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HomeMy WebLinkAbout2377-09 - ADMIN Ordinance - City Council - 2009/10/19ORDINANCE NO. 2377-09 ORDINANCE ESTABLISHING THE SUNSET RIDGE CONDOMINIUM ASSOCIATION IMPROVEMENT AREA PURSUANT TO MINNESOTA STATUTES, SECTIONS 428A.11 to 428A.21. BE IT ORDAINED by the City Council of the City of St. Louis Park as follows: Section 1. Recitals. 1.01. The City of St. Louis Park ("City") is authorized under Minnesota Statutes, Sections 428A.11 to 428A 21 (the "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. The St. Louis Park City Council ("Council") adopted a Housing Improvement Area policy on July 16, 2001. 1.03. The City has determined a need to establish the Sunset Ridge Condominium Association Housing Improvement Area as further defined herein, in order to facilitate certain improvements to property known as the "Sunset Ridge Condominium Association"' all in accordance with the Housing Improvement Area policy. 1.04. The City has consulted with the Sunset Ridge Condominium Association (the "Condominium Association") and with residents in the proposed Sunset Ridge Condominium Association Housing Improvement Area regarding the establishment of the Sunset Ridge Condominium Association Housing Improvement Area 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 428A.12 of the Act, owners of at least 25 percent of the housing units within the proposed Sunset Ridge Condominium Association Housing Improvement Area 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 October 5, 2009, conducted a public hearing, duly noticed in accordance with Section 428A.13 of the Act, regarding adoption of this ordinance, at which all persons, including owners of property within the proposed Sunset Ridge Condominium Association Housing Improvement Area, were given an opportunity to be heard. 2.03. The Council finds that, without establishment of the Sunset Ridge Condominium Association Housing Improvement Area, the Housing Improvements (as hereinafter defined) could not be made by the condominium association for, or the housing unit owners in, the Sunset Ridge Condominium Association. 2.04. The Council further finds that designation of the Sunset Ridge Condominium Association Housing Improvement Area is needed to maintain and preserve the housing units within such area. Ordinance No 2377-09 -2- 2.05. The Council further finds that by Resolution No. 09-129 adopted on the date hereof, the City has provided full disclosure of public expenditures, loans, bonds, or other financing arrangements in connection with the Sunset Ridge Housing Improvement Area, and has determined that the Sunset Ridge Condominium Association will contract for the Housing Improvements. 2.06. The City will be the implementing entity for the Sunset Ridge Condominium Association Housing Improvement Area and the improvement fee. 2.07. The Council finds that the Sunset Ridge Condominium Association Housing Improvement Area meets each of the approval criteria contained in the Housing Improvement Area Policy (listed as 5.O1A- 5.01M), including the criterion that a majority of the condominium association owners support the project and the Housing Improvement Area financing. The Condominium Association presented evidence to the Council adequate to demonstrate that these criteria were met, including presentation to the Council of the petitions described in 2.01 above. Section 3. Housing Improvement Area Defined. 3.01. The Sunset Ridge Condominium Association Housing Improvement Area is hereby defined as the area of the City legally described in Exhibit A. 3.02. The Sunset Ridge Condominium Association Housing Improvement Area contains 240 housing units as of the date of adoption of this ordinance, along with garage units and common areas Section 4. Housing Improvements Defined. 4.01. For the purposes of this ordinance and the Sunset Ridge Condominium Association Housing Improvement Area, the term "Housing Improvements" shall mean the following improvements to housing units, garages, and common areas within the Sunset Ridge Condominium Association Housing Improvement Area: Exterior siding and trim will be replaced on all buildings. Windows and trim will be replaced. Entry doors, trim and patio doors will be replaced. Soffits and fascia will be replaced. Garages will be resided and new garage doors installed. Patios, decks and porches will be replaced as needed. Lighting will be replaced. Miscellaneous vents, signs, mail slot will be replaced with minor electrical work as needed. Water damage will be remediated. Lock boxes will be installed for emergency fire entrance. 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 the Sunset Ridge Condominium Association Housing Improvement Area; and (c) costs of arranging financing for the Housing Improvements under the Housing Improvement Act; and (d) interest on the internal loan as described in Sections 5.04 and 6.01. i • • Ordinance No. 2377-09 -3- Section 5. Housing Improvement Fee. 5.01. The City may, by resolution adopted in accordance with the petition, hearing and notice procedures required under Section 428A.14 of the Act, impose a fee on the housing units within the Sunset Ridge Condominium Association Housing Improvement Area, 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. 5.02. The Housing Improvement Fee shall be imposed for Common Elements based on the square footage (percentage of undivided ownership) of each unit, and shall be imposed for Limited Common Elements based on the actual cost of windows and doors for each unit, all as prescribed in the Declaration Establishing a Plan For Apartment Ownership Pursuant to the Minnesota Uniform Condominium Act for Sunset Ridge Condominium. 5.03. The 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. Housing unit owners shall be permitted to prepay the Housing Improvement Fee in accordance with the terms specified in the resolution imposing the fee. 5.05. The 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. Housing Improvement Area Loan. 6.01. At any time after a contract with the Condominium Association for construction of all or part of the Housing Improvements has been entered into or the work has been ordered, and the period for prepayment of the Housing Improvement Fee has begun as described in Section 5.04 hereof, the Council may begin disbursement to the Condominium Association of the proceeds of an internal loan (the "loan") of available City funds in the principal amounts necessary to finance the cost of the Housing Improvements that have not been prepaid, together with administrative costs. 6.02. The City may refinance the loan or any unpaid portion of the loan at any time by issuing its bonds secured by Housing Improvement Fees, as authorized pursuant to Section 428A.16 of the Act. Section 7. Annual Reports. 7.01. On March 1, 2011, and each March 1, thereafter until there are no longer any outstanding obligations issued under the Act in connection with the Sunset Ridge Condominium Association Housing Improvement Area, Sunset Ridge Condominium Association (and any successor in interest) shall submit to the City Clerk a copy of the condominium association's audited financial statements. Ordinance No 2377-09 -4- 7.02. The Condominium Association (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 the Sunset Ridge Condominium Association Housing Improvement Area: 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 the Sunset Ridge Condominium Association Housing Improvement Area file a written 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. Section 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 428A.13 of the Act. Section 10. Effective Date. 10.1. This ordinance shall be effective 45 days after adoption hereof Read, approved and adopted and ordered published at a regular meeting of the City Council of of St. Louis Park on October 19, 2009. Re ew d r Administration: City ana • er Attest: Adopted by -the City Council October 19, 2009 lr ; Mayor // ApprRved as to form and execution: City Clerk d"-- City Attorney • • Ordinance No. 2377-09 -5- EXHIBIT A TO ORDINANCE NO. 2377-09 Legal description Lot 1, Block 1, FARRS SUNSET RIDGE, according to the plat thereof on file and of record in the office of the County,Recorder in and for Hennepin County, Minnesota. CI P==....0„e___ newspapers AFFIDAVIT OF PUBLICATION STATE OF MINNESOTA ) ) ss COUNTY OF HENNEPIN ) Richard Hendrickson, being duly sworn on an oath, states or affirms that he is the Chief Financial Officer of the newspaper(s) known as St Louis Park Sun -Sailor and has full knowledge of the facts stated below (A) The newspaper has complied with all of the requirements constituting qualifica- tion as a qualified newspaper as provid- ed by Minn Stat §331A 02, §331A 07, and other applicable laws as amended (B) The printed public notice that is attached was published in said newspaper(s) once each week, for one successive week(s), It was first published on Thurs- day, the 29 day of October 2009, and was thereafter printed and published on every Thursday to and in- cluding Thursday, the ___ day of 2009, and printed below is a copy of the lower case alpha- bet from A to Z, both inclusive, which is hereby acknowledged as being the size and kind of type used in the composition and publication of the notice abcdefghijklmnopgrstuvwxyz Subscribed and sworn to or affirmed before me on this 29 day of October , 2009 Notary Public MARY ANN CARLSON NOTARY PUBLIC — MINNESOTA MY COMMISSION EXPIRES 1-31-14 City of St. Louis Park (Official Publication) SUMMARY ORDINANCE NO 2377-09 ORDINANCE ESTABLISHING THE SUNSET RIDGE CONDOMINIUM ASSOCIATION HOUSING IMPROVEMENT AREA PURSUANT TO MINNESOTA STATUTES, CHAPTER 428A 11 to 428A 21 This ordinance establishes the Sunset Ridge Condomini- um Association Housing Improvement Area, which is the area legally described on Exhibit A of the Ordinance, and specifies the "Housing Improvements" that will be con- structed in Sunset Ridge Condominium Association Housing Improvement Area and financed with the Hous- ing Improvement Fee This ordinance provides that the City may impose a fee on housing units in an amount sufficient to produce revenues required to provide the Housing Improvements (the ' Housing Improvement Fee') The Housing Improvement Fee is set by a separate City Council resolution, but the ordinance lays out the ground rules on how the Housing Improvement Fee will be determined Those rules are summarized as follows • The Housing Improvement Fee will be imposed for Common Elements based on the square footage (per- centage of undivided ownership) of each unit, and will be imposed for Limited Common Elements based on the actual cost of windows and doors for each unit The Housing Improvement Fee may be prepaid ac- cording to the terms set forth in the resolution If the Housing Improvement Fee is not prepaid by March 31, 2010, it will be payable over 20 years The Housing Improvement Fee will be collected at the same time and in the same manner as property taxes The total Housing Improvement Fee for each unit may not exceed the amount specified in the notice of pub- lic hearing for the resolution imposing the Housing Im- provement Fee This ordinance provides that at any time after the City has entered into a contract with the Sunset Ridge Condomini- um Association for construction of the Housing Improve- ments, or after work has been ordered, the Council may begin disbursement to the Association of the proceeds of (a) an internal loan of available City funds in the principal amounts necessary to finance the cost of the Housing Im- provements that have not been prepaid together with ad- ministrative costs, or (b) bonds of the City secured by Housing Improvement Fees Any internal loan will be re financed through the issuance of bonds secured by Hous- ing Improvement Fees This ordinance requires that Sun- set Ridge Condominium Association submit audited fi- nancial statements to the City each year while there are outstanding obligations issued under the Act This ordinance shall take effect 45 days after the October 19, 2009 date of adoption unless owners of at least 35 percent of the housing units in the Sunset Ridge Condo- minium Housing Improvement Area file an objection with the City Clerk prior to that effective date Adopted by the City Council October 19 2009 Jeffrey W Jacobs /s/ Mayor A copy of the full text of this ordinance is available for in specbon with the City Clerk Published in St Louis Park Sailor October 29, 2009 ( Oct 29 2009)a3-ord 2377-09