1997-009
CITY OF HOPKINS
RESOLUTION NO. 97-9
RESOLUTION APPROVING A HOUSING IMPROVEMENT FEE FOR
HOUSING IMPROVEMENT AREA NO.2, PURSUANT TO 1994 MINNESOTA
LAWS, CHAPTER 587, ARTICLE 9, SECTIONS 22 THROUGH 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. 94-55 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. 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 regarding imposition of a housing improvement fee for Housing
Improvement Area No.2.
1.05. The Council has on February 4, 1997 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 heard.
1.06. Prior to the date hereof, Westbrooke Patio Homes Association, Inc. (the "Association")
has submitted to the City a financial plan prepared by Construction Consulting and Inspections, Ltd.,
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 and a long-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.2" and
"Housing Improvements" have the meanings provided in the Enabling Ordinance, provided that the
term Housing Improvements includes only those improvements described as Phase One under Section
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4.01 of the Enabling Ordinance.
Section 2. Housing Improvement Fee Imposed.
2.01. The City hereby imposes a fee on each housing unit within Housing Improvement Area
No.2 (the "Housing Improvement Fee"), as specified in Exhibit A attached hereto, which Housing
Improvement Fee is imposed on the basis of the total cost of the Housing Improvements to be financed
by the 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 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. Ifnot prepaid in accordance with Section 2.02 hereof, the 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 1998, which annual payment shall be
deemed to include interest on unpaid 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 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.
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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.2. 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
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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 Housing Improvement Fee have a right to veto this
Resolution ifowners of at least 35 percent of the housing units within Housing Improvement Area No.
2 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,
1997, 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 4th day of February, 1997.
ATTEST:
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EXHIBIT A TO RESOLUTION NO. 97-9
Total fee per housing unit: $6,905
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EXHIBIT B TO RESOLUTION NO. 97-9
[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.]
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Annual fee per Housing Unit: $ 693 . 38
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