HomeMy WebLinkAbout22-092 - ADMIN Resolution - City Council - 2022/06/20Resolution No. 22-092
Resolution approving a housing improvement fee for the Bridgewalk
Condominium 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. 2652-22 adopted on June 20, 2022 (the "Enabling Ordinance"),
the council has established the Bridgewalk Condominium Homeowners’ Association Housing
Improvement Area (the “Bridgewalk HIA”) in order to facilitate certain improvements requested
by the Bridgewalk Condominium Homeowners’ Association, Inc. (the “Association”) to property
known as the Bridgewalk Condominium and constituting the Bridgewalk HIA, all in accordance
with the HIA Policy and the Act.
1.04. In accordance with Section 428A.12 of the Act and with the HIA Policy, owners of at
least 70 percent of the housing units within the Bridgewalk HIA have filed petitions with the City
Clerk of the city requesting a public hearing regarding imposition of a housing improvement fee for
the Bridgewalk HIA.
1.05. In accordance with Section 428A.13 of the Act, the council held a duly noticed
public hearing on June 6, 2022 regarding adoption of this resolution, at which all persons,
including owners of property within the Bridgewalk HIA, were given an opportunity to be
heard.
1.06. The council finds that the Bridgewalk 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
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 Reserve Advisors, an independent third party, that provides for the Association to
finance maintenance and operation of the Common Elements (as defined in the Association’s
bylaws) in the Bridgewalk HIA, 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 "Bridgewalk HIA" and "Housing
Improvements" have the meanings provided in the Enabling Ordinance.
Section 2. Housing Improvement Fee Imposed.
DocuSign Envelope ID: F6785B6E-5055-4B21-ACEB-F4AB45FD7006
Resolution No. 22-092 2
2.01. The total cost of the Housing Improvements is $5,980,000 including construction
costs, soft costs, costs of issuing bonds to finance the improvements, and capitalized interest. The
city hereby imposes a fee on each housing unit within the Bridgewalk HIA (the "Housing
Improvement Fee"), in the maximum amount specified in Exhibit A attached hereto, which is
imposed for Housing Improvements as a percentage of undivided ownership interest of each unit,
all as prescribed in the Amended and Restated Declaration of Bridgewalk Association.
2.02. The council hereby finds that the Housing Improvement Fee for units in the
Bridgewalk HIA is being imposed based on square footage (percentage of undivided ownership
interest) as prescribed in Exhibit A to the Bridgewalk Condominium Declaration.
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 1, 2022. 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 6.00% 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 prepaid between the effective date of
this resolution and August 5, 2022, the Housing Improvement Fee shall be imposed as an annual
fee, in an amount not to exceed the amount shown under the heading “Annual Fee” in Exhibit A,
subject to adjustment as provided in Section 5 hereof. The Housing Improvement Fee shall be
imposed to pay principal and interest on certain bonds to be issued by the city to finance a portion
of the Housing Improvements (the “Bonds”) and on an internal loan to be made by the City to the
Association to finance a portion of the Housing Improvements, in accordance with the Enabling
Ordinance and the Act. The Annual Fee shall be imposed in equal installments, beginning in 2023,
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 at an annual interest rate of 6.00 percent per annum shall begin to accrue on the Housing
Improvement Fee from the date of closing on the Bonds. 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. 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
Bonds and internal loan.
2.05. Unless prepaid between the effective date of this resolution and August 5, 2022, 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. The Housing Improvement Fee imposed against each housing unit shall not exceed
the amount specified in Exhibit A hereto; provided, however, that the Housing Improvement Fee
DocuSign Envelope ID: F6785B6E-5055-4B21-ACEB-F4AB45FD7006
Resolution No. 22-092 3
may be reduced at any time before issuance of the Bonds, which reduction shall be applied pro
rata to each housing unit's Housing Improvement Fee on the basis described in Section 2.01
hereof; and further provided that if any housing unit owners have prepaid the Housing
Improvement Fee prior to any reduction in that fee, the City shall promptly reimburse such
housing unit owner in the amount of the pro rata share of any reduction in the fee amount. Upon
any reduction in the Housing Improvement Fee, the City Clerk shall cause to be prepared a revised
copy of Exhibit A hereto, which shall be attached to this Resolution in the City's official records and
shall be promptly mailed to all housing unit owners within the Housing Improvement Area. Within
30 days after issuance of the Bonds the City Clerk shall mail to each housing unit owner a copy of
Exhibit B to this Resolution showing the final annual fee imposed against each housing unit for
which the Housing Improvement Fee has not been prepaid.
2.07. 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 Bridgewalk 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 Bridgewalk 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, 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 City and the Association, providing for construction of the
Housing Improvements.
Section 5. Filing of Housing Improvement Fee.
5.01. Upon issuance of the Bonds, the City Clerk shall file a certified copy of this resolution
together with a final update of Exhibits A and B hereto to the Hennepin County Director of
Taxation to be recorded on the property tax lists of the county for taxes payable in 2023 and
thereafter.
Section 6. Prior Resolution.
6.01 This resolution amends, replaces and supersedes Resolution No. 22-029 for the
Bridgewalk HIA adopted on February 22, 2022.
DocuSign Envelope ID: F6785B6E-5055-4B21-ACEB-F4AB45FD7006
Resolution No. 22-092 4
Reviewed for administration: Adopted by the City Council June 20, 2022
Kim Keller, city manager Jake Spano, mayor
Attest:
Melissa Kennedy, city clerk
DocuSign Envelope ID: F6785B6E-5055-4B21-ACEB-F4AB45FD7006
Resolution No. 22-092 5
Exhibit A to Resolution No. 22-092
City of St. Louis Park
Housing Improvement Area - Bridgewalk HIA
Assessment Allocation
Unit No. Percentage
Interest
Total Common
Area Construction
Cost
Total Financing &
Soft Costs
TOTAL COSTS
(PREPAYMENT
AMOUNT)
* Annual Fee
(105% of Total
Costs)
Total P & I Paid
Per Unit (105%) -
Non prepaid only
101 0.00850 $49,045 $1,785 $50,830 $4,653.17 $93,063.41
102 0.01106 $63,816 $2,323 $66,139 $6,054.60 $121,091.92
103 0.01106 $63,816 $2,323 $66,139 $6,054.60 $121,091.92
104 0.01106 $63,816 $2,323 $66,139 $6,054.60 $121,091.92
105 0.01678 $96,821 $3,524 $100,344 $9,185.91 $183,718.12
106 0.00850 $49,045 $1,785 $50,830 $4,653.17 $93,063.41
107 0.01102 $63,585 $2,314 $65,900 $6,032.70 $120,653.98
108 0.01106 $63,816 $2,323 $66,139 $6,054.60 $121,091.92
109 0.00850 $49,045 $1,785 $50,830 $4,653.17 $93,063.41
110 0.01106 $63,816 $2,323 $66,139 $6,054.60 $121,091.92
111 0.01106 $63,816 $2,323 $66,139 $6,054.60 $121,091.92
112 0.01106 $63,816 $2,323 $66,139 $6,054.60 $121,091.92
113 0.01412 $81,472 $2,965 $84,438 $7,729.74 $154,594.75
114 0.01100 $63,470 $2,310 $65,780 $6,021.75 $120,435.00
115 0.00850 $49,045 $1,785 $50,830 $4,653.17 $93,063.41
116 0.01100 $63,470 $2,310 $65,780 $6,021.75 $120,435.00
117 0.00850 $49,045 $1,785 $50,830 $4,653.17 $93,063.41
118 0.01678 $96,821 $3,524 $100,344 $9,185.91 $183,718.12
119 0.00850 $49,045 $1,785 $50,830 $4,653.17 $93,063.41
120 0.01371 $79,107 $2,879 $81,986 $7,505.29 $150,105.81
121 0.00850 $49,045 $1,785 $50,830 $4,653.17 $93,063.41
122 0.01106 $63,816 $2,323 $66,139 $6,054.60 $121,091.92
DocuSign Envelope ID: F6785B6E-5055-4B21-ACEB-F4AB45FD7006
Resolution No. 22-092 6
123 0.00850 $49,045 $1,785 $50,830 $4,653.17 $93,063.41
124 0.01106 $63,816 $2,323 $66,139 $6,054.60 $121,091.92
125 0.01106 $63,816 $2,323 $66,139 $6,054.60 $121,091.92
126 0.01412 $81,472 $2,965 $84,438 $7,729.74 $154,594.75
127 0.00850 $49,045 $1,785 $50,830 $4,653.17 $93,063.41
128 0.01100 $63,470 $2,310 $65,780 $6,021.75 $120,435.00
129 0.00850 $49,045 $1,785 $50,830 $4,653.17 $93,063.41
130 0.01100 $63,470 $2,310 $65,780 $6,021.75 $120,435.00
201 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
202 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
203 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
204 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
205 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
206 0.01731 $99,879 $3,635 $103,514 $9,476.05 $189,520.90
207 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
208 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
209 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
210 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
211 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
212 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
213 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
214 0.01454 $83,896 $3,053 $86,949 $7,959.66 $159,193.18
215 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
216 0.01126 $64,970 $2,365 $67,335 $6,164.08 $123,281.65
217 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
218 0.01126 $64,970 $2,365 $67,335 $6,164.08 $123,281.65
219 0.01731 $99,879 $3,635 $103,514 $9,476.05 $189,520.90
220 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
221 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
222 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
223 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
224 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
225 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
226 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
227 0.01454 $83,896 $3,053 $86,949 $7,959.66 $159,193.18
228 0.01126 $64,970 $2,365 $67,335 $6,164.08 $123,281.65
229 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
DocuSign Envelope ID: F6785B6E-5055-4B21-ACEB-F4AB45FD7006
Resolution No. 22-092 7
230 0.01126 $64,970 $2,365 $67,335 $6,164.08 $123,281.65
231 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
301 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
302 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
303 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
304 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
305 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
306 0.01731 $99,879 $3,635 $103,514 $9,476.05 $189,520.90
307 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
308 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
309 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
310 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
311 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
312 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
313 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
314 0.01454 $83,896 $3,053 $86,949 $7,959.66 $159,193.18
315 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
316 0.01126 $64,970 $2,365 $67,335 $6,164.08 $123,281.65
317 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
318 0.01126 $64,970 $2,365 $67,335 $6,164.08 $123,281.65
319 0.01731 $99,879 $3,635 $103,514 $9,476.05 $189,520.90
320 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
321 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
322 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
323 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
324 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
325 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
326 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05
327 0.01890 $109,053 $3,969 $113,022 $10,346.46 $206,929.23
328 0.00691 $39,871 $1,451 $41,322 $3,782.75 $75,655.08
329 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
330 0.01126 $64,970 $2,365 $67,335 $6,164.08 $123,281.65
331 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73
GRAND TOTAL 100.00% $5,770,000.00 $210,000.00 $5,980,000.00 $547,431.83 $10,948,636.67
* Note: Annual fee amount is calculated based upon payment of total costs at 105%
DocuSign Envelope ID: F6785B6E-5055-4B21-ACEB-F4AB45FD7006