1999-002CITY OF HOPKINS
RESOLUTION N0.99-002
RESOLUTION APPROVING A HOUSING IMPROVEMENT FEE FOR
HOUSING IMPROVEMENT AREA NO. 3 (VALLEY PARK) PURSUANT TO
1994 MINNESOTA LAWS, CHAPTER 587, ARTICLE 9, SECTIONS 22
TTIROUGH 31
BE IT 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 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. 9455 adopted June 7, 1994, the Council approved the Housing
Improvement Act.
1.03. By Ordinance No. 99-822 adopted January 5, 1999 (the "Enabling Ordinance"), the
Council established Housing Improvement Area No. 3 in order to facilitate certain improvements to
property known as the "Valley Park Condominiums," all in accordance with the Housing
Improvement Act.
1.04. 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 imposition of a housing improvement fee for
Housing Improvement Area No. 3.
1.05. The Council has on January 5, 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. 3, were given an
opportunity to be heard.
1.06. Prior to the date hereof, Westbrooke-Wept Condominium Association, Inc., d.b.a.
Valley Park Condominium Association (the "Condominium Association")has submitted to the City
a financial plan prepared by Dunbar Strandness, Inc., an independent third party, acceptable to the
Ciry and the Condominium Association, that provides for the Condominium Association to finance
maintenance and operation of the common elements in the Valley Park Condominiums and along-
range plan to conduct and finance capital improvements therein, all in accordance with Section 25
of the Housing Improvement Act.
1.07. For the purposes of this Resolution, the terms "Housing Improvement Area No. 3"
and "Housing Improvements" have the meanings provided in the Enabling Ordinance.
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Section 2. Housing Improvement Fee Imposed.
2.01. The City hereby imposes a-fee on each housing unit within Housing Improvement
Area No. 3 (the "Housing Improvement Fee ), as specified in Exhibit A attached hereto, which
Housing Improvement Fee is imposed on the basis of each housing unit's Percent of Undivided
Interest in Common Elements, Votes and Facilities, as described in Exhibit A to Condominium No.
459, Declaration for Condominium, Valley-Park Condominium, dated as of October 13, 1983.
2.02. The owner of any housing unit against which the Housing Improvement Fee is
imposed may, at any time within 30 days after the effective date of this Resolution, pay all or a
portion of the total Housing Improvement Fee imposed against such housing unit as specified 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 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 Housing Improvement Fee
shall be payable in equal annual installments extending over a period of 2019 years, the first of the
installments to be payable in calendar year 2000, which annual payment shall be deemed to include
interest on unpaid total 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. 3 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 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 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 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 Housing Improvement Fee imposed against each housing unit shall not exceed
the amount specified in Exhibit A hereto; provided, however, that the 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 Housing Improvement Fee on the basis described in Section 2.01 hereof; and
further provided that if any housing unit owners have prepaid the 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 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. 3. Within 30 days after issuance
of the Bonds the City Clerk shall mail to 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.
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Section 3. Notice of Right to File Obiections.
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. 3: a
summary of this Resolution; notice that owners subject to the 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. 3 file an objection with the City 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 Housing Improvement Fee.
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 5th day of January, 1999.
Charles D. Redepemm~g, ayor
ATTEST:
^f Terry Ob~(aier, City Clerk
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EXHIBIT A TO RESOLUTION N0.99-002
•
•
Housing Unit
1-Bedroom/1 bath down
1-Bedroom/1 bath up
2-Bedroom/1 bath down
2-Bedroom/1 bath up
Garage
Unit's
Ownershiu Share Total Fee
.4695% $7,394.63
.5000% 7,875.00
.6184% 9,739.80
.6553% 10,320.98
.0203% 319.73
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EXHIBIT B TO RESOLUTION N0.99-002
[Description of annual fee for each housing unit; to be attached upon issuance of the Bonds in
accordance with Section 2.05 of this Resolution.]
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