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HomeMy WebLinkAboutCity Council Resolution 1998-028CITY OF PLYMOUTH RESOLUTION NO. 98-28 RESOLUTION APPROVING A HOUSING IMPROVEMENT FEE FOR THE SHENANDOAH TOWNHOMES HOUSING IMPROVEMENT AREA, PURSUANT TO MINNESOTA STATUTES 428A, AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE SHENANDOAH HOMEOWNERS ASSOCIATION AND AUTHORIZING USE OF THE UNFINANCED IMPROVEMENT FUND FOR INTERIM FINANCING. WHEREAS, the City of Plymouth ("City") is authorized under Minnesota Statutes 428A, (the "Housing Improvement Act") to establish by ordinance a housing improvement area within which housing improvements are made or constricted and the costs of the improvements are paid in whole or in part from fees imposed within the area; and WHEREAS, by Ordinance No. 97-13 adopted June 18, 1997 (the "Enabling Ordinance"), the Council established the Shenandoah Townhomes Housing Improvement Area (the "Housing Improvement Area") in order to facilitate certain improvements to property known as the "Shenandoah Townhomes" all in accordance with the Housing Improvement Act; and WHEREAS, in accordance with Section 8 of the Housing Improvement Act, owners of at least 25 percent of the housing units within the Housing Improvement Area have filed a petition with the City Clerk requesting a public hearing regarding imposition of a housing improvement fee for the Shenandoah Townhomes; and WHEREAS, the Council has on January 7, 1998, conducted a public hearing, duly noticed in accordance with the Housing Improvement Act, regarding adoption of this resolution at which all persons, including owners of property within the Housing Improvement Area, were given an opportunity to be heard; and WHEREAS, prior to the date hereof, the Shenandoah Homeowners Association, Inc. (the "Association") has submitted to the City a financial plan prepared by Reserve Advisors, Inc., an independent third party, acceptable to the City and the Association, that provides for the Association to finance maintenance and operation of the common elements in the Shenandoah Townhomes and a long-range plan to conduct and finance capital improvements therein, all in accordance with Section 10 of the Housing Improvement Act; and WHEREAS, for the purposes of this Resolution, the terms "Housing Improvement Area" and "Housing Improvements" have the meanings provided in the Enabling Ordinance; Res. 98-28 Page 2 NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLYMOUTH, MINNESOTA THAT: 1. The City hereby imposes a fee on each housing unit within the Housing Improvement Area (the "Housing Improvement Fee"), as specified in Exhibit A attached hereto, which Housing Improvement Fee is imposed on the basis of the total cost of the Housing Improvements to be financed by the Housing Improvement Fee divided by the number of housing units in the Housing Improvement Area as of the date of this Resolution. 2. The owner of any housing unit against which the Housing Improvement Fee is imposed, may at any time after the effective date of this Resolution but prior to the commencement of the Housing Improvements or the sale of City issued bonds to finance the Housing Improvements (the "Bonds"), whichever occurs first, pay all or a portion of the total Housing Improvement Fee imposed against such housing unit as specified in Exhibit A hereto to the City; provided that if only a portion is prepaid the prepayment amount must be at least 25% of the total fee for that unit. After this date, all of the remaining balance of the Housing Improvement Fee may be pre -paid, including the interest due as part of the then current year's annual installment, as indicated below. Any Housing Improvement Fee (or a portion thereof) not prepaid in accordance with this Section shall be payable solely in accordance with Section 3 hereof. 3. If not prepaid in accordance with Section 2 hereof, the Housing Improvement Fee (or unpaid portion thereof) shall be payable in equal annual installments extending over a period of 15 years, the first of the installments to be payable in calendar year 1999, which annual payment shall be deemed to include interest on unpaid Housing Improvement Fee from the date of commencement of the Housing Improvements, at an annual interest rate that will produce total fee revenue collected from all units in the Housing Improvement Area in an amount that equals 105 percent of the debt service payable each year on these bonds to be issued by the City to finance the Housing Improvements plus a one percentage point interest premium to reimburse the City for the cost of administering the collection of the Housing Improvement Fee, in accordance with the Enabling Ordinance and the Housing Improvement Act. Upon issuance of the Bonds, and annually thereafter, the City Clerk shall cause to be prepared a schedule indicating the annual payment 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. 4. The Housing Improvement Fee, unless prepaid in accordance with Section 2 hereof, 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 Section 12 of the Housing Improvement Act. 5. 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 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 1 hereof, and fiirther 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 Res. 98-28 Page 3 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 in full. 6. Within five days after the adoption of this Resolution, the City Staff is authorized and directed to mail to the owner of each housing unit in the 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 Housing Improvement Area file an 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. 7. The Mayor and City Manager, are hereby authorized to execute on behalf of the City an agreement with the Shenandoah Homeowners Association, Inc. establishing the terms and conditions under which the City shall provide financing for the Association to undertake the Housing Improvements in accordance with the Housing Improvement Act, the Enabling Ordinance, and this resolution. 8. The use of up to $1,000,000 from the City's Unfinanced Improvement Fund 422 for interim financing for the Housing Improvements to be repaid, with interest, from the proceeds of the Bonds as soon as available, is hereby authorized. 9. This Resolution shall be effective 45 days after adoption hereof, unless objections have been received by the City Clerk from owners of 35 percent or more of the housing units' tax capacity in the Housing Improvement Area. 10. Within 30 days after issuance of the Bonds, but in no event later than November 15, 1998, 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. Approved by the Plymouth City Council on January 7, 1998. Res. 98-28 Page 4 EXHIBIT A TO RESOLUTION NO. 98-28 Total fee per housing unit : $7,630 Res. 98-28 Page 5 EXHIBIT B TO RESOLUTION NO. 98-28 [Description of annual fee for each housing unit; to be inserted upon issuance of the Bonds in accordance with Section 5 of this Resolution.] Annual Fee per Housing Unit $ NDepartr t\COUNCII.\E:1--8\ ,,98-28. doc