of Meadow Creek Condominiums would 1 i ke to establish a five-member Advisory committee in order to comply with the requirements related to the proposed Housing Improvement Area. The Board would like the Committee to be composed of three ( 3 ) investor owners and two ( 2 ) resident owners. In the composition of the Board itself, the Board has worked to ensure that i t reflects the composition of the Association membership. Currently, three out of nIne Board members are resident owners wh i Ie 33.5% of the membership IS resident owners. As a result, the Board would like the Advisory Committee to also reflect the composition of the Association. Accordingly, the Board respectfully requests that the council amend its Resolution No. 94-74 by deleting the requirement that a e majority of the Committee be owner-occupants. I look forward to discussing this along with any other issues when I appear before you. Thank you for your continued support and encouragement. Sincerely, ~sfC5t~~~ Dougla D. Strandness Property Manager .