Loading...
CR 99-03 2nd Reading Ordinance 99-822 Establishing Housing Improvement Area 3-Valley Park Condominiums CITY OF - December 30, 1998 NoPKINS Council Rpt #99-003 . SECOND READING - ORDINANCE 99-822 ESTABLISHING HOUSING IMPROVEMENT AREA NO.3 - V ALLEY PARK CONDOMINIDMS ProDosed Action Staff recommends approval of the following motion: Adopt resolution 99-001 approving second reading of ordinance 99-822 establishing Housing Improvement Area No.3 - Valley Park Condominiums. With this motion, the ordinance will be published and the 45 veto period will begin. If not vetoed, the ordinance will take effect February 20, 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, Section 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. A public hearing and the first reading of the ordinance to establish a housing improvement area for the Valley Park Condominiums was held on December 15, 1998. Before the ordinance is adopted a second reading must be held and the ordinance published. The owners are then given the opportunity to veto the creation of the district if objections are filed by at least 35 percent of the owners within a 45-day period. Primary Issues to Consider There have been no changes made to the proposed ordinance since the first reading. . _..-- . CITY OF HOPKINS RESOLUTION NO. 99-001 RESOLUTION APPROVING SECOND READING OF ORDINANCE NO. 99-822 ESTABLISHING HOUSING IMPROVEMENT AREA NO. 3 BE IT RESOLVED by the City Council ("Council") of the City of Hopkins ("City") as follows: Section l. Recitals. 1.01. The City is authorized under 1994 Minnesota Laws, Chapter 587, Article 9, Sections 22 through 31 (the "Act") to establish by ordinance a housing improvement area within which housing improvements are made or consll1Icted 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 City Council of the City approved the Act. . 1.03. In accordance with the Act, at least 25 percent of the owners of housing units in an area known as "Valley Park Condominiums" have ftIed a petition with the City Clerk requesting a public hearing regarding establishment of Housing Improvement Area NO.3 in order to finance certain housing improvements in such area. 1.04. The Council has reviewed Ordinance No. 99-822 establishing Housing hnprovement Area No. 3 and on December 15, 1998 held a public hearing regarding such ordinance in accordance with the Act, at which all interested persons were given an opportunity to be heard, and approved the first reading of the ordinance. Section 2. Ordinance Approved. 2.01. Ordinance No. 99-822 is hereby approved 2.02. The Mayor and City Manager are hereby authorized and directed to take any and all other steps necessary or convenient in order to carry out the intent of Ordinance No. 99-822. Approved by the City Council of the City of Hopkins this 5th day of January, 1999. Mayor . A TrEST: City Clerk SJB 154805 HPllO-59 I . CITY OF HOPKINS ORDINANCE NO. 99-822 AN ORDINANCE ESTABLISHING HOUSING IMPROVEMENT AREA NO. 3 (V ALLEY 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 determined 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 Improvement Act. 1.04-. The City has consulted with the Westbrooke-West Condominium Association, Inc., d.b.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 improvements to be constructed and financed under this ordinance. Section 2. Findings. 2.01. The Council fmds 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 hnprovement 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 fmds that, without establishment of Housing Improvement Area No.3, the Housing hnprovements (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. SJB 153914 HPll0-59 . Section 3. Housing 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 Improvement 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 Improvements" 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 descri bed in Secti on 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 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 hnprovement Act, impose a fee on the housing units within Housing Improvement Area No.3, at a rate, term or amount suftlcient to produce revenues required to provide the Housing Improvements (hereinafter referred to as the "Housing . Improvement 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 Undivided Interest in Common Element", Votes and Facilities, as described in Exhibit A to Condominium No. 459, Declaration for SJB-153914 HPllO 59 . October 13. 1983 Condominium, Westbrooke-West Condominium, dated as of 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 hnprovement 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 6 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. 1 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 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. The 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 the Condominium Association for construction of all or part of the Housing Improvements has been entered into or the work has been ordered, and the 3D-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 Reports. 7.01. On August 15, 1999 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.3, Valley 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 reports or information at the times and as required by any contract entered into hetween 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.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 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 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 fmally read, approved and adopted and ordered published at a regular meeting of said Council on January 5, 1999. City Clerk Mayor Approved as to fonn: City Attorney . SJB-153914 HPllO 59