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CR 99-26 2nd Reading-Ordinance 99-824 Amending Ordinance 97-796 Creating Housing Improvement Area 2- Westbrooke Patio Homes CITY OF January 27, 1999 ~ Council Rpt #99-026 HOPKINS . SECOND READING - ORDINANCE 99-824 AMENDING ORDINANCE NO. 97-796 CREATING HOUSING IMPROVEMENT AREA NO.2 - WESTBROOKE PATIO HOMES Proposed Action Staff recommends approval of the following motion: Adopt resolution 99-009 approving second reading of ordinance 99-824 establishing Housing Improvement Area NO.2 - Westbrooke Patio Homes. With this motion, the ordinance will be published and the 45 veto period will begin. If not vetoed, the ordinance will take effect March 19, 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. 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 publ ic 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. Primnrv 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 underLaken. AJso, 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 stafIto continue to research this issue. A detailed description orthe project including the costs of the improvements and the proposed fee to be charged to owners will be discLlssed at the February 16, 1999, City Council meeting. There have been no changes made to the proposed ordinance since the first reading. -- -.. .. CITY OF HOPKINS RESOLUTION NO. 99-009 RESOLUTION APPROVING ORDINANCE NO. 99-824 AMENDING ORDINANCE NO. 97-796 ESTABLISI-llNG HOUSING IMPROVEMENT AREA NO.2 BE IT RESOLVED by the City Council ("Council") of the City of Hopkins ("City") as follows: Section 1. 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 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 City Council of the City approved the Act. 1.03. By Ordinance No. 97-796 (the "Enabling Ordinance") approved February 4, 1997, the . City establish Housing Improvement Area No. 2 in order to facilitate certain improvements to property known as the "Westbrooke Patio Homes," all in accordance with the Housing Improvement 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 Improvement Act 1.05 The Council has reviewed Ordinance No. 99-824 amending Ordinance No. 97-796 relating to Housing Improvement Area No.2, and on this date has held a public hearing regarding such ordinance in accordance with the Act, at which all interested persons were given an opportunity to be heard. Section 2. Ordinance Approved. 2.01. Ordinance No. 99-824 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. 99-824. Approved by the City Council of the City of Hopkins this 16th day of February, 1999. . Mayor ATIEST: City Clerk SJB-154013 HPll0-5B - . 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 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. By Ordinance No. 97-796 (the "Enabling Ordinance") approved February 4, 1997, the . City establish Housing Improvement 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 Improvement 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 Improvement Act. L05. The City has consulted with the Westbrooke Patio Homes Association, Inc. and with residents in Housing Improvement Area No. 2 regarding the modification of the Enabling Ordinance in connection with certain Phase IT housing improvements to be constructed and financed under the Enabling Ordinance. 1.06. The Council has on January 19, 1999 conducted a public hearing, du1y noticed in accordance with the Housing Improvement Act, regarding adoption of this amendment to the Enabling Ordinance at which all persons, including owners of property within Housing Improvement Area No.2, were given 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: SJB-154022 HPllO-S8 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 11at roofs on garage buildings Phase Two: Building exteriors DrlT,'8'.vayand parking impnwcments Street and drive replacement. including parking Curb, gutter and concrete Drainage and utility, including storm drains, retaining wall replacement. silt fencing, sanitary sewer work Landscaoing repairs and corrections Building exteriors: residing Fencing, including orivacy and patio fences, deck railings Reolace gas meter bollm-ds Furnace duct chasing modifications Contingency, including wall repairs, 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 flreater 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 iliat unit. After such 30 day prepayment period the Housing Improvement Fee (or unpaid portion thereat) shall not he prcpayable. 2.03. Section 6.01 of the Enabling Ordinance is modified as follows (additions underlined, deletions shown as strike out): 6.01. At any time after a contract with Westbrooke Patio Homes Association, Inc. for constmction of all or part of the Housing Improvements has been entered into or the work has heen ordered, and the 30 day period for prepayment of the Housing Improvement Fee nrepayment period has expired as described in Section 5.04 hereof, the Council may issue bonds in the plincipal 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 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 HP1l0 55 2 -- .--- - -- r . 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 Fee in connection with Phase IT of the Housing hnprovements have a right to veto this amendment to the Enabling Ordinance if owners of at least 35 percent of the housing units within Housing hnprovement Area No.2 ftle an objection with the City Clerk before the effective date of this ordinance; and notice that a copy of this ordinance is on ftle with the City Clerk for public inspection. Section 4. Ordinance in effect. The Enabling Ordinance remains in effect and is not modified except as expressly provided herein. Section 5. EtJective Date. This amendment to the Enabling 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 19, 1999, and fmally read, approved and adopted and ordered 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 LoU; 2 through 181, inclusive, Block 1 and Lots 2 through 331, inclusive, Westhrooke Patio Homes, according to the recorded plat thereof, Hennepin County, Minnesota. . . SJB1l6192 HPllO-55 4