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HomeMy WebLinkAbout06-072 - ADMIN Resolution - City Council - 2006/04/17RESOLUTION NO. 06-072 RESOLUTION APPROVING A HOUSING IMPROVEMENT FEE FOR THE SUNGATE ONE HOUSING IMPROVEMENT AREA PURSUANT TO MINNESOTA STATUTES, SECTIONS 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, 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. By Ordinance No. 2313-06 adopted Apnl 17, 2006 (the "Enabling Ordinance"), the Council established the Sungate One Housing Improvement Area in order to facilitate certain improvements to property known as the "Sungate One Condominiums," all in accordance with the Housing Improvement Area policy. 1.04. In accordance with Section 428A 12 of the Act, owners of at least 25 percent of the housing units within the Sungate One Housmg Improvement Area have filed a petition with the City Clerk requesting a public hearing regarding imposition of a housing improvement fee for the Sungate One Housing Improvement Area. 1 05 The Council has on Apnl 3, 2006, conducted a public hearing, duly noticed in accordance with Section 428A.13 of the Act, regarding adoption of this resolution at which all persons, including owners of property within the Sungate One Housing Improvement Area, were given an opportunity to be heard. 1.06 The Council finds that the Sungate One Housmg Improvement Area meets each of the approval criteria contained in the Housing Improvement Area Policy (listed as 5.O1A- 5 O1M), including the cnterion that a majority of the condominium association owners support the project and the Housing Improvement Area financing. 1.07 Pnor to the date hereof, Sungate One Condominium Association (the "Condominium Association") has submitted to the City a financial plan prepared by Reserve Data Analysis, an mdependent 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 Sungate One Condominiums and a long-range plan to conduct and finance capital improvements therein, all in accordance with Section 428A.14 of the Act. Resolution No. 06-072 -2- 1.08. For the purposes of this Resolution, the terms "Sungate One 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 Sungate One 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 m Common Areas and Facilities, as described in Exhibit A to Declaration of Apartment Ownership (Condominium) Sungate One 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 Sungate One 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, 2006. The amount of the prepayment is shown under the headings Total Prepayment Fee in Exhibit A. After November 20, 2006, the Housing Improvement Fee shall be imposed on an annual basis as descnbed in 2.03, and housing unit owners shall be permitted to prepay the outstanding principal portion, with accrued interest at the rate of 5.90%, on any date. If a prepayment is made by November 20 of 2007 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 2007 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, 2006, 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 2007, for a penod 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, 2007 at an annual interest rate of 5.90% percent per annum. 2.04. Unless prepaid between the effective date of this resolution and November 20, 2006, 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, Sections 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 A Resolution No. 06-072 -3- 2.05 A de mimrms fee 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. Within five days after the adoption of this Resolution, the City Clerk is authonzed and directed to mail to the owner of each housing umt in the Sungate One 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 Sungate One 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 2007 and thereafter. roved by the City Council of the City of St. Louis Park this 17th day of April, 2006. Re mil Cit'"1` anager ed for Administration: Attest: Adopted by the City Council Apnl 17, 2006 City Clerk 7 !% Resolution No. 06-072 -4- EXHIBIT A TO RESOLUTION NO. 06 -072 Undivided Ownership Percent of Dues Structure Annual Fee for 10 Years Total 10 Year Fee Total Prepayment Fee 0 05% 100% $1,305 $13,055 $9,194