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Home My WebLink About12-066 - ADMIN Resolution - City Council - 2012/05/07RESOLUTION NO. 12-066 410RESOLUTION APPROVING A HOUSING IMPROVEMENT FEE FOR THE WESTWOOD VILLA ASSOCIATION INC. 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. 2413-12 adopted on May 7, 2012 (the "Enabling Ordinance"), the Council has established the Westwood Villa Association Inc. Housing Improvement Area in order to facilitate certain improvements to property known as the "Westwood Villa Association Inc.", all in accordance with the Act and the Housing Improvement Area policy. 1.04. In accordance with Section 428A.12 of the Act, owners of at least 50 percent of the housing units within the Westwood Villa Association Inc. Housing Improvement Area have filed a petition with the City Clerk requesting a public hearing regarding imposition of a housing improvement fee for the Westwood Villa Association Inc. Housing Improvement Area. 1.05. The Council has on April 16, 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 Westwood Villa Association Inc. Housing Improvement Area, were given an opportunity to be heard. 1.06. The Council finds that the Westwood Villa Association Inc. Housing Improvement Area meets each of the approval criteria contained in the Housing Improvement Area Policy (listed as 5.01A- 5.01M), 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, Westwood Villa Association Inc. (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 Westwood Villa Association Inc. and a long-range plan to conduct and finance capital improvements therein, all in accordance with Section 428A.14 of the Act. 1.08. For the purposes of this Resolution, the terms "Westwood Villa Association Inc. Housing Improvement Area" and "Housing Improvements" have the meanings provided in the Enabling Ordinance. Resolution No. 12-066 -2- Section 2. Housing Improvement Fee Imposed. 2.01. The City hereby imposes a fee on each housing unit within the Westwood Villa Association Inc. Housing Improvement Area (the "Housing Improvement Fee"), as specified m Exhibit A attached hereto, which Housing Improvement Fee is imposed for Common Elements based on the square footage (percentage of undivided ownership) of each unit, all as prescribed in the Declaration of Westwood Villa Condominium. 2.02. The Council hereby finds that the Housing Improvement Fee for the Common Elements is imposed on the basis of square footage of each unit. 2.03. The owner of any housing unit in the Westwood Villa Association Inc. Housing Improvement Area may prepay the Housing Improvement Fee in total and without interest thereon between the effective date of this resolution and July 20, 2012. The amount of the prepayment is shown under the heading Total Cost (Prepayment Amount) in Exhibit A. Partial prepayment of the Housing Improvement Fee shall not be permitted. Prepayment must be made to the City Controller. After expiration of the prepayment period on July 20, 2012, owners may, before November 30 of any year, prepay in whole the unpaid installment of the Total Cost, with interest thereon at the rate descnbed in Section 2.04 of this Resolution, accrued to the end of the calendar year in which the Total Cost is paid. If prepayment is made after November 30, the amount prepaid must include interest through the end of the following calendar year. 2.04. If the Total Prepayment Fee is not paid between the effective date of this resolution and July 20, 2012, the Housing Improvement Fee shall be imposed as an annual fee (the "Annual Fee"). The Annual Fee shall be imposed in equal installments, beginning in 2013, for a period no greater than 20 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, 2013 at an annual interest rate that will produce total fee revenues collected from all units in the Westwood Villa Association Inc. Housing Improvement Area in an amount that equals 105 percent of the debt service payable each year on bonds to be issued by the City issued to finance the Housing Improvements (the "Bonds") and on an internal loan to be given to the Condominium Association by the City to finance the Housing Improvements, in accordance with the Enabling Ordinance and the Act. Upon issuance of the Bonds, the City Clerk shall cause to be prepared a schedule indicating_the finalized Annual Fee for each Housing Unit for which the Housing Improvement Fee has not been prepaid, which schedule shall be attached as Exhibit B to this Resolution in the City's official records. 2.05. Unless prepaid between the effective date of this resolution and July 20, 2012, 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. 2.06. 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. 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 Westwood Villa Association Inc. Housing Resolution No. 12-066 -3- 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 45 percent of the housing units within the Westwood Villa Association Inc. 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, subject to (a) the veto rights of Housing Unit owners under Section 428A.18 of the Act; and (b) execution in full of a development agreement between the Authority and the Condominium Association, providing for construction of the Housing Improvements. Section 5. Filing of Housing Improvement Fee. 5.01. After the effective date of this Resolution, but no later than November 15, 2012, the City Clerk shall file a certified copy of this resolution together with Exhibit B hereto to the Hennepin County Director of Taxation to be recorded on the property tax lists of the county for taxes . • able in 2013 and thereafter. App oved b the City Council of the City of St. Louis Park this 7th day of May, 2012. Reviewe s, 'r r ii ministration: � '1 �� 111\ City Man er d by the City Council May 7, 2012 Attest: