1997-796:~ CITY OF HOPKINS
ORDINANCE N0.97-796
AN ORDINANCE ESTABLISHING HOUSING IMPROVEMENT AREA N0.2
PURSUANT TO 1994 NIINNESOTA 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. 2 as further
defined herein, 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 has consulted with the Westbrooke Patio Homes Association, Inc. and with
residents in Housing Improvement Area No. 2 regarding the establishment of Housing Improvement
Area No. 2 and the housing improvements to be constructed and financed under this ordinance.
Section 2. Findings.
2.01. The Council finds 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. 2 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 January 21, 1997 conducted a public hearing, duly noticed in
accordance with the Housing Improvement Act, regarding adoption of this ordinance at which all
persons, including owners of property within Housing Improvement Area No. 2, were given an
opportunity to be heard.
2.03. The Council finds that, without establishment of Housing Improvement Area No. 2, the
Housing Improvements (as hereinafter defined) could not be made by the homeowners association for,
or the housing unit owners in, the Westbrooke Patio Homes.
2.04. The Council further finds that designation of Housing Improvement Area No. 2 is
needed to maintain and preserve the housing units within such area.
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Section 3. Housing ~~rovement Area Defined.
3.01. Housing Improvement Area No. 2 is hereby defined as the area of the City legally
described in Exhibit A attached hereto.
3.02. Housing Lnprovement Area No. 2 contains 328 housing units as of the date of adoption
of this ordinance.
Section 4. Housing Improvements Defined.
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:
Phase One:
Replace roofs, including gable areas, on 40 buildings
Extend soffits on main buildings
Remove fireplace chimney housings and add rain collars
Install gutters and downspouts
Install draft walls in attics, insulate, and reroute exhaust vents
Replace flat roofs on garage buildings
Phase Two:
Building exteriors
Streets, driveway, and parking area improvements
4.02. Housing Improvements shall also be deemed to include:
(a) all costs of architectural and engineering services in connection with the activities
described in Section 4.01;
(b) all administration, legal and consultant costs in connection with Housing
Improvement Area No. 2; and
(c) costs of issuance of bonds to finance Housing Improvements under the Housing
Lnprovement 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 Improvement Act, impose a fee on the housing units within
Housing Improvement Area No. 2, at a rate, term or amount sufficient to produce revenues required to
provide the Housing Improvements (hereinafter referred to as the "Housing Improvement Fee"),
subject to the terms and conditions set forth in this Section. The Housing Improvement Fee may be
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imposed in phases, with one fee imposed for the improvements described as Phase One under Section
4.01, and a subsequent fee imposed for Phase Two.
5.02. Any Housing Improvement Fee shall be 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 Lnprovement Area No. 2 as of the date of any fee resolution.
5.03. Any 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. 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,
provided that if only a portion is prepaid, the prepayment amount must be at least 25% of the total fee
for that unit. After such 30-day period the Housing Improvement Fee (or unpaid portion thereof) shall
not be prepayable.
5.05. The resolution imposing any Housing Improvement Fee may provide that any fee (or
portion thereof) 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. 2 in an amount that equals 105 percent of the debt service payable
each yeaz on the bonds to be issued under Section 6 hereof.
5.06. Any 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 Mmnesota 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. Any 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 Westbrooke Patio Homes Association, Inc. for
construction of all or part of the Housing Improvements has been entered into or the work has been
ordered, and the 30-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.
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7.01. On August 15, 1997 and each August 15 thereafter until there aze no longer any
outstanding bonds (including refunding bonds) issued under the Housing Improvement Act in
connection with Housing Improvement Area No. 2, the Westbrooke Patio Homes Association, Inc.
(and any successor in interest) shall submit to the City Clerk a copy of the association's audited
financial statements.
7.02. Westbrooke Patio Homes Association, Inc. (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 between 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. 2: 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. 2 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.
Secrion 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 January 21, 1997,
and finally, read, approved and adopted and ordered published at a regular meeting of said Council on
,February 4, 1997.
~ ~e l
Mayor
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i er
EXHIBIT A
Description of Housing Improvement Area No. 2
Lots 2 through 181, inclusive, Block 1 and Lots 2 through 331, inclusive, Block 2,
Westbrooke Patio Homes, according to the recorded plat thereof, Hennepin County,
Minnesota.
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