HomeMy WebLinkAboutResolution - 2014-52 - Approving Fee Edenvale Highlands Housing Improvement Area - 05/20/2014 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY,MINNESOTA
RESOLUTION NO. 2014-52
A RESOLUTION APPROVING THE HOUSING IMPROVEMENT FEE FOR THE
EDENVALE HIGHLANDS HOUSING IMPROVEMENT AREA PURSUANT TO
MINNESOTA STATUTES 428A.11 to 428A.21.
WHEREAS, the City of Eden Prairie ("City") pursuant to Minn. Stat. 428A.11 to 428A.21,
as amended, established by ordinance a housing improvement area on the property legally described
as "Edenvale Highlands Lots 1-8, Block 1, Hennepin County, Minnesota" known as the "Edenvale
Highlands Housing Improvement Area" by adoption of Ordinance No. 15-2014("Enabling
Ordinance"); and
WHEREAS, pursuant to Minn. Stat. 428A.14, the City is authorized to impose fees on the
housing units within a housing area in order to produce sufficient revenue to provide housing
improvements and reimburse the City; and
WHEREAS,as required by Minn. Stat. 428A.14,the City held a duly noticed public hearing
on May 20, 2014 to consider the imposition of fees on the Edenvale Highlands Housing
Improvement Area. All interest parties were given an opportunity to be heard; and
WHEREAS, the Edenvale Highlands Association ("Association") has submitted to the City
a financial plan prepared by an independent 3rd party as required by Minn. Stat. 428A.14.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNSEL OF THE CITY
OF EDEN PRAIRIE, THAT THE CITY COUNCIL FINDS, DETERMINES, AND
ORDERS AS FOLLOWS:
Section 1. Recitals. The Recitals set forth above are incorporated herein as if fully set forth.
Section 2. Findings. The City Council hereby finds based on the petition, the Enabling Ordinance,
the public hearing held on May 20,2014, and all other information provided:
A. The petition and Enabling Ordinance comply with the requirements in Minn. Stat.
428A.I I through 428A.21.
B. The Association has submitted to the City a financial plan prepared by Bomberg,
Roach and Hanson PLLC, an independent third party, which plan is acceptable to the City and the
Association, that provides for the Association to finance maintenance and operation of the common
elements in the Edenvale Highlands Housing Improvement Area and a long-range plan to conduct
and finance capital improvements, all in accordance with Minn. Stat. 428A.14.
C. Imposing the fee on a per unit basis is more fair and reasonable than using a tax
capacity or square footage basis due to the common elements to be improved and the equal effect on
all units.
Section 2. Housing Improvement Fee Imposed.
A. The estimated cost of the housing improvements is $300,000. The City hereby
imposes a fee on each housing unit within the Edenvale Highlands Housing Improvement Area in
an amount of $37,500 per unit (the "Housing Improvement Fee"). If the cost of the housing
improvements exceed the estimated amount, the City may charge additional fees against the units
by complying with the notice and hearing requirements in Minn. Stat. 428A.14. If the costs of the
housing improvements are less than the estimated amount, the City will reduce the Housing
Improvement Fee against each unit on a pro rata basis. The City shall take the appropriate steps
necessary to ensure the reduction of the Housing Improvement Fee against each unit.
B. The Housing Improvement Fee shall be assessed against each housing unit. The
City may, in the City's sole discretion, make a one-time assessment against each housing unit for
the full amount disbursed by the City, or make multiple assessments against each housing unit as
payments are requested and disbursed. Each assessment will be payable in equal annual
installments extending over a period of 10 years from the date the first installment is due and
payable and will bear interest, at the rate of the prime rate plus 2 based on the prime rate published
by Wells Fargo applicable for the date of the requested payment, per annum from the effective
date of this resolution. The first installment of each assessment shall be payable in the year
following the certification of the assessment to the County Auditor and to the first installment shall
be added interest on the entire assessed amount from the date of this resolution until December 31
of the year the first installment is due.
C. The owners of the housing units may, at any time prior to the certification of the
assessment to the County Auditor, pay to the City the entire assessment on such unit, with interest
accrued to the date of payment. No interest shall be charged if the entire assessment is paid within
30 days from the effective date of this resolution. The owners may at any time thereafter, pay to the
City the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of
the year in which such payment is made. Such payment must be made before November 15 or
interest will be charged through December 31 of the succeeding year. Unless prepaid the
assessment 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.
The Housing Improvement Fee is not included in the calculation of levies or limits on levies
imposed under any law or charter.
Section 3. Notice of Right to File Objections. Within five days after the adoption of this
resolution, the City Clerk is directed to mail to the owner of each housing unit in the Edenvale
Highlands Housing Improvement Area the following: a summary of this resolution; notice that
owners subject to the proposed Housing Improvement Fee have a right to veto this resolution if
owners of 45% or more of the housing units within the Edenvale Highlands Housing Improvement
Area file objections 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. This resolution shall be effective 45 days after adoption hereof,
provided, however, that if owners of 45% or more of the housing units within the Edenvale
Highlands Housing Improvement Area file objections with the City Clerk within 45 days of the
adoption of the resolution,the resolution shall not become effective.
Section 5. Filing of Housing Improvement Fee. After the effective date of this resolution the
City Clerk shall file a certified copy of this resolution together with attached Exhibit A, the
Assessment Roll, to the Hennepin County Director of Taxation to be recorded on the property tax
lists of the county for taxes payable in 2015 and thereafter
ADOPTED by the City Council on May 20, 2014.
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ATTEST:
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Kathleen Porta, City Clerk
Exhibit A
Assessment Roll
PID Number Amount
04-116-22-33-0009 $37,500.00
04-116-22-33-0010 $37,500.00
04-116-22-33-0011 $37,500.00
04-116-22-33-0012 $37,500.00
04-116-22-33-0013 $37,500.00
04-116-22-33-0014 $37,500.00
04-116-22-33-0015 $37,500.00
04-116-22-33-0016 $37,500.00