HomeMy WebLinkAbout20-091 - ADMIN Resolution - City Council - 2020/06/15Resolution No. 20-091
Resolution approving a housing improvement fee for the South Cedar Trails
Homeowners Association 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 (the "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 City Council of the city (the “council”) adopted a Housing Improvement Area
policy on July 16, 2001 (the “HIA Policy”).
1.03. By Ordinance No. 2587-20 adopted on June 15, 2020 (the "Enabling Ordinance"),
the council has established the South Cedar Trails Homeowners Housing Improvement Area (the
“South Cedar Trails HIA”) in order to facilitate certain improvements to property known as the
"South Cedar Trails Homeowners Association, Inc." (the “Association”) all in accordance with the
HIA Policy and the Act.
1.04. In accordance with Section 428A.12 of the Act, owners of at least 50 percent of the
housing units within the South Cedar Trails HIA have filed petitions with the City Clerk of the city
requesting a public hearing regarding imposition of a housing improvement fee for the South
Cedar Trails HIA.
1.05. In accordance with Section 428A.13 of the Act, the council opened a duly
noticed public hearing on May 4, 2020, which was continued until May 18, 2020 and held on
that date, regarding adoption of this resolution, at which all persons, including owners of
property within the South Cedar Trails HIA, were given an opportunity to be heard.
1.06. The council finds that the South Cedar Trails HIA meets each of the approval criteria
contained in the HIA Policy (listed as 5.01A- 5.01M), including the criterion that a majority of the
condominium association owners support the project and the financing thereof.
1.07. Prior to the date hereof, the Association has submitted to the city a financial plan
prepared by Cedar Management, Inc., an independent third party, that provides for the
Association to finance maintenance and operation of the Common Elements in the Association (as
defined in the Association’s bylaws) 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 "South Cedar Trails HIA" and
"Housing Improvements" have the meanings provided in the Enabling Ordinance.
Section 2. Housing Improvement Fee Imposed.
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Resolution No. 20-091 2
2.01. The city hereby imposes a fee on each housing unit within the South Cedar Trails HIA
(the "Housing Improvement Fee"), as specified in Exhibit A attached hereto, which is imposed for
(i) Housing Improvements divided evenly among the housing units, and (ii) windows based on the
number of windows installed in each unit, all as prescribed in the Amended and Restated
Declaration of South Cedar Trails Association.
2.02. The council hereby finds that the Housing Improvement Fee for the Common
Elements is imposed based on 1/32 ownership of the Common Elements, as provided in the
Association’s bylaws. The Housing Improvement Fee is divided evenly among the 32 units in the
South Cedar Trails HIA, with the exception of the portion of the Housing Improvement Fee
allocated to windows, which is based on the number of windows installed in each unit . The
Council expressly finds that this basis for allocation of costs aligns with the ownership and
Association fee methodology in effect for the Association, and is thus more fair and reasonable
than imposition of a Housing Improvement Fee on the basis of tax capacity or square f ootage.
2.03. Housing unit owners may prepay the Housing Improvement Fee in total and
without interest thereon between the effective date of this resolution and August 10, 2020. The
amount of the prepayment is shown under the heading “Total Cost (Prepayment Amount)” in
Exhibit A attached hereto. Partial prepayment of the Housing Improvement Fee shall not be
permitted. Prepayment must be made to the City Treasurer. Housing unit owners may also fully
prepay the unpaid portion of their Housing Improvement Fee in any subsequent year. If a
prepayment is made by November 15 of any year, the amount must include interest at the rate
of 2.91% through the end of that calendar year. If the prepayment is made after November 15,
the amount must include interest through the end of the following calendar year.
2.04. If the total Housing Improvement Fee is not paid between the effective date of this
resolution and August 10, 2020, 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 2021, 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 at an annual interest rate of
2.91 percent per annum shall begin to accrue on the Housing Improvement Fee from the date of
closing on the loan of city or Economic Development Authority funds to finance the Housing
Improvements. 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 on the Housing Improvement Fee.
2.05. Unless prepaid between the effective date of this resolution and August 10, 2020,
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 Sections 428A.15 and
428A.05 of the Act. 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.
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Resolution No. 20-091 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 South Cedar Trails HIA: 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 South Cedar Trails HIA
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. After August 11, 2020, 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 2021 and thereafter.
Reviewed for administration: Adopted by the City Council June 15, 2020
Thomas K. Harmening, city manager Jake Spano, mayor
Attest:
Melissa Kennedy, city clerk
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Resolution No. 20-091 4
Exhibit A to Resolution No. 20-091
City of St. Louis Park
Housing Improvement Area - South Cedar Trails HIA
Assessment Allocation
Association Unit No.PID Percentage
Interest
Total Common
Area Construction
Cost
Total Financing &
Soft Costs
Total Construction
Cost Windows
TOTAL COSTS
(PREPAYMENT
AMOUNT)
* Annual Fee
(105% of Total
Costs)
Total P & I Paid
Per Unit (105%) -
Non prepaid only
4401 30-029-24-43-0033 0.03125 $9,725 $781 $11,890 $22,396 $1,956.59 $29,348.79
4405 30-029-24-43-0032 0.03125 $9,725 $781 $8,329 $18,835 $1,645.49 $24,682.29
4409 30-029-24-43-0031 0.03125 $9,725 $781 $8,329 $18,835 $1,645.49 $24,682.29
4413 30-029-24-43-0030 0.03125 $9,725 $781 $11,890 $22,396 $1,956.59 $29,348.79
4417 30-029-24-43-0034 0.03125 $9,725 $781 $11,890 $22,396 $1,956.59 $29,348.79
4421 30-029-24-43-0035 0.03125 $9,725 $781 $8,329 $18,835 $1,645.49 $24,682.29
4425 30-029-24-43-0036 0.03125 $9,725 $781 $8,329 $18,835 $1,645.49 $24,682.29
4429 30-029-24-43-0037 0.03125 $9,725 $781 $11,890 $22,396 $1,956.59 $29,348.79
4433 30-029-24-43-0025 0.03125 $9,725 $781 $11,890 $22,396 $1,956.59 $29,348.79
4437 30-029-24-43-0024 0.03125 $9,725 $781 $8,329 $18,835 $1,645.49 $24,682.29
4441 30-029-24-43-0023 0.03125 $9,725 $781 $8,329 $18,835 $1,645.49 $24,682.29
4445 30-029-24-43-0022 0.03125 $9,725 $781 $11,890 $22,396 $1,956.59 $29,348.79
4449 30-029-24-43-0026 0.03125 $9,725 $781 $11,890 $22,396 $1,956.59 $29,348.79
4453 30-029-24-43-0027 0.03125 $9,725 $781 $1,681 $12,187 $1,064.70 $15,970.44
4457 30-029-24-43-0028 0.03125 $9,725 $781 $8,329 $18,835 $1,645.49 $24,682.29
4461 30-029-24-43-0029 0.03125 $9,725 $781 $8,329 $18,835 $1,645.49 $24,682.29
4501 30-029-24-43-0009 0.03125 $9,725 $781 $8,329 $18,835 $1,645.49 $24,682.29
4505 30-029-24-43-0008 0.03125 $9,725 $781 $0 $10,506 $917.84 $13,767.58
4509 30-029-24-43-0007 0.03125 $9,725 $781 $0 $10,506 $917.84 $13,767.58
4513 30-029-24-43-0006 0.03125 $9,725 $781 $8,329 $18,835 $1,645.49 $24,682.29
4517 30-029-24-43-0010 0.03125 $9,725 $781 $8,329 $18,835 $1,645.49 $24,682.29
4521 30-029-24-43-0011 0.03125 $9,725 $781 $8,329 $18,835 $1,645.49 $24,682.29
4525 30-029-24-43-0012 0.03125 $9,725 $781 $5,068 $15,574 $1,360.59 $20,408.92
4529 30-029-24-43-0013 0.03125 $9,725 $781 $11,890 $22,396 $1,956.59 $29,348.79
4533 30-029-24-43-0017 0.03125 $9,725 $781 $11,890 $22,396 $1,956.59 $29,348.79
4537 30-029-24-43-0016 0.03125 $9,725 $781 $8,329 $18,835 $1,645.49 $24,682.29
4541 30-029-24-43-0015 0.03125 $9,725 $781 $8,329 $18,835 $1,645.49 $24,682.29
4545 30-029-24-43-0014 0.03125 $9,725 $781 $11,890 $22,396 $1,956.59 $29,348.79
4549 30-029-24-43-0018 0.03125 $9,725 $781 $8,329 $18,835 $1,645.49 $24,682.29
4553 30-029-24-43-0019 0.03125 $9,725 $781 $0 $10,506 $917.84 $13,767.58
4557 30-029-24-43-0020 0.03125 $9,725 $781 $5,068 $15,574 $1,360.59 $20,408.92
4561 30-029-24-43-0021 0.03125 $9,725 $781 $0 $10,506 $917.84 $13,767.58
GRAND TOTAL 100.00%$311,193 $25,000 $255,652 $591,845 $51,705.39 $775,580.79
SOUTH CEDAR TRAILS HOUSING IMPROVEMENT AREA
South Cedar
Trails
* Note: Annual fee amount is calculated based upon payment of total costs at 105%
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