1999-005CITY OF HOPKINS
RESOLUTION N0.99-005
RESOLUTION APPROVING A HOUSING IMPROVEMENT FEE
FOR HOUSING IMPROVEMENT AREA N0.2, FURSUANT
TO 1994 MINNESOTA LAWS, CHAPTER 587,
ARTICLE 9, SECTIONS 22 THROUGH 31
BE TI' RESOLVED by the City 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 azea 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 azea.
1.02. By Resolution No. 9455 adopted June 7, 1994, the Council approved the Housing
Improvement Act.
1.03. By Ordinance No. 97-796 adopted February 4, 1997 (the "Enabling Ordinance"), the
Council established 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. By Ordinance No. 99-824 adopted February 16, 1999, the Council amended the
Enabling Ordinance in connection with certain Phase II housing improvements to be constructed
and financed under the Enabling Ordinance.
1.05. 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. 2 have filed a petition with the
City Clerk requesting a public hearing regazding imposition of a Phase II housing improvement fee
for Housing Improvement Area No. 2.
1.06. The Council has on February 16, 1999 conducted a public hearing, duly noticed in
accordance with the Housing Improvement Act, regarding adoption of this resolution at which all
persons, including owners of property within Housing Improvement Area No. 2, were given an
opportunity to be heazd.
1.07. Prior to the date hereof, Westbrooke Patio Homes Association, Inc. (the
"Association") has submitted to the City a financial plan prepared by Dunbar Strandness, Inc., an
independent third party, acceptable to the City and the Association, that provides for the
Association to finance maintenance and operation of the common elements in the Westbrooke Patio
Homes, including the Phase II improvements, and along-range plan to conduct and finance capital
improvements therein, all in accordance with Section 25 of the Housing Improvement Act.
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1.08. For the purposes of this Resolution, the term "Housing Improvement Area No. 2" has
the meaning provided in the Enabling Ordinance, and the term "Phase II Housing Improvements"
means the improvements specified as Phase Two in Section 4.01 of the Enabling Ordinance.
Section 2. Housing Imgrovement_Fee Imposed.
2.01. The City hereby imposes a fee on each housing unit within Housing Improvement
Area No. 2 (the "Phase II Housing Improvement Fee"), as specified in Exhibit A attached hereto,
which Phase II Housing Improvement Fee is imposed on the basis of the total cost of the Phse II
Housing Improvements to be financed by the Phase II Housing Improvement Fee divided by the
number of housing units in Housing Improvement Area No. 2 as of the date of this Resolution.
2.02. The owner of any housing unit against which the Phase II Housing Improvement Fee
is imposed may, at any time within _ 0~ days after the effective date of this Resolution, pay all or a
portion of the total Phase II Housing Improvement Fee imposed against such housing unit as
specif ed in Exhibit A hereto to the City Treasurer, without interest thereon; provided that if only a
portion is prepaid the prepayment amount must be at least 25% of the total fee for that unit. Any
Phase II Housing Improvement Fee (or a portion thereof) not prepaid in accordance with this
Section shall be payable solely in accordance with Section 2.03 hereof.
2.03. If not prepaid in accordance with Section 2.02 hereof, the Phase II Housing
Improvement Fee (or unpaid portion thereof) shall be payable in equal annual installments
extending over a period of 20 years, the first of the installments to be payable in calendar year 2000,
which annual payment shall be deemed to include interest on unpaid Phase II Housing
Improvement Fee from the date of this Resolution at an annual interest rate that will produce total
fee revenue collected from all units in Housing Improvement Area No. 2 in an amount that equals
105 percent of the debt service payable each year on bonds to be issued by the City issued to
finance the Phase II Housing Improvements (the "Bonds") in accordance with the Enabling
Ordinance and the Housing Improvement Act. Upon issuance of the Bonds, the City Clerk shall
cause to be prepared a schedule indicating the annual payment for each housing unit for which the
Phase II Housing Improvement Fee has not been prepaid, which schedule shall be attached as
Exhibit B to this Resolution in the City's official records.
2.04. The Phase II Housing Improvement Fee, unless prepaid in accordance with Section
2.02 hereof, shall be payable at the same time and in the same manner as provided for payment and
collection of ad valorem taxes, as provided in Section 26 of the Housing Improvement Act.
2.05. The Phase II Housing Improvement Fee unposed against each housing unit shall not
exceed the amount specified in Exhibit A hereto; provided, however, that the Phase II Housing
Improvement Fee may be reduced at any time before issuance of the Bonds, which reduction shall
be applied pro rata to each housing unit's Phase II Housing Improvement Fee on the basis described
in Section 2.01 hereof; and further provided that if any housing unit owners have prepaid the Phase
II Housing Improvement Fee prior to any reduction in that fee, the City shall promptly reimburse
such housing unit owner in the amount of the pro rata share of any reduction in the fee amount.
Upon any reduction in the Phase II Housing Improvement Fee, the City Clerk shall cause to be
prepared a revised copy of Exhibit A hereto, which shall be attached to this Resolution in the City's
official records and shall be promptly mailed to all housing unit owners within Housing
Improvement Area No. 2. Within 30 days after issuance of the Bonds the City Clerk shall mail to
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each housing unit owner a copy of Exhibit B to this Resolution showing the final annual fee
imposed against each housing unit for which the Housing Improvement Fee has not been prepaid.
Section 3. Notice of Right to File Objections.
3.01. Within five days after the adoption of this Resolution, the City Clerk is authorized
and directed to mail to the owner of each housing unit in Housing Improvement Area No. 2: a
summary of this Resolution; notice that owners subject to the Phase II Housing Improvement Fee
have a right to veto this Resolution if owners of at least 35 percent of the housing units within
Housing Improvement Area No. 2 file an objection with the Ciry Clerk before the effective date of
this Resolution; and notice that a copy of this ordinance is on file with the City Clerk for public
inspection.
Section 4. Effective Date,
4.01. This Resolution shall be effective 45 days after adoption hereof.
Section 5. Filing of Phase II Housing Improvement Fee.
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5.01. Within 30 days after issuance of the Bonds, but it no event later than November 15,
1999, the City Clerk shall file a certified copy of this resolution together with a final update of
Exhibits A and B hereto to the Hennepin County Director of Taxation to be recorded on the
property tax lists of the county.
Approved by the City Council of the City of Hopkins this 16a` day of February, 1999.
D.
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EXIiIBIT A TO RESOLUTION N0.99-005
Total fee per housing unit: $9,954
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EXHIBIT B TO RESOLUTION N0.99-005
[Description of annual fee for each housing unit; to be inserted upon issuance of the Bonds in
accordance with Section 2.05 of this Resolution.]
Annual fee per Housing Unit: $
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