CR 10-017 Vacant Property Registration OrdinanceJanuary 28, 2010
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Council Report 2010 -017
VACANT PROPERTY REGISTRATION ORDINANCE
Proposed Action
Staff recommends adoption of the following motion: Move to approve for second reading
Ordinance 2010 -1012 relating to vacant properties in residential zoning districts.
With this motion the ordinance will be published.
Overview
Over the past year, the City has experienced in increase in the number of vacant properties.
These vacancies have largely been the result of an increase in foreclosures. Vacant property
also exists now and likely into the future due to speculative land assembly based on such
issues as the SW LRT line. Vacant properties mean fewer eyes on the neighborhood and a
reduced sense of community. Vacant properties also pose the potential for vandalism and
property damage, other criminal activity, squatting, threats to the health and safety of
neighbors and the loss of tax base.
In an effort to assure that vacant properties do not create health, safety, and crime issues
while discouraging the holding of vacant property, City staff is recommending the adoption of
a vacant property registration ordinance. The ordinance would require that all vacant
property, defined as property vacant 90 days or more, be registered with the City of Hopkins
and pay a fee. This will allow various City staff to be notified of vacant property and require
the installation of a gas shut -off valve to decrease the risk of fire, explosion or dangerous
conditions.
The ordinance would allow for exceptions, including a waiver of the fee for temporary
vacancies. The ordinance will go into effect after the second reading and publication of the
ordinance. All vacant property, as defined in the ordinance, will be subject to registration.
Primary Issues to Consider
• What are changes since the first reading of the ordinance?
Supporting Information
• Ordinance 2010 -1012
Kasten E!y6rum
DirectorA Planning & Development
Financial Impact: $_0 Budgeted: Y/N Source:
Related Documents (CIP, ERP, etc.):
Notes:
Council Report 2010 -017
Page 2
Analysis of the Issues:
• What are changes since the first reading of the ordinance?
The following are the changes made to the proposed ordinance based on Council discussion
and staff recommendations:
Addition of the language in paragraph (b) (1), at page 6, regarding listing rental
properties at fair market value rates
Exemption in Section 455.05 (a) (2) of the VPR ordinance includes both active
remodeling & new construction permits
The issue of whether the City can require proof of casualty & liability insurance for vacant
properties as a condition of registration was reviewed. It would likely be impractical for the
City to require proof of insurance as a condition of registration because it is often difficult, if
not impossible, to maintain coverage on an abandoned dwelling. In addition, while the City
does require proof of insurance as a condition of permitting certain activities, such as liquor
sales, there is no such requirement for obtaining a building permit, no requirement that
occupied dwellings be insured and no requirement that rental licensees provide proof of
insurance. For those reasons, the City Attorney is not recommending a proof of insurance
requirement in the Vacant Property Registration ordinance.
Regarding issue of whether its is necessary to post "No Trespassing" signs, The City
Attorney's office reviewed the Trespass ordinance, Section 2005.57. Because the ordinance
requires owners to appoint the Police Department as agent for purposes of the Trespass
ordinance, it isn't necessary to post vacant properties.
Alternatives:
The City Council has the following alternatives regarding this issue:
• Approve the ordinance for second reading.
• Amend the ordinance.
• Elect not to consider the ordinance at this time.
CITY OF HOPKINS
Hennepin County, Minnesota
ORDINANCE NO. 2010-1012
AN ORDINANCE ENACTING SECTION 455 OF THE HOPKINS CITY CODE
RELATED TO VACANT PROPERTIES IN RESIDENTIAL ZONING DISTRICTS
THE CITY COUNCIL OF THE CITY OF HOPKINS HEREBY ORDAINS AS FOLLOWS:
Section 1. Background and Findings
1.01 As part of the "Residential Neighborhood Policies" included in the Comprehensive Plan of
the City of Hopkins, the City and the City Council have adopted and approved the following
policies:
The City will work to assure strong and well maintained neighborhoods in
order to foster an overall positive economic development climate in Hopkins.
The City will work to provide an overall mixture of residential land use in the
City.
The City will work to correct the disproportional amount of multiple family
land uses within the City.
As part of the "Residential Neighborhoods" section of the Comprehensive Plan, the
following is highlighted:
[O]ne of Hopkins' greatest assets is its neighborhoods
of single - family homes, which ... give Hopkins its character and
cohesiveness.... [R]edevelopment may threaten existing
single - family homes. The City needs to consider means to
restrict the loss of single - family housing.
1.02 Consistent with the Residential Neighborhood Policies stated in the City's Comprehensive
Plan, the City Council, as part of the two -year action plan for the Metropolitan Livable
Communities Act, adopted June 4, 1996, and the current 2009 version of the Comprehensive
Plan, has placed particular importance on preserving all existing single family housing within
the City.
1.03 Further, as part of the City of Hopkins Strategic Plan for Economic Development, the City
Council of the City has established a high priority on the maintenance of owner- occupied
housing.
1.04 The City of Hopkins 1992 Housing Analysis Report (based on 1990 Census data), as adopted
September 9, 1992, included the following finding: "Hopkins has a much lower percentage
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of single family homes than the average for Hennepin County (30 percent in Hopkins
compared to an average of 55 percent in Hennepin County)."
1.05 The City Council finds that the conditions identified in the City of Hopkins 1992 Housing
Analysis Report continue to exist. Specifically, the City Council believes that single family
residential use within the City constitutes a much lower percentage of overall residential use
than the average for all of Hennepin County.
1.06 Consistent with the policies and goals stated in the City's Comprehensive Plan, Two -Year
Action Plan and Strategic Plan for Economic Development, and in order to assist in
achieving the City's goal of preserving single family residential housing within the City, the
City Council has reviewed the City's Ordinances, Regulations and Official Controls relating
to the demolition or removal of single family residential structures located within the City.
1.07 The City Council finds that demolition of an existing single family home in a residential
zoning district without replacement with a new single family home is not in accordance with
the City's Comprehensive Plan
1.08 The City Council finds, based on the report of City Staff, that vacant properties are often ill -
maintained, and that this lack of maintenance leads to a state of disrepair in the vacant
property which, in some cases, can only be abated by demolition. Demolition, as state above,
is not in accordance with the City's Comprehensive Plan.
1.09 The report of City Staff cited an article in the Star Tribune, "Meet Your New Neighbors, the
Squatters," January 3, 2010, A section, Page 1, stating that the unprecedented numbers of
vacant homes have become home to "squatters" or other transients who have no legal right to
be in the property.
1.10 The City Council finds that the owner of a vacant property is often unknown or difficult to
locate, making it difficult or impossible to remove individuals without authority to reside in a
property.
1.11 The City Council finds that vacant properties are also frequently targets for theft of copper
pipes, copper wiring, or other building - fixtures, are used for the sale, purchase, and ingestion
of illegal drugs, and are targets for vandalism and other property damage.
1.12 The City Council believes that by requiring the registration of vacant properties, the City will
be better able to efficiently inspect and monitor these vacant properties to ensure that the
single - family housing stock does not decline in quality or quantity.
1.13 The City Council finds that the neighboring property owners are often helpful in reporting
property maintenance violations or other problems with vacant properties.
1.14 The City Council finds that when multiple vacant properties are aggregated in a small area,
there are fewer neighboring property owners to report property maintenance violations or
other problems. The City Council further finds that this will increase the cost of monitoring
these aggregations of vacant properties, as they require additional supervision by City Staff.
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1.15 The City Council finds that the vacant properties owned by "snowbirds;" that is, those who
spend a portion of the year living outside the City, do not generally have these same
problems and therefore, there is not an additional cost to monitor them.
1.16 The City Council finds that vacant properties which possess a valid a rental license issued
under Section 407 and which are actively marketed as "for rent" do not generally have these
same problems and therefore, there is not an additional cost to monitor them.
1.17 The City Council finds that vacant properties owned by the City of Hopkins, the Housing and
Redevelopment Authority in and for the City of Hopkins (the "HRA ") are already known to
the City and extensively monitored by the City and, therefore, there is no need to subject
them to the registration and fee requirements of the proposed registration ordinance.
1.18 The City Council finds that vacant properties under a development contract with the City of
Hopkins or the HRA are already known and monitored by the City, and therefore, there is not
an additional cost to monitor them.
1.19 The City Council directs the City Manager or his/her designee(s) to actively monitor vacant
properties subject to this Ordinance to ensure compliance with all applicable codes and
ordinances.
1.20 The City Council finds that the proposed registration fees are reasonable, and will be used to
defray the costs of monitoring vacant properties in the City.
1.21 The City Council states that this is an exercise of its general police power for the benefit of
the health and welfare of its citizens and is not an exercise of its zoning power. Therefore,
there are no exceptions to this ordinance based on the date the vacant property was acquired.
Section 2. Enactment of Section 455
2.01 The above Findings are adopted and Section 455 is enacted, as follows:
Section 455 — Vacant Properties
455.01 Definitions For the purposes of this Section, the terms
defined have the following meanings:
Vacant Property; Vacant Properties A Vacant Property is 1) a Lot
in any R zoning district containing a building with one (1) to four
(4) dwelling units, as defined in Hopkins Ordinance 515.07, Subd.
64., which is unoccupied for 90 or more consecutive days as a
dwelling or which is illegally occupied; or 2) an unimproved Lot in
any R zoning district located within 500 feet of Lot described in
clause 1, where both lots are owned by the same Owner.
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Vacant Properties is the plural of Vacant Property.
Discontinuance of municipal trash removal or failure to use a
minimum of 50 gallons of water per month shall constitute a
rebuttable presumption that the Property is a Vacant Property. It
shall be the responsibility of the Owner of such a property to
establish that it is not a Vacant Property.
Lot Lot has the same meaning as defined in Hopkins Ordinance
515.01, Subd. 101.
Enforcement Officer The Enforcement Officer is the City Manager
or his/ her designee(s).
Owner An Owner includes any individual, entity, or affiliated
entities.
Affiliated Entities Affiliated entities means, for the purposes
of this section, (i) two entities which are owned, managed, or
controlled by one or more individuals or entities in common; or
(ii) an entity and an individual, when that individual owns,
manages, or controls any part of the entity.
455.03 Vacant Property Registration
(a) The Owner or Owners of all Vacant Property shall register
with the Enforcement Officer any Vacant Property located within the
City of Hopkins.
(b) The registration shall be submitted on forms provided by the
Enforcement Officer and shall include the following information
supplied by the Owner:
(1) A description of all Vacant Property or Vacant Properties
owned by the Owner or Owners within the City of Hopkins;
(2) The names and addresses of the Owner or Owners;
(3) The names and addresses of all known lienholders and all
other parties with an ownership interest in the properties;
(4) The period of time each Vacant Property is expected to remain
vacant; and a plan and timetable for returning the Vacant Property
to appropriate occupancy or use.
The Owner shall also execute an authorization appointing the
Hopkins Police Department an agent of the Owner for the purpose of
making a demand to depart therefrom pursuant to Hopkins Ordinance
2005.57, Subd. 2.
(c) The Owner and any subsequent Owner of Vacant Property shall
keep the Vacant Property secured and safe and the buildings and
grounds properly maintained in compliance with all state and local
laws, ordinances, and codes.
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(d) The subsequent Owner(s) of a Vacant Property shall register
or re- register the Vacant Property with the Enforcement Officer
within thirty (30) days of any transfer of any ownership interest
in a Vacant Property.
(e) Vacant Property Registration fees:
The following fees are imposed to defray the costs of registering,
monitoring, and inspecting Vacant Properties, and otherwise
enforcing the requirements of this Section:
(1) Single Property/ Distant Properties: The Owner of a single
Vacant Property or Vacant Properties not within 500 feet of one
other shall pay a registration fee of five hundred dollars
($500.00) per Vacant Property the first calendar year the property/
properties become Vacant Property or Vacant Properties, and one
thousand dollars ($1,000.00) each subsequent calendar year the
property or properties remain Vacant Property or Vacant Properties,
unless an exemption under Section 455.05, below, applies.
(2) Adjacent/ Nearby Properties: The Owner of two or more Vacant
Properties located within 500 feet of each other shall pay, for the
first calendar year the properties become Vacant Properties, a
registration fee of one thousand dollars ($1,000.00) per Vacant
Property and two thousand five hundred dollars ($2,500.00) per
Vacant Property for each subsequent year the properties remain
Vacant Properties. The records of the City Assessor shall be deemed
sufficient for determining the location and distance of properties
from one another.
(3) The first annual fee shall be paid at the time of registration
and shall be prorated for the initial year of registration based on
the number of days in the calendar year after the Vacant Property
is required to be registered. The annual fees for subsequent years
shall be paid on or before January 1 of each subsequent year.
(4) All delinquent fees shall be paid prior to any transfer of an
ownership interest in any Vacant Property. If the fees are not paid
prior to any transfer, the new Owner of the Vacant Property shall
pay the annual fee no later than thirty (30) days after the
transfer of ownership.
455.05 Exemptions.
(a) Exemption from Registration. The following are exempt
from the Vacant Property registration and fee requirements of
Section 455.03:
(1) All Vacant Property owned by the City of Hopkins or the
Housing and Redevelopment Authority in and for the City
of Hopkins (the "HRA ") is exempt from the Vacant
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Property registration and fee requirements of Section
455.03.
(2) Any Vacant Property for which the owner possesses a
valid building permit for remodeling the dwelling
located thereon or for construction of a new dwelling
on such Vacant Property.
(b) Exemption from Registration Fees. The Vacant Property
registration fee shall be waived for:
(1) All dwelling units which possess a valid rental license
issued pursuant to Hopkins Ordinances Section 407 which
is actively marketed as "for rent" in a newspaper or in
an online listing at a fair market value rental rate
based upon market rental rates for comparable
properties. It is the obligation of the Vacant
Property owner to produce evidence of active marketing
to claim this exemption. In the event that the rental
license lapses, is suspended, or revoked, this
exemption shall no longer apply, the Vacant Property in
question shall be subject to the registration fees
provided for above and shall immediately be due and
owing.
(2) All homes which are being actively marketed as "for
sale" at a reasonable price by a licensed real estate
broker or by the owner. It is the obligation of the
Vacant Property owner to produce evidence of active
marketing at a reasonable price to claim this
exemption. A home which is listed on the MLS (Multiple
Listing Service) or similar listing service is
presumptively being actively marketed. An asking price
not greater than 1500 of the taxable market value, as
determined by Hennepin County Property Tax records, is
presumptively a "reasonable price."
(3) All Vacant Property or Vacant Properties subject to a
valid Development Agreement or Redevelopment Agreement
the City of Hopkins or the HRA.
(4) Any single Vacant Property for which the Owner executes
a valid affidavit on a form provided by the City
averring that the Owner intends to resume occupancy of
the Vacant Property as a dwelling within 180 days.
Failure to actually resume use of the Vacant Property
as a dwelling within 180 days will result in imposition
of the registration fee that was waived under this
section.
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(5) An Owner who acquires a Vacant Property for which the
registration fee has already been paid for the calendar
year shall register the change of ownership with the
City, but is not liable for an additional registration
fee for that calendar year. (Example: If X registers
Vacant Property with the City in January of 2010 and
pays the applicable registration fee, then sells Vacant
Property to Y in June of 2010, Y must register the
change of ownership with the City, but is exempt from
registration fees until January 1, 2011.)
455.07 Inspections.
The Enforcement Officer may inspect or cause to be inspected any
premises in the city for the purpose of enforcing and assuring
compliance with the provisions of this chapter. Upon the request of
the Enforcement Officer, an Owner shall provide access to all
interior portions of any Vacant Property or suspected Vacant
Property in order to permit a complete inspection.
455.09 Notification.
The Enforcement Officer shall maintain a current list, updated
monthly, of all Vacant Properties which have become known to the
Enforcement Officer.
455.11 Gas Flow Shut -Off Valve
In order to decrease the risk of fire, explosion or dangerous
conditions, the Owner shall install an excess flow automatic gas
shut -off valve ( "excess flow valve ") on the gas piping immediately
downstream of the gas meter outlet of any Vacant Property within
sixty (60) days of acquisition. Any excess flow valve model must
be approved, installed and inspected as required by applicable
laws, ordinances, or codes.
455.13 Penalties/ Enforcemen
Violation of any provision of
information to the Enforcement
this Section or providing false
Officer shall be a misdemeanor.
The City may bring an action in a court of appropriate jurisdiction
to enjoin a violation of this Section.
If an Owner fails to register within 30 days of notice from the
City, the Owner shall be liable for a registration fee of three
times the amount otherwise due for the Vacant Property or Vacant
Properties.
455.15 Alternative procedures.
Nothing in this chapter shall be deemed to abolish or impair
existing remedies available to the City under its code or State
Law.
455.17 Collection of unpaid fees.
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(1) Written notice.
a. Written notice of fees. Following registration, the
Enforcement Officer or designee shall provide written notice to the
Owner(s) of fees due.
b. Notice for collection of fees shall include the amount of the
Vacant Property registration fee that is the responsibility of the
Owner and a statement that the fee shall be paid within the time
period(s) identified in the notice.
(2) Fee and liability. All of the fees and other amounts payable
under this Section 455 shall be a debt owed to the City and, if
unpaid, shall be collected by special assessment under the
authority in Minnesota Statutes, Section 429.101. Action under this
section does not preclude any other civil or criminal enforcement
procedure.
455.19 Applicability The provisions of this Section are an
exercise of the City's general police/ regulatory powers; not an
exercise of statutorily delegated zoning authority. All Vacant
Property or Vacant Properties are subject to this Section without
exception, regardless of when the property was acquired.
Section 3. Effective Date
This Ordinance shall be effective on publication.
First reading: January 19, 2010
Second reading:
Date of Publication:
ATTEST:
Terry Obermaier, City Clerk
Eugene J. Maxwell, Mayor
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