HomeMy WebLinkAbout2587-20 - ADMIN Ordinance - City Council - 2020/06/15Ordinance No. 2587-20
Ordinance establishing the South Cedar Trails Homeowners Association Housing
Improvement Area pursuant to Minnesota Statutes, Sections 428A.11 to
428A.21
The City of St. Louis Park does hereby ordain:
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. The city has determined a need to establish the South Cedar Trails Homeowners
Association Housing Improvement Area (South Cedar Trails HIA) as further defined herein, in order
to facilitate certain improvements to property known as South Cedar Trails Homeowners
Association, Inc. (the “Association"), all in accordance with the HIA Policy.
1.04. The city has consulted with the Association and with residents in the proposed South
Cedar Trails HIA regarding the establishment of the South Cedar Trails HIA and the housing
improvements to be constructed and financed under this ordinance.
Section 2. Findings.
2.01. The council finds that, in accordance with Section 428A.12 of the Act, owners of at
least 50 percent of the housing units within the proposed South Cedar Trails HIA have filed a
petition with the City Clerk requesting a public hearing regarding the establishment of the South
Cedar Trails HIA.
2.02. 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 ordinance, at which all persons, including owners of property within
the proposed South Cedar Trails HIA, were given an opportunity to be heard.
2.03. The council finds that, without establishment of the South Cedar Trails HIA, the
Housing Improvements (as hereinafter defined) could not be made by the Association or the
owners of housing units therein.
2.04. The council further finds that designation of the South Cedar Trails HIA is needed to
maintain and preserve the housing units within such area.
2.05. The council further finds that by Resolution No. 20-091 adopted on the date hereof
(the “Fee Resolution”), the city has provided full disclosure of public expenditures, loans, or other
financing arrangements in connection with the South Cedar Trails HIA, and has determined that
the Association will contract for the Housing Improvements.
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2.06. The city will be the implementing entity for the South Cedar Trails HIA and the
Housing Improvement Fee (as set forth in the Fee Resolution and Section 5 below).
2.07. The council finds that the South Cedar Trails HIA meets each of the approval criteria
contained in the HIA Policy (listed as 4.01A- 4.01N), including the criterion that a majority of the
association owners support the project and the financing thereof. The Association presented
evidence to the council adequate to demonstrate that these criteria were met, including
presentation to the council of the petitions described in 2.01 above.
Section 3. Housing Improvement Area Defined.
3.01. The South Cedar Trails HIA is hereby defined as the area of the city legally described
in Exhibit A attached hereto.
3.02. The South Cedar Trails HIA contains 32 housing units as of the date of adoption of
this ordinance, along with garage units and common areas.
Section 4. Housing Improvements Defined.
4.01. For the purposes of this ordinance, the Fee Resolution, and the South Cedar Trails
HIA, the term "Housing Improvements" shall mean the following improvements to housing units,
garages, and common areas within the South Cedar Trails HIA: remove and replace parking lot;
new landscaping and drainage to include a new French drain system, replacing retaining walls
and new plant materials; remove and dispose of existing fence and install new privacy fence;
remove and replace 32 garage doors; remove and replace windows as needed in individual
units.
4.02. The Housing Improvements shall also be deemed to include:
(a) all administration, legal and consultant costs in connection with the South Cedar
Trails HIA;
(b) costs of arranging financing for the Housing Improvements under the Act; and
(c) interest on the internal loan as described in Section 6.01.
Section 5. Housing Improvement Fee.
5.01. The city may, by resolution adopt in accordance with the petitions, hearing and
notice procedures required under Section 428A.14 of the Act, impose a fee on the housing units
within the South Cedar Trails HIA, at a rate, term or amount sufficient to produce revenues
required to finance the construction of the Housing Improvements (hereinafter referred to as the
"Housing Improvement Fee"), subject to the terms and conditions set forth in this Section.
5.02. The portion of the Housing Improvement Fee attributable to the Common
Elements shall be divided evenly among the 32 housing units, and the portion of the Housing
Improvement Fee attributable to windows shall be allocated based on the number of windows
installed in each housing unit.
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Ordinance No. 2587-20 3
5.03. The Housing Improvement Fee shall be imposed and payable for a period no
greater than 15 years after the first installment is due and payable.
5.04. Housing unit owners shall be permitted to prepay the Housing Improvement Fee in
accordance with the terms specified in the Fee Resolution.
5.05. The Housing Improvement Fee shall not exceed the amount specified in the notice
of public hearing regarding the approval of such fee; provided, however, that the Housing
Improvement Fee may be reduced after approval of the Fee Resolution setting the Housing
Improvement Fee, in the manner specified in such resolution.
Section 6. Housing Improvement Area Loan.
6.01. At any time after a contract with the Association for construction of all or part of
the Housing Improvements has been entered into or the work has been ordered, and the period
for prepayment without interest of the Housing Improvement Fee has begun as described in
Section 5.04 hereof, the council may begin disbursement to the Association of the proceeds of an
internal loan (the “Loan”) of available city funds in the principal amounts necessary to finance the
cost of the Housing Improvements that have not been prepaid, together with administrative costs.
Section 7. Annual Reports.
7.01. No later than August 15, 2021, and each August 15 thereafter until there are no
longer any outstanding obligations issued under the Act in connection with the South Cedar Trails
HIA, the Association (and any successor in interest) shall submit to the City Clerk a copy of the
Association's audited financial statements.
7.02. The Association (and any successor in interest) shall also submit to the city any
other reports or information at the times and as required by any contract entered into between
the Association and the city, or as the city may request.
Section 8. Notice of Right to File Objections.
8.01. Within five days after the adoption of this ordinance, 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 ordinance; notice that owners subject to the proposed Housing Improvement Fee have a right
to veto this ordinance 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 ordinance;
and notice that a copy of this ordinance is on file with the City Clerk for public inspection.
Section 9. Amendment.
9.01. This ordinance may be amended by the council upon compliance with the public
hearing and notice requirements set forth in Section 428A.13 of the Act.
Section 10. This ordinance shall take effect 45 days after adoption hereof.
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Ordinance No. 2587-20 4
Reviewed for administration: Adopted by the City Council June 15, 2020
Thomas K. Harmening, city manager Jake Spano, mayor
Attest: Approved as to form and execution:
Melissa Kennedy, city clerk Soren Mattick, city attorney
First reading May 18, 2020
Second reading June 15, 2020
Date of publication June 25, 2020
Date ordinance takes effect July 30, 2020
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Exhibit A to Ordinance No. 2587-20
Legal description
Lots 1-64, both inclusive, Block 1, South Cedar Trails, Hennepin County, Minnesota
and
Lot 65, Block 1, South Cedar Trails, Hennepin County, Minnesota
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