HomeMy WebLinkAbout02-117 - ADMIN Resolution - City Council - 2002/11/04RESOLUTION NO. 02-117
RESOLUTION APPROVING A HOUSING IMPROVEMENT FEE FOR THE
CEDAR TRAILS HOUSING IMPROVEMENT AREA PURSUANT TO
MINNESOTA STATUTES CHAPTER 428A.11 to 428A.21.
BE IT RESOLVED 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 authonzed under Minnesota Statutes Chapter
428A.11 to 428A 21 (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 The St. Louis Park City Council adopted a Housing Improvement Area policy on July
16, 2001.
1.03 By Ordinance No. 2231-02 adopted November 4, 2002 (the "Enabling Ordinance"),
the Council established the Cedar Trails Housing Improvement Area in order to facilitate certain
improvements to property known as the "Cedar Trails Condominiums," all in accordance with the
Housing Improvement Area policy.
1 04. In accordance with Section 428A 12 of the Housing Improvement Act, owners of at
least 25 percent of the housing units within the Cedar Trails Housing Improvement Area have filed
a petition with the City Clerk requesting a public heanng regarding imposition of a housing
improvement fee for the Cedar Trails Housing Improvement Area
1 05. The Council has on October 7, 2002 conducted a public heanng, duly noticed in
accordance with Section 428A.13 of the Housing Improvement Act, regarding adoption of this
resolution at which all persons, including owners of property within the Cedar Trails Housing
Improvement Area, were given an opportunity to be heard.
1.06 The Council finds that the Cedar Trails Housing Improvement Area meets each of the
approval cntena contained in the Housing Improvement Area Policy (the cntena are listed as
5 01A- 5 OIM), including the cntenon that a majority of the condominium association owners
support the project and the Housing Improvement Area financing.
1.07. Prior to the date hereof, Cedar Trails Condominium Association (the "Condominium
Association") has submitted to the City a financial plan prepared by Reserve Advisors, Inc., an
independent third party, acceptable to the City and the Condominium Association, that provides for
the Condominium Association to finance maintenance and operation of the common elements in the
Cedar Trails Condominiums and a long-range plan to conduct and finance capital improvements
therein, all in accordance with Ch. 428A.14
Resolution No 02-117 -2-
1.08 For the purposes of this Resolution, the terms "Cedar Trails Housing Improvement
Area" and "Housing Improvements" have the meanings provided in the Enabling Ordinance.
Section 2. Housing Improvement Fee Imposed.
2.01. The City hereby imposes a fee on each housing unit within the Cedar Trails Housing
Improvement Area (the "Housing Improvement Fee"), as specified in Exhibit A attached hereto,
which Housing Improvement Fee is imposed on the basis of each housing unit and garage unit's
Percent of Undivided Interest in Common Areas and Facilities, as descnbed in Exhibit A to
Declaration of Apartment Ownership (Condominium) Cedar Trails Condominium, dated as of
September 10, 1979, and as shown under the heading Undivided Ownership in that Exhibit.
2 02 The owner of any housing unit in the Cedar Trails Housing Improvement Area may
prepay the Housing Improvement Fee in total and without interest thereon between the effective
date of this resolution and November 20, 2003. The amount of the prepayment is shown under the
headings Total Prepayment Fee in Exhibit A, and vanes depending upon garage unit ownership.
After November 20, 2003, the Housing Improvement Fee shall be imposed on an annual basis as
described in 2.03, and housing unit owners shall be permitted to prepay the outstanding principal
portion, with accrued interest at the rate of 6.3%, on any date. If a prepayment is made by
November 20 of 2004 or any subsequent year, the amount must include interest on the outstanding
pnncipal portion of the fee through the end of that calendar year. If a prepayment is made after
November 20 of 2004 or any subsequent year, the amount must include interest through the end of
the following calendar year. Partial prepayment of the Housing Improvement Fee shall not be
permitted. Prepayment must be made to the City Treasurer
2.03. If the Total Prepayment Fee is not paid between the effective date of this resolution
and November 20, 2003, the Housing Improvement Fee shall be imposed as an annual fee, in the
amount shown under the heading Annual Fee in Exhibit A. The Housing Improvement Fee shall be
imposed in equal installments, beginning in 2004, for a period no greater than 10 years after the first
installment is due and payable The Annual Fee shall be deemed to include interest on the unpaid
portion of the total Housing Improvement Fee Interest shall begin to accrue on January 1, 2004 at
an annual interest rate of 6.30% percent per annum.
2.04. Unless prepaid between the effective date of this resolution and November 20, 2003,
the Housing Improvement Fee 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 Minnesota Statutes
Chapters 428A.15 and 428A.05. As set forth therein, the Housing Improvement Fee is not included
in the calculation of levies or limits on levies imposed under any law or charter.
2 05 A de minimus fee (less than $5.00) may be imposed by Hennepin County for services
in connection to administration required in order for the fee to be made payable at the same time
and in the same manner as provided for payment and collection of ad valorem taxes.
Section 3. Notice of Right to File Objections.
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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 the Cedar Trails Housing Improvement Area: 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 the Cedar
Trails Housing Improvement Area file a written 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. The City Clerk shall file a certified copy of this resolution together with a final update
of Exhibit A hereto to the Hennepin County Director of Taxation to be recorded on the property tax
lists of the county for taxes payable in 2004 and thereafter.
Approved by the City Council of the City of St. Louis Park this 4th day of November, 2002.
Reviewed for Administration
Attest: