HomeMy WebLinkAbout08-081 - ADMIN Resolution - City Council - 2008/06/16CITY OF ST. LOUIS PARK
RESOLUTION NO. 08-081
RESOLUTION APPROVING A HOUSING IMPROVEMENT FEE FOR
THE WESTMORELAND HILLS OWNERS' 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 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. By Ordinance No. 2357-08 adopted on the date hereof (the "Enabling Ordinance"), the
Council has established the Westmoreland Hills Owners' Housing Improvement Area in order to
facilitate certain improvements to property known as the "Westmoreland Hills Owners Association", 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 Westmoreland Hills Owners' Housing Improvement Area have filed a petition
with the City Clerk requesting a public hearing regarding imposition of a housing improvement fee for
the Westmoreland Hills Owners' Housing Improvement Area.
1.05. The Council has on June 2, 2008 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 Westmoreland Hills Owners' Housing Improvement Area, were given an
opportunity to be heard.
1.06 The Council finds that the Westmoreland Hills Owners' Housing Improvement Area
meets each of the approval criteria contained in the Housing Improvement Area Policy (listed as 5.O1A-
5.O1M), including the criterion that a majority of the condominium association owners support the
project and the Housing Improvement Area financing.
1.07. Prior to the date hereof, Westmoreland Hills Owners' Association (the "Condominium
Association") has submitted to the City a financial plan prepared 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
Westmoreland Hills Owners' and a long-range plan to conduct and finance capital improvements
therein, all in accordance with Section 428A.14 of the Act.
Resolution No. 08-081 -2-
1.08. For the purposes of this Resolution, the terms "Westmoreland Hills Owners' 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 Westmoreland Hills
Owners' 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's
Percent of Undivided Interest in Common Areas and Facilities, as described in Exhibit B to
Declaration of Covenants, Restrictions and Easements of Westmoreland Hills Owners' Association
dated as of July 28, 1980, and as shown under the heading Percentage Ownership in that Exhibit.
2.02. The owner of any housing unit in the Westmoreland Hills Owners' Housing
Improvement Area may prepay the Housing Improvement Fee in total and without interest thereon
between the effective date of this resolution and November 19, 2008. The amount of the prepayment is
shown under the headings Total Prepayment Fee in Exhibit A. After November 19, 2008, 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
5.85%, on any date. If a prepayment is made by November 20of 2009 or any subsequent year, the
amount must include interest on the outstanding principal portion of the fee through the end of that
calendar year. If a prepayment is made after November 20 of 2009 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 19, 2008, 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 2009, for a period no greater than 15 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, 2009 at an annual interest rate
of 5.85% percent per annum. The Annual Fee shall be structured such that estimated collection of the
Annual Fee will produce at least five percent in excess of the amount needed to meet, when due, the
principal and interest payments on the Housing Improvement Fee.
2.04. Unless prepaid between the effective date of this resolution and November 19, 2008, 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.
2.05 A de minimis 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.
•
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Resolution No. 08-081 -3-
Section 3. Notice of Right to File Objections.
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 Westmoreland Hills Owners' 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 Westmoreland Hills Owners' 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 Resolution 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 2009 and thereafter.
Approve
the City Council of the City of St. Louis Park this 16th day of June, 2008.
Revi d for ' d • inistration:
City
Attest:
City Clerk
Adopted by the City Council June 16, 2008
May
Resolution No. 08-081
-4-
EXHIBIT A TO RESOLUTION NO. 08-081
Fee Table
City of St Louis Park
Loan amount $1,028,125, 16 year term, 5 85% Interest Rate
Assessment Allocatlon
WESTMORELAND
HILLS OWNERS' ASSOCIATION HOUSING IMPROVEMENT
AREA
1
Unit
No.
'101
Unit
Type
Studio
Dues
Structure
*
1
Percentage
Interest
1 080%
Annual •
Fee
1,186 39
Prepayment
Amount
11,082 15
Total P d. I
Paid Per
Unit
(105%)
17,795'80,
2
102
1 -BR
2
1 380%
'1,515 94
14,160 53
22;739"07
3
103
1 -BR
1 380%,
1,515 94
14,160 53
22,739 07
4
104
1 -BR
1 380%
1,515 94
14,160 53
22;739 07
5
105
1 -BR
1 380%,
1515 94
14,160 53
22;739 07
6
106
1 -BR
1 380%
1,515 94
14,160 53
22,739 07
7
107
_ 1 -BR
1 380%>
1,515 94
14,160 53
22,739 07
8
108
1 -BR
1 380%
1,51594
14,160 53
22;739 07
9
'109
2 -BR
3
1 510%
1,658 74
15,494 49
24,881 16
10
110
2 -BR
1 510%
1,658 74
15,494 49
24;881 16
11
111
1 -BR
1 380%
1,515 94
14,160 53
22,739 07
12
112
1 -BR
1 380%
1,515 94
14,160 53
22;739 07
13
113
1 -BR
1 380%
-1,515 94
14,160 53
22;739 07
14
114
1 -BR
1 380%
'1, 15 94
14,160 53
22,739'07
15
115
1 -BR
2
1 380%
1,515 94
14,160 53
22,739 07
16
116
1 -BR
1 380%
1,515 94
14,160 53
22;739 07
17
117
1 -BR
1 380%
1,515 94
14,160 53
22,739 07
18
118
1 -BR
1 380%
1,515 94
14,160 53
22,739 07
19
119
1 -BR
1 380%
1,515 94
14,160 53
22,739 07
20
120
1 -BR
1 380%
1,515 94
14,160 53
22;739 07
21
'121
1 -BR
1 380%
1,515 94
14,160 53
22,739 07
22
122
1 -BR
1 380%
1,515 94
14,160 53
22,739 07
23
123
2 -BR
3
1 510%
'1,658 74
15,494 49
24,881 16
24
124
2 -BR
Association
Owned Unit
1 510%
-1,658 74
15,494 49
24,881 16'
25
201
Studio
4
1 070%
1,175 40
10,979 54
17,631 02
26
202
1 -BR
2
1 380%
1,515 94
14,160 53
22,739 07
27
203
1 -BR
1 380%
1,515 94
14,160 53
22,739 07
28
204
1 -BR
1 380%
1,515 94
14,160 53
22,739 07
29
205
1 -BR
1 380%
1,515 94
14,160 53
22,739 07
30
206
1 -BR
1 380%
1,515 94
14,160 53
22,739 07
31
207
1 -BR
1 380%
1,515 94
14,160 53
22,739 07
32
208
1 -BR
1 380%
1,515 94
14,160 53
22;739 07
33
209
2 -BR
1 510%
1,658 74
15,494 49
24,881 16
34
210
2 -BR
3
1 510%
1,658 74
15,494 49
24,881 16
Resolution No. 08-081
#
Unit Unit
No. Type
Dues
Structure
#
Percentage
Interest
*
Annual
Fee
35
211
1 -BR
1380%
1,51594
36
212
1 -BR
1380%
1,51594
37
213
1 -BR
1 380%
1515 94
38
214
1 -BR
1 380%
1,515 94
39
215
1 -BR
1.380%
1,51594
40
216
1 -BR
1 380%
1,51594
41
217'
1 -BR
1380%
1,51594
42
218
1 -BR
1 380%
1,515 94
43
219
1 -BR
1 380%
1,515 94
44
220
1 -BR
1380%
1,51594
45
221
1 -BR
1380%
1,51594
46
222
1 -BR
2
1 380%
1,51594
47
223
2 -BR
1 510%
1,658 74
48
224
2 -BR
3
1 510%
1,658 74
49
301
Studio
4
1 070%
1,17540
50
302
1 -BR
1380%
1,51594
51
303
1 -BR
1 380%
1,515 94
52
304
1 -BR
1 380%
1,51594
53
305
1 -BR
1 380%
1,515 94
54
306
1 -BR
1380%
1,515 94
55
307
1 -BR
1 380%
1,515 94
56
308.
1 -BR
2
1380%
1,51594
57
309
2 -BR
1 510%
1,658 74
58
310
2 -BR
3
1 510%
1,658'74
59
311
1 -BR
1 380%
1,51594
60
312
1 -BR
1 380%
1,515 94
61
313'
1 -BR
1 380%.
1,515 94
62
314
1 -BR
1 380%
1,515 94
63
315
1 -BR
1 380%
1,515 94
64
316'
1 -BR
1 380%
1,515 94
65
317'
1 -BR
1 380%
1,515 94
66
318
1 -BR
1380%
1,51594
67
319
1 -BR
1 380%
1,515 94
68
320
1 -BR
1 380%
1,515 94
69
321
1 -BR
1 380%
1,515 94
70
322
1 -BR
2
1 380%
1,515 94
71
323
2 -BR
1.510%
1,658 74
72
324
2 -BR
3
1 510%
1,658 74
GRAND TOTAL
-5-
Prepayment
Amount
14,160 53
14,160 53
14,160 53
14,160 53
14,160 53
14,160 53
14,160 53
14,160 53
14,160 53
14,160 53
14,160 53
14,160 53
15,494 49
15,494 49
10,979 54
14,160 53
14,160 53
14,160 53
14,160 53
14,160 53
14,160 53
14,160 53
15,494 49
15,494 49
14,160 53
14,160 53
14,160 53
14,160 53
14,160 53
1'4,160 53
14,160 53
14,160 53
14,160 53
14,160 53
14,160 53
14,160 53
15,494 49
15,494 49
Total P & I
Paid Per
Unit
(105%)
22,739 07
22,739 07
22,739 07
22,739 07
22,739 07
22,739 07
22,739 07
22,739 07
22,739 07
22,739 07
22,739 07
22,739 07
24,881 16
24,881 16
17,631 02
22,739 07
22,739 07
22,739 07
22,739 07
22,739 07
22,739 07
22,739 07
24,881 16
24,881 16
22,739 07
22,739 07
22,739 07
22,739 07
22,739 07
22,739 07
22,739 07
22,739 07
22,739 07
22,739 07
22,739 07
22,739 07
24,881 16
24,881 16
1:0000 109,851 1,026,126 1,647,769
• Note Annual fee amount is calculated based upon unit percentage interest, and 105% debt service