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Imp. Proj. #695For the full report on 0 this improvement a project, refer to the City Council agenda packets and/or P I a n n i n C m m I is n agenda packets. PROJECT NO. 695 L'Esperance Owners Association EDA 4 8/28/00 Res. 01 -100 7/23/01 Item 7.1 8/13/01 Item 7.108/27/01 Item 7.39/10/01 Item 7.110/08/01 Discussion Regarding Correspondence /Funding Assistance Request Received from L'Esperance Owners Association 7924 — 8020 515' Avenue North Resolution Calling for a Public Hearing to Consider Adoption of Ordinance Creating Housing Improvement Area (Improvement Project No. 695) Ordinance No. 2001 -06, An Ordinance establishing a Housing Improvement Area for the L'Esperance Townhome Development Pursuant to Minn. Stat. 428A An Ordinance Establishing a Housing Improvement Area for the L'Esperance Townhome Development Pursuant to Minn. Stat. 428A (Project No. 695) An Ordinance Establishing a Housing Improvement Area for the L'Esperance Townhome Development Pursuant to Minn. Stat. 428A (Improvement Project No. 695) continued to October 8, 2001, meeting. An Ordinance Establishing a Housing Improvement Area for the L'Esperance Owner's Association, Pursuant to Minn. Stat. §428A (Improvement Project No. 695) Item 7.312/10/01 Resolution Approving a Housing Improvement Special Assessment Fee for the L'Esperance Housing Improvement Area, Pursuant to Minn. Stat. 428A.11 — 428A.21 (Improvement Project No. 695) Item 8.1 1.2/10/01 Resolution Approving Development Agreement Between the City of New Hope and L'Esperance Owners Association (Improvement Project No. 695) Item 7.101/14/02 Resolution Approving a Housing Improvement Special Assessment Fee for the L'Esperance Housing Improvement Area, Pursuant to Minn. Stat. 428A.11 — 428A.21 (Improvement Project No. 695) Item 8.1 01/14/02 Resolution Approving Development Agreement Between the City of New Hope and L'Esperance Owners Association (Improvement Project No. 695) Item 6.5 08/26/02 Motion Approving Final Payment in the Amount of $8,868.49 to One -Way Remodeling for Completion of Housing Improvement Area Rehabilitation Project for the L'Esperance Townhomes Located at 7924 -8020 51s' Avenue North (Improvement Project No. 695) Res. 02 -142 09/23/02 Resolution Amending Resolution 02 -19 Approving a Housing Improvement Special Assessment Fee for the L'Esperance Housing Improvement Area Pursuant to Minn. Stat. § §428A.11 Through 428A.21 (Improvement Project No. 695) FDA ,REQUEST FOR ACTION 2�� H 01 Originating Department Approved for Agenda Agenda Section Community Development Item No. By: Ken Doresky, Community Development Specialist 07 -23 -01 By: �, 1 - - -' , j RESOLUTION CALLING FOR A PU LIC HEARING TO CONSIDER ADOPTION OF ORDINANCE CREATING HOUSING IMPROVEMENT AREA (IMPROVEMENT PROJECT NO. 695) ACTION REQUESTED Staff requests a Council motion approving a resolution that will schedule a public hearing on August 13, 2001, to consider the adoption of an Ordinance that would create a Housing Improvement Area for the L'Esperance Owners Association, 7924 -8020 51st Avenue North. POLICY /PAST PRACTICE City goal #2 is to pursue the maintenance and redevelopment of commercial and residential properties within the City. The City Council has been addressing the residential portion of this goal through the City's many housing activities, including consideration of creating Housing Improvement Areas for condominium associations. In 1997/98, the Council approved the creation of a Housing Improvement Area for the Sandpiper Cove Townhome Development near 42nd and Boone Avenues. The creation of this district allowed the owners of the thirty -six owner - occupied townhomes to make significant repairs and improvements to their properties, in an amount of approximately $600,000 and pay off the debt by assessment. BACKGROUND Over the past year and a half, City staff has been working with representatives of L'Esperance Owner's Association on the creation of a Housing Improvement Area to finance needed improvements to the properties. On August 28, 2000, the Council directed staff to continue coordinating with L'Esperance Owner's Association on the creation of a Housing Improvement Area for two buildings located at 7924 -8020 51st Avenue North. The properties are located on the North side of 51st Avenue North, just west of Winnetka Avenue. There are two buildings included in the Owner's Association (7924 -7934 and 8008 -8020) and each building contains six units for a total of twelve units. The proposed Housing Improvement Area does not include the third building, 7908 -7918 51 st Avenue North, located directly to the east of 7924 -7934. The third building is a rental property and has no association ties to L'Esperance. Also, the City Attorney and the Finance Director have come to the conclusion that the third building would not be eligible for inclusion due to its current status as a rental p roperty. Zoning of the subject properties is R -3, Medium Density Residents I. The buildings were constructed MOTION BY SECOND BYj' p� � TO: %� 1 16 ! Request for Action Page 2 07 -23 -01 in 1962 and are noted in the Comprehensive Plan for declining building and site conditions. The Owner's Association has submitted the required materials for consideration of a Housing Improvement Area including a petition signed by eleven of the twelve owners and a list of proposed improvements with cost estimates. The total estimate submitted to complete this project is $179,976. The proposed project includes roof replacement, insulation, new windows, doors, electrical upgrades, fascia and soffit repair, improved sheet rock fire walls, new railing, front overhangs, plumbing line replacement, fencing, tree removal, new basement fixtures, drain tile and parking lot re- paving and seal coat. Staff recommended that garages be included in the proposal, but the Association members decided that the addition of garages would make the project cost prohibitive. Upon review of the proposed improvements with staff, the Public Works Department recommends that water meter improvements and meter relocation be included in this project as a condition of approval. As the EDA is aware, the City has in place a variety of funding programs for the rehabilitation of single family homes and apartments, however, it has been more difficult to find funding mechanisms for the rehabilitation of owner - occupied multiple family units, such as townhomes and condominiums. Several years ago the State Legislature passed legislation allowing municipalities to create housing improvements districts. The steps to establish a Housing Improvement Area are outlined below by the City Attorney. 1. Initially, the Council would need to adopt an enabling ordinance specifically defining the improvement area or areas and specifically indicating the necessary improvements to be made within the area. The City cannot adopt this ordinance on its own initiative. Before such an ordinance can be considered, there must be a petition by at least 25 percent of the owners within the proposed area requesting the enabling ordinance. 2. Before adoption of the enabling ordinance, the City would need to conduct a public hearing. At the hearing and within the ordinance, the Council would need to make findings that the necessary improvements will not be made if the housing improvement area is not created and making the improvements within the area is needed to maintain and preserve the area's housing units. Further, the enabling ordinance will allow the City to impose a fee against the benefiting property owners to pay for the cost of the improvements. 3. The property owners within the improvement area also have veto power over the ordinance. In other words, if 35 percent of the property owners object to the ordinance after its adoption, it will not take effect. As a result, the effective date of the ordinance must be at least 45 days after its adoption by the City Council. During that 45 -day interim period, the property owners, after all receive notice of the ordinance and its contents within five days of its adoption, can file an objection to the ordinance with the New Hope City Clerk. If 35 percent of the owners object, the ordinance is void. 4. If the ordinance is not vetoed, property owners can individually object to their inclusion in the improvement area or the imposition of fees against their property. The objection procedure works similar to the special assessment challenges found in Chap. 429. Also, the City will need to hold a second public hearing before it can collect fees or specially assess properties for payment of the improvement costs. Again, this works like the special assessment procedure found in Chap. 429. If this Council approves this resolution, a public hearing will be held at the August 13, 2001, Council Meeting for consideration of an Ordinance to create a Housing Improvement Area for the subject properties. Staff recommends approval of this resolution. FUNDING This Housing Improvement Area proposal would be funded internally with EDA funds and repaid through an assessment agreement with the L'Esperance Owner's Association. Request for Action Page 3 07 -23 -01 ATTACHMENTS • Resolution • City Attorney Correspondence • Location Map • Topographical Map • Zoning Map • L'Esperance Request Letter • L'Esperance Owner's Petition • Proposed Improvements and Cost Estimates • Comprehensive Plan Reference • City Attorney Correspondence, 3 -27 -97 — Housing • Minnesota State Statute, 428A.11 — 428A.21 Improvement Area Summary RESOLUTION NO. 01- 100 RESOLUTION CALLING FOR A PUBLIC HEARING TO CONSIDER ADOPTION OF ORDINANCE CREATING HOUSING IMPROVEMENT AREA BE IT RESOLVED by the City Council of the City of New Hope as follows: WHEREAS, the City of New Hope has received a Petition Requesting Creation o f Housing Improvement Area and Imposition of Improvement Fees on Housing Units within the Area by City of New Hope as Authorized per Minn. Stat. &4 428A 12 through 428A 14 (copy attached as Exhibit A) from the L'Esperance Owners Association; and WHEREAS, Minn. Stat Chap. 428A allows the City to adopt an ordinance to create a housing improvement area if a petition as referenced in the preceding paragraph is signed by 25 % of the property owners within the approved area; and WHEREAS, the L'Esperance Owners Association petition is signed by 10 out of the 12 property owners or approximately 83 % of the owners satisfying the 25 % requirement; and WHEREAS, Minn. Stat Chap. 428A also requires the City to hold a public hearing before a housing improvement area ordinance is adopted and provide 7 days published notice and 10 days mailed notice to each affected property owner in the proposed district. Said notice must include the time and place of the hearing, a map showing the boundaries of the proposed area and a statement that all affected owners subject to a housing improvement fee will be given an opportunity to be heard at the hearing; and WHEREAS, the L'Esperance Owners Association petition satisfies the statutory requirements to permit the City to consider a housing improvement area ordinance; and WHEREAS, the L'Esperance Owners Association has also submitted an improvement plan and proposed cost estimate to make the proposed improvements (a copy attached as Exhibit B). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of New Hope as follows: 1. The City Council hereby acknowledges and accepts the petition attached as Exhibit A as submitted by the L'Esperance Owners Association. N 2. The City Council will hold a public hearing on August 13, 2001 to consider an ordinance establishing a housing improvement area as requested in the petition submitted by the L'Esperance Owners Association. 3. The City staff is hereby directed to take all necessary steps prior to the August 13, 2001 public hearing date to publish and mail notice and prepare an ordinance in conformance with the requirements of Minn. Stat Chap. 428A. Dated the 23` day of July, 2001 W. Peter Enck, Mayor Attest: . Valerie Leone, City Clerk PAAw —ykC.1 Res. N io- lCNH99.40102 R— Calling Gn Puhlic Hca ng.wpd -2- PETITION REOUESTING CREATION OF HOUSING IM ROVEMENT AREA AND IMPOSITION OF IMPROVEMENT FEES ON JLJOUSING UNITS WITHIN THE AREA BY CITY OF NEW HOPE AS AUTHORIZED PER MIN IN STATS. $ 428A.12 THROUGH 428A.14 This Petition is submitted on behalf of the L'Esperance 0 Association (hereafter the "Association "). The parties signing this Pctition are n.cmbers of the Association and fz,� ov, - ners o' the housing units hereafter identified. T"he L'Esperance ONvners Association by and through its members do hereby request the New Hope City Council hold a public hearing to consider ti-,.- enactment of an ordinance creating the L'Esperance Housing Improvement Area pursuant to tl z- req and authority set out in Minn Lal. §428A.13. The Association requests the ordinance to create an area encompassing all 12 housing units legally described as follows: Lots 1 through 6, Block 1, Lots 1 through 6, Block 2, and Outlot A, Soukups Addition, Hennepin County, I�linnesota. The ordinance is needed to enable the Association and its members to make in;pro-er-er.:s to the housing units within the improvement area that can not be made without the desi`: natio:: a hotisino, improvement area. The Association and its members further request the City ofNew Hope to impose housii: improvement fees on the housing units within the proposed housing improvement area purstiaiit z�� the requirements and authority set out in Mi m . Stai. 8428A.14 and after a public hearing to consi�:: the rat.- and terms of said fees and the basis on which said fees will be impose3. MMMMMMMMW EXHIBIT d 9 Soukups Addition S Sly .v' Cam- 7 - o l (Datc ) Property 7924 51 st Avenue North PID 118 -21 -14 -0129 r • S1 (Si�ature) (Date) Prover . 7926 5 I st Avenue North PID# 118 -21 -14 -0128 (Signature) (Duo) Proverrv 7928 51st Avenue North PIDY 118 -21 - 14 - 0127 (Si aturc) (Da:cl Pr. ^n�rty 7 ,0 Slst Avenue North PID= 118 -21 -14 -0126 (sign=r -; (Date) ,D-roerr " : 7932 51st Avenue North P: - =_..1 18 -21 -14 -0125 , :: �-- -, 0 � �Z,, -7 4 r,' ., J w Pr( 7934 51st Avenue North PI - 118 - 21 - 14 - 0124 Prover 8008 51st Avenue North PID 118 -21 -14 -0123 ($ren;atr_) (Dare) Proyerty 8010 51 st Avenue North PID# 118 -21 -14 -0122 _ (5ignar (�3w) Proverm 8012 51 st Avenue North PID= 118 -21 -14 -0121 ' Dare, Pronerf - 8014 51st Avenue North PID-= 118 - 21 - 14 - 0120 property 8016 51st Avenue North PID#' 118 -21 -14 -0119 r ,/ (Dz; -. Proper h : 8020 51st Avenue North PID = 118 -21 - 14 -0118 r._ �r tic =•t curt rix Nu 7tiJSa151JO c., 07 -�� - E: r� ONE WAY REMODELING SERVICES 7 ( " REMODELING THE MH T WAY Espronse Town Houses Ass. 7924 51 Ave. N New Hope N 2N 55478 Contract Specifications,�> (,,2 07 Remodel and Construct Gari:ges 2125 Brook-dale Drive Brooklym Park, NfN 55444 763 - 566 -0545 1) Roofing: a. Remove 2 layers of shingles b. Install or lay 25 year 3 tab shingles ice and water to code Total 63 Squares c. Haul away tare off d. Repair roof whcre needed ( Time & Materials) c. Remove and install new gutters S21976.00 2) Insulation: a. Blow in 9" insulation to be done at time of roofing S6 34.W) 3) Sheet Rock Fire Brake: a Install 5/8 Fire code rock on truss Between units (To be determined at time of roofing if needed) S2205 4) Windows- a. Remove old window sashes and haul away b. Install vinyl clad tilt sash replacement windows in existm' -- jams a total of 116 windows c. Removc and replace basement windows with Vinyl slidcrs or awning total of 48 c. Install plastic window shutters 36 pairs 553845.00 111111119i • a. Remove old doors and jams haul away b. Install new per hung steel doors and storms with dead boh C. Includes paintin doors (Door allowance 5260.00 door and storm (Master Craft) S15807.00 6) Rap existing Fascia and sofl<'et with aluminum: a_ Install new fascia and soffit system b. Rap exterior trim( Doors and windows) 522256.0tj F--7 BIT ,,,,, � . I � roc., nUrc rNf, NU, . 7635315136 07- 0:' e - - . 1 _ 7) Install Rod Iron railing: a Install custom ra iling between units 30 LF 8) Siding Front Overhangs: a. Install vinyl siding on overhangs over entryways 9) Electric up grades: a Do services upgrade on units 150 Amp b. Replace outside GFZ C. Install new flood lamps with automatic shutoffs 10) Plumbing Waste Line a Excavate old waste line Remove b. Install new line between buildings and to street I 1) Fence a. Install white vinyl fence 6' high total 110 Feet b. Repair and replace fence around dumpster enclosures 12) Tree Removal a. Remove trees from front of building and willow tree over Main waste line 1 3) Replace basement fixtures after drain tile, toilet, washer, dryer, sink, laundry tub. ( Allowance of $150.00 Labor and Materials per unit ) 51452.M 52296.00 S19448.Oo S402 7_00 S5992.00 S2 ?38.00 S1800.OD Total For complete job S1596 Customer must pick colors materials before starting, siding, shingles ect. By Signing Customer Understands What Is Listed Above And Agrees With What Is Stated One Way Remodehng El' Experieixe Town House Ass. N'rN Licer se . _20141923 Insured Bot:r;d�: Z' Shakopee, MN 5�537_q Faui jones Paving Fax (952} 445 -15'1 Asphalt Contract Residential • Commercial - Sealcoating • All Work Guaranteed • Free Estimates Not Responsible for 100% Weed Control • Not Responsible for Frost Cracks SUBMITTEDTO PHO /nIA A':oL I - E STREET - 7' _lg ATE N _4�� 7 - ,3C,2g C�� :2 / <-7�A - _�;�> _!t / - ) PHONE 715C -,�z>,37 r 7 < CITY, STATE, & ZIP CODE iT±�JOG LOCATION A) WE HEREBY SUBMIT SPECIFICATIONS AND ESTIM TES FOR: RESURFACING OF 2 DFINEWAY V-P)ARKING LOT L PATIO APPPDX. 6C SO FEET � XISTING V,"ASPHALT rACEMENT WILL BE EDGED AND CLEANED OF ALL DEBRIS _21=ED KILLER WILL BE APPLIED TO ALL VEGETATION. V/LDDSF AND BROKEN ASPHALT WILL 22 REMOVED AS NEEDED. '.J APPROX. SQ. FEE-7 OF FAILURE AREA TO BE REMOVED. APPROX, INCHES 01 NEW BASE TO BE INSTALLED. V A HOT TAR ADHESIVE WILL BE APPLIED TO EXISTING SURFACE FOR BONDING OF NEW ASPHALT AS NEEDED, LL HOLES AND LOW AREAS WILL BE PATCHED WITH ASPHALT AZILLSOLI-ED TO PREPARE JOB FOR RESURFACING L LL EXISTING AREAS WILL THEN BE RESURFACED WITH APPROX./_ OF ASPHALT AND BE ROLLED WITH TWO TON HYDRAULIC ROLLER (USED FOR COMPACTION). PAVING PARKING LOT [I DRIVEWAY V �AODITIC%5 D WALK WAY APPROX. so. FE E i 'V�REA WILL BE I VI"REPARF-ID - L' - �JSING EXISTING EASE jQ2 W1L BE GRADED, COMPACTED AND PREPARED FOR PAVING. APPROX. INCHES OF ( INCH MINUS) fUM=NE1 (C.L.,O-SE FIVE) WILL BE INSTALLED, GRADED AND COMPACTED AS NEEDED, V KII I ER WIL BE ArrVUED TO ALL VEG INCHES OF ASPHALT AND EE ROLI ED WITH A TWO TO,. V WILL TIHEN R PAVED WTrH APRROX.N� HYDRAULIC AOI IER (USED FOR COMPACTION). _ 41 �c. f TEAR OUT OLD AlzDHALT, HAUL AWAY, 'r- AT '� 0 AL 13 Z_y' FOR SEAL ING V -FF AREA WITH POWER ELDWER 7- � BASE G11-SENITE SEALCOATING - EMULSION TYPE WATSR BASE SEALCOAT4G 0 ''APPLY A THICK PAS TO ALL CRACKS [I ALL HOLES PATCHED WITH APPROX INCKES) OF ASPHA- T:) BE PAID IN ALL WORK GUARANTEED FOR 12 MONTH ). FUII - AFTER INSTALLATION OF DRIVEWAY OR PARKING UNLESS OTHER ARRANGEMENTS ARE MADE:. 0 L �ft LAE:Di4= GR DTHER PERSON WHO HELPS TO IMPROVE YOUR Pr'CPEq Ty A " "D !S NCT PAIL FQ;; HIS LAM;, S=.RV.C:_:S CP M ATERIAL. HAS 4 ;+IZ•HT T:; 'ENF HIS ZL,01M AG;�INS7 YOUR PqCPE;;7 N/'.,:kK= CHECKS PAYAS! c TIC: Paill joneS CF mo Pq;C_=S SP=*_i�;C_^T;Cr14S S ANC A;;= HE=:: 'AT 7 Y__ :.".;THOPCZEZ� TZ CC TN: ABCVS WORK ' AS SPECiFiEZ. U P"54-- P A YN, E N L �_ R E Nl,: SiGN–ITURE NO — it: THIS CO4 TRAC7 MAY EE 2 C�) W17HCRXNN BY US IF: N07 ACCEPTED V41THI",_ CA raterproofing System To Be Installed For am? �t t !l Inc L �� t ity Zip - � ome Prlons { 7) 53 `-{C Z 7 lork Phone ( ) Job Location Date S / 7 / C r Name �S��K ti i UL t�C�}�� Address — Crty ZIP Home Phone ( Work Phone ( ) standard Water Control Systems, Inc, will furnish all labor and materials for work as specified in accordance with drawing be ow ;stailation guaranteed to be as specified and completed in a workmanlike manner. ,PECIPlCATIONS - DIAGRAM OF AREA TO BE SERVICED 1 r (�,- :> I 1 X211 PAYMENTTERMS ire Owner Agrees to pay Contractor a sum as follows c:. A. Price $ �. rin::Pai Ca.ar SCE J L'. Dcwn Payn - e't _. Jroa,d Sala ^ce CUSTOMER NO. 1 j Foundation Description -CX-- �C— $ rr 1st Course Block Exposure '5711 Finishing Material Description Obstructions To bee Installed andlor performed: I igid PVC crainaga pice, at descancing grade to basin l� 4 erainagellU er rne®an to envelope craintite.bas r V= hoses dril$ed in 20 main and joining cavities. t i x1ru ed PVC cove plate and drainage system on tcctira 1 � p sheeting moisture bamcf between craintila system am new ce-re-1 /dRemove. replace ar-.d finish camWnt where required. E R amov2l of all concrata a^d ether debris from job sate. gn quality stn=ral sumo basin wrth bolted down cover. j f Pr mium Bade. totally autcmatic submersible punp wit!; cn�• va "� educe 40 - 1lr2 PVC 6=args system with diffuse cad _ Rocr may bevel. walls may need trimmer,, r- 77 Remarks: Owner is responsible for installation c; s detector anc sle erica? cut!ets it rQeu:res Stancaro Water Control Systerns. Ir,. .esc ir.stalliriC sys:-=--. cn all Exterior w-=i,s r 1 r (�,- :> I 1 X211 PAYMENTTERMS ire Owner Agrees to pay Contractor a sum as follows c:. A. Price $ �. rin::Pai Ca.ar SCE J L'. Dcwn Payn - e't _. Jroa,d Sala ^ce CUSTOMER NO. 1 j Foundation Description -CX-- �C— $ rr 1st Course Block Exposure '5711 Finishing Material Description Obstructions To bee Installed andlor performed: I igid PVC crainaga pice, at descancing grade to basin l� 4 erainagellU er rne®an to envelope craintite.bas r V= hoses dril$ed in 20 main and joining cavities. t i x1ru ed PVC cove plate and drainage system on tcctira 1 � p sheeting moisture bamcf between craintila system am new ce-re-1 /dRemove. replace ar-.d finish camWnt where required. E R amov2l of all concrata a^d ether debris from job sate. gn quality stn=ral sumo basin wrth bolted down cover. j f Pr mium Bade. totally autcmatic submersible punp wit!; cn�• va "� educe 40 - 1lr2 PVC 6=args system with diffuse cad _ Rocr may bevel. walls may need trimmer,, r- 77 Remarks: Owner is responsible for installation c; s detector anc sle erica? cut!ets it rQeu:res Stancaro Water Control Systerns. Ir,. .esc ir.stalliriC sys:-=--. cn all Exterior w-=i,s F cf'' C I TY CF QEa HOPE FAX F40. 7635315135 5 I F 1 L ; U lm f L.. 'a7 1 % 1 :.7 iiw th 5337 Lakeland Avenue North . Crystal, Minnesota 55429 • www.standardwater.com h!INNEAPOLIS ST. PAUL BURNSVILLE ST. CLOUD DULUTH ROCHESTER OUTSTATE FAX (763) 537 -4849 (651) 776 -6581 (952) 894 -4107 (320) 252 0766 (218) 727 -1445 15071285-654-9 (839} 978.78E' t763; 537.1 HSL Home Phone ( 7 (-- ---) ) 5 3 7– 73 Home Phone ( Work Phone ( ) Work Phone { Standard Water Control Systems, Inc. will furnish all labor and materials for work as specified in accordance wit" Crawinu beio�. Installation guaranteed to be as specified and completed in a workmanlike manner. SPECIFICATIONS — DIAGRAM OF AREA TO BE SERVICED i_ — it-2 � I PAYMENT TERMS T ne Owner Agrees to pay Contractor a sum as follows A. Price C. °rl:7cca! Ea ance . Down Payrnem, _ Ur.oalc S =ia ,ve s r5 CUSTOMER NO. L{ C Foundation Description 'e3tL- 1st Course Block Exposure Finishing Material Description S�( -)r A Obstructions dC>` �%}- fVI;L irs+7S To be Installed andJor performed. [� Ki PVC drainage pipe, ateescerd:ng grade to basin 4 C(was' t ro& drainageA ter median to envelope draint;le.b; sir C 7B' tlranage hoses drilled in ail main and }aning cavities. (Extruded PvC cove plate and drainage system on fxtrc ". Poly sheeting moisture barrier between dra'.ntile system ano r" cemer.: I_I Remove, replace and finisn cement where recu,red n',oval of all cor=ete and other deohs from job site. ( P cuality stnx -m sump basin with belted gown cover. !_1 '" emium grace, totaity aummanc submersib +e pump wi cnpax va ve J 5ct*dule Q - 1'r, PVC dis,")arge system w n ontusa Fioor may bevel. Walls r need tnmmmg. r-- L.' l I C Remarks: Owner is responsible for insta'tatlon of srncK= detector and eiectricai outlets if reyuirec Standart' Water Control System I7_. rec installm- sys -em o n all eX.ericr wzl!3. oo c: — it-2 � I PAYMENT TERMS T ne Owner Agrees to pay Contractor a sum as follows A. Price C. °rl:7cca! Ea ance . Down Payrnem, _ Ur.oalc S =ia ,ve s r5 CUSTOMER NO. L{ C Foundation Description 'e3tL- 1st Course Block Exposure Finishing Material Description S�( -)r A Obstructions dC>` �%}- fVI;L irs+7S To be Installed andJor performed. [� Ki PVC drainage pipe, ateescerd:ng grade to basin 4 C(was' t ro& drainageA ter median to envelope draint;le.b; sir C 7B' tlranage hoses drilled in ail main and }aning cavities. (Extruded PvC cove plate and drainage system on fxtrc ". Poly sheeting moisture barrier between dra'.ntile system ano r" cemer.: I_I Remove, replace and finisn cement where recu,red n',oval of all cor=ete and other deohs from job site. ( P cuality stnx -m sump basin with belted gown cover. !_1 '" emium grace, totaity aummanc submersib +e pump wi cnpax va ve J 5ct*dule Q - 1'r, PVC dis,")arge system w n ontusa Fioor may bevel. Walls r need tnmmmg. r-- L.' l I C Remarks: Owner is responsible for insta'tatlon of srncK= detector and eiectricai outlets if reyuirec Standart' Water Control System I7_. rec installm- sys -em o n all eX.ericr wzl!3. Attorneys At Law 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443 -1968 TELEPHONE (763) 424 -8811 • TELEFAx (763) 493 -5193 e -mail law@jensen-sondrall.com GORDON L. JENSEN C. ALDEN PEARSONt NICOLE M. RITLANDt STEVEN A.SONDRALL WILLIAM C. STRAIT f STACY A. WOODS OF COUNSEL LORENS Q.BRYNESTAD *Real Property Law Specialist Certified By The Minnesota State Bar Association tQualified ADR Neutral July 12, 2001 Ken Doresky Community Development Specialist City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 Re: L'Esperance Housing Improvement Area Our File No.: 99.40102 Dear Ken: Please find enclosed a proposed Resolution Calling for a Public Hearing to Consider Adoption of Ordinance Creating a Housing. Improvement Area for consideration at the July 23, 2001 Council Meeting. As you know, this hearing relates to the creation of a housing improvement area for the L'Esperance townhome development. Also attached to the Resolution as Exhibits A and B are the L'Esperance Owners Association petition requesting the creation of a housing improvement area and their proposed improvements with estimated costs. They are proposing a project with an estimated $159,676.00 price tag. The enclosed Resolution directs City staff to establish an August 13, 2001 public hearing date for consideration of the ordinance that would create the housing improvement area. This will require the City to provide seven (7) days published notice and ten (10) days mailed notice to the affected property owners of the public hearing. Therefore, a public hearing notice must be submitted to the paper no later than July 26t' for a publication date of August 1. The mailed notices should go out on or before August 1St as well. As we have done in the past, I will be responsible for submitting to the paper the Notice for Public Hearing. The City Clerk will be responsible for mailing notice to the affected property owners within the proposed housing improvement area. July 12, 2001 Page 2 Please contact me if you have any questions or comments regarding this letter, the proposed Resolution enclosed or any other question relating to procedure on preparing and establishing the housing improvement area for this project. Very truly yours, Steven A. Sondrall, City Attorney, City of New Hope JENSEN & SONDRALL, P.A. sas Jensen- sondrall.com After Hours Extension 4147 Enclosure cc: Valerie Leone, City Clerk, City of New Hope (w /enc.) Kirk McDonald, Community Development Director, City of New Hope (w /enc.) CNH99. 40102- 001- Doresky Ltr.wpd IMMIz 4956 4981 `y 4998 497 > �Ct! 4992 4965 � 4986 4957 t � 0 4980 4949 94 4972 4941 4964 4933 0 m ^, 7E 49TH Qo N � M Of M1 1� h h O �O t0 5319 5324 533 $ m 5313 to ; 5318 532 n CO n 5307 5312 5315 7825 S� 7800 5306 5313 5218 M S 5307 5212 n , h C n qo 5208 7801 L n ^ o 221 n 5200 ) 3j 5201 a X a x o , a ' a x 51 ST AVENUE x 920.0 NORTH a p; 1 x a a 1921 • 9 z _ a x 924 W . a a a 32, 0 a a i t , a a 1 i I C X a a1 a a a a 51 ST v . 9 2 0 2 AVENUE NORTH a o� a a a as a 922.6 X / I x f a a o 1z 7 (__ 923 W 920.5 4 . a a 1 LLJ p w a a LLJ ( > ! 923.3..- - a ¢ a « - -- ' x Of 1 -2 - ` a- I i-- I g -2;y, O`�PP HOSTERMAN R_O P� JR HIGH SCHOOL WINNETKA ELEMENTARY-- ST.. o H EL SCHOOL - - - -- -- E - CHURCH - Z._ — —> -- W a �.. ._. a --¢ Q __...� -- jr Uj - __.__.. ...- p..... -.. W . _ __ rn _ z ul ' -- W ASE N _ `— . .53RD . Q _. iu I z , .aa CHURCH OF — - �- 5QIllAUE -U (CHRIST R -1 - - - _ __ > z c N : , P - ----- a —_SOTH AVE. - N -- _ O -. 7FAI AA_ in ev - ...` W -i----12 _- _ice '/ I fD ... ...� . 1C PA[R viI w _ z ` :,�4a _- 9 i - — _ -- -- T ' 49TH AVE N — - _ --- •. l< '—r- f 48TH AVE __ .._ i I l i � I - i z W COOPER - --- 48TH AVE N - i -- 48TIR N i ~ ' ` . HOUSE OF�< `- HOPE � z LUTHERAN HIGH SCHOOL 4AT AVE N -- - Z 1. _ �; CHURCH i'• ¢ ,.. .. tW c9l _ h L9 HIGHVIEW - - . _ S 47TH - t_�_ �. -- _ - -- WATER r-- TOWER - -... _ z > Of 1 -2 - ` a- August 11, 2000 Kirk Mc Donald New Hope City Council City of New Hope 4401 Xylon Avenue North New Hope, Mn 55428 Dear Kirk, We are writing to you as an association to request your assistance in a matter of great importance to us. As residents of the City of New Hope, L'Esperance Owners Association members take pride in where we live. However, the condition of our townhomes is deteriorating at a rate with which we cannot keep up. We understand the City of New Hope takes pride in the condition of its resisdential properties. We want to be proud of our townhomes and to have them be an attractive and pleasant enhancement to this City. At various levels of urgency, our homes desperately need new roofs, gutters and downspouts applied, windows, Doors, Drain Tiling applied in each basement and New Blacktop Paving for one of our two Parking lots and Sealcoating for the lot we had done a couple years ago. So we have been keeping up with regular maintenance. Our assets right now are about $8000.00 which is not enough to cover the work we need to have done. We figure the total ammount for all improvements would be about $125,000. The improvements we are requesting your assistance with are vital and would benefit us as well as the City of New Hope. The property would be more attractive and pleasing with new Roofs, Gutters and Downspouts, Blacktop Paving, Windows and Doors. We hope that by receiving this letter you will see our serious concern and dedication to this subject. Once again we ask you to carefully consider the possibility of assisting us with the special funding so improvements can be made. Respectfully, President of L'Esperance Owners.Association, Rita Kolodjski And residents of the L'Esperance Owners Association Here is a rough estimate of the Repairs and Replacements of the following: Roof $ 23,770.00 Gutters $ 4,150.00 Windows $ 59,360.00 Entry Doors $ 18,960.00 Storm Doors $ 6,360.00 Drain Tiling $ 6,000.00 Blacktopping $ 5,800.00 Total $124,400.00 � '� � � at�fi ; ' =_' i rcii��i�i�llT� , I BE g m FIE, 0 Will CC C: 1111111 mall /4 , I WT It . fol, KA C: I ra - - a m =1= I ;; - -- -------- Mile - rill • ir Ell F, 2112 s ON' r - 1 film H* I i R Mlt lb I w ww/l . m 4cm N Plannin2 Districts PLANNING DISTRICT 8 Planning District 8 is found in the center of New Hope and includes, as well as surrounds, Cooper High School and New Hope Elementary School. Quebec Avenue borders on the east and Boone Avenue on the west, with dynamic northern and southern boundaries. This area is characterized by its publictsemi- public uses and their surrounding low density residential neighborhoods. The following recommendations are offered for Planning District 8. 2 1. The low density residential neighborhoods are generally in good condition. The City has undertaken some scattered site residential development within the neighborhood north of 49th Avenue. The City will continue to encourage the maintenance and enhancement Of its low density areas through private reinvestment in homes, enforcement of the Housing Maintenance Code, and scattered site renovation and redevelopment programs. The medium density housing located along 51 st Avenue displays declining building and site conditions. Area redevelopment is recommended. 3. The high density residential land uses at the corner of Xylon Avenue and 45th Avenue face flooding issues due to its proximity to an adjoining wetland. Efforts to remedy this flooding problem should be investigated. 4. The Homeward Bound Group Care Facility is currently vacant. Future reuse of the facilities will be evaluated with regard to the use's compatibility with surrounding residential neighborhoods. 5. Cooper High School and New Hope Elementary School are located in the center of Planning District 8. Compatibility issues with regard to the high school and adjoining neighborhoods have identified issues pertaining to students leaving the school (trespassing, littering, and noise). The City will work closely with the School District to monitor ongoing issues and undertake efforts to mitigate existing problems. of New Plan 92 Poficv Plan E. Accomplish transitions between distinctly differing types of land uses in an orderly fashion which does not create a negative (economic, social or physical) impact on adjoining developments. F. Infill development of compatible land uses shall be strongly encouraged. G. Where practical, conflicting and non - complementary uses shall be eliminated through removal and relocation. RESIDENTIAL GOALS Goal 1: Provide a variety of housing types, styles and choices to meet the needs of New Hope's changing demographics. Policies: A. Through infill development and redevelopment efforts, increase life cycle housing opportunities not currently available within the City (i.e., high value housing, townhomes). B. Promote medium density attached housing to address the needs of an expanding empty nester or independently living elderly population. C. Continue the City's efforts to provide special needs housing for people with various types of disabilities. Goal 2: Maintain and enhance the strong character of New Hope's single family residential neighborhoods. Policies: A. Promote private reinvestment in the City's single family housing stock. B. Examine City development regulations to provide greater development flexibility for single family homeowners. C. Prevent the intrusion of incompatible land uses into low density single family neighborhoods. City o f New Plan 12 Policy Plan D. Aggressively enforce the City's housing maintenance regulations. E. Provide community education and information to local property owners on home maintenance, repair, and assistance opportunities. F. Pursue the redevelopment of substandard single family homes when it is judged not economically feasible to correct the deficiencies. G. Encourage neighborliness through block clubs, block parties or neighborhood associations. Goal 3: Promote multiple family housing alternatives as an attractive life cycle housing option. Policies: A. Redevelop substandard multiple family properties that display deteriorated building conditions, no site amenities, poor site design, or incompatible land use patterns when it is judged not economically feasible to correct the deficiencies. B. Adhere to the highest community design and construction standards for new construction and redevelopment projects. C. Accompany medium and high density development with adequate accessory amenities such as garages, parking, open space, landscaping, and recreational facilities to insure a safe, functional, and desirable living environment. D. Consider mixed land uses as an alternative land use option in planning and redevelopment of obsolete commercial or industrial sites. E. Encourage neighborliness through block clubs, block parties or neighborhood associations. City of New Plan 13 STEVEN A. SONORALL MICHAEL R. LAFLEUR MARTIN P. MALECHA WILLIAM C. STRAIT'* *APPROVED AOR NEUTRAL March 27, 1997 Kirk McDonald Management Asst. City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 TELEPHONE (612) 425 -5671 FAX (612) 425.5867 RE: Loan Request for Housing Improvements /Sandpiper Cove Association Our File No: 99.11155 Dear Kirk: LEGAL ASSISTANT SHARON D. DERBY This letter is your long awaited response regarding your question about the loan and other funding options for needed improvements at the Sandpiper Cove Townhome Development. It is my understanding the property owners in the development need collectively between $200,000 to $300,000 for replacement of siding, replacement and /or repair of defective decks and other structural problems. It is my further understanding the Townhome Association is severely underfunded and as a result are without any reserves to pay for these needed repairs. The Association has also informed us neither the Association or the individual unit owners can arrange a private loan. Banks apparently will not transact business with the Association and the individual unit owners lack equity in their units sufficient to secure a loan by a mortgage against the individual units. The City has two options it could implement to assist the Association and individual owners at the Sandpiper Cove Development as follows: 1. Bond counsel has indicated we could provide loans to either the Association or the individual unit owners utilizing our existing TIF funds. Basically, we would be acting like a private banking institution taking back mortgages from the individual owners and /or the Association as security for the loans. Unfortunately, the City has the same problem as the lending institutions in this regard. Namely, lack of unit equity as security CORRICK & SONDRALL, P.A. ATTORNEYS AT LAW Edinburgh Executive Office Plaza 8525 Edinbrook Crossing Suite #203 Brooklyn Park, Minnesota 55443 Kirk McDonald March 2,7, 1997 Page 2 for the loans. Nor do we want to become owners of the units in the event of default on the loans requiring foreclosure of the proposed mortgages and quite possibly being subject to superior first mortgages already in place on the property. 2. our second option involves establishing a housing improvement area under Minn. Stat. § §428A.11 through 428A.21. As you know, this law was enacted during the 1996 legislative session. Basically, it allows us to define a housing improvement area, permits us to make improvements within said area and assess the benefiting properties for the cost of the improvements much like the special assessment procedure under Chap. 429. This appears to be a more viable solution to the funding problem for Sandpiper Cove than direct loans to individual property owners from excess TIF funds secured by a mortgage. The remainder of this letter will briefly detail how the City could implement a housing improvement area for the Sandpiper Cove Development or any area in the City. Initially, the Council would need to adopt an enabling ordinance specifically defining the improvement area or areas and specifically indicating the necessary improvements to be made within the area. The City cannot adopt this ordinance on its own initiative. Before such an ordinance can be considered, there must be a petition by at least 25% of the owners within the proposed area requesting the enabling ordinance. Before adoption of the enabling ordinance, the City would need to conduct a public hearing. 7 days published notice and 10 days mailed notice to all property owners within the proposed area is required for the public hearing. At the hearing and within the ordinance, the Council would need to make findings that the necessary improvements will not be made if the housing improvement area is not created and making the improvements within the area is needed to maintain and preserve the area's housing units. Further, the enabling ordinance will allow the City to impose a fee against the benefiting property owners to pay for the cost of the improvements. However, the ordinance must also specify the basis for the imposition of the fee and the number of years it will be in effect. The property owners within the improvement area also have veto power over the ordinance. In other words, if 35% of the property owners object to the ordinance after its adoption it will not take Kirk McDonald March 27, 1997 Page 3 effect. As a result, the effective date of the ordinance must be at least 45 days after its adoption by the City Council. During that 45 -day interim period the property owners, after all receive notice of the ordinance and its contents within 5 days of its adoption, can file an objection to the ordinance with the New Hope City Clerk. If 35% of the owners object, the ordinance is void. If the ordinance is not vetoed, property owners can individually object to their inclusion in the improvement area or the imposition of fees against their property. The objection procedure works similar to the special assessment challenges found in Chap. 429. Also, the City will need to hold a second public hearing before it can collect fees or specially assess properties for payment of the improvement costs. Again, this works like the special assessment procedure found in Chap. 429. Collection of fees also may take two forms. It can be done either by an ad valorem tax or it can be done like a special assessment to benefitted properties. If done like an ad valorem tax, it would be based on the net tax capacity of the property, the square footage of the property, or some other method determined by the Council. If it is done like a special assessment, we would need to codify special assessment regulations and incorporate them in the ordinance. If an improvement area is established, the repairs would be done as a public improvement. This may potentially require the City to act like a general contractor for repairs on private property. Obviously, we would be subject to the Uniform Municipal Contracting Law for letting contracts. Further, it creates numerous 1 iabi 1 ity and warranty issues involving the completed work. I would not consider this program unless we had extensive releases, hold harmless and indemnification agreements with the involved property owners. It would also allow the City to issue general obligation bonds to finance t he construction costs in l i e u of using TI F funds. Finally, this law has a sunset provision of June 30, 2001. After said date, no housing improvement areas can be established pursuant to Minn. Stat. §428A.11, et al. Therefore, we do have some time to consider this kind of funding option for the Sandpiper Cove Development. Some extensive work is involved to establish a procedure for creating housing improvement areas. I have contacted the League of Minnesota Cities to find out if other municipalities have Kirk McDonald March 27, 1997 Page 4 implemented a program like this under Minn. Stat. §428A.11. Possibly, there is a model ordinance developed by the League or we could obtain ordinances from other cities t hat have already adopted this program. Before we get into this project too far, I think we need direction from the City Council whether they would be willing to entertain this kind of program for the Sandpiper Cove Development or any other area within the City requiring this kind of assistance. At any rate, I will not do anything further unless I receive direction from you or the City Manager to proceed. Please contact me if you have any other questions or comments regarding the content of this letter. Very truly yours, Steven A. Sondrall s1t4 Enclosure cc: Daniel J. Donahue, City Manager (w /enc) Jerry Gilligan, Esq. (w /enc) 6 22 f . per, tition re- tie th t or more le a Peti- u ndarie s I Se ic cha nged fled w servic sectio 28 A.02 )n of the tie own - organi - sectio ased on rge irn- quired resolu- blic in- a in the )r more •ity file Y clerk )wners ?pacity sed on based of the ds and iopted 3 with effec- arand , been VER. ibject ubse- than 8 and solu- otice solu- year nent; SPECIAL SERVICE DISTRICTS; HOUSING DWROVEMENf AREAS 428A.13 623 (2) in the case of operating and maintenance services, the maximum service charge to be i °sed rn n osed for an indefinite umber o number ears the sew ce char es will be im osed o pacharge Will be P Y b P pay for operation and maintenance services. The resolution may provide that the maximum service charge to be imposed in any year Will increase or decrease from the maximum amount authorized in the preceding year based on an indicator of increased cost or a percentage amount established by the resolution. History: 1988 c 719 art 14 s 10 428A.1ol SPECIAL SERVICE DISTRICT; SUNSET OF SELF — EXECUTING PRO- VISIONS The establishment of a new special service district after June 30, 2001, must be made pursuant to enabling legislation under Minnesota Statutes 1994, sections 428A.01 to 428A,1 History: 1996 c 471 art 8 s 6 HOUSING IMPROVEMENT AREAS 428A.11 HOUSING IMPROVEMENT AREAS; DEFINITIONS. Subdivision 1. Applicability. As used in sections 428A.11 to 428A.20, the terms de- fined in this section have the meanings given them. Subd. 2. City. "City" means a home rule charter or statutory city. Subd. 3. Enabling ordinance. "Enabling ordinance" means the ordinance adopted by the city council establishing the housing improvement area. Subd. 4. Housing improvements. "Housing improvements" has the meaning given in the city's enabling ordinance. Housing improvements may include improvements to com- mon elements of a condominium. Subd. 5. Housing improvement area. "Housing improvement area" means a defined area within the city where housing improvements are made or constructed and the costs of the irnprovements are paid in whole or in part from fees imposed within the area. Subd. 6. Housing unit. "Housing unit" means real property and improvements thereon consisting of a one — dwelling unit, or an apartment as described in chapter 515 or 515A, that is occupied by a person or family for use as a residence. History: 1996 c 471 art 8 s 7 428A.12 PETITION REQUIRED. No action may be taken under sections 428A.13 and 428A.14 unless owners of 25 per- cent or more of the housing units that would be subject to fees in the proposed housing im- provement area file a petition requesting a public hearing on the proposed action with the city clerk. No action may be taken under section 428A.14 to impose a fee unless owners of 25 percent or more of the housing units subject to the proposed fee file a petition requesting a public hearing on the proposed fee with the city clerk or other appropriate official. History: 1996 c 471 art 8 s 8 428A.13 ESTABLISHMENT OF HOUSING IMPROVEMENT AREA. Subdivision 1. Ordinance. The governing body of the city may adopt an ordinance es- tablishing a housing improvement area. The ordinance must specifically describe the portion of the city to be included in the area, the basis for the imposition of the fees, and the number of years the fee will be in effect. In addition, the ordinance must include findings that without the housing improvement area, the proposed improvements could not be made by the condo- minium associations or housing unit owners, and the designation is needed to maintain and preserve the housing units within the housing improvement area. The ordinance may not be adopted until a public hearing has been held regarding the ordinance. The ordinance may be amended by the governing body of the city, provided the governing body complies with the 0 i 1 y ti 428A.13 SPECIAI, SERVICE DISTRICTS; HOUSING IMPROVEMENT AREAS 624 3 public hearing notice provisions of subdivision 2. Within 30 days after adoption of the ordi- nance under this subdivision, the governing body shall send a copy of the ordinance to the n f commissioner of revenue. z Subd. 2. Public hearing. The notice of public hearing must include the time and place of hearing, a map showing the boundaries of the proposed area, and a statement that all per- sons owning housing units in the proposed area that would be subject to a fee for housing improvements will be given an opportunity to be heard at the hearing. Notice of the hearing must be given by publication in the official newspaper of the city. The public hearing must be held at least seven days after the publication. Not less than ten days before the hearing, notice must also be mailed to the owner of each housing unit within the proposed area. For the pur- pose of giving mailed notice, owners are those shown on the records of the county auditor. Other records may be used to supply the necessary information. At the public hearing a per- son owning property in the proposed housing improvement area may testify on any issues relevant to the proposed area. The hearing may be adjourned from time to time. The ordi- nance establishing the area may be adopted at any time within six months after the date of the conclusion of the hearing by a vote of the majority of the governing body of the city. Subd. 3. Proposed housing improvements. At the public hearing held under subdivi- sion 2, the city shall provide a preliminary listing of the housing improvements to be made in the area. The listing shall identify those improvements, if any, that are proposed to be made to all or a portion of the common elements of a condominium. The listing shall also identify those housing units that have completed the proposed housing improvements and are pro- posed to be exempted from a portion of the fee. In preparing the list the city shall consult with the residents of the area and the condominium associations. Subd. 4. Benefit; objection. Before the ordinance is adopted or at the hearing at which it is to be adopted, the owner of a housing unit in the proposed housing improvement area may file a written objection with the city clerk asserting that the owner's property should not be included in the area or should not be subjected to a fee and objecting to the inclusion of the housing unit in the area, for the reason that the property would not benefit from the improve ments. The governing body shall make a determination of the objection within 60 days of its filing. Pending its determination, the governing body may delay adoption of the ordinance or it may adopt the ordinance with a reservation that the landowner's property may be excluded from the housing improvement area or fee when the determination is made. Subd. 5. Appeal to district court. Within 30 days after the determination of the objec tion, any person aggrieved, who is not precluded by failure to object before or at the hearing' or whose failure to object is due to a reasonable cause, may appeal to the district court by serving a notice upon the mayor or city clerk. The notice shall be filed with the court adminis trator of the district court within ten days after its service. The city clerk shall furnish the ap- pellant a certified copy of the findings and determination of the governing body. The court may affirm the action objected to or, if the appellant's objections have merit, modify or ca cel it. If the appellant does not prevail upon the appeal, the costs incurred are taxed to th appellant by the court and judgment entered for them. All objections are deemed waived nn' less presented on appeal. History: 1996 c 471 art 8 s 9 428A.14 IMPROVEMENT FEES AUTHORITY; NOTICE AND HEARING in Subdivision 1. Authority. Fees maybe imposed by the city on the housing units with the housing improvement area at a rate, term, or amount sufficient to produce revenue of quired to provide housing improvements in the area. The fee can be imposed on the basis • imP the tax capacity of the housing unit, or the total amount of square footage of the housing C on or a method determined by the council and specified in the resolution. Before the °si at of the fees, a hearing must be held and notice must be published in the official newspaPe n8 least seven days before the hearing and shall be mailed at least seven days before the ii jS0 to any housing unit owner subject to a fee. For purposes of this section, the notice mus include: the (1) a statement that all interested persons will be given an opportunity to be heard a hearing regarding a proposed housing improvement fee; 6 24 , ption of the ordi ordinance.to,th ie time and place ~rent that all per - i fee for housin ce of the hearin hearing must be e hearing, notice irea. For the pur- county auditor. sic hearing a per - fy on any issues time. The ordi- _er the date of the of the city. d under subdivi- nts to be made in red to be made to call also identify -nts and are pro - hall consult with hearing at which 1provement area , perty should not inclusion of the om the improve- ;in 60 days of its the ordinance or nay be excluded e. ion of the objec- or at the hearing, district court by :e court adminis- 11 furnish the ap- body. The court _, modify or can - are taxed to the med waived un- ARING. ;ing units within Luce revenue re- d on the basis of the housing unit, 'e the imposition ial newspaper at More the hearing notice must also o be heard at the 625 SPECIAL, SERVICE DISTRICTS; HOUSING IMPROVEMENT AREAS 428A.18 (2) the estimated cost of improvements including administrative costs to be paid for in -Whole or in part by the fee imposed under the ordinance; (3) the amount to be charged against the particular property; (4) the right of the property owner to prepay the entire fee; (5) the number of years the fee will be in effect; and (6) a statement that the petition requirements of section 428A.12 have either been met or d not apply to the proposed fee. Within six months of the public hearing, the city may adopt a resolution imposing a fee within the area not exceeding the amount expressed in the notice issued under this section. prior to adoption of the resolution approving the fee, the condominium associations lo- cated in the housing improvement area shall submit to the city a financial plan prepared by an independent third party, acceptable to the city and associations, that provides for the associa- tions to finance maintenance and operation of the common elements in the condominium and a long —range plan to conduct and finance capital improvements. Subd. 2. Levy limit. Fees imposed under this section are not included in the calculation of levies or limits on levies imposed under any law or charter. History: 1996 c 471 art 8 s 10 428A.15 COLLECTION OF FEES. The city may provide for the collection of the housing improvement fees according to the terms of section 428A.05. History: 1996 c 471 art 8 s 11 428A.16 BONDS. At any time after a contract for the construction of all or part of an improvement autho- rized under sections 428A.11 to 428A.20 has been entered into or the work has been ordered, the governing body of the city may issue obligations in the amount it deems necessary to defray in whole or in part the expense incurred and estimated to be incurred in making the improvement, including every item of cost from inception to completion and all fees and ex- penses incurred in connection with the improvement or the financing. The obligations are payable primarily out of the proceeds of the fees imposed under sec- tion 428A.14, or from any other special assessments or revenues available to be pledged for their payment under charter or statutory authority, or from two or more of those sources. The governing body may, by resolution adopted prior to the sale of obligations, pledge the full faith, credit, and taxing power of the city to assure payment of the principal and interest if the proceeds of the fees in the area are insufficient to pay the principal and interest. The obliga- tions must be issued in accordance with chapter 475, except that an election is not required, and the amount of the obligations are not included in determination of the net debt of the city under the provisions of any law or charter limiting debt. History: 1996 c 471 art 8 s 12 428A.17 ADVISORY BOARD. The governing body of the city may create and appoint an advisory board for the hous- ing improvement area in the city to advise the governing body in connection with the plan- ning and construction of housing improvements. In appointing the board, the council shall consider for membership members of condominium associations located in the housing im- provement area. The advisory board shall make recommendations to the governing body to provide improvements or impose fees within the housing improvement area. Before the adoption of a proposal by the governing body to provide improvements within the housing improvement area, the advisory board of the housing improvement area shall have an oppor- tunity to review and comment upon the proposal. History: 1996 c 471 art 8 s 13 428A.18 VETO POWERS. Subdivision 1. Notice of right to file objections. The effective date of any ordinance or resolution adopted under sections 428A.13 and 428A.14 must be at least 45 days after it is I"', 1 ? 428A.I8 SPECIAL SERVICE DISTRICTS; HOUSING IMPROVEMENT AREAS 626 627 s adopted. Within five days after adoption of the ordinance or resolution, a summary of the ordinance or resolution shall be mailed to the owner of each housing unit included in the mul- tiunit housing improvement area. The mailing shall include a notice that owners subject to a fee have a right to veto the ordinance or resolution by filing the required number of objections LO C _ with the city clerk before the effective date of the ordinance or resolution and that a copy of the ordinance or resolution is on file with the city clerk for public inspection. 429.011 } Subd. 2. Requirements for veto. If residents of 35 percent or more of the housing units 4229.021 1 k in the area subject to the fee file an objection to the ordinance adopted b the city under sec - 4 429.031 1 p Y ty 429.oss 1 tion 428A.13 with the city clerk before the effective date of the ordinance, the ordinance does 429.036 l e ! not become effective. If owners of 35 percent or more of the housing units' tax capacity sub - 429.041 C ject to the fee under section 428A.14 file an objection with the city clerk before the effective i date of the resolution, the resolution does not become effective. 429.051 r j 429.01 [R History: 1996 c 471 art 8 s 14 428A.19 ANNUAL REPORTS. 429.011 I Subd Each condominium association located within the housing improvement area must, by section sh, August 15 annually, submit a copy of its audited financial statements to the city. The city may Subd also, as part of the enabling ordinance, require the submission of other relevant information class howc from the associations. Subd. History: 1996 c 471 art 8 s 15 tion, recon fined in sec 428A.20 SPECIAL ASSESSMENTS. exercising Within a housing improvement area, the governing body of the city may, in addition to Subd, the fee authorized in section 428A.14, special assess housing improvements to benefited granted hel property. The governing body of the city may by ordinance adopt regulations consistent with provement " this section. those imprc History: 1996 c 471 art 8 s 16 ( ( (8) Subd. 428A.21 SUNSET. ers, the tow No new housing improvement areas may be established under sections 428A.11 to Subd. 428A.20 after June 30, 2001. After June 30, 2001, a city may establish a housing improve Subd. ment area, provided that it receives enabling legislation authorizing the establishment of the authority gr area. tion, recons History: 1996 c 471 art 8 s 17 chiding curl Subd. t orifthereis ty. Subd. i Subd. c ommission. tion of any r Subd. 9 Providing fol W ithin and u i ngs, and inc ridors, arcad f ixtures, furn O f the counci Pedestri a Subd. 1( means any s be low grounc e rtY, and incl 'ades, plazas. e quipment, fa July 24, 2001 4401 Xylon Avenue North New Hope, Minnesota 55428 -4898 www.ci.new-hope.mn.us UEsperance Owners Association Attn: Rita Kolodjski 8014 51 st Avenue North New Hope, MN 55428 Subject: Housing Improvement Area Dear Ms. Kolodjski: City Hall: 763 - 531 -5100 Police: 763 - 531 -5170 Public Works: 763 - 533 -4823 TDD: 763 - 531 -5109 City Hall Fax: 763 - 531 -5136 Police Fax: 763 - 531 -51,'4 Public Works Fax: 763 - 533 -7650 On July 23, 2001, the New Hope City Council approved a resolution scheduling a public hearing to consider the adoption of an Ordinance creating a Housing Improvement Area for the UEsperance Owners Association. The public hearing for the ordinance adoption is scheduled to be considered at the August 13, 2001 City Council meeting. A public hearing notice will be published in the New Hope /Golden Valley Sun Post, as well as, mailed to each individual owner in the UEsperance Owners Association. Below, please see the steps necessary to create a Housing Improvement Area as outlined by the New Hope City Attorney: • Initially, the Council would need to adopt an enabling ordinance specifically defining the improvement area or areas and specifically indicating the necessary improvements to be made within the area. The City cannot adopt this ordinance on its own initiative. Before such an ordinance can be considered, there must be a petition by at least 25 percent of the owners within the proposed area requesting the enabling ordinance. Before adoption of the enabling ordinance, the City would need to conduct a public hearing. At the hearing and within the ordinance, the Council would need to make findings that the necessary improvements will not be made if the housing improvement area is not created and making the improvements within the area is needed to maintain and preserve the area's housing units. Further, the enabling ordinance will allow the City to impose a fee against the benefiting property owners to pay for the cost of the improvements. The property owners within the improvement area also have veto power over the ordinance. In other words, if 35 percent of the property owners object to the ordinance after its adoption, it will not take effect. As a result, the effective date of the ordinance must be at least 45 days after its adoption by the City Council. During that 45 -day interim period, the property owners, after all receive notice of the ordinance and its contents within five days of its adoption, can file an objection to the ordinance with the New Hope City Clerk. If 35 percent of the owners object, the ordinance is void. • If the ordinance is not vetoed, property owners can individually object to their inclusion in the improvement area or the imposition of fees against their property. The objection procedure works Family Styled City A N v For Family Living I Rita Kolodjski July 24, 2001 Page 2 similar to the special assessment challenges found in Chap. 429. Also, the City will need to hold a second public hearing before it can collect fees or specially assess properties for payment of the improvement costs. Again, this works like the special assessment procedure found in Chap. 429. The City's Building Official, General Inspector and myself are reviewing the proposed improvements and would like to schedule a meeting to discuss the repair list with representatives of the Association and your contractor if the ordinance is adopted. If you have any questions or comments, do not hesitate to contact me at 763-531-5137. Sincerely, Ken Doresky, AICP Community Development Specialist cc: Dan Donahue, City Manager Kirk McDonald, Director of Community Development Steve Sondrall, City Attorney Doug Sandstad, Building Official Chuck Tatro, General Inspector Erin Seeman, Community Development Intern Valerie Leone, City Clerk (improvement Project File #695) COUNCIL 4 REQUEST FOR ACTION 2�� H 0 Originating Department Approved for Agenda Agenda Section Community Development eve o went Item No. By: Ken Doresky, Community 08 -13 -01 f Development Specialist By: PUBLIC HEARING AN ORDINANCE ESTABLISHING A HOUSING IMPROVEMENT AREA FOR THE L'ESPERANCE OWNER'S ASSOCIATION, PURSUANT TO MINN. STAT. §428A (IMPROVEMENT PROJECT NO. 695) ACTION REQUESTED This is a public hearing to consider the adoption of an ordinance establishing a Housing Improvement Area for the L'Esperance Owners Association, 7924 -8020 51st Avenue North. The Association was unable to submit requested information to clarify the project specifications by the submittal deadline for this Council meeting, therefore, staff is recommending and the Association is requesting that the public hearing be continued to the August 27, 2001 Council meeting. POLICY /PAST PRACTICE City goal #2 is to pursue the maintenance and redevelopment of commercial and residential properties within the City. The City Council has been addressing the residential portion of this goal through the City's many housing activities, including consideration of creating Housing Improvement Areas for condominium associations. In 1997/98, the Council adopted an ordinance establishing a Housing Improvement Area for the Sandpiper Cove Townhome Development near 42nd and Boone Avenues. The creation of this district allowed the owners of the thirty -six owner - occupied townhomes to make significant repairs and improvements to their properties, in an amount of approximately $600,000 and pay off the debt by assessment. BACKGROUND On July 23, 2001, the Council approved a resolution scheduling a public hearing to consider the establishment of a Housing Improvement Area for the L'Esperance Owners Association, 7924 -8020 51 st Avenue North. Over the past year and a half, City staff has been working with representatives of L'Esperance Owner's Association on the creation of a Housing Improvement Area to finance needed improvements to the properties. On August 28, 2000, the Council directed staff to continue coordinating with L'Esperance Owner's Association on the creation of a Housing Improvement Area for two buildings located at 7924 -8020 51st Avenue North. MOTION BY SECOND BY TO: ' fI Request for Action Page 2 08 -13 -01 The properties are located on the north side of 51st Avenue North, just west of Winnetka Avenue. There are two buildings included in the Owner's Association (7924 -7934 and 8008 -8020) and each building contains six units for a total of twelve units. The proposed Housing Improvement Area does not include the third building, 7908 -7918 51st Avenue North, located directly to the east of 7924 -7934. The third building is a rental property and has no association ties to L'Esperance. The City Attorney and the Finance Director have come to the conclusion that the third building would not be eligible for inclusion due to its current status as a rental property. Zoning of the subject properties is R -3, Medium Density Residential. The buildings were constructed in 1962 and are noted in the Comprehensive Plan for declining building and site conditions. The Owner's Association has submitted materials for consideration of a Housing Improvement Area including a petition signed by eleven of the twelve owners and a list of proposed improvements with cost estimates. The preliminary estimate submitted to complete this project is $179,976. The proposed project includes roof replacement, insulation, new windows, doors, electrical upgrades, fascia and soffit repair, improved sheet rock fire walls, new railing, front overhangs, plumbing line replacement, fencing, tree removal, new basement fixtures, drain the and parking lot re- paving and seal coat. Upon review of the proposed improvements with staff, the Public Works Department recommended that water meter relocation also be included in this project. Staff met with representatives from the Association on Monday, August 6, 2001, and requested clarification on the specifications, additional requirements and a firm cost estimate. This information was not submitted by the deadline for the August 13, 2001, Council Meeting, therefore the Association has requested that the City continue the Public Hearing until the August 27, 2001, Council Meeting. Although garages were not originally proposed in this request, staff worked with and encouraged the L'Esperance Owner's Association to include garages in the proposal. Staff developed a number of concept plans for the construction of six double car garage buildings on the property. Without a survey to use as baseline data, the concepts developed by staff were very rough. Due to the layout of the buildings and the size of the properties, each concept would have required variances for approval including: inadequate visitor parking, accessory garages in the front yard, front and side yard setbacks and too many curb cuts in the allowable area. Staff recommended that the Association hire a design firm and a survey firm to determine exact dimensions and alternative designs. The following two plans were considered: • The City's Planning Consultant, NW Associated Consultants and staff were supportive of one concept plan (see attachment: Concept Garage Plan 1) that would have provided garages, visitor parking, an open front yard area and the least number of variances. The Association members were not agreeable to this plan, due to the layout of the garages. • The concept plan (see attachment: Concept Garage Plan 2) supported by the Association was unacceptable to the City. This concept plan was unacceptable due to the number of variances required, including: inadequate visitor parking, number of curb cuts, accessory garages in the front yard and possible front yard setback problems. Due to the lack of a survey and acceptable site plan, staff was unable to determine the exact amount of variances needed with this proposal. The other issue regarding the addition of garages was the associated cost. Without garages, staff is recommending that the Council consider a twenty (20) year repayment period at 7% interest. With the addition of garages, staff would support a recommendation to the Council to consider a thirty (30) year repayment period at 7% interest. Their contractor estimated that the addition of garages in Concept Garage Plan 2, (see garage cost estimate) would increase the project cost by $157,341, not including survey work. If the Council would like staff to continue coordinating with the Association on the development of an acceptable garage plan, and if the Association is still interested in the addition of garages, staff will continue this discussion. If the Association is agreeable, staff would estimate that an acceptable garage plan could be presented to the Council within the forty -five (45) day comment period, before an assessment agreement is Request for Action Page 3 08 -13 -01 presented for consideration. The City Attorney has commented that if all property owners were supportive of a garage plan developed during the forty -five (45) day period, then adoption of the ordinance could proceed as scheduled. As the Council is aware, the City has in place a variety of funding programs for the rehabilitation of single family homes and apartments, however, it has been more difficult to find funding mechanisms for the rehabilitation of owner - occupied multiple family units, such as townhomes and condominiums. Several years ago the State Legislature passed legislation allowing municipalities to create housing improvement districts. The steps to establish a Housing Improvement Area are outlined below by the City Attorney. • Initially, the Council would need to adopt an enabling ordinance specifically defining the improvement area or areas and specifically indicating the necessary improvements to be made within the area. The City cannot adopt this ordinance on its own initiative. Before such an ordinance can be considered, there must be a petition by at least 25 percent of the owners within the proposed area requesting the enabling ordinance. • Before adoption of the enabling ordinance, the City would need to conduct a public hearing. At the hearing and within the ordinance, the Council would need to make findings that the necessary improvements will not be made if the housing improvement area is not created and making the improvements within the area is needed to maintain and preserve the area's housing units. Further, the enabling ordinance will allow the City to impose a fee against the benefiting property owners to pay for the cost of the improvements. The property owners within the improvement area also have veto power over the ordinance. In other words, if 35 percent of the property owners object to the ordinance after its adoption, it will not take effect. As a result, the effective date of the ordinance must be at least 45 days after its adoption by the City Council. During that 45 -day interim period, the property owners, after all receive notice of the ordinance and its contents within five days of its adoption, can file an objection to the ordinance with the New Hope City Clerk. If 35 percent of the owners object, the ordinance is void. • If the ordinance is not vetoed, property owners can individually object to their inclusion in the improvement area or the imposition of fees against their property. The objection procedure works similar to the special assessment challenges found in Chap. 429. Also, the City will need to hold a second public hearing before it can collect fees or specially assess properties for payment of the improvement costs. Again, this works like the special assessment procedure found in Chap. 429. The Association has informed staff that if they submit the additional information requested in a timely manner and if the Ordinance is adopted, that they would like to begin rehabilitation activities this fall with window replacement and other items and complete the project during the spring of 2002. Staff recommends approval of this ordinance. FUNDING This Housing Improvement Area proposal would be funded internally with EDA funds and repaid through an assessment agreement with the L'Esperance Owner's Association. ATTACHMENTS • Ordinance • Notice to the L'Esperance Owner's Association • City Attorney Correspondence • Location Map • Topographical Map • Zoning Map • L'Esperance Request Letter Request for Action Page 4 08 -13 -01 • L'Esperance Owner's Petition • Proposed Improvements and Cost Estimates • Garage Concept Plan 1 • Garage Concept Plan 2 • Garage Cost Estimate (Plan 2) • Comprehensive Plan Reference • City Attorney Correspondence, 3 -27 -97 — Housing Improvement Area Summary • Minnesota State Statute, 428A.11 — 428A.21 ORDINANCE NO. 01 -06 AN ORDINANCE ESTABLISHING A HOUSING IMPROVEMENT AREA FOR THE L'ESPERANCE TOWNHOME DEVELOPMENT PURSUANT TO MINN. STAT. 428A The City Council of the City of New Hope ordains: Section 1 Section 1.81 " L'Esperance Housing Improvement Area of the New Hope City Code is hereby added to read as follows: 1:81, " L'Esperance Housing Improvement Area ". The'' City ofNew Hope,(hereafterGty) hereby establishes pursuant to Minn. St at . Chap. 428A a housing improvement area over the property commonly, known as the L'Esperance Townhome`,development whch,,is ieg411y described Jr Section. 1:813 of this Code. 1,811 " Recitals ". The City hereby makes the following recitals in support' its action to establish the herein housing improvement area: 1. The City is authorized under Minn. Stat § §428A.11 through 428A. 21 to establish by ordinance housing improvement ; areas within ,which hosing improvements are made or constructed and the :costs of the improvements are paid in whole or in part from fees imposed within the area. 2. The City has determined a need to establish ;the L'Esperance Housing Improvement Area as defined herein, I in order to facilitate certain improvements to the property all in accordance with the :Housing Improvement Act, 3. The City has consulted with the L'Esperance Owners Association and with the residents in the L'Esperance Housing Improvement Area regarding the establishment of said, housing improvement area and `t1e. ,housing improvements to be constructed and financed:under this ordinance. 1.812 " Findings ". , The City hereby makes the following findings in support of its action to establish the herein housing improvement area: 1 The City Council finds that, in accordance with Minn. Stat §428A.12, owners of at least twenty -five percent (25 %), of the housing units within the housing improvement area have 'filed a petition with the City °Clerk -1- requesting a, public hearing regarding ,establishment of such hgttsing improvement area, 2. conducted a public hearing, duly noticed in accordance with Minn." Stat §428.13, subd.2, regarding adoption of this ordinance at which all persons, including owners of property within the housing' improvement area were given an opportunity to be heard. 3. The Council finds that, without establishment of the housing improvement area, the Housing Improvements (as hereinafter defined) could not be made by the homeowners I association for, or, the housing unit owners in, :the L'Esperance Townhome development. 4. The Council further finds that designation of said housing improvement area is needed to maintain and preserve the housing units within such area'. 1.813 " Housing Improvement Area Defined ". The L'Esperance Housing Improvement Area is hereby defined as that area of the City, legally described as follows: Lots 1 through 6, Block 1, Soukups Addition Lots 1 through 6, Block 2, Soukups Addition Outlot A, Soukups Addition Hennepin County, Minnesota. 1.814 " Housing Improvements` Defined For the purposes of § § 1.81. through 1.819 of this Code, the term "Housing Improvements" shall mean those improvements to the housing units and common areas within L'Esperance Housing Improvement Area as set out in the preliminary Contract Specifications prepared by One Way, Remodeling Services for the L'Esperance Owners Association as follows: 1. Replacement of roofing in all twelve units, including removal .6f ,.all shingles, removal of old and installation of new gutters and installation of new insulation. 2. Installation of 5/8 Fire Code rock on trusses between units at time of new roof installation. 3. Replacement of 116 window units with vinyl clad and tilt sash replacement windows and existing jams.' 4 Replacement of 48 basement window units. -2- 5. Install 36 pair of plastic window shutters: 6. Replace all doors; with pre -hung steel doors 'and storms with dead'bolt locks. 7. Install new fascia and soffit system on all units. 8." Install custom rod iron railing between all units.. 9 Install vinyl siding on overhangs over all entryway units. 10.! Upgrade electrical service to 100 -amp service on all units including grounding outlets, replacing outside GFPs'as needed and installing;° °flood 11. 1.815 " Housing Improvement Fee ". The City may ` by tresolution adopted„ xn accordance with the petition, hearing and notice procedures required under lVtinn Stat Chap. 428A known as the Housing Improvement Act, impose a fee :on :nthe housing units within the L'Esperance Housing Improvement Area, at a ratederm or amount sufficient to produce revenues required #o provide ,the IH ousing Improvements (hereinafter referred to as the "Housing Improvement Fee "),subject to the terms and conditions set forth in this Section: 1. Any Housing .Improvement Fee shall be imposed:on.the basis of the'1otal improvement area as I of the date of any fee resolution'. 2.' Any Housing Improvement Fee shall be imposed and payable for a period no greater than twenty (20) years after the first'installinent is due „and payable. 3. Any Housing Improvement Fee shall be prepayable in full or in part by any housing unit owners within thirty (30) days„ after 'the, effective date`„f resolution setting the Housing Improvement Tee provided that., a :partial prepayment must be at least twenty -five percent (25 %) of the total fee Tbr that unit. After such 30 -day period, the unpaid µ portion of any Housing Improvement Fee and accrued' interest shall be prepayable only in #he' full amount. -3- 4. The resolution imposing any Housing Improvement Fee shall provide that any fee,(or portion thereof) not prepaid by the housing unit owner shall be deemed to include;simple interest on unpaid housing improvement costs "'At a rate of 7 % per annum. 5. Any Housing Improvement Fee shall be collected at the same time and in the same manner as provided for payment and collection of :ad valorem taxes, in accordance with Minn. Stat §428A.05 As forth in Minn Stat. §428A.14, the Housing Improvement Fee is not included in'the calculation of levies or limits on levies imposed under any law or charter. 6 Any 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 resolution setting the Housing Improvement Fee, in the manner specified in such resolution. 1.816 " Issuance of Bonds ". At any time after a contract with L'Espera.nce Owners Association for construction of all or part of the housing improvements`has been entered into or the work has been ordered, and the 30 -day period ""'for prepayment of the Housing Improvement Fee has expired as described in §1815 hereof, the Council may issue bonds in the principal amount necessary to finance the cost of the housing improvements that have not been prepaid together with costs of issuance of the bonds. Such bonds shall be issued pursuant to and in accordance with Minn. Stat §428A.16 of the Housing Improvement' Act. 1.817 " Annual Reports 1: On August 15, 2002 and each August 15` thereafter until all Housing Improvement Fees derived in the Housing Improvement Area are fully paid, the L'Esperance Owners' Association (and any successor in interest) shall submit to the City Clerk a copy of the Association's audited financial statements. 2. L'Esperance Owners 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 that entity and the City: 1.818 " Notice of Right to File Objections ". Within five (5) days after,,:the adoption of § §1.81 through 1.819 of this Code, the City Clerk is authorized -and directed to mail to the owner of each housing unit in the L'Esperance Housing Improvement Area: a summary of these Code sections; notice that owners subject to the proposed Housing Improvement Fee have a right to veto this ordinance .if K12 owners o,r at least �u� five �erc�a�(3S % u �t�f �theaus�ng un�ts r �w�tlun �the L °Esperanee�I�ousng ; hnprovement�Area �fi�le pan ab�ectzon with the y Gity.Clerk beforeta� "efecizve elate of thzs,,ordinanee "and notice that a capy of this ordinance is on fle �vzth the "Czty Clem for pu�Ic ` Sectoz�s,,el�1 through 1.819 of this , Gode shall be„ effective f arty five X45) .clays after , their passage 'and publication; 1.819 " Amendment " ordinance , 1ay,,be famended ;by the Council upon corripliance with the hearing and notice requirements 1 1 set forth in Minn. Stat §428 A'13, subd of the`'Hausing Improvement Act. Section 2 . Effective Date. This Ordinance shall be effective 45 days after its passage and publication. Dated the 13` day of August, 2001. W. Peter Enek, Mayor Attest: Valerie Leone, City Clerk (Published in the New Hope- Golden Valley Sun -Post the day of 2001.) PAA mmny\Cn6 On6nar \CNH99.40102 -Oni Est Hoaxing Impm —m Arem.wpd -5- NOTICE TO L'ESPERANCE ASSOCIATION PROPERTY OWNERS OF MESPERANCE TOWNHOMES REGARDING L'ESPERANCE HOUSING IMPROVEMENT ORDINANCE NO. 01 -06 On Monday, August 13, 2001, the City Council of the City of New Hope adopted Ordinance No. 01 -_ establishing L'Esperance Housing Improvement Area pursuant to Minn. Stat § §428A.11 through 428A.21 (The Housing Improvement Act). Owners of more than twenty -five percent (25 %) of the housing unit in the L'Esperance Housing Improvement Area filed petitions with the City Clerk requesting a public hearing regarding the ordinance. The public hearing on this ordinance was held on August 13, 2001. The ordinance was adopted after the close of the public hearing on August 13, 2001. Within five (5) days after adoption of the ordinance, the City is required under the Housing Improvement Act to mail this notice to owners of each housing unit in the affected area. Following is a summary of Ordinance No. 01 -06 and some important information about your rights as an owner of a housing unit in the L'Esperance Housing Improvement Area. Affected Area The ordinance establishes the L'Esperance Housing Improvement Area, which is the area legally described as Lots 1 through 6, Block 1, Soukups Addition; Lots 1 through 6, Block 2, Soukups Addition; Outlot A, Soukups Addition, according to the recorded plat thereof, Hennepin County, Minnesota. Housing Improvements The ordinance specified the "Housing Improvements" that will be constructed in the L'Esperance Housing Improvement Area and financed with the Housing Improvement Fee. Those improvements are defined as follows: 1. Replacement of roofing in all twelve units, including removal of all shingles, removal of old and installation of new gutters and installation of new insulation. 2. Installation of 5/8 Fire Code rock on trusses between units at time of new roof installation. 3. Replacement of 116 window units with vinyl clad and tilt sash replacement windows and existing jams. 4. Replacement of 48 basement window units. 5. Install 36 pair of plastic window shutters. 6. Replace all doors with pre -hung steel doors and storms with dead bolt locks. 7. Install new fascia and soffit system on all units. 8. Install custom rod iron railing between all units. 9. Install vinyl siding on overhangs over all entryway units. 10. Upgrade electrical service to 100 -amp service on all units including grounding outlets, replacing outside GFI's as needed and installing flood lamps with automatic shuttoffs . 11. Install new plumbing waste line between buildings and to the street, including removal of old line. Housing Improvement Fee The ordinance provides that the City may impose a fee on housing units in an amount sufficient to produce revenue required to provide the Housing Improvements. The fee will be set by a separate City Council resolution after a noticed public hearing which will be held in the future, but the ordinance lays out the ground on how the fee will be determined. Those rules are summarized as follows: • The fee must be imposed based on the total cost of the Housing Improvements to be financed with such fee, divided by the number of housing units in the L'Esperance Housing Improvement Area as of the date of the fee resolution. • The fee may be prepaid in whole or in part within thirty (30) days after the effective date of the resolution setting the fee; provided that if only a portion is prepaid, the prepayment amount must be at least twenty -five percent (25 %) of the total fee for that unit. • If the fee is not prepaid, it will be payable over a period of twenty (20) years, with interest at a rate of 7 % per annum. However, the unpaid portion of the fee plus accrued interest is prepayable any time after the 30 -day period referred to above. • The fee will be collected at the same time and in the same manner as property taxes. • The total fee for each unit may not exceed the amount specified in the notice of public hearing for the resolution imposing the fee. Issuance of Bonds The ordinance provides that the City may issue bonds under the Housing Improvement Act to finance the Housing Improvements. The bonds may be issued any time after the City has entered into a contract with L'Esperance Owners Association for construction of the improvements, and the 30 -day period for prepayment of the Housing Improvement Fee has lapsed. -2- Annual Report The ordinance requires that L'Esperance Owners Association submit audited financial statements to the City each year while there are bonds outstanding. NOTICE OF RIGHT TO FILE OBJECTIONS Housing unit owners subject to the Housing Improvement Fee have a right to veto the ordinance and the fee resolution after it is adopted, if owners of at least thirty -five percent (35%) of the housing units within the L'Esperance Housing Improvement Area. File an objection with the City Clerk before the effective date of the ordinance or the resolution. The key dates are as follows: Ordinance Adopted: August 13, 2001 Ordinance Published: August 22, 2001 Effective Date of Ordinance: October 5, 2001 Deadline to File Veto Objections: October 5, 2001 If the ordinance is not vetoed, you will receive a notice indicating the public hearing date to consider the resolution establishing the Housing Improvement Fee against your housing unit. You will also receive a notice describing the total fee for your unit, your right to veto the fee and procedures for doing so and details on how to prepay the fee if the fee resolution is not vetoed. FURTHER INFORMATION A copy of Ordinance No. 01 -06 is on file with the City Clerk for public inspection. If you have questions about the L'Esperance Housing Improvement Area, contact the City Community Development Coordinator at (763) 531 -5119. Dated: August 13, 2001. P:\Attumey \Cat 0.ffi m: TNH99.40102.OM -Nairn of Ord &t Ht ing Impmvm.at A—.wpd I`E 1 r c Attorneys At Law 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443 -1968 TELEPHONE (763) 424 -8811 • TELEFAx (763) 493 -5193 e -mail law @j ens en- sondrall.com GORDON L. JENSEN NICOLE M. RITLANDt STEVEN A.SONDRALL WILLIAM C. STRAIT" STACY A. WOODS OF COUNSEL LORENS Q. BRYNESTAD *Real Property Law Specialist Certified By The Minnesota State Bar Association 7Qualified ADR Neutral August 2, 2001 1 ------- ------- ----- -- --- ------- ----- Ken Doresky ; SENT BY FAX Community Development Specialist TO: (763) 531 -5136 City of New Hope AND BY REGULAR MAIL 4401 Xylon Avenue North t------------------------------- - - - - - New Hope, MN 55428 Re: Proposed Ordinance Establishing a Housing Improvement Area for the L'Esperance Development Pursuant to Minn. Stat Chapter. 428.A Our File No.: 99.40102 Dear Ken: Please find enclosed a proposed Ordinance Establishing a Housing Improvement Area for the L Esperance Development Pursuant to Minn. Stat Chapter 428A for consideration at the August 13, 2001 Council Meeting. As you know, a public hearing has been noticed and scheduled for that date to consider the proposed Ordinance. Also enclosed is a Notice to the L'Esperance Owners Association regarding adoption of the Ordinance with a summary of its provisions. Basically, the Ordinance establishes the L'Esperance Housing Improvement Area, makes findings that the Ordinance is necessary to permit the Owners Association to request funds from the City to make necessary improvements within the area, sets forth the basic improvements that will be made within the improvement area and establishes the City's ability to impose a fee on the housing units for funds advanced to the Association to pay for the improvements. We still need to decide the term of the assessment and interest rate, I recommend a 20 -year term at 7% interest (see § 1.815). The Notice and Ordinance Summary must be mailed to the property owners within five (5) days from the date of the adoption of the Ordinance. Please be sure Val or Pam takes care of this task and provides me with an Affidavit of Mailing. August 2, 2001 Page 2 If you have any questions regarding this letter or the enclosed Ordinance, please don't hesitate to contact me. Very truly yours, Steven A. Sondrall, City Attorney, City of New Hope JENSEN & SONDRALL, P.A. sas(r� iensen- sondrall.com After Hours Extension #147 Enclosures cc: Kirk McDonald, Community Development Director, City of New Hope (w /enc.) Valerie Leone, City Clerk, City of New Hope (w /enc.) CNH99,40102- 003- Doresky Ltr.wpd August 11, 2000 Kirk Mc Donald New Hope City Council City of New Hope 4401 Xylon Avenue North New Hope, Mn 55428 Dear Kirk, We are writing to you as an association to request your assistance in a matter of great importance to us. As residents of the City of New Hope, L'Esperance Owners Association members take pride in where we live. However, the condition of our townhomes is deteriorating at a rate with which we cannot keep up. We understand the City of New Hope takes pride in the condition of its resisdential properties. We want to be proud of our townhomes and to have them be an attractive and pleasant enhancement to this City. At various levels of urgency, our homes desperately need new roofs, gutters and downspouts applied, windows, Doors, Drain Tiling applied in each basement and New Blacktop Paving for one of our two Parking lots and Sealcoating for the lot we had done a couple years ago. So we have been keeping up with regular maintenance. Our assets right now are about $8000.00 which is not enough to cover the work we need to have done. We figure the total ammount for all improvements would be about $125,000. The improvements we are requesting your assistance with are vital and would benefit us as well as the City of New Hope. The property would be more attractive and pleasing with new Roofs, Gutters and Downspouts, Blacktop Paving, Windows and Doors. We hope that by receiving this letter you will see our serious concern and dedication to this subject. Once again we ask you to carefully consider the possibility of assisting us with the special funding so improvements can be made. Respectfully, President of L'Esperance Owners. Association, 4-�t /1a e Rita Kolodjski And residents of the L'Esperance Owners Association Here is a rough estimate of the Repairs and Replacements of the following: Roof $ 23,770.00 Gutters $ 4,150.00 Windows $ 59,360.00 Entry Doors $ 18,960.00 Storm Doors $ 6,360.00 Drain Tiling $ 6,000.00 BlacktoppinQ $ 5,800.00 Total $124,400.00 r Ncw PiUYC H,, N0. ?c3s�1s1So e'-a PETITION REQUESTING IO NO HO U STNG EES O IM (I OV EN SREA I AND IltiiTOSI ON OF ` rMN THE AREA BI CITY OF NE«" HOPE AS AUTHORIZED PER MI�IN STAYS & 428A 12 THROLfGH 42SA.t - This Petition is submitted on behalf of the L'Esperance Owners Association (h :rea.` :cr rlhe "Association"). The parties signing this Petition, ate members of the Association and fz� o�tiner; o: the housing units hereafter identified. Tile L'Esperance Owners Association by and through it; members do hereby request the New Hope City Council hold a public hearing to consider ti:: enactment of an ordinance creating the L'Esperance Housing Itnprovcmcnt Arc- pursuant to thz requirements and authority set out in Minn Stat. §428A.13. The Association requests the ordinance to create an area encompassing all 12 housing units legally described as follows: Lots 1 through 6, Block 1, Los 1 through 6. Block 2, and Outlot A. Soukups Addition. Hennepin County, Minnesota. Th: ordinance is needed to enable the Association and its members to snake imaro%Ier.,cr::; to the housing units within the improvement area that can no: be made without the designatio.7 a housing improvement arezi. The As -,sociation and its member; further request the City of New Hope to inlpese housi::. improvement fees on the housing units within the proposed housing improvemen: area pursuata zh: - - --- uirernenis and authority set out in Minn Star. �428A.1 4' and after a public hearing to cons t ^e rate and terms of said fees and the basis on xhich said fees will be irnnosed. D-, t, -4. - 1/ �- 1 r r FH7. MU Soukups Addition I�/ /��•�•L.'F�S��.li�� � (5l ($I�':13:...:1 - 2 - (Da::) Property 7924 51st Avenue North Prorer: -• : 8008 51st Avenue North PID� 118 -21 -14 -0129 PID" 118 -21 -14 -0123 4/' 7 51 �- W -� � � (Da:c) frcEEt 7926 51 st Avenue North Pronerrv 8010 51 st Avenue North PID" 118 -21 -14 -0128 PID# 118 -21 -14 -0122 (S,cn�...:c) (Daie� (Ds:c, Prooem 7928 5 I st Avenue North Pronerrv 8012 51 st Avenue North PID= 118-21-14-0177 PID= 118 -21 -14 -0121 l / A0 �0 51st Avenue North Pronerfv 8014 51st Avenue North PID= 118 -21 -14 -0126 PID" 118- 21 -1A 0120 (SiFna:arc; (Signa:_:_ P-7lerr•.• 7932 51st Avenue Nord: Prone ►rv 80I6 51st Avenue North 21 -14 -0125 fi1D" 118-21-14-0119 7934 51st Avenue North r : 8020 51 st Avenue North PID.= 118 -.1 -14 -012; 1 -14 -011 8 UZZIMM top " REMODELING THE RIGHT WAY" Espronse Town Houses Ass. 7924 51 Ave. N New Hope MN 55428 Contract Specifications; -j (j2 f4 Remodel and Construct Garages 1) Roofing: 2125 Brookdale Drive Brooklyn Park, MN 55444 763 - 566 -0545 a. Remove 2 layers of shingles b. Install or lay 25 year 3 tab shingles ice and water to code Total 63 Squares c. Haul away tare off d. Repair roof where needed ( Time & Materials ) e. Remove and install new gutters $21876.00 2) Insulation: a. Blow in 9" insulation to be done at time of roofing $6534.00 3) Sheet Rock Fire Brake: a. Install 518 Fire code rock on truss Between units (To be determined at time of roofing if needed) $2205.00 4) Windows: a. Remove old window sashes and haul away b. Install vinyl clad tilt sash replacement windows in existing jams a total of 116 windows c. Remove and replace basement windows with Vinyl sliders or awning total of 48 c. Install plastic window shutters 36 pairs $53845.00 5) Doors: a. Remove old doors and jams haul away b. Install new per hung steel doors and storms with dead bolt c. Includes painting doors (Door allowance $260.00 door and storm (Master Craft) $15807.00 6) Rap existing Fascia and soffit with aluminum: a. Install new fascia and soffit system b. Rap exterior trim( Doors and Windows) $22156.00 7) Install Rod Iron railing: a. Install custom railing between units 30 LF $1452.00 8) Siding Front Overhangs: a. Install vinyl siding on overhangs over entryways $2296.00 9) Electric up grades: a. Do services upgrade on units 150 Amp b. Replace outside GFI c. Install new flood lamps with automatic shutoffs $19448.00 10) Plumbing Waste Line a. Excavate old waste line Remove b. Install new line between buildings and to street $4027.00 11) Fence a. Install white vinyl fence 6' high total 110 Feet b. Repair and replace fence around dumpster enclosures $5992.00 12) Tree Removal a. Remove trees from front of building and willow tree over Main waste line $2238.00 13) Replace basement fixtures after drain tile, toilet, washer, dryer, sink, laundry tub. ( Allowance of $150.00 Labor and Materials per unit) $1800.00 Total For complete job $159676.00 Customer must pick colors materials before starting, siding, shingles ect. By Signing Customer Understands What Is Listed Above And Agrees With What Is Stated One Way Remodeling El' Experience Town House Ass. MN License. # 20141923 Insured Bounded STEVEN A. SONORA-LL MICHAEL R. LAFLEUR MARTIN P. MALECHA WILLIAM C. STRAIT* *APPROVED ADR NEUTRAL March 27, 1997 Kirk McDonald Management Asst. City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 TELEPHONE (612) 4255671 FAX (612) 4255867 RE: Loan Request for Housing Improvements /Sandpiper Cove Association Our File No: 99.11155 Dear Kirk: LEGAL ASSISTANT SHARON D DERBY This letter is your long awaited response regarding your question about the loan and other funding options for needed improvements at the Sandpiper Cove Townhome Development. It is my understanding the property owners in the development need collectively between $200,000 to $300,000 for replacement of siding, replacement and /or repair of defective decks and other structural problems. It is my further understanding the Townhome Association is severely underfunded and as a result are without any reserves to pay for these needed repairs. The Association has also informed us neither the Association or the individual unit owners can arrange a private loan. Banks apparently will not transact business with the Association and the individual unit owners lack equity in their units sufficient to secure a loan by a mortgage against the individual units. The City has two options it could implement to assist the Association and individual owners at the Sandpiper Cove Development as follows: 1. Bond counsel has indicated we could provide loans to either the Association or the individual unit owners utilizing our existing TIF funds. Basically, we would be acting like a private banking institution taking back mortgages from the individual owners and /or the Association as security for the loans. Unfortunately, the City has the same problem as the lending institutions in this regard. Namely, lack of unit equity as security CORRICK & SONDRALL, P.A. ATroRNEYs AT LAw Edinburgh Executive Office Plaza 8525 Edinbrook Crossing Suite #203 Brooklvn Park, Minnesota 55443 Kirk McDonald March 2.7, 1997 Page 2 for the loans. Nor do we want to become owners of the units in the event of default on the loans requiring foreclosure of the proposed mortgages and quite possibly being subject to superior first mortgages already in place on the property. 2. Our second option involves establishing a housing improvement area under Minn. Stat. § §428A.11 through 428A.21. As you know, this law was enacted during the 1996 legislative session. Basically, it allows us to define a housing improvement area, permits us to make improvements within said area and assess the benefiting properties for the cost of the i mprovement s much 1 i ke t he special assessment procedure under Chap. 429. This appears to be a more viable solution to the funding problem for Sandpiper Cove than direct loans to individual property owners from excess TIF funds secured by a mortgage. The remainder of this letter will briefly detail how the City could implement a housing improvement area for the Sandpiper Cove Development or any area in the City. Initially, the Council would need to adopt an enabling ordinance specifically defining the improvement area or areas and specifically indicating the necessary improvements to be made within the area. The City cannot adopt this ordinance on its own initiative. Before such an ordinance can be considered, there must be a petition by at least 25% of the owners within the proposed area requesting the enabling ordinance. Before adoption of the enabling ordinance, the City would need to conduct a public hearing. 7 days published notice and 10 days mailed notice to all property owners within the proposed area is required for the public hearing. At the hearing and within the ordinance, the Council would need to make findings that the necessary improvements will not be made if the housing improvement area is not created and making the improvements within the area is needed to maintain and preserve the area's housing units. Further, the enabling ordinance will allow the City to impose a fee against the benefiting property owners to pay for the cost of the improvements. However, the ordinance must also specify the basis for the imposition of the fee and the number of years it will be in effect. The property owners within the improvement area also have veto power over the ordinance. In other words, if 35% of the property owners object to the ordinance after its adoption it will not take Kirk McDonald March 27, 1997 Page 3 effect. As a result, the effective date of the ordinance must be at least 45 days after its adoption by the City Council. During that 45 -day interim period the property owners, after all receive notice of the ordinance and its contents within 5 days of its adoption, can file an objection to the ordinance with the New Hope City Clerk. If 35% of the owners object, the ordinance is void. If the ordinance is not vetoed, property owners can individually object to their inclusion in the improvement area or the imposition of fees against their property. The objection procedure works similar to the special assessment challenges found in Chap. 429. Also, the City will need to hold a second public hearing before it can collect fees or specially assess properties for payment of the improvement costs. Again, this works like the special assessment procedure found in Chap. 429. Collection of fees also may take two forms. It can be done either by an ad valorem tax or it can be done like a special assessment to benefitted properties. If done like an ad valorem tax, it would be based on the net tax capacity of the property, the square footage of the property, or some other method determined by the Council. If it is done like a special assessment, we would need to codify special assessment regulations and incorporate them in the ordinance. If an improvement area is established, the repairs would be done as a public improvement. This may potentially require the City to act like a general contractor for repairs on private property. Obviously, we would be subject to the Uniform Municipal Contracting Law for letting contracts. Further, it creates numerous liability and warranty issues involving the completed work. I would not consider this program unless we had extensive releases, hold harmless and indemnification agreements with the involved property owners. It would also allow the City to issue general obligation bonds to finance the construction costs in lieu of using TIF funds. Finally, this law has a sunset provision of June 30, 2001. After said date, no housing improvement areas can be established pursuant to Minn. Stat. §428A.11, et al. Therefore, we do have some time to consider this kind of funding option for the Sandpiper Cove Development. Some extensive work is involved to establish a procedure for creating housing improvement areas. I have contacted the League of Minnesota Cities to find out if other municipalities have Kirk McDonald March 27, 1997 Page 4 implemented a program like this under Minn. Stat. §428A.11. Possibly, there is a model ordinance developed by the League or we cou 1 d obt a n ord i nances f rom of her c i t i es t hat have al ready adopt ed this program. Before we get into this project too far, I think we need direction from the City Council whether they would be willing to entertain this kind of program for the Sandpiper Cove Development or any other area within the City requiring this kind of assistance. At any rate, I will not do anything further unless I receive direction from you or the City Manager to proceed. Please contact me if you have any other questions or comments regarding the content of this letter. Very truly yours, Steven A. Sondrall s1t4 Enclosure cc: Daniel J. Donahue, City Manager (w /enc) Jerry Gilligan, Esq. (w /enc) COUNCIL REQUEST FOR ACTION 2�� H 0 Originating Department Approved for Agenda Agenda Section Community Development Public Hearing Item No. „ By: Ken Doresky, Community Development Specialist ;" 08 -27 -01 By: 7 . 1 PUBLIC HEARING AN ORDINANCE ESTABLISHING A HOUSING IMPROVEMENT AREA FOR THE L'ESPERANCE OWNER'S ASSOCIATION, PURSUANT TO MINN. STAT. §428A (IMPROVEMENT PROJECT NO. 695 ) :, ACTION REQUESTED This is a public hearing to consider the adoption of an ordinance establishing a Housing Improvement Area for the L'Esperance Owners Association, 7924 -8020 51st Avenue North. The Association was unable to submit requested information to clarify the project specifications by the submittal deadline for this Council meeting, therefore, staff is recommending and the Association is requesting that the public hearing be continued to the September 10, 2001 Council meeting. POLICY /PAST PRACTICE City goal #2 is to pursue the maintenance and redevelopment of commercial and residential properties within the City. The City Council has been addressing the residential portion of this goal through the City's many housing activities, including consideration of creating Housing Improvement Areas for condominium associations. In 1997/98, the Council adopted an ordinance establishing a Housing Improvement Area for the Sandpiper Cove Townhome Development near 42nd and Boone Avenues. The creation of this district allowed the owners of the thirty -six owner - occupied townhomes to make significant repairs and improvements to their properties, in an amount of approximately $600,000 and pay off the debt by assessment. BACKGROUND On July 23, 2001, the Council approved a resolution scheduling a public hearing to consider the establishment of a Housing Improvement Area for the L'Esperance Owners Association, 7924 -8020 51 st Avenue North. Over the past year and a half, City staff has been working with representatives of L'Esperance Owner's Association on the creation of a Housing Improvement Area to finance needed improvements to the properties. On August 28, 2000, the Council directed staff to continue coordinating with L'Esperance Owner's Association on the creation of a Housing Improvement Area for two buildings located at 7924 -8020 51st Avenue North. MOTION BY SECOND BY TO: Request for Action Page 2 08 -27 -01 The properties are located on the north side of 51st Avenue North, just west of Winnetka Avenue. There are two buildings included in the Owner's Association (7924 -7934 and 8008 -8020) and each building contains six units for a total of twelve units. The proposed Housing Improvement Area does not include the third building, 7908 -7918 51 st Avenue North, located directly to the east of 7924 -7934. The third building is a rental property and has no association ties to L'Esperance. The City Attorney and the Finance Director have come to the conclusion that the third building would not be eligible for inclusion due to its current status as a rental property. Zoning of the subject properties is R -3, Medium Density Residential. The buildings were constructed in 1962 and are noted in the Comprehensive Plan for declining building and site conditions. The Owner's Association has submitted materials for consideration of a Housing Improvement Area including a petition signed by eleven of the twelve owners and a list of proposed improvements with cost estimates. The preliminary estimate submitted to complete this project is $179,976. The proposed project includes roof replacement, insulation, new windows, doors, electrical upgrades, fascia and soffit repair, improved sheet rock fire walls, new railing, front overhangs, plumbing line replacement, fencing, tree removal, new basement fixtures, drain tile and parking lot re- paving and seal coat. Upon review of the proposed improvements with staff, the Public Works Department recommended that water meter relocation also be included in this project. Staff met with representatives from the Association on Monday, August 6, 2001, and requested clarification on the specifications, additional requirements and a firm cost estimate. Initially, this information was not submitted by the deadline for the August 13, Council Meeting, therefore the Association requested and staff recommended that the Council continue the Public Hearing to the August 27, Council Meeting. On August 14, staff notified the Association of the next deadline date. Again, the materials requested were not received by the deadline for the August 27 Council meeting, therefore the Association is requesting and staff recommends that the public hearing be continued to the September 10 Council Meeting. Although garages were not originally proposed in this request, staff worked with and encouraged the L'Esperance Owner's Association to include garages in the proposal. Staff developed a number of concept plans for the construction of six double car garage buildings on the property. Without a survey to use as baseline data, the concepts developed by staff were very rough. Due to the layout of the buildings and the size of the properties, each concept would have required variances for approval including: inadequate visitor parking, accessory garages in the front yard, front and side yard setbacks and too many curb cuts in the allowable area. Staff recommended that the Association hire a design firm and a survey firm to determine exact dimensions and alternative designs. The following two plans were considered: • The City's Planning Consultant, NW Associated Consultants and staff were supportive of one concept plan (see attachment: Concept Garage Plan 1) that would have provided garages, visitor parking, an open front yard area and the least number of variances. The Association members were not agreeable to this plan, due to the layout of the garages. The concept plan (see attachment: Concept Garage Plan 2) supported by the Association was unacceptable to the City. This concept plan was unacceptable due to the number of variances required, including: inadequate visitor parking, number of curb cuts, accessory garages in the front yard and possible front yard setback problems. Due to the lack of a survey and acceptable site plan, staff was unable to determine the exact amount of variances needed with this proposal. The other issue regarding the addition of garages was the associated cost. Without garages, staff is recommending that the Council consider a twenty (20) year repayment period at 7% interest. With the addition of garages, staff would support a recommendation to the Council to consider a thirty (30) year repayment period at 7% interest. Their contractor estimated that the addition of garages in Concept Garage Plan 2, (see garage cost estimate) would increase the project cost by $157,341, not including survey work. Request for Action Page 3 08 -27 -01 If the Council would like staff to continue coordinating with the Association on the development of an acceptable garage plan, and if the Association is still interested in the addition of garages, staff will continue this discussion. If the Association is agreeable, staff would estimate that an acceptable garage plan could be presented to the Council within the forty -five (45) day comment period, before an assessment agreement is presented for consideration. The City Attorney has commented that if all property owners were supportive of a garage plan developed during the forty -five (45) day period, then adoption of the ordinance could proceed as scheduled. As the Council is aware, the City has in place a variety of funding programs for the rehabilitation of single family homes and apartments, however, it has been more difficult to find funding mechanisms for the rehabilitation of owner - occupied multiple family units, such as townhomes and condominiums. Several years ago the State Legislature passed legislation allowing municipalities to create housing improvement districts. The steps to establish a Housing Improvement Area are outlined below by the City Attorney. • Initially, the Council would need to adopt an enabling ordinance specifically defining the improvement area or areas and specifically indicating the necessary improvements to be made within the area. The City cannot adopt this ordinance on its own initiative. Before such an ordinance can.be considered, there must be a petition by at least 25 percent of the owners within the proposed area requesting the enabling ordinance. • Before adoption of the enabling ordinance, the City would need to conduct a public hearing. At the hearing and within the ordinance, the Council would need to make findings that the necessary improvements will not be made if the housing improvement area is not created and making the improvements within the area is needed to maintain and preserve the area's housing units. Further, the enabling ordinance will allow the City to impose a fee against the benefiting property owners to pay for the cost of the improvements. The property owners within the improvement area also have veto power over the ordinance. In other words, if 35 percent of the property owners object to the ordinance after its adoption, it will not take effect. As a result, the effective date of the ordinance must be at least 45 days after its adoption by the City Council. During that 45 -day interim period, the property owners, after all receive notice of the ordinance and its contents within five days of its adoption, can file an objection to the ordinance with the New Hope City Clerk. If 35 percent of the owners object, the ordinance is void. • If the ordinance is not vetoed, property owners can individually object to their inclusion in the improvement area or the imposition of fees against their property. The objection procedure works similar to the special assessment challenges found in Chap. 429. Also, the City will need to hold a second public hearing before it can collect fees or specially assess properties for payment of the improvement costs. Again, this works like the special assessment procedure found in Chap. 429. The Association has informed staff that if they submit the additional information requested in a timely manner and if the Ordinance is adopted, that they would like to begin rehabilitation activities this fall with window replacement and other items and complete the project during the spring of 2002. 4401 Xylon Avenue North City Hall: 763 - 531 -5100 New Hope. Minnesota 55428 -4898 Police: 763 - 531 -5170 wwwci.new- hope.mn.us Public Works: 763 - 533 -4823 TDD: 763 - 531 -5109 August 28, 2001 L'Esperance Owners Association Attn: Rita Kolodjski 8014 51st Avenue North New Hope, MN 55428 Subject: Housing Improvement Area, Public Hearing Continued Dear Ms. Kolodjski: City Hall Fax. 763 -531 -5136 Police Fax. 763- 531 -5174 Public Works Fax: 763- 533 -7650 On August 27, 2001, the New Hope City Council continued the public hearing to consider the adoption of an ordinance creating a Housing Improvement Area for the L'Esperance Owners Association. The public hearing for consideration of this ordinance has been continued to the September 10, 2001, City Council meeting. The requested information discussed at the August 6 specifications meeting will need to be submitted to City staff for review by Friday, August 31 in order for this ordinance to be considered at the September 10 Council meeting. In the event that the requested materials are not received by August 31, staff will request that the Council continue the public hearing to the September 24 Council meeting. Below, please see the steps necessary to create a Housing Improvement Area as outlined by the New Hope City Attorney: • Initially, the Council would need to adopt an enabling ordinance specifically defining the improvement area or areas and specifically indicating the necessary improvements to be made within the area. The City cannot adopt this ordinance on its own initiative. Before such an ordinance can be considered, there must be a petition by at least 25 percent of the owners within the proposed area requesting the enabling ordinance. Before adoption of the enabling ordinance, the City would need to conduct a public hearing. At the hearing and within the ordinance, the Council would need to make findings that the necessary improvements will not be made if the housing improvement area is not created and making the improvements within the area is needed to maintain and preserve the area's housing units. Further, the enabling ordinance will allow the City to impose a fee against the benefiting property owners to pay for the cost of the improvements. • The property owners within the improvement area also have veto power over the ordinance. In other words, if 35 percent of the property owners object to the ordinance after its adoption, it will not take effect. As a result, the effective date of the ordinance must be at least 45 days after its adoption by the City Council. During that 45 -day interim period, the property owners, after all receive notice of the Family Styled City' 1 � For Family Living Rita Kolodjski August 28, 2001 Page 2 ordinance and its contents within five days of its adoption, can file an objection to the ordinance with the New Hope City Clerk. If 35 percent of the owners object, the ordinance is void. • If the ordinance is not vetoed, property owners can individually object to their inclusion in the improvement area or the imposition of fees against their property. The objection procedure works similar to the special assessment challenges found in Chap. 429. Also, the City will need to hold a second public hearing before it can collect fees or specially assess properties for payment of the improvement costs. Again, this works like the special assessment procedure found in Chap. 429. If you have any questions or comments, do not hesitate to contact me at 763- 531 -5137. Sincerely, i4 Q,1- Ken Doresky, AICP Community Development Specialist cc: Dan Donahue, City Manager Kirk McDonald, Director of Community Development Steve Sondrall, City Attorney Doug Sandstad, Building Official Chuck Tatro, General Inspector Erin Seeman, Community Development Intern Valerie Leone, City Clerk (Improvement Project File #695) COUNCIL, G�� Y O •r REQUEST FOR ACTION 2�� H 0 Originating Department Approved for Agenda Agenda Section Community Development Public Hearin Item No. By: Ken Doresky, Community 09 -10 -01 Development Specialist B : 7 .3 PUBLIC HEARING AN ORDINANCE ESTABLISHING A HOUSING IMPROVEMENT AREA FOR THE L'ESPERANCE OWNER'S ASSOCIATION, PURSUANT TO MINN. STAT. §428A (IMPROVEMENT PROJECT NO. 695) ACTION REQUESTED This is a public hearing to consider the adoption of an ordinance establishing a Housing Improvement Area for the L'Esperance Owners Association, 7924 -8020 51 st Avenue North. Due to the fact that the Association was unable to submit requested information to clarify the project specifications by the submittal deadline for this Council meeting, staff is recommending that the public hearing be continued for one month to the October 8, 2001 Council meeting. This should allow adequate time to resolve all of the outstanding issues. POLICY /PAST PRACTICE City goal #2 is to pursue the maintenance and redevelopment of commercial and residential properties within the City. The City Council has been addressing the residential portion of this goal through the City's many housing activities, including consideration of creating Housing Improvement Areas for condominium associations. In 1997/98, the Council adopted an ordinance establishing a Housing Improvement Area for the Sandpiper Cove Townhome Development near 42nd and Boone Avenues. The creation of this district allowed the owners of the thirty -six owner - occupied townhomes to make significant repairs and improvements to their properties, in an amount of approximately $600,000 and pay off the debt by assessment. BACKGROUND On July 23, 2001, the Council approved a resolution scheduling a public hearing to consider the establishment of a Housing Improvement Area for the L'Esperance Owners Association, 7924 -8020 51 st Avenue North. Over the past year and a half, City staff has been working with representatives of L'Esperance Owner's Association on the creation of a Housing Improvement Area to finance needed improvements to the properties. On August 28, 2000, the Council directed staff to continue coordinating with L'Esperance Owner's Association on the creation of a Housing Improvement Area for two buildings located at 7924 -8020 51st Avenue North. MOTION BY SECOND BY TO:r Request for Action Page 2 09 -10 -01 The properties are located on the north side of 51st Avenue North, just west of Winnetka Avenue. There are two buildings included in the Owner's Association (7924 -7934 and 8008 -8020) and each building contains six units for a total of twelve units. The proposed Housing Improvement Area does not include the third building, 7908 -7918 51st Avenue North, located directly to the east of 7924 -7934. The third building is a rental property and has no association ties to L'Esperance. The City Attorney and the Finance Director have come to the conclusion that the third building would not be eligible for inclusion due to its current status as a rental property. Zoning of the subject properties is R -3, Medium Density Residential. The buildings were constructed in 1962 and are noted in the Comprehensive Plan for declining building and site conditions. The Owner's Association has submitted materials for consideration of a Housing Improvement Area including a petition signed by eleven of the twelve owners and a list of proposed improvements with cost estimates. The estimate submitted to complete the project was $179,976. The proposed project would include roof replacement, insulation, new windows, doors, electrical upgrades, fascia and soffit repair, improved sheet rock fire walls, new railing, front overhangs, plumbing line replacement, fencing, tree removal, new basement fixtures, drain the and parking lot re- paving and seal coat. Upon review of the proposed improvements with staff, the Public Works Department recommended that water meter relocation also be included in this project. Staff met with representatives from the Association on Monday, August 6, 2001, and requested clarification on the specifications, additional requirements and a firm cost estimate. Due to the fact that this information was not submitted by the deadline for the August 13, Council Meeting, the Council continued the public hearing to the August 27 Council Meeting. On August 14, staff notified the Association of the next deadline date. Again, the materials requested were not received by the deadline for the August 27 Council meeting, therefore the Council continued the public hearing to the September 10 Council Meeting. On August 28, staff notified the Association of the next deadline date. On August 30, staff met with representatives of the Association and the required project clarifications and additions along with a firm cost estimate were not submitted to the satisfaction of the City. At that meeting, City staff informed the Association representatives of the upcoming filing deadline. Due to the fact that the Association was unable to submit requested information to clarify the project specifications by the submittal deadline for this Council meeting, staff is recommending that the public hearing be continued for one month to the October 8, 2001 Council meeting. This should allow adequate time to resolve all of the outstanding issues. Although garages were not originally proposed in this request, staff worked with and encouraged the L'Esperance Owner's Association to include garages in the proposal. Staff developed a number of concept plans for the construction of six double car garage buildings on the property. Without a survey to use as baseline data, the concepts developed by staff were very rough. Due to the layout of the buildings and the size of the properties, each concept would have required variances for approval including: inadequate visitor parking, accessory garages in the front yard, front and side yard setbacks and too many curb cuts in the allowable area. Staff recommended that the Association hire a design firm and a survey firm to determine exact dimensions and alternative designs. The following two plans were considered: • The City's Planning Consultant, NW Associated Consultants and staff were supportive of one concept plan (see attachment: Concept Garage Plan 1) that would have provided garages, visitor parking, an open front yard area and the least number of variances. The Association members were not agreeable to this plan, due to the layout of the garages. • The concept plan (see attachment: Concept Garage Plan 2) supported by the Association was unacceptable to the City. This concept plan was unacceptable due to the number of variances required, including: inadequate visitor parking, number of curb cuts, accessory garages in the front yard and possible front yard setback problems. Due to the lack of a survey and acceptable site plan, staff was unable to determine the exact amount of variances needed with this proposal. The other issue regarding the addition of garages was the associated cost. Without garages, staff is recommending that the Council consider a twenty (20) year repayment period at 7% interest. With the addition Request for Action Page 3 - 09 -10 -01 of garages, staff would support a recommendation to the Council to consider a thirty (30) year repayment period at 7% interest. Their contractor estimated that the addition of garages in Concept Garage Plan 2, (see garage cost estimate) would increase the project cost by $157,341, not including survey work. If the Council would like staff to continue coordinating with the Association on the development of an acceptable garage plan, and if the Association is still interested in the addition of garages, staff will continue this discussion. If the Association is agreeable, staff would estimate that an acceptable garage plan could be presented to the Council within the forty -five (45) day comment period, before an assessment agreement is presented for consideration. The City Attorney has commented that if all property owners were supportive of a garage plan developed during the forty -five (45) day period, then adoption of the ordinance could proceed as scheduled. As the Council is aware, the City has in place a variety of funding programs for the rehabilitation of single family homes and apartments, however, it has been more difficult to find funding mechanisms for the rehabilitation of owner - occupied multiple family units, such as townhomes and condominiums. Several years ago the State Legislature passed legislation allowing municipalities to create housing improvement districts. The steps to establish a Housing Improvement Area are outlined below by the City Attorney. y • Initially, the Council would need to adopt an enabling ordinance specifically defining the improvement area or areas and specifically indicating the necessary improvements to be made within the area. The City cannot adopt this ordinance on its own initiative. Before such an ordinance can be considered, there must be a petition by at least 25 percent of the owners within the proposed area requesting the enabling ordinance. • Before adoption of the enabling ordinance, the City would need to conduct a public hearing. At the hearing and within the ordinance, the Council would need to make findings that the necessary improvements will not be made if the housing improvement area is not created and making the improvements within the area is needed to maintain and preserve the area's housing units. Further, the enabling ordinance will allow the City to impose a fee against the benefiting property owners to pay for the cost of the improvements. • The property owners within the improvement area also have veto power over the ordinance. In other words, if 35 percent of the property owners object to the ordinance after its adoption, it will not take effect. As a result, the effective date of the ordinance must be at least 45 days after its adoption by the City Council. During that 45 -day interim period, the property owners, after all receive notice of the ordinance and its contents within five days of its adoption, can file an objection to the ordinance with the New Hope City Clerk. If 35 percent of the owners object, the ordinance is void. • If the ordinance is not vetoed, property owners can individually object to their inclusion in the improvement area or the imposition of fees against their property. The objection procedure works similar to the special assessment challenges found in Chap. 429. Also, the City will need to hold a second public hearing before it can collect fees or specially assess properties for payment of the improvement costs. Again, this works like the special assessment procedure found in Chap. 429. The Association has informed staff that if the Ordinance is adopted, that they would like to begin rehabilitation activities this fall with window replacement and other items and complete the project during the spring of 2002. COUNCIL REQUEST FOR ACTION 2�� H 0 Originating Department Approved for Agenda Agenda Section Community Development Public Hear Item No. By: Ken Doresky, Community 10 -08 -01 Development Specialist By: 7.1 PUBLIC HEARING AN ORDINANCE (STABLISHING A HOUSING IMPROVEMENT AREA FOR THE L'ESPERANCE OWNER'S ASSOCIATION, PURSUANT TO MINN. STAT. §428A (IMPROVEMENT PROJECT NO. 695) ACTION REQUESTED This is a public hearing to consider the adoption of an ordinance establishing a Housing Improvement Area for the L'Esperance Owners Association, 7924 -8020 51 st Avenue North. POLICY /PAST PRACTICE City goal #2 is to pursue the maintenance and redevelopment of commercial and residential properties within the City. The City Council has been addressing the residential portion of this goal through the City's many housing activities, including consideration of creating Housing Improvement Areas for condominium associations. In 1997/98, the Council adopted an ordinance establishing a Housing Improvement Area for the Sandpiper Cove Townhome Development near 42nd and Boone Avenues. The creation of this district allowed the owners of the thirty -six owner - occupied townhomes to make significant repairs and improvements to their properties, in an amount of approximately $600,000 and pay off the debt by assessment. BACKGROUND On July 23, 2001, the Council approved a resolution scheduling a public hearing to consider the establishment of a Housing Improvement Area for the L'Esperance Owners Association, 7924 -8020 51 st Avenue North. Over the past year and a half, City staff has been working with representatives of L'Esperance Owner's Association on the creation of a Housing Improvement Area to finance needed improvements to the properties. On August 28, 2000, the Council directed staff to continue coordinating with L'Esperance Owner's Association on the creation of a Housing Improvement Area for two buildings located at 7924 -8020 51st Avenue North. The properties are located on the north side of 51st Avenue North, just west of Winnetka Avenue. There are two buildings included in the Owner's Association (7924 -7934 and 8008 -8020) and each building contains six units for a total of twelve units. The proposed Housing Improvement Area does not include the third building, 7908 -7918 51st Avenue North, located directly to the east of 7924 -7934. The third building is a rental property and has no association ties to L'Esperance. The City Attorney and the Finance Director have come to the MOTION BY L4 t It'i SEteND BY TO: 67. �� Pequest for Action Page 2 10 -08 -01 conclusion that the third building would not be eligible for inclusion due to its current status as a rental property. Zoning of the subject properties is R -3, Medium Density Residential. The buildings were constructed in 1962 and are noted in the Comprehensive Plan for declining building and site conditions. The Owner's Association has submitted materials for consideration of a Housing Improvement Area including a petition signed by eleven of the twelve owners and a list of proposed improvements with cost estimates. The estimate submitted to complete the project is $250,000.00, including the maximum 25% administration fee to be adjusted. The proposed project would include roof replacement, insulation, gutter replacement, new windows, doors, electrical upgrades, fascia and soffit repair, improved sheet rock fire walls, new railing, front overhangs, plumbing line replacement, fencing, tree removal, new basement fixtures, drain tile and parking lot re- paving and seal coat. Upon review of the proposed improvements with staff, the Public Works Department recommended that water meter relocation also be included in this project. Staff first met with representatives from the Association on Monday, August 6, 2001, and requested clarification on the specifications, additional requirements and a firm cost estimate. During the time that staff has requested project clarifications and additions along with a firm cost estimate, the Council has continued this public hearing four (4) times. On October 1, staff met with representatives from the Association who submitted the requested clarifications. The Association has agreed to provide an as -built survey and assume the cost, separate from this assessment proposal. The Association was not receptive to many of staff's requests including landscaping, attic scuttles, separate electrical service and water meter relocation. The Association plans to remove all the foundation plantings along both buildings and replace them with planters, river rock and pavement. The planters and rock are to be provided separate from this assessment. The existing Russian Olive boulevard trees are proposed to remain. Relocated attic scuttles to improve attic access will not be included. Separate electrical service will only be provided if required by the State of Minnesota Electrical Inspector. Finally, the Association was not receptive to staff's request to relocate the water meters so that each meter will be located in the individual units for servicing purposes. Currently, meters for the units are located in the end units. City Code section 5.048(5) requires a separate water service per house or building. Staff is not requested that each unit have a separate service, only that the meters be moved to each individual unit. The cost to relocate the water meters and provide separate electrical service is included in the overall project cost, but the Association has requested that if these items are not required that the assessment be adjusted accordingly. Although garages were not originally proposed in this request, staff worked with and encouraged the L'Esperance Owner's Association to include garages in the proposal. Staff developed a number of concept plans for the construction of six double car garage buildings on the property. Without a survey to use as baseline data, the concepts developed by staff were very rough. Due to the layout of the buildings and the size of the properties, each concept would have required variances for approval including: inadequate visitor parking, accessory garages in the front yard, front and side yard setbacks and too many curb cuts in the allowable area. Staff recommended that the Association hire a design firm and a survey firm to determine exact dimensions and alternative designs. The following two plans were considered: • The City's Planning Consultant, NW Associated Consultants and staff were supportive of one concept plan (see attachment: Concept Garage Plan 1) that would have provided garages, visitor parking, an open front yard area and the least number of variances. The Association members were not agreeable to this plan, due to the layout of the garages. • The concept plan (see attachment: Concept Garage Plan 2) supported by the Association was unacceptable to the City. This concept plan was unacceptable due to the number of variances required, including: inadequate visitor parking, number of curb cuts, accessory garages in the front yard and possible front yard setback problems. Due to the lack of a survey and acceptable site plan, staff was unable to determine the exact amount of variances needed with this proposal. The other issue regarding the addition of garages was the associated cost. Without garages, staff is recommending that the Council consider a twenty (20) year repayment period at 7% interest. With the addition Pequest for Action Page 3 10 -08 -01 of garages, staff would support a recommendation to the Council to consider a thirty (30) year repayment period at 7% interest. Their contractor estimated that the addition of garages in Concept Garage Plan 2, (see garage cost estimate) would increase the project cost by $157,341, not including survey work. If the Council would like staff to continue coordinating with the Association on the development of an acceptable garage plan, and if the Association is still interested in the addition of garages, staff will continue this discussion. If the Association is agreeable, staff would estimate that an acceptable garage plan could be presented to the Council within the forty -five (45) day comment period, before an assessment agreement is presented for consideration. The City Attorney has commented that if all property owners were supportive of a garage plan developed during the forty -five (45) day period, then adoption of the ordinance could proceed as scheduled. As the Council is aware, the City has in place a variety of funding programs for the rehabilitation of single family homes and apartments, however, it has been more difficult to find funding mechanisms for the rehabilitation of owner - occupied multiple family units, such as townhomes and condominiums. Several years ago the State Legislature passed legislation allowing municipalities to create housing improvement districts. The steps to establish a Housing Improvement Area are outlined below by the City Attorney. • Initially, the Council would need to adopt an enabling ordinance specifically defining the improvement area or areas and specifically indicating the necessary improvements to be made within the area. The City cannot adopt this ordinance on its own initiative. Before such an ordinance can be considered, there must be a petition by at least 25 percent of the owners within the proposed area requesting the enabling ordinance. • Before adoption of the enabling ordinance, the City would need to conduct a public hearing. At the hearing and within the ordinance, the Council would need to make findings that the necessary improvements will not be made if the housing improvement area is not created and making the improvements within the area is needed to maintain and preserve the area's housing units. Further, the enabling ordinance will allow the City to impose a fee against the benefiting property owners to pay for the cost of the improvements. The property owners within the improvement area also have veto power over the ordinance. In other words, if 35 percent of the property owners object to the ordinance after its adoption, it will not take effect. As a result, the effective date of the ordinance must be at least 45 days after its adoption by the City Council. During that 45 -day interim period, the property owners, after all receive notice of the ordinance and its contents within five days of its adoption, can file an objection to the ordinance with the New Hope City Clerk. If 35 percent of the owners object, the ordinance is void. • If the ordinance is not vetoed, property owners can individually object to their inclusion in the improvement area or the imposition of fees against their property. The objection procedure works similar to the special assessment challenges found in Chap. 429. Also, the City will need to hold a second public hearing before it can collect fees or specially assess properties for payment of the improvement costs. Again, this works like the special assessment procedure found in Chap. 429. The Association has informed staff that if the Ordinance is adopted, that they would like to begin rehabilitation activities this fall with window replacement and other items and complete the project during the spring of 2002. Staff recommends approval of this ordinance subject to the submission of an as -built survey of the property to be completed by the Association during the 45 -day comment period. FUNDING This Housing Improvement Area proposal would be funded internally with EDA funds and repaid through an assessment agreement with the L'Esperance Owner's Association. ATTACHMENTS • Ordinance Request for Action Page 4 10 -08 -01 Notice to the L'Esperance Owner's Association City Attorney Correspondence Location Map Topographical Map Zoning Map L'Esperance Request Letter L'Esperance Owner's Petition Project Cost Summary Proposed Improvements and Cost Estimates City Code Section 5.048, Supply from One Service City Correspondence Requesting Additional Information 8 -14 City Correspondence Requesting Additional Information 8 -28 City Correspondence Requesting Additional Information 8 -31 City Correspondence Requesting Additional Information 9 -11 Garage Concept Plan 1 Garage Concept Plan 2 Garage Cost Estimate (Plan 2) Comprehensive Plan Reference City Attorney Correspondence, 3 -27 -97 — Housing Improvement Area Summary Minnesota State Statute, 428A.11 — 428A.21 ORDINANCE NO. 01 -12 AN ORDINANCE ESTABLISHING A HOUSING IMPROVEMENT AREA FOR THE L'ESPERANCE TOWNHOME DEVELOPMENT PURSUANT TO MINN. STAT. 428A The City Council of the City of New Hope ordains: Section 1 Section 1.81 " L'Esperance Housing Improvement Area of the New Hope City Code is hereby added to read as follows: 1.81. "L'Esperance Housing Improvement area ". The City of New Hope (hereafter City) hereb v establishes pursuant to Minn. Stat. Cha ). 42 8A a housini_= im 7rovement area over the property commonly known as the L'Esperance Townliomc development which is legally described in Section 1.8 1 3 of`this Code 1.811 "Recitals" The Citv hereby makes the following recitals in support of its action to establish the herein housing improvement area: 1 The City is autliorized under Minn. Stat. 428A.21 to establish by ordinance housing improvement areas within which housing improvements are made or constructed and the costs of the improvements are Laid in whole or in part from fees imposed within the area. .. The Citv has determined a need to establish the L'Esperance Housin hnprovement Area as defined lierein. in order to facilitate certain improvements to the property all in accordance with the Housing Improvement Act. 3. The Citv has consulted w the L'Esperanee Owners Association and with the residents in the L'Esperance Housin<� linprovernent Area re the e stablishment of said housing improvement area and the housing improvements to be cons and financed under this ordinance. 1.812 "Findings ". The City hereby makes the following findings in support of its action to establish the herein housing improvement area: 1. The City Council finds that. in accordance with Minn. Stat. 5428A.12, owners of at least twenty -five percent (25 %) ofthe housing) units within the housing improvement area have filed apetition witli the City Clerk I a public hearing regarding establishment of such housing improvement area. -1- ?. The Citv Council has on Au2ust 13 2001 and by adjournment thereafter conducted a public hearing duly noticed in accordance with Minn. Stat. .4 13 subd regarding adoption of this ordinance at which all persons. including owners of property within the housing improvement area were given an opportunity to be heard. 3. The Council finds that, without establishment of the ho improvement area the Housing Improvements (as hereinafter defined) could not be made by the homeowners association for or the housing" unit owners in. the L'Esperance Townhome development. 4 The Council further finds that designation of said housing improvement area is needed to maintain and preserve the housing units within such area. 1.813 "Housing Improvement Area Defined" The L'Esperance Housing Improvement Area is hereby defined as that area of the Citv legally described as follows: Lots 1 through 6. Block 1, Soukups Addition Lots 1 through 6 Block 2, Soukups Addition Outlot A, Soukups Addition Hennepin County, Minnesota. 1.814 "Housing Improvements Defined ". For the purposes of � ti 1.81 through 1.819 of this Code the ten "Housing Improvements" shall mean those improvements to the housing units and common areas within L'Esperance Housing Improvement Area as set out in the prehininaiy Contract Specifications prepared by One Way Remodelin(,T Sen7ices for the L'Esperance Owners Association as follows: 1. Replacement of rooting on all twelve units, including removal of all old shingles installation of 25 -near 3 tab shingles on all twelve units. repair of roofs where needed, removal of old and installation of new gutters and installation of I)CW insulation. 2 Installation of 5'S Fire Code rock on tru sses between units at time of new roof installation. — ^ 3. Replacement of 116 windoNv units with vinvl tilt sash replacement windows in existing jalns, including removal and disposal of old window sashes. 4. Replacement of 48 basement window units with vinyl sliders including disposal of old windows. -2- 5. Install 36 pair of plastic windoNy shutters. 6. Replace all fi and back entry doors and jams with pre -hun( steel doors and stones using cxistinC7 door hardware, including disposal of old doors and tainting of new doors per pre - approved door allowance. 7. Install new fascia and soffit system on all units, includin�i continuous vcntin(-' and Rap exterior trim. S. Install custom rod iron railing on steps between all units (5 feet per 2 units). 9. Install vinvl siding on overhangs over all entrvwav units .042 10. Upgrade electrical service to 150 -amp service on all units includin< <�roundin outlets, replacing outside GFI's as needed and installing flood ]amts with automatic shuttoffs. 11. Install new plumbin, waste line between buildings and to the street including: a) Removal and disposal of old line: b) Removal and repair of broken 6" PVC sewer line at 8012 buildin C) Removal and repair of bad joint at 7928 building; and d) Repair of other trouble areas as shown on video of system. 12. Install 6 foot F ence between buildings (I 10 feet total), and repair or replace fence around dumpster enclosures on existing concrete slab. 13. Removal of trees in front of building causing problems with sewer system. 1 4. interior drain tiles with sump pumps and replace basement fixtures in units as needed. 15. Move and burn ovcrhead electrical service to each unit as proposed by Excel Energw. 6. Seal coat and/or re -pave parking lot. 17. Install smoke alarms in each bedroorn in all units. -3- but these costs shall not exceed twenty -five percent (25%) of the actual construction costs for the improvements referred to in § 1.814 of this Code. 1.816 "Issuance of Bonds". At anv time after a contract with L'Esperance Owners Association for construction of all or part of the housing improvements has been entered into or the work has been ordered, and the 30 -dav period for prepayment of the Housing Improvement Fee has expired as described in ti 1.815 hereof; the Council may issue bonds in the principal arnount necessary to finance the cost of the housing improvements that have not been prepaid together wwith costs of issuance of the bonds. Such bonds shall be issued pursuant to and in accordance with Minn. Stat. §428A.16 of the Housing Improvement Act. 1.817 "Annual Reports ". I . On August 15, 2002 and each Au�,'ust 15` thereafter until all HOLISM Improvement Fees derived in the Housing Improvement Area are fully paid. the L'Esperance Owners Association (and any successor in interest) shall submit to the City Clerk a copy of the Association's audited financial statements. 2. L'Esperance Owners 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 that entity and the City. 1.818 "Notice of Right to .File Objections ". Within five (5 ) days after the adoption of §1.81 through 1.819 of this Code, the City Clerk is authorized and directed to mail. to the owner of each housing unit in the .L'Esperance Housing; Improvement Area: a summary of these Code sections; notice that owners subject to the proposed Housinc; Improvement Fee have a right to veto this ordinance ifs owners of at least thirty -five percent (35 %) of the housing units within the L'Esperance ,Housing Improvement Area file an 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. Sections 1.81 through 1.819 of this Code shall be effective f orty -five ("45) days after their passage and publication. 1.819 "Amendment ". This ordinance may be arnended by the Council upon compliance with the public hearing and notice requirements set forth in Minn. Stat. §428A.13, subd. 2 of the Housing Improvement Act. Section 2 . Effective Date, This Ordinance shall be effective 45 days after its passage and publication. -5- Dated the 8 day of October, 2001. W. Peter Enck, Mayor Attest: Z-�- Valerie Leone, City Clerk (Published in the New Hope- Golden Valley Sun -Post the 17th day of October , 2001 Pr +Attorn —Cnh Ordina ',CNH99.80112 -001 -Ord Est Housing hnpro —I Arm.wpd I Me 16. Move water meters from end units and install separate water meters in each unit. 17. Seal coat and/or re-pave parking lot. 18. Install smoke alarms in each bedroom in all units. b 19. Reconstruct attic scuttles in the hallways of each unit. 2O Removal of undesirable landscaping and replacement of new landscaping as mutually agreed between the City and the L'Esperance Homeowners Association. 1.815 "Housing Im. may, by resolution adopted in Provement Fee". The City in y accordance with the petition, hearing and notice procedures required under Minn- Stat. Chap - 428A known as the Housing Improvement Act, impose a fee ' b ' n .the ' ' housing units within the LEsperance Housing Improvement Area, at a rate term or amount sufficient to produce revenues required to provide the_ Ho -- ing Improvements (hereinafter referred to as the "Housing linprovement Fee "), subject to the terms and conditions set forth in this Section. 1 Any Housing Improvement Fee shall be imposed on the basis of the 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 any fee resolution. 2. Any Housing Improvement Fee shall be imposed and payable for a period od no greater than twenty (20) years after the first installment is due l ,and payable. 3. Any Housing Improvement Fee shall be prepayable in full or in part housing unit owners within thirty (30) days after the effective date , resolution setting the Housing Improvement Fee, provided that a partial- prepayment must be at least twenty-five percent (25 %) of the total fee for ousi " that unit. After such 30-day period, the unpaid portion of any H 11 4g Improvement Fee and accrued interest shall be prepayable only in the full amount. The resolution imposing any Housing Improvement Fee shall provide that any fee (or portion thereof) not prepaid by the housing unit owner shall , deemed to include simple interest on unpaid housing improvement cost at a rate of 7 % per annum. BE NOTICE TO L'ESPERANCE ASSOCIATION PROPERTY OWNERS REGARDING L'ESPERANCE HOUSING IMPROVEMENT ORDINANCE NO. 01 -12 On Monday, October 8, 2001, the City Council of the City of New Hope adopted Ordinance No. 01 -12 establishing L'Esperance Housing Improvement Area pursuant to Minn. Stat § §428A.11 through 428A.21 (The Housing Improvement Act). Owners of more than twenty -five percent (25 %) of the housing units in the L'Esperance Housing Improvement Area filed a petition with the City Clerk requesting a public hearing regarding the ordinance. The public hearing on this ordinance was held on August 13, 2001, and continued to October 8, 2001. The ordinance was adopted after the close of the public hearing on October 8, 2001. Within five (5) days after adoption of the ordinance, the City is required under the Housing Improvement Act to mail this notice to owners of each housing unit in the affected area. Following is a summary of Ordinance No. 01 -12 and some important information about your rights as an owner of a housing unit in the L'Esperance Housing Improvement Area. SUMMARY OF ORDINANCE NO. 01 -12 Affected Area The ordinance establishes the L'Esperance Housing Improvement Area, which is the area legally described as Lots 1 through 6, Block 1, Soukups Addition; Lots 1 through 6, Block 2, Soukups Addition; Outlot A, Soukups Addition, according to the recorded plat thereof, Hennepin County, Minnesota. Housing Improvements The ordinance specified the "Housing Improvements" that will be constructed in the L'Esperance Housing Improvement Area and financed with the Housing Improvement Fee. Those improvements are defined as follows: 1. Replacement of roofing on all twelve units, including removal of all old shingles, installation of 25 -year 3 tab shingles on all twelve units, repair of roofs where needed, removal of old and installation of new gutters and installation of new insulation. 2. Installation of 5/8 Fire Code rock on trusses between units at time of new roof installation. 3. Replacement of 116 window units with vinyl tilt sash replacement windows in existing jams, including removal and disposal of old window sashes. -1- 4. Replacement of 48 basement window units with vinyl sliders including disposal of old windows. 5. Install 36 pair of plastic window shutters. 6. Replace all front and back entry doors and jams with pre -hung steel doors and storms using existing door hardware, including disposal of old doors and painting of new doors per pre- approved door allowance. 7. Install new fascia and soffit system on all units, including continuous venting and Rap exterior trim. 8. Install custom rod iron railing on steps between all units (5 feet per 2 units). 9. Install vinyl siding on overhangs over all entryway units (.042 gauge). 10. Upgrade electrical service to 150 -amp service on all units including grounding outlets, replacing outside GFI's as needed and installing flood lamps with automatic shuttoffs. 11. Install new plumbing waste line between buildings and to the street, including: a) Removal and disposal of old line; b) Removal and repair of broken 6" PVC sewer line at 8012 building; C) Removal and repair of bad joint at 7928 building; and d) Repair of other trouble areas as shown on video of system. 12. Install 6 foot fence between buildings (110 feet total), and repair or replace fence around dumpster enclosures on existing concrete slab. 13. Removal of trees in front of building causing problems with sewer system. 14. Install interior drain tiles with sump pumps and replace basement fixtures in units as needed. 15. Move and bury overhead electrical service to each unit as proposed by Excel Energy. 16. Move water meters from end units and install separate water meters in each unit. -2- 17. Seal coat and /or re -pave parking lot. 18. Install smoke alarms in each bedroom in all units. 19. Reconstruct attic scuttles in the hallways of each unit. 20. Removal of undesirable landscaping and replacement of new landscaping as mutually agreed between the City and the L'Esperance Homeowners Association. Housing Improvement Fee The ordinance provides that the City may impose a fee on housing units in an amount sufficient to produce revenue required to provide the Housing Improvements. The fee will be set by a separate City Council resolution after a noticed public hearing which will be held in the future, but the ordinance lays out the ground on how the fee will be determined. Those rules are summarized as follows: • The fee must be imposed based on the total cost of the Housing Improvements to be financed with such fee, divided by the number of housing units in the L'Esperance Housing Improvement Area as of the date of the fee resolution. • The fee may be prepaid in whole or in part within thirty (30) days after the effective date of the resolution setting the fee; provided that if only a portion is prepaid, the prepayment amount must be at least twenty -five percent (25 %) of the total fee for that unit. • If the I fee is not prepaid, it will be payable over a period of twenty (20) years, with interest at a rate of 7 % per annum. However, the unpaid portion of the fee plus accrued interest is prepayable any time after the 30 -day period referred to above. • The fee will be collected at the same time and in the same manner as property taxes. • The total fee for each unit may not exceed the amount specified in the notice of public hearing for the resolution imposing the fee. • The fee will include the City's actual costs for legal, engineering and administrative costs paid on this project, but said costs will not exceed twenty -five percent (25 %) of the total costs to construct the housing improvements. Issuance of Bonds The ordinance provides that the City may issue bonds under the Housing Improvement Act to finance the Housing Improvements. The bonds may be issued any time after the City has entered into a contract with L'Esperance Owners Association for construction of the improvements, and the 30 -day period for prepayment of the Housing Improvement Fee has lapsed. -3- Annual Report The ordinance requires that L'Esperance Owners Association submit audited financial statements to the City each year while there are bonds outstanding. NOTICE OF RIGHT TO FILE OBJECTIONS Housing unit owners subject to the Housing Improvement Fee have a right to veto the ordinance and the fee resolution after it is adopted, if owners of at least thirty -five percent (35 %) of the housing units within the L'Esperance Housing Improvement Area. File an objection with the City Clerk before the effective date of the ordinance or the resolution. The key dates are as follows: Ordinance Adopted: October 8, 2001 Ordinance Published: October 17, 2001 Effective Date of Ordinance: December 3, 2001 Deadline to File Veto Objections: December 3, 2001 If the ordinance is not vetoed, you will receive a notice indicating the public hearing date to consider the resolution establishing the Housing Improvement Fee against your housing unit. You will also receive a notice describing the total fee for your unit, your right to veto the fee and procedures for doing so and details on how to prepay the fee if the fee resolution is not vetoed. A copy of Ordinance No. 01 -12 is on file with the City Clerk for public inspection. If you have questions about the L'Esperance Housing Improvement Area, contact the City Community Development Coordinator at (763) 531 -5119. Dated: October 8, 2001. P: \Anomny \Cnh Orditu . \CNH99.80112.002- Notice aC Ord at Having 1.proveaent Area.wpd Cie GORDON L. JENSEN NICOLE M. RITLANDt STEVEN A.SONDRALL WILLIAM C. STRAIT' STAGY A. WOODS OF COUNSEL LORENS Q. BRYNESTAD "Real Property Law Specialist Certified By The Minnesota State Bar Association j Qualified ADR Neutral Attorneys At Law October 3, 2001 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443 -1968 TELEPHONE (763) 424 -8811 • TELEFAx (763) 493 -5193 e -mail law@ j ensen- sondrall.com Ken Doresky ,------------------------------- - - - - -- Community Development Specialist ; SENT BY FAX City of New Hope ; TO: (763) 531 -5136 4401 Xylon Avenue North a AND BY REGULAR MAIL o New Hope, MN 55428 ------------------------------- - - - - -J Re: Proposed Ordinance Establishing a Housing Improvement Area for the Ld'Esperance Townhome Development Pursuant to Minn. Stat. 428A Our File No.: 99.80112 Dear Ken: Please find enclosed a revised Ordinance Establishing a Housing lmprovementAreafor the L 'Esperance Townhome Development Pursuant to Minn. Stat. 428A for consideration at the October 8, 2001 Council Meeting. As you are aware, the public hearing on this matter was originally scheduled on August 13, 2001. It has been continued to the October 8t' Council Meeting. Also enclosed is a revised Notice to L'Esperance Association Property Owners Regarding L 'Esperance Housing Improvement Area. This Notice will need to be sent to the property owners within five (5) days from the date of the adoption of the Ordinance. It informs the owners of the Ordinance adoption, that they will be subject to a housing improvement fee, that they can veto the Ordinance, and it contains a summary of the Ordinance provisions. Basically, the Ordinance establishes the L'Esperance Housing Improvement Area, makes findings that the Ordinance is necessary to permit the Owners Association to request funds from the City to make necessary improvements within the area, sets forth the basic improvements that will be made within the Improvement Area, and establishes the City's ability to impose a fee on the housing units for fiends advanced to the Association to pay for the improvements. October 3, 2001 Page 2 Please contact me if you have any questions regarding this letter, the Ordinance or the Notice. V ery truly yours, Steven A. Sondrall, City Attorney, City of New Hope JENSEN & SONDR4LL, P.A. sasir�jeuseii- sonrlrall.com After Hours Extension #147 Enclosures cc: Valerie Leone, City Clerk, City of New Hope (w /enc.) Kirk McDonald, Community Development Director, City of New Hope (w /enc.) CNI-I99.80112- 001 - Doresky Ltr.wpd August 11, 2000 Kirk Mc Donald New Hope City Council City of New Hope 4401 Xylon Avenue North New Hope, Mn 55428 Dear Kirk, We are writing to you as an association to request your assistance in a matter of great importance to us. As residents of the City of New Hope, L'Esperance Owners Association members take pride in where we live. However, the condition of our townhomes is deteriorating at a rate with which we cannot keep up. We understand the City of New Hope takes pride in the condition of its resisdential properties. We want to be proud of our townhomes and to have them be an attractive and pleasant enhancement to this City. At various levels of urgency, our homes desperately need new roofs, gutters and downspouts applied, windows, Doors, Drain Tiling applied in each basement and New Blacktop Paving for one of our two Parking lots and Sealcoating for the lot we had done a couple years ago. So we have been keeping up with regular maintenance. Our assets right now are about $8000.00 which is not enough to cover the work we need to have done. We figure the total ammount for all improvements would be about $125,000. The improvements we are requesting your assistance with are vital and would benefit us as well as the City of New Hope. The property would be more attractive and pleasing with new Roofs, Gutters and Downspouts, Blacktop Paving, Windows and Doors. We hope that by receiving this letter you will see our serious concern and dedication to this subject. Once again we ask you to carefully consider the possibility of assisting us with the special funding so improvements can be made. Respectfully, President of L'Esperance Owners.Association, 10'0i' Rita Kolodjski And residents of the L'Esperance Owners Association Here is a rough estimate of the Repairs and Replacements of the following: Roof $ 23,770.00 Gutters $ 4,150.00 Windows $ 59,360.00 Entry Doors $ 18,960.00 Storm Doors $ 6,360.00 Drain Tiling $ 6,000.00 Blacktopping $ 5.800.00 Total $124,400.00 PETITION REQUESTING CREATION OF HOUSING IMPROVEMENT AREA AND IMPOSITION OF IMPROVEMENT FEES ON HOUSING UNITS WITHIN THE AREA BY CITY OF NEW HOPE AS AUTHORIZED PER MINN. STATE. §§ 428A.12 THROUGH 428A.14 This Petition is submitted on behalf of the L'Esperance Owners Association (hereafter the "Association "). The parties signing this Petition are members of the Association and fee owners of the housing units hereafter identified. The L'Esperance Owners Association by and through its members do hereby request the New Hope City Council hold a public hearing to consider the enactment of an ordinance creating the L'Esperance Housing Improvement Area pursuant to the requirements and authority set out in Minn Stat. W8A.13. The Association requests the ordinance to create an area encompassing all 12 housing units legally described as follows: Lots 1 through 6, Block 1, Lots 1 through 6, Block 2, and Outlot A, Soukups Addition, Hennepin County, Minnesota. The ordinance is needed to enable the Association and its members to make improvements to the housing units within the improvement area that can not be made without the designation as a housing improvement area. The Association and its members further request the City of New Hope to impose housing improvement fees on the housing units within the proposed housing improvement area pursuant to the requirements and authority set out in Minn Stat. W8A.14 and after a public hearing to consider the rate and terms of said fees and the basis on which said fees will be imposed. Dated: G� Soukups Addition -2- ! (Signature) 6 (Signature) S (!�-7 - ©c 1!7 1 (Date) (Date) Pro er 7924 51 st Avenue North Pro er : 8008 51st Avenue North PID# 118 -21 -14 -0129 PID# 118 -21 -14 -0123 c -F'� , ,L Kil , � S1 (Signature) (Signature) (Date) (Date) Pro ac= : 7926 51 st Avenue North Pro er :8010 51st Avenue North PID# 118 -21 -14 -0128 PID# 118 -21 -14 -0122 (Signature) / � / (Signature) (Date) (Date) Property 7928 51 st Avenue North PropeLty Property 8012 51 st Avenue North PID# 118 -21 -14 -0127 PID# 118 -21 -14 -0121 (Signature) � ��� � (Signature) (Date) I Date) Property: 7 0 51st Avenue North Pro er : 8014 51 st Avenue North PID# 118 -21 -14 -0126 PID# 118 -21 -14 -0120 (Signature) (Signature) (Date) (Date) Prop 7932 51st Avenue North frop Property 8016 51st Avenue North PIDAA 18 -21 -14 -0125 PID# 118 -21 -14 -0119 _ 4 Aj (Signature) r (Signature) (Date) (Date) Property 7934 51 st Avenue North Property 8020 51 st Avenue North PID# 118 -21 -14 -0124 PID# 118 -21 -14 -0118 -2- _a_ .a,.. 1. One Way Remodeling $177,293.00 2. Drain Tile $ 12,400.00 3. Paving $ 7,900.00 4. Smoke Detectors $ 229.28 5. Misc. Items $ 2,177.72 Total $200,000.00 * 25% Maximum Administration Fee $ 50,000.00 Total $250,000.00 * Administrative fees including legal, engineering and staff time to be adjusted, but not to exceed 25% of the total project cost. " REMODELING ONE WAY-THE RIGHT WAY' 2125 Brookdale Drive Brooklyn Park, MN 55444 763 -566 -0545 L'Esperence Homeowners Ass. 7924 —8020 51 " Ave. N D New Hope MN 55428 OCT l i Contract Specifications; Remodel & Upgrade Buildings 1) Roofing: a. Remove 2 layers of shingles b. Install or lay 25 year 3 tab shingles ice and water to code (Certainteed 230 lbs) c. Haul away tare off d. Repair roof where needed ( Time & Materials at Rate of $30.00 per hour ) e. Remove and install new gutters & downspouts ( Aluminum) COST $4384.00 $21876.00 2) Insulation: a. Blow in 9" insulation to be done at time of roofing on top of existing 4" $6534.00 Add chutes between truss ( Bring to R38 ) 3) Sheet Rock Fire Brake: a. Install 5/8 Fire code rock on truss Between units $2205.00 4) Windows: a. Remove old window sashes and haul away b. (Crest Line) Install vinyl tilt sash replacement windows in existing jams a total of 116 windows Low E ( White or Tan ) c. Remove and replace basement windows with Vinyl sliders or awning, total of 48 c. Install plastic window shutters 36 pairs $53845.00 5) Doors: a. Remove old doors and jams haul away Entry Doors Back/ Front b. Install new per hung steel doors and storms (Reuse Owners Hardware) c. Includes painting doors (Door allowance $260.00 door and storm (Master Craft) $15807.00 6) Rap existing Fascia and soffit with aluminum: a. Install new fascia and soffit system continuos venting b. Rap exterior trim( Doors and Windows) (Owens Corning) $22156.00 (Gauge .019) 7) Install Rod Iron Railing : a. Install iron railings between on steps total of 5 Feet per two units $1452.00 8) Siding Front Overhangs: a. Install vinyl siding on overhangs over entryways (Ashland Davis or Alside) $2296.00 ( Gauge .042 ) 9) Electric up grades: a. Do services upgrade on units 150 Amp b. Replace outside GFI in front of each unit (12) c. Install new flood lamps with automatic shutoffs In front of units $19448.00 10) Plumbing Waste Line a. Excavate old waste line Remove bad sections b. Dig up and repair the broken 6" PVC sewer line at building 8012 at location as shown on video cameras. If damage pipe is not at the location as shown hourly charges will apply while we try to locate the damaged area. Back fill and compacting. (Asphalt & Sod Extra) Total Charges for Building 8012 are $ 4456.00 At Building 7928 we will dig up and repair the bad joint outside building as shown on video. Total Charges for building 7928 are $ 2068.00 As we are excavating at the Video locations and we find other problems of damage to the pipe, We will repair them at an hourly rate of $ 370.00 per hour plus any materials. 11) Fence a. Install Tan vinyl fence 6' high total 110 Feet between buildings b. Repair and replace fence around dumpster enclosures on existing concrete slab. $5992.00 11) Tree Removal a. Remove trees from front of buildings, causing sewer problems. (Right in front of buildings) $1228.00 12) Replace basement fixtures after drain tile, toilet, washer, dryer, sink, laundry tub. ( Allowance of $150.00 Labor and Materials per unit) $1800.00 13) Move overhead electric.Trench service lines to each unit to be done by Excel Energy $8640.00 13) Move Water Meters a. Move meters from end units and install meters in each unit McGuire & Sons $6480.00 Total for complete job $177293.00 Customer must pick colors materials before starting, siding, shingles. By Signing Customer Understands what is listed above and agrees With What Is Stated One Way Remodeling L' Esperence Homeowners Ass. MN License . # 20141923 Insured Bounded Home Depot Smoke Detectors 24 * $8.97 each =$215.28 Tax +$ 14.00 it $229.28 ®ffice (9 P.0. 3 -' Pau t Fax (S52) 445 -� LAsph r � denu l • Commercial • Sealcoaung • All Work Guaranteed • Free Esumates Not Re onsible for 100 Weed Control • Not Resoonslble for Frost Cracks PHONE ' " ATE aL PHONE STREET JOB LOCATION CITY, STATE. & ZIP CODE ' WE HEREBY SUBMIT SPECIFICATIONS AND ESTIMMATES FOR: PATIO APPROX. SO. FEET RESURFACING OF = DRIVEWAY Q' PARKING LOT ALL DEBRIS V XISTING A r SPHALT CEMENT WILL BE EDGED AND CLEANED OF }WEED KILLER WILL BE APPLIED TO ALL VEGETATION. V-46130SE AND BROKEN ASPHALT WILL BE REMOVED AS NEEDED. APPROX. SO. FEET OF FAILURE ARIA TO BE REMOVED. APPROX. INCHES OF NEW BASE TO BE INSTALLED. V HOT TAR ADHESIVE WILL BE APPLIED TO EXISTING SURFACE FOR BONDING OF NEW ASPHALT AS NEEDED. ALL HOLES AND LOW AREAS WILL BE PATCHED WITH ASPHALT OLLED TO PREPARE JOB FOR RESURFACING �LL EXISTING AREAS WILL THEN BE RESURFACED WITH APPROX INCH(ES) OF ASPHALT AND BE r� ROLLED WITH TWO TON HYDRAULIC ROLLER (USED FOR COMPACTION). PAVING / z� 6 6 PARKING LOT DRIVEWAY P ADDMONS C WALK WAY APPROX. SG. FEET 1P' AREA WILL BE U- GRADED L j)o'fJSING EXISTING BASE JOB WILL BE GRADED, COMPACTED AND PREPARED FOR PAVING. APPROX. INCHES OF (3/4 INCH MINUS) (LIMESTONE) (CLASS FIVE) WILL BE INSTALLED, GRADED AND COMPACTED AS NEEDED. T WEED KILLER WILL BE APPLIED TO ALL VELETA 1 N�.—�- L3 A V' AREA WILL THEN BE PAVED WITH APPROX..%M INCHES OF ASPHALT AND BE ROLLED WITH A,T,,WlO TO HYDRAULIC ROLLER (USED FOR COMPACTION). t 41B /?6�Avc / 8 , V/ C, TEAR OUT OLD - HALT, HAUL AWAY. A n3d Sllk L'p �j FOR SEAL D ATING 6� CLEAN OFF AREA WITH POWER BLOWER XAIL kCXL;O/OLy f V PETROLEUM BASE GILSENITE SEALCDATING El EMULSION TYPE WATER BASE SEALCOAT1 G APPLY A THICK PASTE TO ALL CRACKS ❑ ALL HOLES PATCHED WITH APPROX, INCHES) OF ASPHAL ALL WORK GUARANTEED FOR 12 MONTHS. TO BE PAID IN FULL - AFTER INSTALLATION OF DRIVEWAY OR PARKING AREA - UNLESS OTHER ARRANGEMENTS ARE MADE. WE OPO$E HEREBY tn FUR ISH MATERIAL A= LABOR - CON3PLETE IN,ArrpROANCE WITH ABOVE SPECIFI FOR THE SU v 1 A ) �� l , .� "" ° DOLLARS 1921mk_j(yAA __j DEPOSIT O BALANC "NOTICE TO OWNER" AUTHORIZED -- UNDER THE MECHANICS LIEN LAW ANY CONTRACTOR. SUBCONTRACTOR, SIGNATURE LABORER, MATERIALMAN OR OTHER PERSON WHO HELPS TO IMPROVE YOUR PROPERTY AND IS NOT PAID FOR HIS LABOR, SERVICES OR MATERIAL, HAS A NOTE: THIS CONTRACT MAY BE RIGHT TO ENFORCE HIS CLAIM AGAINST YOUR PROPERTY. WITHDRAWN BY US IF NOT ACCEPTED WITHI d DAN MAKE CHECKS PAYABLE TO: Paul Jo nes ACCEPTANCE OF CONTRACT THE ABOVE PRICES, SPECIFICATIONS AND CONDITIONS ARE SATISFACTORY AND ARE HEREBY ACCEPTED, YOU ARE AUTHORIZED TD DO THE ABOVE WORK AS SPECIFIED. SIGNATUR PAYMENT WILL BE MADE A O TL1NE0 ABOVE. v DATE OF ACCEPTANC . SIGNATURE WhrCe - Customer Copy Yeliow . Deposit Sto 'aterproofing System To Be installed For ddress _ i ty ome Phone ( Job Location/ Date Name Adoress Zt^ City Home Phone ( ) Work Phone ( — ) Jork Phone ( ) >tandard Water Control Systems, Inc. will furnish all la and b or a maters nlSkermanners specified in accordance with orawing belov work -istallatlon guaranteed to be as specified and comp ;PECIFICATIONS — DIAGRAM OF AREA TO BE SERVICED hi 1 i JU PAYMENT TERMS The Owner Agrees to pay Contractor a sum as follows A. Price B. Other $ . G C. Principal Balance $ 5 Jr D. Down Payment $ 5 E. Unpaid Balance $ 7 r:aeh nnnn rmmnjat,mn CUSTOMER NO. 1 { 3 $ (Q Foundation Description & c-- L g 1st Course Block Exposure S Finishing Material Description Obstructions To be installed and /or pertormed: ff Fligid PVC drainage pipe, at descending grade to basin 19 I t it, 7 ashed rock drainagelrilter median to envelope draintile/basin. /8` drainage holes drilled in all main and joining cavities. d ded PVC cove plate and drainage system on tooting � �l it Poly sheeting moisture bamer between draintile system and new cement Remove, replace and finish cement where required. Removal of all concrete and other debris from fob site. Premium quality structural sump basin with bolted down cover. 5 emium grade, totally automatic submersible pump with check valve. S 40 - 1 1 12 * PVC discharge system with diffuse cap ft. S' ❑ Floor may bevel. ❑ Walls may need trimming. Remarks: Owner is responsible for installation of smoke detector and electrical outlets if required. Standard Water Control Systems, Inc. recommends installing system on all exterior walls. S 5337 Lakeland Avenue North • Crystal, Minnesota 55429 MINNEAPOLIS ST. PAUL BURNSVILLE ST. CLOUD DULUTH (7631537 -4849 (651) 776 -6581 (952) 894 -4107 (320) 252 -0766 (2181727 -1495 • www.standardwater.com ROCHESTER OUTSTATE FAX (507) 285 -6549 (800) 978 - 786" (7631 53 85: Naterpro System To Be Installed For Name K iT1 �'Cc�- dDJS� Address RCi l _ 5 J S r _.. -- City rJ� i=.P� zip Home Phone ( - 7 ) 3 7- y L 73 Work Phone ( ) Job Location Date Name L.--- tl ' - ' n �� C -E Address — City Zip Home Phone ( 1 Work Phone ( _ ) Standard Water Control Systems, Inc. will furnish all labor and materials for work as specified in accordance with orawino belc Installation guaranteed to be as specified and completed in a workmanlike manner. SPECIFICATIONS - DIAGRAM OF AREA TO HE SERVICED VE ,(1 E T � Zao1 PAYMENTTERMS The Owner Agrees to pay Contractor a sum as follows A. Price $ I- JG B. Other $ G C. Principal Balance $ �- D. Down Payment $ E. Unpaid Balance $ ° CUSTOMER NO. 4 3 '�-6 L, Foundation Description SL. c-fZ -- 1st Course Block Exposure 5 Finishing Material Description �rl� c - k - tsfi Qf Obstructions A' x.AtJ tiGl^ % T✓b , To be installed andtor pertormed: [ Q� gid PVC drainage pipe. at descending grade to basin �ft. Washed rock drainage/filter median to envelope draintile/basin. U 7/8 drainage holes drilled in all main and joining cavities. E 1 4ruded PVC cove plate and drainage system on tootmg"Z`CA ft. Y !Poiy sheeting moisture barrier between draintile system and new cement �(Aemove. replace and finish cement where required. '� 9 emoval of all concrete and other debris from job site. / High quality structural sump basin with boiled down cover. 1'o 9 /pemiurn grade, totally automatic submersible pump with check valve. Schedule 40 - 1 PVC discharge system with diffuse cap ft. ❑ Floor may bevel. ❑ Walls may need trimming. 11 Remarks: Owner is responsible for installation of smoke detector and electrical outlets if required. Standard Water Control Systems, Inc. recommends installing system on all exterior walls. A �� y �� tZ S O to ,:::z ao� O PAYMENTTERMS The Owner Agrees to pay Contractor a sum as follows A. Price $ I- JG B. Other $ G C. Principal Balance $ �- D. Down Payment $ E. Unpaid Balance $ ° CUSTOMER NO. 4 3 '�-6 L, Foundation Description SL. c-fZ -- 1st Course Block Exposure 5 Finishing Material Description �rl� c - k - tsfi Qf Obstructions A' x.AtJ tiGl^ % T✓b , To be installed andtor pertormed: [ Q� gid PVC drainage pipe. at descending grade to basin �ft. Washed rock drainage/filter median to envelope draintile/basin. U 7/8 drainage holes drilled in all main and joining cavities. E 1 4ruded PVC cove plate and drainage system on tootmg"Z`CA ft. Y !Poiy sheeting moisture barrier between draintile system and new cement �(Aemove. replace and finish cement where required. '� 9 emoval of all concrete and other debris from job site. / High quality structural sump basin with boiled down cover. 1'o 9 /pemiurn grade, totally automatic submersible pump with check valve. Schedule 40 - 1 PVC discharge system with diffuse cap ft. ❑ Floor may bevel. ❑ Walls may need trimming. 11 Remarks: Owner is responsible for installation of smoke detector and electrical outlets if required. Standard Water Control Systems, Inc. recommends installing system on all exterior walls. A 4,6, ,:, st z : , Core Placed: cut 3 '' round and place railing in cement to anchor Surface mount: Install Lead or concrete anchor and bolt to surface � l i `� ` t rroiliovol 0" bpIWWIVO/owYV - xmow oo A, S -- - 'sd.?rw - /2/ 771 - ` y n � O O� h° N� J a} J r Z a►yNj�, 5.048 Service Pipes Water pipes from the private building to the connection to the City water system are controlled by this section. 5,048(l) Installation All service pipes from the curb box to the premises served shall be installed by, and at the expense of the owner of the property to be served. Such installation shall be inspected and approved by the City Department of Public Works. 5.048 (2) Expense All repairs for service pipes out to their connection with the street mains, including any repairs necessary to the curb box, and plumbing systems of building, shall be made by and at the expense of the owners of the premises served. The City may, in case of emergency, repair any service pipes and if this is done, the cost of such repair work shall be repaid to the City by the owner of the premises served. The Director shall determine the existence of an emergency. 5.048 (3) Depth and Size Service pipes shall be placed not less than 7 feet below the surface from the main to the building line and in all cases so arranged as to prevent rupture or damage from freezing. Service pipes must be of a size specified in the permit order and for residential installation it shall be of a 3I4" type K copper; in all other cases it shall be of a type K copper and of the smallest size that will insure an adequate supply of water for both present use and for reasonably anticipated future use. 5.048(4) Stop Boxes Such service pipes must extend from the main to the inside of the building, or if not taken into a building, then to the hydrant or other fixtures which it is intended to supply. A stop -caulk must in all cases be placed outside any box and a shut -off or other stop -caulk with waste, of the size and strength required shall be placed close to the inside wall of the building, well protected from freezing. All stop bojes at the curbs shall be set between the curb and the building, if practical. 5.048(5) Supply from One Service Not more than one house or building shall be supplied from one service pipe connecting with the street main, unless by special permit. Such house or building shall have a separate stop box. 5.049(6) Inspection of and Approval All water- service pipes and their connections to the municipal water system must be inspected and approved in writing by the Superintendent before they are covered, and he shall keep a record of such approvals. If the Director refuses to approve the work on the grounds of improper or inadequate compliance with specified City requirements, the plumber or owner shall proceed immediately to correct the work so that it will meet with his approval. Every person who uses or intends to use the municipal water system shall permit the Superintendent or his authorized agents to enter the premises to inspect the water pipes and appurtenances at all reasonable flours. ........................... ...........................(Ord 66 -1) 5.049 Water Meters 5 (1) Water -o be Metered No water shall be furnished to any consumer from the municipal water system unless the same is measured by a meter, except by special permission of the Council. A request for service from the municipal water system is deemed to include permission to authorized municipal personnel to enter upon the premises to be served at all reasonable times and places for the purpose of reading meters to determine water usaee. Refusal to permit access to any premises for the purpose of reading a water meter, after reasonable demand. shall be deemed tzrounds for cancellation of the aereement of the City to provide water to the premises, and the water supply may be 5-9 072684 August 14, 2001 4401 Xylon Avenue North New Hope, Minnesota 55428 -4898 www. ci. new -hope. mn. us L'Esperance Owners Association Attn: Rita Kolodjski 8014 51 st Avenue North New Hope, MN 55428 City Hall: 763- 531 -5100 Police. 763- 531 -5170 Public Works. 763 - 533 -4823 TDD: 763 - 531 -5109 Subject: Housing Improvement Area, Public Hearing Continued Dear Ms. Kolodjski: Ciw Hall Fax. '63 53? �'3r Pobce Fax: 763 -53 5' - Public Works Fax. 763 -533 - -65�' On August 13, 2001, the New Hope City Council continued the public hearing to consider the adoption of an ordinance creating a Housing Improvement Area for the L'Esperance Owners Association. The public hearing for consideration of this ordinance has been continued to the August 27, 2001, City Council meeting. The requested information discussed at the August 6th specifications meeting will need to be submitted to City staff for review by Monday, August 20th in order for this ordinance to be considered at the August 27th Council meeting. In the event that the requested materials are not received by August 20th, staff will request that the Council continue the public hearing to the September 10th Council meeting. Below, please see the steps necessary to create a Housing Improvement Area as outlined by the New Hope City Attorney: • Initially, the Council would need to adopt an enabling ordinance specifically defining the improvement area or areas and specifically indicating the necessary improvements to be made within the area. The City cannot adopt this ordinance on its own initiative. Before such an ordinance can be considered, there must be a petition by at least 25 percent of the owners within the proposed area requesting the enabling ordinance. • Before adoption of the enabling ordinance, the City would need to conduct a public hearing. At the hearing and within the ordinance, the Council would need to make findings that the necessary improvements will not be made if the housing improvement area is not created and making the improvements within the area is needed to maintain and preserve the area's housing units. Further, the enabling ordinance will allow the City to impose a fee against the benefiting property owners to pay for the cost of the improvements. • The property owners within the improvement area also have veto power over the ordinance. In other words, if 35 percent of the property owners object to the ordinance after its adoption, it will not take effect. As a result, the effective date of the ordinance must be at least 45 days after its adoption by the City Council. During that 45 -day interim period, the property owners, after all receive notice of the Family Styled City wg For Family Living �1 A Rita Kolodjski July 24, 2001 Page 2 ordinance and its contents within five days of its adoption, can file an objection to the ordinance with the New Hope City Clerk. If 35 percent of the owners object, the ordinance is void. If the ordinance is not vetoed, property owners can individually object to their inclusion in the improvement area or the imposition of fees against their property. The objection procedure works similar to the special assessment challenges found in Chap. 429. Also, the City will need to hold a second public hearing before it can collect fees or specially assess properties for payment of the improvement costs. Again, this works like the special assessment procedure found in Chap. 429. If you have any questions or comments, do not hesitate to contact me at 763- 531 -5137. Sincerely, 1A, L Q-- Ken Doresky, AICP Community Development Specialist cc: Dan Donahue, City Manager Kirk McDonald, Director of Community Development Steve Sondrall, City Attorney Doug Sandstad, Building Official Chuck Tatro, General Inspector Erin Seeman, Community Development Intern Valerie Leone, City Clerk (Improvement Project File #695) August 28, 2001 4401 Xylon Avenue North New Hope. Minnesota 55428 -4898 www. ci. n e w -hope. mn. us L'Esperance Owners Association Attn: Rita Kolodjski 8014 51 st Avenue North New Hope, MN 55428 Citv Hall. 763 531 510L, Police, 763- 531 -5176 Public Works. 763 - 533 -4823 TDD: 763 -531 -5109 Subject: Housing Improvement Area, Public Hearing Continued Dear Ms. Kolodjski: Crry Hal! Fa.k Police Fax. 763 -5: Puoirc Works Fak. 763 53: "c On August 27, 2001, the New Hope City Council continued the public hearing to consider the adoption of an ordinance creating a Housing Improvement Area for the L'Esperance Owners Association. The public hearing for consideration of this ordinance has been continued to the September 10, 2001, City Council meeting. The requested information discussed at the August 6 specifications meeting will need to be submitted to City staff for review by Friday, August 31 in order for this ordinance to be considered at the September 10 Council meeting. In the event that the requested materials are not received by August 31, staff will request that the Council continue the public hearing to the September 24 Council meeting. Below, please see the steps necessary to create a Housing Improvement Area as outlined by the New Hope City Attorney: • Initially, the Council would need to adopt an enabling ordinance specifically defining the improvement area or areas and specifically indicating the necessary improvements to be made within the area. The City cannot adopt this ordinance on its own initiative. Before such an ordinance can be considered, there must be a petition by at least 25 percent of the owners within the proposed area requesting the enabling ordinance. Before adoption of the enabling ordinance, the City would need to conduct a public hearing. At the hearing and within the ordinance, the Council would need to make findings that the necessary improvements will not be made if the housing improvement area is not created and making the improvements within the area is needed to maintain and preserve the area's housing units. Further, the enabling ordinance will allow the City to impose a fee against the benefiting property owners to pay for the cost of the improvements. The property owners within the improvement area also have veto power over the ordinance. In other words, if 35 percent of the property owners object to the ordinance after its adoption, it will not take effect. As a result, the effective date of the ordinance must be at least 45 days after its adoption by the City Council. During that 45 -day interim period, the property owners, after all receive notice of the r0 Family Styled City �1. For Family Living VJI" .I rti Rita Kolodjski August 28, 2001 Page 2 ordinance and its contents within five days of its adoption, can file an objection to the ordinance with the New Hope City Clerk. If 35 percent of the owners object, the ordinance is void. • If the ordinance is not vetoed, property owners can individually object to their inclusion in the improvement area or the imposition of fees against their property. The objection procedure works similar to the special assessment challenges found in Chap. 429. Also, the City will need to hold a second public hearing before it can collect fees or specially assess properties for payment of the improvement costs. Again, this works like the special assessment procedure found in Chap. 429. If you have any questions or comments, do not hesitate to contact me at 763 -531 -5137. Sincerely, Ken Doresky, AICP Community Development Specialist cc: Dan Donahue, City Manager Kirk McDonald, Director of Community Development Steve Sondrall, City Attorney Doug Sandstad, Building Official Chuck Tatro, General Inspector Erin Seeman, Community Development Intern Valerie Leone, City Clerk (Improvement Project File #695) August 31, 2001 4401 Xvion Avenue North New Hope. Minnesota 55428 -4898 www.ci.new-holDe.mn.us L'Esperance Owners Association Attn: Rita Kolodjski 8014 51 st Avenue North New Hope, MN 55428 City Hale 763- 531 -5100 Poiice: 763 - 531 -5170 Public Works 763 - 533 -4823 TDD 763- 531 -5109 Subject: August 30, 2001, Plans and Specifications Meeting Summary Dear Ms. Kolodjski: Cav Hall Fax 763.53'. Police Fax 763-53 -5' Public Worxs Fax 763 - 533 -765: On August 30, City staff met with Kathy Koons, L'Esperance representative and One Way Remodeling to discuss rehabilitation plans and specification clarifications that were requested at the August 6 project meeting. Updated plans and specifications were submitted and reviewed on August 30, but were found to lack the following items: • Survey — timing and cost estimate; • Water meter relocation — cost estimate; • Separate electrical service — cost estimate; • Allowable fence proposal (regulation summary enclosed), survey dependent — cost adjustment; • Landscaping removal plan showing specific removals and planned replacement — cost adjustment; • Smoke alarms added to each bedroom — cost estimate; • Gutters vs. rain diverters — cost analysis; • Attic scuttles located in hallways — cost estimate; • Sump pump reduction — cost adjustment. Updated plans and specifications and a firm cost estimate, including the requested information discussed at the August 30 meeting, will need to be submitted to City staff for review by Friday, September 14 in order for the ordinance to be considered at the September 24 City Council meeting. In the event that the requested materials are not received by September 14, staff will request that the Council continue the public hearing to the October 8 Council meeting. If you have any questions or comments, do not hesitate to contact me at 763- 531 -5137. Sincerely, Ken Doresky, AICP Community Development Specialist nn, n� Family Styled City �,;�j "� „� �. For Family Living Rita Kolodjski Page 2 August 31, 2001 enc: City of New Hope Fence Regulations cc: Dan Donahue, City Manager Kirk McDonald, Director of Community Development Steve Sondrall, City Attorney Doug Sandstad, Building Official Chuck Tatro, General Inspector Paul Coone, Utilities Maintenance Supervisor Erin Seeman, Community Development Intern Valerie Leone, City Clerk (improvement Project File #695) September 11, 2001 �ie.. hv'i'_ Minnes l ., C. 5J . L'Esperance Owners Association Attn: Rita Kolodjski 8014 51 st Avenue North New Hope, MN 55428 Subject: Housing Improvement Area, Public Hearing Continued Dear Ms. Kolodjski: On September 10, 2001, the New Hope City Council continued the public hearing to consider the adoption of an ordinance creating a Housing Improvement Area for the L'Esperance Owners Association. The public hearing for consideration of this ordinance has been continued to the October 8, 2001, City Council meeting. The requested information discussed at the August 6 specifications meeting will need to be submitted to Cit y staff for review b y Friday, September 28 in order for this ordinance to be considered at the October 8 Council meeting. _$tr6hg .r`eccit i enr `t i i e i 'coq in kef#:#o.tevievl h tow' tPd, foCKrta #pan prior #as F� �t 1, 1n the event that the requested materials are not received by September 28, staff will request that the Council cancel the public hearing and revisit this project at a later date. Below, please see the steps necessary to create a Housing Improvement Area as outlined by the New Hope City Attorney: • Initially, the Council would need to adopt an enabling ordinance specifically defining the improvement area or areas and specifically indicating the necessary improvements to be made within the area. The City cannot adopt this ordinance on its own initiative. Before such an ordinance can be considered, there must be a petition by at least 25 percent of the owners within the proposed area requesting the enabling ordinance. Before adoption of the enabling ordinance, the City would need to conduct a public hearing. At the hearing and within the ordinance, the Council would need to make findings that the necessary improvements will not be made if the housing improvement area is not created and making the improvements within the area is needed to maintain and preserve the area's housing units. Further, the enabling ordinance will allow the City to impose a fee against the benefiting property owners to pay for the cost of the improvements. • The property owners within the improvement area also have veto power over the ordinance. In other words, if 35 percent of the property owners object to the ordinance after its adoption, it will not take effect. As a result, the effective date of the ordinance must be at least 45 days after its adoption by the City Council. During that 45 -day interim period, the property owners, after all receive noticq of the n _n " r� Family Styled City ;� For Family Living Rita Kolodjski September 11, 2001 Page 2 ordinance and its contents within five days of its adoption, can file an objection to the ordinance with the New Hope City Clerk. If 35 percent of the owners object, the ordinance is void. • If the ordinance is not vetoed, property owners can individually object to their inclusion in the improvement area or the imposition of fees against their property. The objection procedure works similar to the special assessment challenges found in Chap. 429. Also, the City will need to hold a second public hearing before it can collect fees or specially assess properties for payment of the improvement costs. Again, this works like the special assessment procedure found in Chap. 429. If you have any questions or comments, do not hesitate to contact me at 763- 531 -5137. Sincerely, Ken Doresky, AICP Community Development Specialist cc: Dan Donahue, City Manager Kirk McDonald, Director of Community Development Steve Sondrall, City Attorney Doug Sandstad, Building Official Chuck Tatro, General Inspector Erin Seeman, Community Development Intern Valerie Leone, City Clerk (Improvement Project File #695) vl Ile ro ^ ° w Garages 20 a 24 Total 6 Electric: CONCEPT GARAGE PLAN ESTIMATE \' a. Pour 4" reinforced concrete b. Pour 2' wide apron in front of garages c. Install 4" block around perimeter d. Frame 2 x 4 walls with %Z OSB sheathing e. Roof framing Shop built truss 24' on center '/z OSB sheathing f. Roofing 25 year 3 tab shingles g. Install 2 9' steel garage doors & Rap trim h. Install 2 36" steel service doors with dead bolt & Rap Trim i. Install 5/8 sheet rock between units j. Install aluminum fascia and soffit system k. Install vinyl siding 1. Install Sidewalk from units to garages $115303.00 a. Run Underground lines from each unit house to garages b. Install GFI c. Install 12 out side floods d. Install ceiling outlet for future door openers e. Install Ceiling fixture and switch $8712.00 Landscaping: a. Remove Asphalt from parking lot b. Add New Driveways c. Remove trees d. Lay sod $31303.00 Total For Garages 5157341.00 r� r '� I 1711 r 11/11/11t.��.ti . • ga � ii1 r I�I�q • : �� «.rs r► 0111/1 1 • �': i�C •r .•.� %� �� I ley _'III ■ �t '!/111 { { •� Planning Districts PLANNING DISTRICT 8 Planning District 8 is found in the center of New Ho pe and includes, as well as surrounds, Cooper High School and New Hope Elementary School. Quebec Avenue borders on the east and Boone Avenue on the west, with dynamic northern and southern boundaries. This area is characterized by its public/semi-public uses and their surrounding low density residential neighborhoods. The following recommendations are offered for Planning District 8. 1 The low density residential neighborhoods are generally in good condition. The City has undertaken some scattered site residential development within the neighborhood north of 49th Avenue. The City will continue to encourage the maintenance and enhancement Of its low density areas through private reinvestment in homes, enforcement of the Housing Maintenance Code, and scattered site renovation and redevelopment programs. 2. The medium density housing located along 51 st Avenue displays declining building and site conditions. Area redevelopment is recommended. 3. The high density residential land uses at the comer of Xylon Avenue and 45th Avenue face flooding issues due to its proximity to an adjoining wetland. Efforts to remedy this flooding problem should be investigated. 4. The Homeward Bound Group Care Facility is currently vacant. Future reuse of the facilities will be evaluated with regard to the use's compatibility with surrounding residential neighborhoods. 5 Cooper High School and New Hope Elementary School are located in the center of Planning District 8. Compatibility issues with regard to the high school and adjoining neighborhoods have identified issues pertaining to students leaving the school (trespassing, littering, and noise). The City will work closely with the School District to monitor ongoing issues and undertake efforts to mitigate igate existing of New Plan �X Policy Plan E. Accomplish transitions between distinctly differing types of land uses in an orderly fashion which does not create a negative (economic, social or physical) impact on adjoining developments. F. Infill development of compatible land uses shall be strongly encouraged. G. Where practical, conflicting and non-complementary uses shall be eliminated through removal and relocation. RESIDENTIAL GOALS Goal 1: Provide a variety of housing types, styles and choices to meet the needs of New Hope's changing demographics. Policies: A. Through infill development and redevelopment efforts, increase life cycle housing opportunities not currently available within the City (i.e., high value housing, townhomes). B. Promote medium density attached housing to address the needs of an expanding empty nester or independently living elderly population. C. Continue the City's efforts to provide special needs housing for people with various types of disabilities. Goal 2: Maintain and enhance the strong character of New Hope's single family residential neighborhoocs. Policies: A. Promote private reinvestment in the City's single family housing stock. B. Examine City development regulations to provide greater development flexibility for single family homeowners. C. Prevent the intrusion of incompatible land uses into low density single family neighborhoods. _L#Y of New Plan 12 Poficv Plan D. Aggressively enforce the City's housing maintenance regulations. E. Provide community education and information to local property owners on home maintenance, repair, and assistance opportunities. F. Pursue the redevelopment of substandard single family homes when it is judged not economically feasible to correct the deficiencies. G. Encourage neighborliness through block clubs, block parties or neighborhood associations. Goal 3: Promote multiple family housing alternatives as an attractive life cycle housing option. Policies: A. Redevelop substandard multiple family properties that display deteriorated building conditions, no site amenities, poor site design, or incompatible land use patterns when it is judged not economically feasible to correct the deficiencies. B. Adhere to the highest community design and construction standards for new construction and redevelopment projects. C Accompany medium and high density development with adequate accessory amenities such as garages, parking, open space, landscaping, and recreational facilities to insure a safe, functional, and desirable living environment. D. Consider mixed land uses as an alternative land use option in planning and redevelopment of obsolete commercial or industrial sites. E. Encourage neighborliness through block clubs, block parties or neighborhood associations. - L"YoIlVew Plan 13 1 2 October 10, 2001 4401 Xylon Avenue North New Hope, Minnesota 55428 -4898 www.ci.new- hope.mn.us L'Esperance Owners Association Attn: Kathy Koons, Treasurer 8010 51 st Avenue North New Hope, MN 55428 Subject: Housing Improvement Area Public Hearing Dear Ms. Koons, City Hall: 763 - 531 -5100 Police: 763 - 531 -5170 Public Works: 763 - 533 -4823 TDD: 763 - 531 -5109 City Hall Fax: 763 - 531 -5136 Police Fax: 763- 531 -5174 Public Works Fax: 763 - 533 -7650 On October 8, 2001, the New Hope City Council held a public hearing and adopted an ordinance creating a Housing Improvement Area for the L'Esperance Owners Association, 7924 -8020 51st Avenue North. The Council motion to approve the enabling ordinance included the following items: • As -built Survey: An as -built survey of the property is to be completed and submitted to City staff to be used as baseline data in determining site related issues. Please notify City staff of the schedule to complete the survey. The cost related to the completion of this survey will not be included in the assessment agreement. • Interest Rate: The interest rate is to be determined by the current bond rate as of October 9, 2001, plus one (1) percent. As of 4:30 P.M., October 9, 2001, the bond market interest rate was 5.27 percent, plus one (1) percent equals a total of 6.27 percent fixed interest rate over a period of twenty (20) years. • Residential Open Space: According to the New Hope City Code 4.033(4)(a), in residential zoning districts, buildings and structures of any type, parking areas or other features shall not occupy more than sixty -five (65) percent of the lot area resulting in less than thirty -five (35) percent open space. The open space on the site will be evaluated upon the submission of an as -built survey. • Water Meters: The water meters are to remain as currently in place. Moving the water meters is not a requirement of this assessment project. • Fencing: Once the survey is complete, any fence proposal will be evaluated based upon the regulations stated in the New Hope City Code. • Striping: Due to the fact that the L'Esperance Association bylaws regulate parking, parking lot striping will not be a requirement of this assessment project. Family Styled City ' P,4 For Family Living Kathy Koons October 10, 2001 Page 2 • Attic Scuttles: State of Minnesota Building Code requires attic scuttles to be in place, therefore the existing scuttles may remain as constructed in 1962. • Garages: If the Association is in agreement that a garage plan be proposed, the assessment may be amended to include the related additional cost. Please contact City staff at your convenience if a garage proposal is in the interest of the Association. Now that the ordinance has been adopted, please see the next steps necessary as outlined by the New Hope City Attorney: • Within the 45 day comment period, City staff is be in contact with the Association to schedule a meeting to discuss the development agreement and the assessment agreement. The property owners within the improvement area have veto power over the ordinance. In other words, if 35 percent of the property owners object to the ordinance after its adoption, it will not take effect. As a result, the effective date of the ordinance must be at least 45 days after its adoption by the City Council. During that 45 -day interim period, the property owners, after all receive notice of the ordinance and its contents within five days of its adoption, can file an objection to the ordinance with the New Hope City Clerk. If 35 percent of the owners object, the ordinance is void. If the ordinance is not vetoed, property owners can individually object to their inclusion in the improvement area or the imposition of fees against their property. The objection procedure works similar to the special assessment challenges found in Chap. 429. Also, the City will need to hold a second public hearing before it can collect fees or specially assess properties for payment of the improvement costs. Again, this works like the special assessment procedure found in Chap. 429. If you have any questions or comments, do not hesitate to contact me at 763- 531 -5137. Sincerely, KVn P esk Y. AICP Community Development Specialist enc.: New Hope City Code, 4.033(4)(a), Residential Open Space New Hope Fence Regulation Summary cc: Dan Donahue, City Manager Kirk McDonald, Director of Community Development Guy Johnson, Director of Public Works Daryl Sulander, Director of Finance Steve Sondrall, City Attorney Doug Sandstad, Building Official Paul Coone, Utilities Maintenance Supervisor Chuck Tatro, General Inspector Erin Seeman, Community Development Intern Valerie Leone, City Clerk (Improvement Project File No. 695) City of New Hope STATE OF MINNESOTA) Ss. COUNTY OF HENNEPIN) Gene Carr, being duly sworn on an oath states or affirms, that he is the interim publisher of the newspaper known as Sun -Post , or the president's designated agent, and has full knowledge of the facts stated below: (A) The newspaper has complied with all of the requirements constituting qualification as a qualified newspaper, as provided by Minn. Stat. §331A.02, §331A.07, and other applicable laws, as amended. (B) The printed public notice that is attached was published in the newspaper once each week, for one successive weeks; it was first published on Wednesday, the 17 day of October 2001, and was thereafter printed and published on every Wednesday to and including Wednesday, the day of , 2001; and printed below is a copy of the lower case alphabet from A to Z, both inclusive, which is hereby acknowledged as being the size and kind of type used in the composition and publication of the notice: abcdefghijklmnopgrstuvwxyz BY: President and Publisher Subscribed and sworn to or affirmed afore me on this day of 2001. rZ, /�`•� MEROEL M. HEDBLOM �.. 4 ; :.3T:. 'r ? ;,2uC- tai:dWESOTp IS/ CJ'.' ;' Sz lON EcxFiRES 1 -31 -2005 RATE INFORMATION (1) Lowest classified rate paid by commercial users $ 2.85 per line for comparable space (2) Maximum rate allowed by law $ 6.20 e� t line (3) Rate actually charged $ 1.40 per line (Official Publication) ORDINANCE NO. 01-12 AN ORDINANCE ESTABLISHING A HOUSING 17"ROVEMENT AREA' FOR THE UESPERANCE TOWNHOME DEVELOPMENT PURSUANT TO MINN. STAT. 428A The City Council of the City of New Hope ordainq: Section 1 Section1. 81 TFylrerancelious inelr�Jprovement Ate" of the New Hope City Code is hereby added to read as follows: Le L en s ins ce Hotlgiiae Smorovement Area" The City (hereafter City) Jo eby staff blisher, pus, tattohlinn 4tat Chan 428Aahousingimnrovement anp overth nronerty cammonlvknown i�t1Le L'Esnerance Town}ame develppment which is leg ldeseribed in Section 1 of this Code 7.87.1 "Recitals" The City hereby makes the following recit I in support off' its action to establish the herein housing improvement area The City is gut Jorized under Minn Stat 66428A 11 tb roue b 428X21 to establish by ordinance housine iMRnvemgntareas*j inw ichho Jsi grmproverawtsare mad or con structed and the casts of the imnmvement. a *e paid in whole or in U&d from fees impocd within the area. I The City , hmis- Skdkmined - a need to establish the I,74erance EAves ae de feed he rein. ip_grdpr to faali_ tats certain imrmvem ®RB1a_fhe oruverty all in eeeorde_nce v�th the HM *�+�irx py®_a+d Act. ,� ��ibi hem d 'with tHe'L ice Owners Assacia gn, with the i•eeidente in -tire L.'Esnera_nre *_ce said housing improvement arep and the houaine -- npra emen�t to be mnstmeted and financed under th_s ordinanciL :/ AN A 7-71 R :r,• ,r ,• r rl.lf' , 4.1.a r Y!"r r J•:. -r_x• VT JJ ;.r.•.a!vi:J:'r• l�:r '�r' 11'i• r MMMM _`� ^ ^'r Yllrlafl � ll l.f'I�1 r J .%Ten�Tin J_a.! ■ 7 ,,, / - 'A,- $*acemsnt 1, ' of 48- basement window xmts sd nyl i sliders iT�nd�p, diyposal of old win._laws. Apostolic Lutheran Church, vote here. Brookview Community - Center 200 Brookview Parkway - Edina Residents 1A Shepherd of the Hills Lutheran Church 500 Blake Road South i Edina Residents of Precinct 1B, Chapel Hills Congregational Church vote here: Shepherd of the Hills Lutheran Church 500 Blake Road South Edina Residents of Precinct 5, HighlenzSchool, vote here: . Shepherd of the Hills Lutheran Church 500 Blake Road South i St Louis Perk Residents 4-1 Cedar Manor Intermediate Center 9400 Cedar Lake Road Minnetonka Residents IA Glen bake Elementary School 4801 Woodridge Road f 1B Old Apostolic Lutheran Church . Z zut i Iry ? — F .(" i •. li - .1 a I - 1'i" pZ uaan} us>ll a Po 03 IR u , I�T.;<vi\(11111 It s ag A to 'g 'uO9nFOSaJ PiYPPOTJObu Guam u!s l , ' - � ! a 1 --T JO UM U i }e 14903 TaOMAGI alaw 7 w - 4 a 0 Aq JJLUU 4UU UUVA UU! a 1 aj ueleq legs u m n I ul - ur(uot 1 y Tl} m o Iqe as p ue aaq JUaU1OA0Ja i L aq }s m p, 1 [ - flu e R apino S u Aoa Wj n l U-mr ss - 6 1 0 — UT41 ,lo alep D OfF 10 UU p Tc1juTg1. aaumo } ws T{ ue gale ml ln3 uc I e4 aq aa, eA a nTI oT=I. ITTV 'l I o `TTY IR .1 a I u . a a e pZ uaan} us>ll a Po 03 IR u , I�T.;<vi\(11111 It s ag A to 'g 'uO9nFOSaJ PiYPPOTJObu Guam u!s l , ' - � ! a .1 -� — • !r 1Tl ( 1 x;14 ucsno f i Pa TIBSI 3 n nTI 'T �I ozlo S 0 3 T} k a 3 3 ':11' 1 •�(' ' lT(: 4� 4 '• i • fl r '� 1 - n g ! 4- i0 dd R qq a b .1 I flu xn o uI Zt I o `TTY , I�T.;<vi\(11111 It htcNlhC i i : n ::': 1 • rY • — .1 -� — • !r 1Tl ( 1 x;14 r ii f i 11 I i ':11' 1 •�(' ' lT(: 4� 4 '• i • fl r '� 1 - ,, 1 PETITION REQUESTING CREATION OF HOUSING IMPROVEMENT AREA AND IMPOSITION OF IMPROVEMENT FEES ON HOUSING UNITS WITHIN THE AREA BY CITY OF NEW HOPE AS AUTHORIZED PER MINN. STATS. §§ 428A.12 THROUGH 428A.14 This Petition is submitted on behalf of the L'Esperance Owners Association (hereafter the "Association "). The parties signing this Petition are members of the Association and fee owners of the housing units hereafter identified. The L'Esperance Owners Association by and through its members do hereby request the New dope City Council hold a public hearing to consider the enactment of an ordinance creating the L'Esperance Housing Improvement Area pursuant to the requirements and authority set out in Minn Stat. §428A.13. The Association requests the ordinance to create an area encompassing all 12 housing units legally described as follows: Lots 1 through 6, Block 1, Lots 1 through 6, Block 2, and Outlot A, Soukups Addition, Hennepin County, Minnesota. The ordinance is needed to enable the Association and its members to make improvements to the housing units within the improvement area that can not be made without the designation as a housing improvement area. The Association and its members further request the City of New Hope to impose housing improvement fees on the housing units within the proposed housing improvement area pursuant to the requirements and authority set out in Minn Stat. §428A.14 and after a public hearing to consider the rate and terms of said fees and the basis on which said fees will be imposed. Dated: z ce Soukups Addition '41 c (Signature) -2 s2� 66` ,, ���. ,� �?--7 —ac (Date) Proper 7924 51 st Avenue North PID# 118 -21 -14 -0129 Aj � t (Signature) (Date) Prope 7926 51 st Avenue North PID# 118 -21 -14 -0128 (Signature) (Date) Proper : 7928 51 st Avenue North PID# 118 -21 -14 -0127 (Signature) (Date) Proper : 79 4 51st Avenue North PID# 118 -21 -14 -0126 (Signature) (Date) Proper : 7932 51 st Avenue North PID# - 118 -21 -14 -0125 / (Signature) (Date) Proper 7934 51 st Avenue North PID# 118 -21 -14 -0124 (Signature) (Date) Proper : 8008 51st Avenue North PID# 118 -21 -14 -0123 (Signature) L ` (Date) Property 8010 51 st Avenue North PID# 118 -21 -14 -0122 _ (Signature) (Date) Property 8012 51 st Avenue North PID# 118 -21 -14 -0121 r t�'f . f 1e (Signature) Date) Pro er : 8014 51 st Avenue North PID# 118 -21 -14 -0120 (Signature' (Date) Pro er : 8016 51st Avenue North PID# 118 -21 -14 -0119 6 - 7 _ �? / (Signature) / (Date) Proper : 8020 51st Avenue North PID# 118 -21 -14 -0118 -2- Soukups Addition (Signature) (Date) Proper : 7924 51st Avenue North PID# 118-21-14-0129 (Signature) (Signature) (Date) / I I (Date) Proper : 7926 51 st Avenue North Proper 8010 51st Avenue North PID# 118-21-14-0128 PID# 118-21-14-0122 q (Signature) (Signature) (Date) (Date) Proper : 7928 51st Avenue North Proper : 8012 51st Avenue North PID# 118-21-14-0127 PID# 118-21-14-0121 (Signature) (Signature) (Date) Date) Proper : 740 5 1st Avenue North Proper : 8014 51st Avenue North PID# 118-21-14-0126 PID# 118-21-14-0120 (Signature) (Signature) (Date) (Date) Proper : 7932 51st Avenue North Proper 80 51st Avenue North PID# 118-21-14-0125 PID# 118-21-14-0119 (Signature) (Signature) (Date) (Date) Proper 7934 51 st Avenue North Proper : 8020 51st Avenue North PID# 118-21-14-0124 PID# 118-21-14-0118 (Signature) (Date) Proper : 8008 51 st Avenue North PID# 118-21-14-0123 -2- RECITALS WHEREAS, the City of New Hope has adopted Ordinance No. 01 -12 at its*October 8, 2001 Council Meeting establishing the L'Esperance Housing Improvement Area codified as New Hope Code § §1.81 through 1.819; and WHEREAS, the L'Esperance Housing Improvement Area established by Ordinance No. 01 -12 was in response to a petition submitted by 25 % or more of the owners of units in the L'Esperance Owners Association as required by Minn. Stat § 148A.12; and WHEREAS, New Hope Code §1.814(1) through (17) sets forth the housing improvements to be made within the L'Esperance Housing Improvement Area; and WHEREAS, the L'Esperance Owners Association has entered into a Development Agreement with the City of New Hope establishing an actual construction amount and administrative, legal and engineering costs the City is willing to advance the Association to finance the costs of the improvements set out in New Hope Code §1.814(1) through (17); and WHEREAS, the total cost to finance the improvements is $250,000.00 itemized between administrative, legal and engineering costs of $50,000.00 and actual construction costs of $200,000.00; and WHEREAS, the Development Agreement between the City of New Hope and the L'Esperance Owners Association indicates the owners of each unit within the L'Esperance Townhome Association shall be assessed an amount not to exceed 1 /12` of $250,000.00 to be assessed against the real estate taxes of each unit commencing with real estate taxes payable in 2003 at an annual interest rate of 6.27% over a 20 -year term. NOW, THEREFORE, BASED ON THE FOREGOING RECITALS, We, the undersigned members of the L'Esperance Owners Association and fee owners of the following units within the L'Esperance Townhome Improvement Area, hereby petition the City of New Hope for a public hearing to consider our request and hereby request the City to impose a housing improvement special assessment fee against our individual units within the housing improvement area established by New Hope Code § §1.81 through 1.819 to finance construction of housing improvements defined in New Hope Code §1.814(1) through (17). Further, if the housing improvement special assessment fee is set at a maximum amount of $250,000.00 apportioned equally to each unit with annual assessments and payments commencing ith 2003cal esa taxes at a rate of 6.27% per annum over a 20 -year term, the undersigned ' ° eI by wdi th& rfghts to object to imposition and amount of the special assessment fee as at. § §428A.13 and 428A.13 and 428A.18 and hereby accept said fee as a special assessment against our individual units. The individual assessment to each unit based on . h t- e'ierff § MT6Mnced above would be a maximum of $20,833.33 with an annual payment of $1,883.74. Further, we also authorize and ratify all past actions of the L'Esperance Owners Association in entering into the Development Agreement with the City for construction and financing of the housing improvements defined in New Hope Code § 1.814(1) through (17) and authorize and direct the L'Esperance Owners Association to take any further actions to fully implement the Agreement and special assessment to finance and construct the housing improvements. This Petition may be executed in counterparts by facsimile, each of which shall be deemed to be an original, but all of which counterparts collectively shall constitute one and the same Petition, whether originally executed or executed by facsimile. Dated: November 19, 2001. Renee Martschinske 07- 118 -21 -14 -0129 7924 - 51St Avenue North Rach el W(Hawkins) 07- 118 -21 -14 -0124 7934 - 51 Avenue North b l- Z�— Jocelyn Joyce K. Sumner 07- 118 -21 -14 -0128 7926, - 51St Avene North Steven Novak 07- 118 -21 -14 -0127 7928 - 51 Avenue North Shane Rooney,/ 07- 118 -21 -14 -0126 7930 - 51St Avenue North Ronald Thompson 07- 118 -21 -14 -0125 7932 - 51 Avenue North Patricia Rissinger 07- 118 -21 -14 -0123 8008 - 51St Avenue North r" K by Koon 07- 118 -21 -14 -0122 8010 - 51" Avenue North Betty A e 07- 118 -21 -14 -0121 8012 - 51" Avenue North r Rita Kolodjski Iq 07- 118 -21 -14 -0120 8014 - 51 Avenue North -2- Mark Gappa 07- 118 -21 -14 -0119 8016 - 51" Avenue North Jo Ellen Gappa 07- 118 -21 -14 -0119 8016 - 51" Avenue North P:\Atwnny\ SAS\ Documents \CNH99.80112-00 I- Pctition Rcq Special Asx F. -pd Ji 1 Schu op - 118 -21 -14 -0118 8020 - 51" Avenue North -3- f C)T TNTI -TT Y O .c� REQUEST FOR ACTION H oQ Originating Department Approved for Agenda Agenda Section Community Development 12 -10 -01 Public Hearin By: Ken Doresky, Community Item No. Development Specialist I By: 7.3 PUBLIC HEARING RESOLUTION AP ROVING A HOUSING IMPROVEMENT SPECIAL ASSESSMENT FEE FOR THE L'ESPERANCE HOUSING IMPROVEMENT AREA, PURSUANT TO MINN. STAT. § §428A.11 — 428A.21 (IMPROVEMENT PROJECT NO. 695) ; ACTION REQUESTED This is a public hearing to consider a resolution approving a Housing Improvement Special Assessment Fee for the L'Esperance Housing Improvement Area, Pursuant to Minn. Stat. § §428A.11 — 428A.21. Due to the fact that the L'Esperance Owner's Association did not submit the required materials, staff is recommending that the City Council continue the public hearing and defer action on the attached Resolution to the January 14, 2002 Council Meeting or until the satisfactory materials are submitted for consideration of the Resolution. Submittals required include: • A financial plan prepared by an independent third party that provides for the Association to finance maintenance and operation of the common elements in the L'Esperance Townhome development and a long -range plan to conduct and finance capitol improvements therein, all in accordance with Minn. Stat. §428A.14 of the Housing Improvement Act; • Submitted — A petition of at least 25% of the housing units within the L'Esperance Housing Improvement Area requesting a public hearing regarding imposition of a special assessment housing improvement fee for the L'Esperance Housing Improvement Area. In order to expedite the release of funds, the City Attorney has included a provision in the petition that waives their rights to object to imposition and amount of the special assessment fee as provided by Minn. Stat. § §428A.13 and 428A.13 and 428A.18. If this petition is signed by all twelve (12) property owners and all other materials are submitted, the City could commence making disbursements for the construction improvements prior to the forty -five (45) day veto deadline. As of 12/04/01 the City has received a petition signed by nine (9) of the twelve (12) unit owners. • An executed Development Agreement, and; • A Sworn Construction Statement provided by One-Way Remodeling, the contractor. r ! f MOTION BY °� SECOND BY r r Request for Action Page 2 12 -10 -01 POLICY /PAST PRACTICE City goal #2 is to pursue the maintenance and redevelopment of commercial and residential properties within the City. The City Council has been addressing the residential portion of this goal through the City's many housing activities, including the creation of Housing Improvement Areas for condominium associations. BACKGROUND Over the past two years, City staff has been working with representatives of L'Esperance Owner's Association on the creation of a Housing Improvement Area to finance needed improvements to the properties. On October 8, 2001, the Council adopted an ordinance establishing a Housing Improvement Area for the L'Esperance Owners Association, 7924 -8020 51st Avenue North. The forty -five (45) day veto period has expired with no objections to the creation of the Housing Improvement Area received. The L'Esperance properties are located on the north side of 51st Avenue North, just west of Winnetka Avenue. There are two buildings included in the Owner's Association (7924 -7934 and 8008 -8020) and each building contains six units for a total of twelve units. The proposed Housing Improvement Area does not include the third building, 7908 -7918 51st Avenue North, located directly to the east of 7924 -7934. The third building is a rental property and has no association ties to L'Esperance. The City Attorney and the Finance Director have come to the conclusion that the third building would not be eligible for inclusion due to its current status as a rental property. Zoning of the subject properties is R -3, Medium Density Residential. The buildings were constructed in 1962 and are noted in the Comprehensive Plan for declining building and site conditions. This is the second public hearing in the process, the intent of which is to consider a Resolution Approving a Housing Improvement Special Assessment Fee for the L'Esperance Housing Improvement Area, Pursuant to Minn. Stat. § §428A.11 — 428A.21. The City Attorney has indicated that prior to the adoption of this resolution, the L'Esperance Owner's Association is required to submit the following documents: • A financial analysis indicating how the Association will finance maintenance and operation of the common elements in the Association and a long -range plan to conduct and finance capitol improvements. This plan is to be prepared by an independent third party acceptable to the City. • A signed petition from at least 25% of the unit owners requesting imposition of housing improvement special assessment fee and waiver to objection to said fee pursuant to MINN. STAT. §§ 428 A.12 and 428A.14. • A Sworn Construction Statement from the Contractor indicated the total rehabilitation costs. • An executed Development Agreement. A resolution to approve the development agreement will be presented for consideration concurrently with the attached fee resolution. Per the attached City Attorney correspondence, the adoption of the resolution will approve City financing to assist the L'Esperance Owner's Association with its proposed improvements. The petition includes language which waives the individual owner's right to contest the special assessment fee as long as such fee is based upon the total construction amount not to exceed $250,000.00 for the proposed improvements. If the petition is signed by all twelve (12) property owners, the City could then commence making disbursements prior to the January 27, 2002 veto deadline date. If the petition is not unanimously signed, the City Attorney recommends that the City not make any payments for improvements until the January 27, 2002 expiration date. This is the same procedure and development agreement used with the Sandpiper Cove development. If the construction costs are less than $250,000.00, the Development Agreement requires the City to amend the resolution to reflect the actual construction cost. Per Exhibit A of the resolution, the maximum amount they will be required to pay will be $20,833.33, or $1,883.74 annually, per unit, based on the total construction cost including administrative, legal and finance fees not to exceed 25% of the actual construction costs. On October 8, 2001, the Council motion to approve the enabling ordinance creating a Housing Improvement Area for the L'Esperance Owner's Association included the following items: Request for Action Page 3 12 -10 -01 • As -built Survey: An as -built survey of the property is to be completed and submitted to City staff to be used as baseline data in determining site related issues. The L'Esperance Owner's Association is to notify City staff of the schedule to complete the survey. The cost related to the completion of this survey will not be included in the assessment agreement. • Interest Rate: The interest rate was determined by the bond rate as of October 9, 2001, plus one (1) percent. As of 4:30 P.M., October 9, 2001, the bond market interest rate was 5.27 percent, plus one (1) percent equals a total of 6.27 percent fixed interest rate over a period of twenty (20) years. • Residential Open Space: According to the New Hope City Code 4.033(4)(a), in residential zoning districts, buildings and structures of any type, parking areas or other features shall not occupy more than sixty -five (65) percent of the lot area resulting in less than thirty -five (35) percent open space. The open space on the site will be evaluated upon the submission of an as -built survey. • Water Meters: The water meters will remain as currently in place. Moving the water meters is not a requirement of this Housing Improvement Area project. • Fencing: Once the survey is complete, any fence proposal will be evaluated based upon the regulations stated in the New Hope City Code. • Striping: Due to the fact that the L'Esperance Association bylaws regulate parking, parking lot striping will not be a requirement of this Housing Improvement Area project. • Attic Scuttles: State of Minnesota Building Code requires attic scuttles to be in place, therefore the existing scuttles may remain as constructed in 1962. • Garages: If the Association is in agreement that a garage plan be proposed, the assessment fee resolution may be amended to include the related additional cost. The L'Esperance Owner's Association was requested to notify City staff at the Association's convenience if a garage proposal is in their interest. With the addition of garages, staff would support a recommendation to the Council to consider a thirty (30) year repayment period. Their contractor estimated that the addition of garages would increase the project cost by $157,341, not including survey work. As the Council is aware, the City has in place a variety of funding programs for the rehabilitation of single family homes and apartments, however, it has been more difficult to find funding mechanisms for the rehabilitation of owner - occupied multiple family units, such as townhomes and condominiums. Several years ago the State Legislature passed legislation allowing municipalities to create housing improvement districts. The next steps to establish a Housing Improvement Area are outlined below by the City Attorney. • The City will need to hold this public hearing before it can collect fees or specially assess properties for payment of the improvement costs. This works like the special assessment procedure found in Chap. 429. The property owners within the improvement area have veto power over the assessment fee resolution. In other words, if 35 percent of the property owners object to the fee resolution after its adoption, it will not take effect. The effective date of the fee resolution must be at least 45 days after its adoption by the City Council. During that 45 -day interim period, the property owners, after all receive notice of the fee resolution and its contents within five days of its adoption, can file an objection to the fee resolution with the New Hope City Clerk. If 35 percent of the owners object, the fee resolution is void. If this fee resolution is passed, the forty -five (45) veto period will expire on January 27, 2001. If the fee resolution is not vetoed, property owners can individually object to the imposition of fees against their property. The objection procedure works similar to the special assessment challenges Request for Action Page 4 12 -10 -01 found in Chap. 429. • A Resolution to approve the Development Agreement will then be considered. Within five (5) days after the adoption of the attached resolution, the City must prepare and mail to all of the unit owners within the improvement area a summary of this resolution including the following information: • A legal description of the property and units affected by the resolution; • The amount of the fee imposed on each housing unit by the resolution; • The right of the unit owners to prepay the fee and the procedure for doing so; • The annual payments imposed against each unit if not prepaid by the unit owners; * The fact that the improvement fee will not exceed the amount shown in the resolution, but it may be reduced, and any reduction will be applied to each unit on a pro -rata basis in the same amount as the original fee is determined; and • The effective date of the resolution and the right of the unit owners to file objections and veto the fee prior to its effective date. The City Attorney will be responsible for the preparation of the summary and will provide it to the City Clerk in sufficient time so that it may be mailed to the appropriate unit owners within five days after the adoption of this resolution. Representatives of the L'Esperance Owner's Association have been requested to be present at the meeting to further discuss this project and to answer any questions. Staff recommends approval of this resolution. FUNDING This Housing Improvement Area proposal would be funded internally with EDA funds and repaid through an assessment agreement with the L'Esperance Owner's Association. ATTACHMENTS (not included since item will be tabled) • Resolution • Location Map • Public Hearing Notice • Notice to L'Esperance Property Owners Regarding L'Esperance Housing Improvement Fee • City Attorney Correspondence • Petition from Property Owners • Rehabilitation Specifications • Project Cost Summary • Financial Plan • L'Esperance Request Letter • City Correspondence, 10 -09 -01 — Council Action • City Correspondence, 11 -30 -01 — Special Assessment Fee Public Hearing & Development Agreement • City Correspondence, 12 -05 -01 — Recommendation to Continue the 12 -10 -01 Public Hearing • Comprehensive Plan Reference • City Attorney Correspondence, 3 -27 -97 — Housing Improvement Area Summary • Minnesota State Statute, 428A.11 — 428A.21 GORDON L. JENSEN* STEVEN A.SONDRALL WILLIAM C. STRAITt STAGY A. WOODS Attorneys At Law 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443 -1968 TELEPHONE (763) 424 -8811 • TELEFAx (763) 493 -5193 e -mail law@jensen-sondrall.com 0-Of OF COUNSEL LORENS Q. BRYNESTAD *Real Property Law Specialist Certified By The Minnesota State Bar Association tQualified ADR Neutral November 21, 2001 The New Hope - Golden Valley Sun -Post 10917 Vallev View Road Eden Prairie, MN 55344 Attn Meridel Re: Notice of Public Hearing Our File No.99.80112 Dear Meridel: -------------------------------------- I 1 SENT BY FAX ONLY TO: (952) 392 -6871 I ------ ----------------- -------------J Enclosed please find a Notice of Public Hearing to Impose Housing Improvement Fee On Housing Units Within L'Esperance Housing ImprovementArea As Required By Minn. Stat. §428A.14 and New Hope Code §1.815, the City of New Hope, for publication on the 28th day of November, 2001, in the New Hope - Golden Valley Sun -Post. Please forward your affidavits of publication and statement in the usual manner. Very truly yours, Steven A. Sondrall, City Attorney, City of New Hope JENSEN & SONDRALL, P.A. After Hours Extension #147 Enclosure cc: Valerie Leone, City Clerk, City of New Hope Sun -Post Ltr- Sending Notice of Hearing.wpd NOTICE OF PUBLIC HEARING TO IMPOSE HOUSING IMPROVEMENT FEE ON HOUSING UNITS WITHIN L'ESPERANCE HOUSING IMPROVEMENT AREA AS REQUIRED BY MINN. STAT §428A.14 AND NEW HOPE CODE §1.815 Notice is hereby given that the City Council of the City of New Hope, Minnesota, will hold a public hearing on: Monday, December 10, 2001 at 7:00 p.m. in the City Council chambers in City Hall, 4401 Xylon Avenue North in the City of New Hope, regarding adoption of a resolution imposing fees on housing units within the L'Esperance Housing Improvement Area for the L'Esperance Townhome Development under Minn. Stat § §428A.21 (the "Housing Improvement Act "). Within the L'Esperance Housing Improvement Area, the City proposes to facilitate various improvements to the L'Esperance Townhome Development. The improvements will be financed by fees imposed on the owners of the units. Details regarding the hearing, the improvements and the fees are described below: 1. Persons to be Heard: All interested persons will be given an opportunity to be heard at the hearing regarding the proposed housing improvement fee. 2. Proposed Improvements: Repair and replace roofing on all twelve units, including new gutters insulation, installation of 5/8 Fire Code rock on trusses between units, replace 116 window units, 48 basement window units, 36 pair of plastic window shutters, replace all front and back entry doors, install new fascia and soffit system on all units, install custom rod iron railing on steps between all units, install vinyl siding on overhangs over all entryway units, upgrade electrical service to 150 -amp service on all units including grounding outlets, replacing outside GFI's as needed and installing flood lamps with automatic shuttoffs, install new plumbing waste line between buildings and to the street, install 6 foot fence between buildings, and repair or replace fence around dumpster enclosures on existing concrete slab, remove trees in front of building causing problems with sewer system, install interior drain tiles with sump pumps and replace basement fixtures in units as needed, move and bury overhead electrical service to each unit as proposed by Excel Energy, seal coat and /or re -pave parking lot and install smoke alarms in each bedroom in all units. 3. Estimated Cost of Improvements to be Paid in Whole or in Part by Housing Improvement Fee: $250,000.00, including administrative costs and costs of issuing bonds to finance the improvements. 4. Amount to be Charged Against Each Housing Unit: Following are estimates of the fee to be imposed on housing units in the L'Esperance Housing Improvement Area: Total Fee Per Unit: $20,833.33 Estimated Annual Fee Per Unit: $ 1,883.74 The total fee may be less, but will not be more, than the above amount. The fee includes interest at an annual rate of 6.27 %. 5. Owner's Right to Prepay: Housing unit owners may prepay all or a portion of the Total Fee within thirty (30) days after the effective date of the resolution; provided that if only a portion is prepaid, the prepayment amount must be at least 25 % of the Total Fee. In the case of partial prepayment, the unpaid balance will be imposed as an Annual Fee as described in paragraph 6 below. After the thirty (30) day period expires, the unpaid portion of any Housing Improvement Fee and accrued interest shall be prepayable only in the full amount. 6. Number of Years the Fee Will ]Be in Effect: If owners do not prepay the Total Fee, the Annual Fee including interest at 6.27 % annually will be imposed in equal installments over a 20 -year period. The first installment will be payable in 2003. 7. Compliance with Petition Requirement: Owners of more than 25 % of the housing units that would be subject to the proposed fee in the L'Esperance Housing Improvement Area have filed a petition with the City Clerk requesting a public hearing on the proposed fee, in accordance with Minn. Stat § §428A.12 and 428A.14 of the Housing Improvement Act. 8. The resolution imposing the proposed Housing Improvement Fee will become effective 45 days after its adoption. If 35 % or more of the unit owners within the L'Esperance Housing Improvement Area file a written objection to the fee resolution with the City Clerk within said 45 day period, the resolution imposing the fee will not become effective and the fee will not be imposed. For further information on the proposed housing improvement fee, contact the City Community Development Director at City Hall, (763) 531 -5119. Accommodations such as sign language interpreter or large printed materials are available upon request at least five (5) working days in advance. Please contact the City Clerk to make arrangements [telephone (763) 531 -5117, TDD number (763) 531- 5109]. -2- Dated the 19` day of November, 2001. /s/ Valerie J. Leone Valerie J. Leone, City Clerk (Published in the New Hope - Golden Valley Sun -Post on the day of , 2001.) P:\Mwrticy\SAnDocuimut kCNH99. 80112-003 -Notice of Public Haring-pd -3- COUNCIL Y O� b W VV O 0 Originating Department Community Development By: Ken Doresky, Community Development Specialist Approved for Agenda 12 -10 -01 Agenda Section ment & Planni Item No. W RESOLUTION APPROVING DEVELO MENT AGREEMENT BETWEEN THE CITY OF NEW HOPE AND UESPERANCE OWNERS ASSOCIATION (IMPROVEMENT PROJECT NO. 695) ACTION REQUESTED Staff requests Council consideration of the attached resolution approving a Development Agreement Between the City of New Hope and L'Esperance Owners Association. Due to the fact that the L'Esperance Owners Association did not submit the required materials for consideration of the Assessment Fee Resolution and related Development Agreement Resolution, staff is recommending that the City Council defer action on the attached Resolution to the January 14, 2002 Council Meeting or until satisfactory materials are submitted for consideration of the Resolution. Requirements include: • Submission of items referenced in the related Public Hearing Council Agenda Item. The Public Hearing for consideration of the Assessment Fee Resolution is to be conducted prior to the consideration of the attached resolution approving a Development Agreement Between the City of New Hope and L'Esperance Owners Association, and; • The submission of an executed Development Agreement (all three (3) copies). POLICY /PAST PRACTICE City goal #2 is to pursue the maintenance and redevelopment of commercial and residential properties within the City. The City Council has been addressing the residential portion of this goal through the City's many housing activities, including the creation of Housing Improvement Areas for condominium associations. BACKGROUND For additional background information and materials, Hearing Item, relating to Improvement Project 695. please see the 12 -10 -01 Request for Action — Public Over the past two years, City staff has been working with representatives of L'Esperance Owner's Association on the creation of a Housing Improvement Area to finance needed improvements to the properties. On October 8, 2001, the Council adopted an Ordinance est ablishing a Housinq Improvement Area for the MOTION BY -� . -^-° SECOND BY 11- D14111 17k I Request for Action Page 2 12 -10 -01 L'Esperance Owners Association, 7924 -8020 51st Avenue North. The forty -five (45) day veto period has expired with no objections to the creation of the Housing Improvement Area received. A public hearing to consider the assessment fee Resolution is to be conducted prior to the consideration of this Development Agreement between the City of New Hope and the L'Esperance Owners Association. The City Attorney has prepared the attached Development Agreement between the City of New Hope and L'Esperance Owners Association. Consideration of the Development Agreement is the next step in the process to improve the L'Esperance Townhomes at 7924 -8020 51st Avenue North. On December 10, 2001, the Council was scheduled to conduct a Public Hearing for consideration of a Resolution imposing a housing improvement special assessment fee on housing units in the L'Esperance Townhome Improvement Area in order to finance certain housing improvements in the area. A condition of that Resolution was that the L'Esperance Owners Association be required to enter into a Development Agreement which sets forth the terms and responsibilities of the Association relative to this project and the disbursement of funds by the City to finance the improvements. This is the same procedure and development agreement used with the Sandpiper Cove development. Please see the attached development agreement for complete details. Among other items, the development agreement includes the following provisions: • The City is authorized under Minn. Stat. Chapter 428A (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 while or in part by housing improvements special assessment fees imposed against the benefiting properties within the area; • Prior to the adoption of the Fee Resolution by the City Council, the Association submitted to the City a financial plan in accordance with the Act that provides for the Association to finance maintenance and operation of the common elements in the L'Esperance Townhome Development and a long -range plan to conduct and finance capitol improvements therein; • It is the intention of the City to internally finance the cost of the improvements with funds from the City's Temporary Financing Construction Fund in that the proposed total construction costs for the project are too small for a separate bond issue. However, the City intends to group these costs with other City bondable costs and sell bonds to reimburse the Temporary Financing Construction Fund on or before December 31, 2002 as authorized by the act; • If the construction costs are less than $200,000.00, the Development Agreement requires the City to amend the fee Resolution to reflect the actual construction cost. If actual construction costs are less than $200,000.00 the housing improvement special assessment fee will be reduced on a pro rata basis to each unit within the housing improvement area in an amount equal to the amount of the reduction. This may also result in an amount equal to a corresponding reduction to the City's fees for administrative, legal and finance costs since said fees are based on an amount not to exceed 25% of the actual construction costs. Per Exhibit A of the fee Resolution, the maximum amount they will be required to pay will be $20,833.33, or $1,883.74 annually, per unit, based on the total construction cost including administrative, legal and finance fees not to exceed 25% of the actual construction costs; ® "Administrative, Legal and Finance Cost" means the actual costs billed to the City by private consultants retained by the City for legal, planning and engineering work in connection with the L'Esperance Townhome Improvement Area. These costs shall include all costs incurred by the City to issue bonds to finance the construction of the improvements in the event the City, in its sole discretion, issues bonds for this purpose. Also, these costs shall include a $5,000.00 payment to the City for all time expended by City employees to implement this project and administer this Agreement. However, these private consulting costs and the City's $5,000.00 administrative fee for City employee time shall not exceed 25% of the actual construction costs. `Request for Action Page 3 12 -10 -01 The Association acknowledges and agrees the total project amount will be based on a 6.27% interest rate and the actual interest rate on the Bond Sale will not cause a reduction to the fees charged against the individual units referenced in the fee Resolution or any subsequent resolution amending the fee Resolution; provided that the Total Project Amount may be such lesser amount mutually agreed by the Association and the City in the event the cost of the Housing Improvements and the total Fee is reduced in accordance with Section 2.1(g) of this agreement. The City does not make any warranty, either express or implied, as to the design or capacity of the Housing Improvements, as to the suitability for operation of the Housing Improvements or that they will be suitable for the Associations purposes or needs. The Association releases the City from, agrees that the City shall not be liable for, and agrees to hold the City, its Council and its respective officers and employees, harmless against any claim, cause of action, suit or liability of any loss or damage to property or any injury to or death of any person that may be occasioned by any cause whatsoever pertaining to the Housing Improvements or Property or the use thereof; The Association further agrees to indemnify and hold harmless the City its officers and employees, against any and all loses, claims, damages or liability to which the City its officers and employees, may become subject under any law arising out of any act, omission, representation or misrepresentation of the Association in connection with the issuance and sale of the Bonds and the carrying out of the transactions contemplated by this Agreement, and to reimburse the City, its officers and employees, for any out -of- pocket legal and other expenses (including reasonable attorney fees) incurred by the City, its officers and employees in connection with defending any actions relating thereto; • The Association agrees to furnish to the City, by no later than 120 days after the end of each Fiscal Year, beginning with Fiscal Year 2002, until a copy of the annual audited financial statements of the Association for the preceding Fiscal year, including a balance sheet and operating statements, audited by an Independent certified public accountant; • The Association agrees it will keep or cause to be kept the Property and the Housing Improvements in good repair and good operating condition at its own cost; Whenever any Event of Default referred to in Section 7.1 of this Agreement occurs, the non - defaulting party may exercise its right under this Section 7.2 after providing thirty (30) days written notice to the defaulting party of the Event of Default, but only if the Event of Default has not been cured within said thirty days or, if the Event of Default is by its nature incurable within thirty days, the defaulting party does not provide assurances reasonably satisfactory to the non - defaulting party that the Event of Default will be cured as soon as reasonably possible: o Suspend its performance under the Agreement until it receives assurances that the defaulting party will cure its default and continue its performance under the Agreement. o Use any balance in the Special Reserve Fund to cure the event of Default. o Take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant under this agreement. Representatives of the L'Esperance Owner's Association have been requested to be present at the meeting to further discuss this project and to answer any questions. Staff recommends approval of this resolution. FUNDING This Housing Improvement Area proposal would be funded internally with EDA funds and repaid through an assessment agreement with the L'Esperance Owner's Association. COUNCIL REQUEST FOR ACTION 2�� H 0Q<v Originating Department Approved for Agenda Agenda Section Community Development 01 -14 -02 Public Hearin Item No. By: Ken Doresky, Community 7. Development Specialist B f PUBLIC HEARING RESOLUTION APPROVING A HOUSING IMPROVEMENT SPECIAL ASSESSMENT FEE FOR THE UESPERANCE HOUSING IMPROVEMENT AREA, PURSUANT TO MINN. STAT. § §428A.11 — 428A.21 (IMPROVEMENT PROJECT NO. 695) ACTION REQUESTED This is a public hearing to consider a resolution approving a Housing Improvement Special Assessment Fee for the L'Esperance Housing Improvement Area, Pursuant to Minn. Stat. § §428A.11 — 428A.21. POLICY /PAST PRACTICE City goal #2 is to pursue the maintenance and redevelopment of commercial and residential properties within the City. The City Council has been addressing the residential portion of this goal through the City's many housing activities, including the creation of Housing Improvement Areas for condominium associations. BACKGROUND Over the past two years, City staff has been working with representatives of L'Esperance Owner's Association on the creation of a Housing Improvement Area to finance needed improvements to the properties. On October 8, 2001, the Council adopted an ordinance establishing a Housing Improvement Area for the L'Esperance Owners Association, 7924 -8020 51st Avenue North. The forty -five (45) day veto period has expired with received. On December 10, the Council continued this public hearing due to the fact that the L'Esperance Owners Association did not submit the State mandated materials necessary for Council consideration of this Resolution pursuant to Minn. Stat. § §428A.11 — 428A. In the interim, L'Esperance has submitted the required materials necessary for consideration. City staff has reviewed these materials and determined that they conform to Minnesota State Statutes. The submittals are as follows: • A financial plan prepared by an independent third party that provides for the Association to finance maintenance and operation of the common elements in the L'Esperance Townhome development and a long -range plan to conduct and finance capitol improvements therein, all in accordance with Minn. Stat. §428A.14 of the Housing Improvement Act; • A petition of at least 25% of the housing units within the L'Esperance Housing Improvement Area requesting a public hearing regarding imposition of a speci assessment housing improvement fee for MOTION BY SECOND BY ���Z/�. G��✓2 > TO: `Request for Action Page 2 01 -14 -02 the L'Esperance Housing Improvement Area. In order to expedite the release of funds, the City Attorney has included a provision in the petition that waives their rights to object to imposition and amount of the special assessment fee as provided by Minn. Stat. § §428A.13 and 428A.13 and 428A.18. If this petition is signed by all twelve (12) unit owners, the City could commence making disbursements for the construction improvements prior to the forty -five (45) day veto deadline. As of 01- 09 -02, the City has received a petition signed by (10'/2) of the twelve (12) unit owners. • An executed Development Agreement, and; • A Sworn Construction Statement provided by One -Way Remodeling, the contractor. The L'Esperance properties are located on the north side of 51st Avenue North, just west of Winnetka Avenue. There are two buildings included in the Owner's Association (7924 -7934 and 8008 -8020) and each building contains six units for a total of twelve units. The proposed Housing Improvement Area does not include the third building, 7908 -7918 51st Avenue North, located directly to the east of 7924 -7934. The third building is a rental property and has no association ties to L'Esperance. The City Attorney and the Finance Director have come to the conclusion that the third building would not be eligible for inclusion due to its current status as a rental property. Zoning of the subject properties is R -3, Medium Density Residential. The buildings were constructed in 1962 and are noted in the Comprehensive Plan for declining building and site conditions. This is the second public hearing in the process, the intent of which is to consider a Resolution Approving a Housing Improvement Special Assessment Fee for the L'Esperance Housing Improvement Area, Pursuant to Minn. Stat. § §428A.11 — 428A.21. Per the attached City Attorney correspondence, the adoption of the resolution will approve City financing to assist the L'Esperance Owner's Association with its proposed improvements. The petition includes language which waives the individual owner's right to contest the special assessment fee as long as such fee is based upon the total construction amount not to exceed $250,000.00 for the proposed improvements. If the petition is signed by all twelve (12) property owners, the City could then commence making disbursements prior to the February 28, 2002 veto deadline date. If the petition is not unanimously signed, the City Attorney recommends that the City not make any payments for improvements until the veto deadline date. This is the same procedure and development agreement used with the Sandpiper Cove development. If the construction costs are less than $250,000.00, the Development Agreement requires the City to amend the resolution to reflect the actual construction cost. Per Exhibit A of the resolution, the maximum amount they will be required to pay will be $20,833.33, or $1,883.74 annually, per unit, based on the total construction cost including administrative, legal and finance fees not to exceed 25% of the actual construction costs. On October 8, 2001, the Council motion to approve the enabling ordinance creating a Housing Improvement Area for the L'Esperance Owner's Association included the following items: • As -built Survey: An as -built survey of the property is to be completed and submitted to City staff to be used as baseline data in determining site related issues. The L'Esperance Owner's Association is to notify City staff of the schedule to complete the survey. The cost related to the completion of this survey will not be included in the assessment agreement. • Interest Rate: The interest rate was determined by the bond rate as of October 9, 2001, plus one (1) percent. As of 4:30 P.M., October 9, 2001, the bond market interest rate was 5.27 percent, plus one (1) percent equals a total of 6.27 percent fixed interest rate over a period of twenty (20) years. Residential Open Space: According to the New Hope City Code 4.033(4)(x), in residential zoning districts, buildings and structures of any type, parking areas or other features shall not occupy more than sixty -five (65) percent of the lot area resulting in less than thirty -five (35) percent open space. The open space on the site will be evaluated upon the submission of an as -built survey. 'Request for Action Page 3 01 -14 -02 than sixty -five (65) percent of the lot area resulting in less than thirty -five (35) percent open space. The open space on the site will be evaluated upon the submission of an as -built survey. • Water Meters: The water meters will remain as currently in place. Moving the water meters is not a requirement of this Housing Improvement Area project. • Fencing: Once the survey is complete, any fence proposal will be evaluated based upon the regulations stated in the New Hope City Code. • Striping: Due to the fact that the L'Esperance Association bylaws regulate parking, parking lot striping will not be a requirement of this Housing Improvement Area project. • Attic Scuttles: State of Minnesota Building Code requires attic scuttles to be in place, therefore the existing scuttles may remain as constructed in 1962. • Garages: If the Association is in agreement that a garage plan be proposed, the assessment fee resolution may be amended to include the related additional cost. The L'Esperance Owner's Association was requested to notify City staff at the Association's convenience if a garage proposal is in their interest. With the addition of garages, staff would support a recommendation to the Council to consider a thirty (30) year repayment period. Their contractor estimated that the addition of garages would increase the project cost by $157,341, not including survey work. As the Council is aware, the City has in place a variety of funding programs for the rehabilitation of single family homes and apartments, however, it has been more difficult to find funding mechanisms for the rehabilitation of owner - occupied multiple family units, such as townhomes and condominiums. Several years ago the State Legislature passed legislation allowing municipalities to create housing improvement districts. The next steps to establish a Housing Improvement Area are outlined below by the City Attorney. • The City will need to hold this public hearing before it can collect fees or specially assess properties for payment of the improvement costs. This works like the special assessment procedure found in Chap. 429. The property owners within the improvement area have veto power over the assessment fee resolution. In other words, if 35 percent of the property owners object to the fee resolution after its adoption, it will not take effect. The effective date of the fee resolution must be at least 45 days after its adoption by the City Council. During that 45 -day interim period, the property owners, after all receive notice of the fee resolution and its contents within five days of its adoption, can file an objection to the fee resolution with the New Hope City Clerk. If 35 percent of the owners object, the fee resolution is void. If this fee resolution is passed, the forty -five (45) veto period will expire on January 27, 2001. • If the fee resolution is not vetoed, property owners can individually object to the imposition of fees against their property. The objection procedure works similar to the special assessment challenges found in Chap. 429. • A Resolution to approve the Development Agreement will then be considered. Within five (5) days after the adoption of the attached resolution, the City must prepare and mail to all of the unit owners within the improvement area a summary of this resolution including the following information: • A legal description of the property and units affected by the resolution; • The amount of the fee imposed on each housing unit by the resolution; Request for Action Page 4 01 -14 -02 • The right of the unit owners to prepay the fee and the procedure for doing so; • The annual payments imposed against each unit if not prepaid by the unit owners; • The fact that the improvement fee will not exceed the amount shown in the resolution, but it may be reduced, and any reduction will be applied to each unit on a pro -rata basis in the same amount as the original fee is determined; and • The effective date of the resolution and the right of the unit owners to file objections and veto the fee prior to its effective date. The City Attorney will be responsible for the preparation of the summary and will provide it to the City Clerk in sufficient time so that it may be mailed to the appropriate unit owners within five days after the adoption of this resolution. Representatives of the L'Esperance Owner's Association have been requested to be present at the meeting to further discuss this project and to answer any questions. Staff recommends approval of this resolution. FUNDING This Housing Improvement Area proposal would be funded internally with EDA funds and repaid through an assessment agreement with the L'Esperance Owner's Association. ATTACHMENTS • Resolution • Location Map • Public Hearing Notice • Notice to L'Esperance Property Owners Regarding L'Esperance Housing Improvement Fee • City Attorney Correspondence • L'Esperance Homeowners Association Business Plan • L'Esperance Check Register Audit • Petition from Property Owners • Construction Contract, including Sworn Construction Statement • Rehabilitation Specifications • Project Cost Summary • L'Esperance Request Letter • City Correspondence, 10 -09 -01 — Council Action • City Correspondence, 11 -30 -01 — Special Assessment Fee Public Hearing & Development Agreement • City Correspondence, 12 -05 -01 — Recommendation to Continue the 12 -10 -01 Public Hearing • City Correspondence, 12 -11 -01 —Council Action • City Correspondence, 01 -09 -02 — Special Assessment Fee Public Hearing & Development Agreement • Comprehensive Plan Reference • City Attorney Correspondence, 3 -27 -97 — Housing Improvement Area Summary • Minnesota State Statute, 428A.11 — 428A.21 RESOLUTION NO. 02 -19 RESOLUTION APPROVING A HOUSING IMPROVEMENT SPECIAL ASSESSMENT FEE FOR THE L'ESPERANCE HOUSING IMPROVEMENT AREA PURSUANT TO MINN.STAT. § §428A.11 THROUGH 428A.21 BE IT RESOLVED by the City Council of the City of New Hope as follows: Section 1. Recitals 1.01 The City of New Hope ( "City ") is authorized under Minn.Stat § §428A.11 through 428A.21 (the "Housing Improvement 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 By Ordinance No. 01 -12 adopted October 8, 2001 (the "Enabling Ordinance "), the Council established the L'Esperance Housing Improvement Area in order to facilitate certain improvements to property known as the "L'Esperance Townhome Development ", all in accordance with the Housing Improvement Act. 1.03 In accordance with Minn. Stat §428A.12 of the Housing Improvement Act, owners of at least 25% of the housing units within the L'Esperance Housing Improvement Area have filed a petition with the City Clerk requesting a public hearing regarding imposition of a special assessment housing improvement fee for the L'Esperance Housing Improvement Area. 1.04 The Council has, on December 10, 2001, called and conducted a public hearing which was continued to January 14, 2002, duly noticed in accordance with the Housing Improvement Act, regarding adoption of this resolution at which all persons, including owners of property within the L'Esperance Housing Improvement Area, were given an opportunity to be heard. Prior to the date hereof, the L'Esperance Owners Association (the "Association ") has submitted to the City a financial plan prepared by DLD Bookkeeping Solutions, 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 L'Esperance Townhome Development and a long -range plan to conduct and finance capital improvements therein, all in accordance with Minn.Stat §428A.14 of the Housing Improvement Act. 1.06 For the purposes of this Resolution, the terms "L'Esperance Housing Improvement Area" and "Housing Improvements" have the meanings provided in the Enabling Ordinance set out in New Hope Code § §1.813 and 1.814. Section 2. Housing Improvement Fee Imposed 2.01 The City hereby imposes a fee on each housing unit within the L'Esperance 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 equally between the 12 housing units in the L'Esperance Housing Improvement Area as of the date of this Resolution. 2.02 The owner of any housing unit against which the Housing Improvement Fee is imposed may, at any time within 30 days after the effective date of this Resolution, 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 without interest thereon; provided that if only a portion is prepaid the prepayment amount must be at least 25 % of the total fee for that unit. Any Housing Improvement Fee (or a portion thereof) not prepaid in accordance with this Section shall be payable solely in accordance with Section 2.03 hereof. 2.03 If not prepaid in accordance with Section 2.02 hereof, the Housing Improvement Fee (or a portion thereof) shall be payable in equal annual installments extending over a period of 20 years, the first of the installments to be payable in calendar year 2003, which annual payment shall be deemed to include interest on unpaid Housing Improvement Fee from the date of this Resolution at a 6.27% annual interest rate to finance the Housing Improvements in accordance with the Enabling Ordinance and the Housing Improvement Act. The annual payment for each housing unit for which the Housing Improvement Fee has not been prepaid is also stated on the attached Exhibit A to this Resolution in the City's official records. The property owner may at any time prior to November 15 of any year pay to the County Auditor, City Finance Director -or City Assessment Clerk the entire principal amount of the assessment remaining due with interest accrued to December 31 of the year in which said payment is made. 2.04 The Housing Improvement Fee, unless prepaid in accordance with Section 2.02 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 Minn.Stat §428A.15 of the Housing Improvement Act. 2.05 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 2.01 hereto, 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 Fee, the City Clerk shall cause to be prepared a revised copy of Exhibit A hereto, which shall be attached to 0a the Resolution in the City's official records and shall be promptly mailed to all housing unit owners within the L'Esperance Housing Improvement Area. 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 L'Esperance 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% of the housing units within the L'Esperance 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. Section 4. Effective Date 2. This Resolution shall be effective 45 days after adoption hereof. Section 5. Filing of Housing Improvement Fee 5.01 By November 15, 2002, 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. Dated the 14` day of January, 2002. W. Peter Enck, Mayor Attest: Valerie Leone, City Clerk EXHIBIT A TO RESOLUTION 02 -19 Total Fee Per Housing Unit: $18,055.78 Annual fee per Housing Unit: g o " *&.2. J�ii $ 1,634.08 Note: Exhibit A was amended on 9 -23 -02 to the lower amounts. NOTICE TO L'ESPERANCE OWNERS ASSOCIATION PROPERTY OWNERS OF L'ESPERANCE TOWNHOMES REGARDING L'ESPERANCE HOUSING IMPROVEMENT FEE RESOLUTION NO. 02 -19 On Monday, January 14, 2002, the City Council of the City of New Hope adopted Resolution No. 02 -19 imposing a housing improvement fee to finance housing improvements within the L'Esperance Townhome Housing Improvement Area pursuant to Minn. Stat § §428A.11 through 428A.21 (the Housing Improvement Act) and the Housing Improvement Ordinance No. 01 -12 adopted by the City Council at its October 8, 2001 meeting. Owners of more than 25 % of the housing units in the L'Esperance Housing Improvement Fee filed petitions with the City Clerk requesting a public hearing regarding the fee resolution. The public hearing on this Resolution was held on December 10, 2001, and continued to January 14, 2002. The Resolution was adopted after the close of the public hearing on January 14, 2002. Within five (5) days after adoption of the resolution, the City is required under the Housing Improvement Act to mail this Notice to owners of each housing unit in the affected area. Following is a summary of Resolution No. 02 -19 and some important information about your rights as owner of a housing unit in the L'Esperance Housing Improvement Area. This information is in addition to the notice previously mailed to you regarding the summary of Ordinance No. 01 -12. SUMMARY OF RESOLUTION NO. 02 -19 Fee Imposed: The Resolution described the total Housing Improvement Fee for each housing unit, which is based on the total cost of the Improvements divided by the number of housing n \units in the L'Esperance Housing Improvement Area as of the date the fee resolution was approved. The total cost of the Housing Improvements is $250,000.00, including administrative costs. The total fee per unit is $20,833.33. Prepayment. The fee may be prepaid in whole or in part within thirty (30) days after the effective date of the Resolution (see below for details). If only a portion of the fee is prepaid, the prepayment amount must be at least 25 7 of the total fee per unit, or at least $5,208.33. Annual Payment: Housing unit owners who do not prepay the fee will be required to pay the fee (or the balance after any partial prepayment) in equal annual installments over 20 years, beginning in 2003. The fee will include simple interest at an annual rate of 6.27 %. Reduction in Fee. The total fee will not exceed the amount shown for each unit in the Resolution, but it may be reduced. Any reduction will be applied pro rata to each unit, on the same basis that the original fee was determined. If the fee is reduced after an owner has prepaid the fee, the owner will be reimbursed for the amount of the reduction. NOTICE OF RIGHT TO FILE OBJECTIONS Housing unit owners subject to the Housing Improvement Fee have a right to veto the fee resolution after it is adopted, if owners of at least 35% of the housing units within the L'Esperance Housing Improvement Area file an objection with the City Clerk before the effective date of the Resolution. The key dates are as follows: Resolution adopted: January 14, 2002 Effective date of Resolution: February 28, 2002 (Deadline to file veto objections) At the conclusion of the project, you will receive a notice describing the total fee for your unit and details on how to prepare the fee. A copy of Resolution No. 02 -19 is on file with the City Clerk for public inspection. If you have any questions about the L'Esperance Housing Improvement Area, contact the City Community Development Specialist at 763 - 531 -5137. Dated: January 16, 2002 -2- NOTICE OF PUBLIC HEARING TO IMPOSE HOUSING IMPROVEMENT FEE ON HOUSING UNITS WITHIN MESPERANCE HOUSING IMPROVEMENT AREA AS REQUIRED BY MINN. STAT §428A.14 AND NEW HOPE CODE §1.815 Notice is hereby given that the City Council of the City of New Hope, Minnesota, will hold a public hearing on: Monday, December 10, 2001 at 7:00 p.m. in the City Council chambers in City Hall, 4401 Xylon Avenue North in the City of New Hope, regarding adoption of a resolution imposing fees on housing units within the L'Esperance Housing Improvement Area for the L'Esperance Townhome Development under Minn. Stat § §428A.21 (the "Housing Improvement Act "). Within the L'Esperance Housing Improvement Area, the City proposes to facilitate various improvements to the L'Esperance Townhome Development. The improvements will be financed by fees imposed on the owners of the units. Details regarding the hearing, the improvements and the fees are described below: 1. Persons to be Heard: All interested persons will be given an opportunity to be heard at the hearing regarding the proposed housing improvement fee. 2. Proposed Improvements: Repair and replace roofing on all twelve units, including new gutters insulation, installation of 5/8 Fire Code rock on trusses between units, replace 116 window units, 48 basement window units, 36 pair of plastic window shutters, replace all front and back entry doors, install new fascia and soffit system on all units, install custom rod iron railing on steps between all units, install vinyl siding on overhangs over all entryway units, upgrade electrical service to 150 -amp service on all units including grounding outlets, replacing outside GFI's as needed and installing flood lamps with automatic shuttoffs, install new plumbing waste line between buildings and to the street, install 6 foot fence between buildings, and repair or replace fence around dumpster enclosures on existing concrete slab, remove trees in front of building causing problems with sewer system, install interior drain tiles with sump pumps and replace basement fixtures in units as needed, move and bury overhead electrical service to each unit as proposed by Excel Energy, seal coat and /or re -pave parking lot and install smoke alarms in each bedroom in all units. 3. Estimated Cost of Improvements to be Paid in Whole or in Part by Housing Improvement Fee: $250,000.00, including administrative costs and costs of issuing bonds to finance the improvements. 4. Amount to be Charged Against Each Housing Unit: Following are estimates of the fee to be imposed on housing units in the L'Esperance Housing Improvement Area: Total Fee Per Unit: $20,833.33 Estimated Annual Fee Per Unit: $ 1,883.74 The total fee may be less, but will not be more, than the above amount. The fee includes interest at an annual rate of 6.27 %. 5. Owner's Right to Prepay: Housing unit owners may prepay all or a portion of the Total Fee within thirty (30) days after the effective date of the resolution; provided that if only a portion is prepaid, the prepayment amount must be at least 25 % of the Total Fee. In the case of partial prepayment, the unpaid balance will be imposed as an Annual Fee as described in paragraph 6 below. After the thirty (30) day period expires, the unpaid portion of any Housing Improvement Fee and accrued interest shall be prepayable only in the full amount. 6. Number of Years the Fee Will Be in Effect: If owners do not prepay the Total Fee, the Annual Fee including interest at 6.27 % annually will be imposed in equal installments over a 20 -year period. The first installment will be payable in 2003. 7. Compliance with Petition Requirement: Owners of more than 25 % of the housing units that would be subject to the proposed fee in the L'Esperance Housing Improvement Area have filed a petition with the City Clerk requesting a public hearing on the proposed fee, in accordance with Minn. Stat § §428A.12 and 428A.14 of the Housing Improvement Act. 8. The resolution imposing the proposed Housing Improvement Fee will become effective 45 days after its adoption. If 35 % or more of the unit owners within the L'Esperance Housing Improvement Area file a written objection to the fee resolution with the City Clerk within said 45 day period, the resolution imposing the fee will not become effective and the fee will not be imposed. For further information on the proposed housing improvement fee, contact the City Community Development Director at City Hall, (763) 531 -5119. Accommodations such as sign language interpreter or large printed materials are available upon request at least five (5) working days in advance. Please contact the City Clerk to make arrangements [telephone (763) 531 -5117, TDD number (763) 531 - 5109]. -2- Dated the 19` day of November, 2001. Isl Valerie J. Leone Valerie J. Leone, City Clerk (Published in the New Hope - Golden Valley Sun -Post on the day of 9 2001.) P:Utt nwy\ SAS1Docun =U\CNH99.80112-003- Noticeof Public Hndnp.wpd -3- COUNCIL REQUEST FOR ACTION 2�� H 0Qry Originating Department Approved for Agenda Agenda Section Community Development 01 -14 -02 Development & Plannin Item No. By: Ken Doresky, Community Development Specialist By Z 8.1 I RESOLUTION APPROVING DEVELOP ` NT AGREEMENT BETWEEN THE CITY OF NEW HOPE AND UESPERANCE OWNERS ASSOCIATION (IMPROVEMENT PROJECT NO. 695) ACTION REQUESTED Staff requests Council approval of the attached resolution approving a Development Agreement Between the City of New Hope and L'Esperance Owners Association. POLICY /PAST PRACTICE City goal #2 is to pursue the maintenance and redevelopment of commercial and residential properties within the City. The City Council has been addressing the residential portion of this goal through the City's many housing activities, including the creation of Housing Improvement Areas for condominium associations. BACKGROUND For additional background information and materials, please see the 01 -14 -02 Request for Action — Public Hearing Item, relating to Improvement Project 695. Over the past two years, City staff has been working with representatives of L'Esperance Owner's Association on the creation of a Housing Improvement Area to finance needed improvements to the properties. On October 8, 2001, the Council adopted an Ordinance establishing a Housing Improvement Area for the L'Esperance Owners Association, 7924 -8020 51st Avenue North. The forty -five (45) day veto period has expired with no objections received. On December 10, the Council tabled this item due to the fact that the L'Esperance Owners Association did not submit the State mandated materials necessary for Council consideration of this Resolution pursuant to Minn. Stat. § §428A.11 — 428A. In the interim, L'Esperance has submitted the required materials necessary for consideration. City staff has reviewed these materials and determined that they conform to Minnesota State Statutes. The submittals are as follows: • A financial plan prepared by an independent third party that provides for the Association to finance maintenance and operation of the common elements in the L'Esperance Townhome development and a long -range plan to conduct and finance capitol improvements therein, all in accordance with Minn. Stat. §428A.14 of the Housing Improvement Act; MOTION BY SECOND BY TO: G Request for Action Page 2 01 -14 -02 A petition of at least 25% of the housing units within the L'Esperance Housing Improvement Area requesting a public hearing regarding imposition of a special assessment housing improvement fee for the L'Esperance Housing Improvement Area. In order to expedite the release of funds, the City Attorney has included a provision in the petition that waives their rights to object to imposition and amount of the special assessment fee as provided by Minn. Stat. § §428A.13 and 428A.13 and 428A.18. If this petition is signed by all twelve (12) unit owners, the City could commence making disbursements for the construction improvements prior to the forty -five (45) day veto deadline. As of 01 -09 -02 the City has received a petition signed by (10'/2) of the twelve (12) unit owners. • An executed Development Agreement, and; • A Sworn Construction Statement provided by One -Way Remodeling, the contractor. A public hearing to consider the assessment fee Resolution is to be conducted prior to the consideration of this Development Agreement between the City of New Hope and the L'Esperance Owners Association. The City Attorney has prepared the attached Development Agreement between the City of New Hope and L'Esperance Owners Association. Consideration of the Development Agreement is the next step in the process to improve the L'Esperance Townhomes at 7924 -8020 51st Avenue North. On January 14, 2002, the Council is scheduled to conduct a Public Hearing for consideration of a Resolution imposing a housing improvement special assessment fee on housing units in the L'Esperance Townhome Improvement Area in order to finance certain housing improvements in the area. A condition of that Resolution is that the L'Esperance Owners Association be required to enter into a Development Agreement setting forth the terms and responsibilities of the Association relative to this project and the disbursement of funds by the City to finance the improvements. This is the same procedure and development agreement used with the Sandpiper Cove development. Please see the attached development agreement for complete details. Among other items, the development agreement includes the following provisions: • The City is authorized under Minn. Stat. Chapter 428A (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 while or in part by housing improvements special assessment fees imposed against the benefiting properties within the area; • Prior to the adoption of the Fee Resolution by the City Council, the Association submitted to the City a financial plan in accordance with the Act that provides for the Association to finance maintenance and operation of the common elements in the L'Esperance Townhome Development and a long -range plan to conduct and finance capitol improvements therein; • It is the intention of the City to internally finance the cost of the improvements with funds from the City's Temporary Financing Construction Fund in that the proposed total construction costs for the project are too small for a separate bond issue. However, the City intends to group these costs with other City bondable costs and sell bonds to reimburse the Temporary Financing Construction Fund on or before December 31, 2002 as authorized by the act; • If the construction costs are less than $200,000.00, the Development Agreement requires the City to amend the fee Resolution to reflect the actual construction cost. If actual construction costs are less than $200,000.00 the housing improvement special assessment fee will be reduced on a pro rata basis to each unit within the housing improvement area in an amount equal to the amount of the reduction. This may also result in an amount equal to a corresponding reduction to the City's fees for administrative, legal and finance costs since said fees are based on an amount not to exceed 25% of the actual construction costs. Per Exhibit A of the fee Resolution, the maximum amount they will be Request for Action Page 3 01 -14 -02 required to pay will be $20,833.33, or $1,883.74 annually, per unit, based on the total construction cost including administrative, legal and finance fees not to exceed 25% of the actual construction costs; "Administrative, Legal and Finance Cost" means the actual costs billed to the City by private consultants retained by the City for legal, planning and engineering work in connection with the L'Esperance Townhome Improvement Area. These costs shall include all costs incurred by the City to issue bonds to finance the construction of the improvements in the event the City, in its sole discretion, issues bonds for this purpose. Also, these costs shall include a $5,000.00 payment to the City for all time expended by City employees to implement this project and administer this Agreement. However, these private consulting costs and the City's $5,000.00 administrative fee for City employee time shall not exceed 25% of the actual construction costs. The Association acknowledges and agrees the total project amount will be based on a 6.27% interest rate and the actual interest rate on the Bond Sale will not cause a reduction to the fees charged against the individual units referenced in the fee Resolution or any subsequent resolution amending the fee Resolution; provided that the Total Project Amount may be such lesser amount mutually agreed by the Association and the City in the event the cost of the Housing Improvements and the total Fee is reduced in accordance with Section 2.1(g) of this agreement. The City does not make any warranty, either express or implied, as to the design or capacity of the Housing Improvements, as to the suitability for operation of the Housing Improvements or that they will be suitable for the Associations purposes or needs. The Association releases the City from, agrees that the City shall not be liable for, and agrees to hold the City, its Council and its respective officers and employees, harmless against any claim, cause of action, suit or liability of any loss or damage to property or any injury to or death of any person that may be occasioned by any cause whatsoever pertaining to the Housing Improvements or Property or the use thereof; The Association further agrees to indemnify and hold harmless the City its officers and employees, against any and all loses, claims, damages or liability to which the City its officers and employees, may become subject under any law arising out of any act, omission, representation or misrepresentation of the Association in connection with the issuance and sale of the Bonds and the carrying out of the transactions contemplated by this Agreement, and to reimburse the City, its officers and employees, for any out -of- pocket legal and other expenses (including reasonable attorney fees) incurred by the City, its officers and employees in connection with defending any actions relating thereto; • The Association agrees to furnish to the City, by no later than 120 days after the end of each Fiscal Year, beginning with Fiscal Year 2002, until a copy of the annual audited financial statements of the Association for the preceding Fiscal year, including a balance sheet and operating statements, audited by an Independent certified public accountant; • The Association agrees it will keep or cause to be kept the Property and the Housing Improvements in good repair and good operating condition at its own cost; Whenever any Event of Default referred to in Section 7.1 of this Agreement occurs, the non - defaulting party may exercise its right under this Section 7.2 after providing thirty (30) days written notice to the defaulting party of the Event of Default, but only if the Event of Default has not been cured within said thirty days or, if the Event of Default is by its nature incurable within thirty days, the defaulting party does not provide assurances reasonably satisfactory to the non - defaulting party that the Event of Default will be cured as soon as reasonably possible: o Suspend its performance under the Agreement until it receives assurances that the defaulting party will cure its default and continue its performance under the Agreement. o Use any balance in the Special Reserve Fund to cure the event of Default. Request for Action Page 4 01 -14 -02 o Take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant under this agreement. Representatives of the L'Esperance Owner's Association have been requested to be present at the meeting to further discuss this project and to answer any questions. Staff recommends approval of this resolution. FUNDING This Housing Improvement Area proposal would be funded internally with EDA funds and repaid through an assessment agreement with the L'Esperance Owner's Association. ATTACHMENTS • Resolution City Attorney Correspondence Development Agreement City Correspondence, 01 -09 -02 — Special Assessment Fee Public Hearing & Development Agreement RESOLUTION NO. 02 -20 RESOLUTION APPROVING DEVELOPMENT AGREEMENT BETWEEN CITY OF NEW HOPE AND L'ESPERANCE OWNERS ASSOCIATION BE IT RESOLVED by the City Council of the City of New Hope as follows: WHEREAS, the City is authorized under Minn. Stat Chapter 428A (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 by housing improvement special assessment fees imposed against the benefitting properties within the area; and WHEREAS, by Ordinance No. 01 -12 adopted October 8, 2001 (the "Enabling Ordinance "), the Council established a Housing Improvement Area for the L'Esperance Townhome Development in order to facilitate certain improvements to 12 individual townhome units within said development; and WHEREAS, by Resolution No. 02 -19 adopted January 14, 2002 (the "Fee Resolution "), the City Council imposed a housing improvement special assessment fee on Housing Units (as hereinafter defined) in the L'Esperance Townhome Improvement Area in order to finance certain housing improvements in that area; and] WHEREAS, a condition of that Resolution was that the L'Esperance Owners Association be required to enter into a Development Agreement which sets forth the terms and responsibilities of the Association relative to this project and the disbursement of funds by the City to finance the improvements; and WHEREAS, said Development Agreement has been reviewed and is acceptable to both the L'Esperance Owners Association and the New Hope City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of New Hope that the Development Agreement between the City of New Hope and L'Esperance Owners Association is hereby approved. -1- Dated the 14th day of January, 2002. W. Peter Enck, May Attest: y t�, Valerie Leone, City Clerk P:\AUo..y\Cah Rc.,Imian XCNH99.80112- 001 -Rew Appropin8 DA.wpd -2- DEVELOPMENT AGREEMENT Between CITY OF NEW HOPE, MINNESOTA and ` • IP • • Dated as of: 1 1 Ll - 02— , Im . � q TABLE OF CONTENTS ARTICLE I - DEFINITIONS .......... ............................... 2 Section 1.1. Definitions ........ ............................... 2 ARTICLE II - REPRESENTATIONS AND WARRANTIES ................... 6 Section 2.1. Representations by the City ............................ 6 Section 2.2. Representations and Warranties by the Association ............. 8 ARTICLE III - CONSTRUCTION FINANCE; DISBURSEMENT OF PROCEEDS ... 9 Section 3.1. Housing, Improvement Funds ........................... 9 Section 3.2. Conditions Precedent to Initial Disbursement ................ 10 Section 3.3. Further Conditions Precedent to All Disbursements ............ 11 Section 3.4. Requests for Disbursement ............................ 12 Section 3.5. Conditions Precedent to the Final Disbursement .............. 13 Section 3.6. Waiver .......... ............................... 13 Section 3.7. Deposit of Funds by Association ........................ 13 Section 4.1. Construction of Housing Improvements .................... 14 Section 4.2. Construction Plans .. ............................... 14 Section 4.3. Commencement and Completion of Construction ............. 15 Section 4.4. Certification of Completion ........................... 15 ARTICLE V - INSURANCE . ............................... I ....... 16 Section 5.1. Insurance ........ ............................... 16 Section 5.2. Subordination ..... ............................... 18 ARTICLE VI - SPECIAL COVENANTS . ............................... 18 Section 6.1. No Warranty of Condition or Suitability Indemnification ........ 18 Section 6.2. Financial Statements . ............................... 19 Section 6.3. Financial Plan; Annual Reports ......................... 19 Section 6.4. Records and Inspection .............................. 20 Section 6.5. Maintenance of Property ............................. 20 Section 6.6. Covenant to Maintain Net Revenues Available for Debt Service .... 21 Section 6.7. Assignment of Association Assets ....................... 21 w Section 6.8. Association to Maintain Its Existence ...................... 23 Section 6.9. Prohibition Against Assignment of A reg ement ............... 23 Section 6.10. Notice of Fee Upon Transfer of Housing UUnits ............... 23 Section 6.11. Repair and Replacement Policy ......................... 23 Section 6.12.' Increases in Assessments ............. ................. 23 Section 6.13. Intentionally Omitted ............................... 24 Section 6.14. FHA/HUD Insurance ........................... 1 ... 24 Section 6.15. Experienced Property Manager ......................... 24 ARTICLE VII - EVENTS OF DEFAULT ............................... 24 Section 7.1. Events of Default Defined ............................ 24 Section 7.2. Remedies on Default . ............................... 24 Section 7.3. No Remedy Exclusive ............................... 25 Section 7.4. No Additional Waiver Implied by One Waiver ............... 25 ARTICLE VIII - ADDITIONAL PROVISIONS ........................... 25 Section 8.1. Conflict of Interests• City Representatives Not Individually Liable .. 25 Section 8.2. Equal Employment Opportunity .................. .... 26 Section 8.3. Provisions Not Merged With Deed ....................... 26 Section 8.4. Titles of Articles and Sections .......................... 26 Section 8.5. Notices and Demands ............................... 26 Section 8.6. Counterparts ...... ............................... 26 Section 8.7. Recording ........ ............................... 26 Section 8.8. Binding Act ....... ............................... 26 Section 8.9. Amendment ....... ............................... 26 SCHEDULES Schedule A: Property Schedule B: Housing Improvements Schedule C: Intentionally left blank Schedule D: Disbursement Requisition of Association's Authorized Representative V Y DEVELOPMENT AGREEMENT THIS AGREEMENT, made on the /TI day of , 2DOT, by and between the CITY OF NEW HOPE, a Minnesota munici al corporation (the "City ") and MESPERANCE OWNERS ASSOCIATION, a Minnesota nonprofit corporation (the "Association "). WITNESSETH: WHEREAS, the City is authorized under Minn. Stat. Chapter 428A (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 by housing improvements special assessment fees imposed against the benefitting properties within the area; and WHEREAS, by Ordinance No. 01 -12 adopted October 8, 2001 (the "Enabling Ordinance "), the Council established a Housing Improvement Area for the L'Esperance Townhome Development in order to facilitate certain improvements to 12 individual twnhome units within said development, which property is legally described in Schedule A hereto and is hereafter referred to as the ( "Property "); and WHEREAS, by Resolution No. O-r- adopted 1 (the "Fee Resolution ") the City Council imposed a housing improvement special assessment fee on Housing Units (as hereinafter defined) in the L'Esperance Townhome Housing Improvement Area in order to finance certain housing improvements in that area; and WHEREAS, the Act authorizes the City to issue bonds in the amount necessary to defray the expenses to be incurred in making the housing improvements, which bonds are payable primarily from proceeds of the housing improvement special assessment fee imposed under the Fee Resolution and may be further secured by the pledge of the City's full faith, credit and taxing power; and WHEREAS, it is the intention of the City to initially finance the cost of the improvements internally with funds from the City's Temporary Financing Construction Fund in that the proposed total construction costs for the project are too small for a separate bond issue. However, the City intends to group these costs with other City bondable costs and sell bonds to reimburse the Temporary Financing Construction Fund on or before December 31, 2002 as authorized by the Act. WHEREAS, prior to adoption of the Fee Resolution by the City Council, the Association submitted to the City a financial plan in accordance with the Act that provides for the Association 1 F to finance maintenance and operation of the common elements in the L'Esperance Townhome Development and a long -range plan to conduct and finance capital improvements therein; and WHEREAS, the City believes that development of the improvements to the Property pursuant to this Agreement, and fulfillment generally of this Agreement, are in the vital and best interests of the City and health, safety, morals and welfare of its residents, and in accord with the public purposes and provisions of the applicable State and local laws and requirements under which the L'Esperance Townhome Housing Improvement Area has been undertaken. WHEREAS, the Association intends to complete the housing improvements as further described in this Agreement. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: Definitions Section 1.1. Definitions In this Agreement, unless a different meaning clearly appears from the context: "Act" means Minn. Stat. § §428A. I I through 428A.21. "Actual Construction Cost" means that amount necessary to complete all housing improvements as set forth in Schedule B not to exceed $200,000.00. "Administrative, Legal and Finance Cost" means the actual costs billed to the City by private consultants retained by the City for legal, planning and engineering work in connection with the L'Esperance Townhome Improvement Area. These costs shall include all costs incurred by the City to issue bonds to finance the construction of the improvements in the event the City, in its sole discretion, issues bonds for this purpose. Also, these costs shall include a $5,000.00 payment to the City for all time expended by City employees to implement this project and administer this Agreement. However, these private consulting costs and the City's $5,000.00 administrative fee for City employee time shall not exceed 25 % of the actual construction costs. "Annual Debt Service" means the amount of principal and interest payable on the Bonds on February 1 and August 1 of each year. "Association" means L'Esperance Owners Association or its permitted successors and assigns. 2 "Association's Authorized Representative" means the property manager, if any, retained by the Association to manage the Property. "Agreement" means this Agreement, as the same may be from time to time modified, amended or supplemented. "Bonds" means the general obligation bonds or obligations issued by the City in connection with the Housing Improvement Area pursuant to the Act, and any bonds or obligations issued to refund any Bonds. "Bond Fund" means the debt service fund for the Bonds to be established under the Bond Resolution. "Bond Resolution" means the resolution to be approved by the Council awarding the sale and establishing the terms of the Bonds. "City" means the City of New Hope, Minnesota. "Certificate of Completion" means the certification provided to the Association, pursuant to Section 4.4 of this Agreement. "Common Area" means the common area as defined in the Declaration. "Completion Date" means the date of actual completion of the Housing Improvements as certified by the City Building Official pursuant to Section 4.4 hereof. "Construction Contacts" means the contract(s) between the Contractor(s) and the Association to complete the Housing Improvements in accordance with the Construction Plans. "Construction Plans" means the plans, specifications, drawings and related documents on the construction work to be performed by the Association on the Property which shall be as detailed as the City may reasonably request to allow it to ascertain the nature and quality of the proposed construction work. "Contractor" means any person, including subcontractors, who shall be engaged to work on, or to furnish materials and supplies for the Housing Improvements. "Council" means the City Council of the City. "County" means the County of Hennepin, Minnesota. "Declaration" means the Amended and Restated Declaration of Covenants, Conditions, Restrictions and Easements for L'Esperance Owners Association dated June 12, 1981. 0 3 "Draw Request" means the form, substantially in the form of Schedule D attached hereto, which is submitted to the City when a disbursement is requested and which is referred to in Section 3.4 hereof. "Enabling Ordinance" means Ordinance No. 01 -12 adopted by the Council on October 8, 2001, which establishes the Housing Improvement Area. "Event of Default" means an action by the Association listed in Article VII of this Agreement. "Fee" means the housing improvement special assessment fee in connection with the Housing Improvements imposed on all Housing Units in the Housing Improvement Area pursuant to the Fee Resolution. "Fee Resolution" means Resolution No. 01- , adopted by the Council on December 10, 2001, which imposes the Fee and any subsequent resolution amending Resolution No. 01- "Fee Revenues" means all proceeds of the Fee payable to the City. "Financial Advisors" means advisory firm retained by the City. or any successor Independent financial "Financial Plan" means the Financial Plan prepared by the Financial Advisors dated "Fiscal Year" means any year commencing January 1 and ending December 31. "Housing Improvements" means the improvements to the Property as set forth in Schedule B hereof. "Housing Improvement Area" means the real property located within the L'Esperance Townhome Housing Improvement Area described in Schedule A. "Housing Unit" means real property and improvements thereon within the Housing Improvement Area, consisting of one lot on which a dwelling unit is located that is occupied by a person or persons for use as a residence. "Independent" when used with reference to an attorney, engineer, architect, certified public accountant, or other professional person, means a person who (i) is in fact independent, (ii) does not have any material financial interest in the Association or the transaction to which his or her certificate or opinion relates (other than the payment to be received for professional services a IN rendered), and (iii) is not connected with the City or the Association as an officer, director or employee. "Management Consultant" means a person or entity, experienced in the study and management of multi -unit rental housing and having a favorable reputation throughout the United States or the State of Minnesota for skill and experience in such work and, unless otherwise specified herein, retained or employed by the Association and acceptable to the City whose acceptance shall not be unreasonably withheld. "Maturity Date" means the date the Bonds have been fully paid, defeased or redeemed in accordance with their terms. "Mortgage" means any mortgage made by the Association which is secured, in whole or in part, with the Property and which is a permitted encumbrance pursuant to the provisions of Section 6.9 of this Agreement. "Net Revenues Available for Debt Service" means, as of the date of calculation, the balance in the Bond Fund and any other fund into which Fee Revenues have been deposited as of the date of calculation, less the amount of fees, as estimated by the City's Financial Advisor, that are anticipated to be payable by the City in connection with the Bonds on or before the next Payment Date to the City's Financial Advisor, the registrar for the Bonds, and the paying agent for the Bonds. "Payment Date" means any date on which the principal, interest and premium, if any, is due and payable on the Bonds. "Permitted Investments" means investment legally permitted for the City's funds. "Project Fund" means the City's Temporary Financing Construction Fund which will be used to finance construction of the housing improvements and which will be reimbursed by the proceeds from the sale of bonds. "Property" means the real property described in Schedule A of this Agreement. "State" means the State of Minnesota. "Total Construction Cost" means the actual construction cost plus the administrative, legal and finance cost. "Unavoidable Delays" means delays beyond the reasonable control of the party seeking to be excused as a result thereof which are the direct result of strikes, other labor troubles, fire or other casualty to the Housing Improvements or the Property, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of W any federal, state or local governmental unit (other than the City in exercising its rights under this Agreement) which directly result in delays. Unavoidable Delays shall not include delays in the Association's obtaining of permits or governmental approvals necessary to enable construction of the L'Esperance Townhome development by the dates such construction is required under Section 4.3 of this Agreement. ARTICLE II Representations and Warranties Section 2.1. Representations by the City The City makes the following representations as the basis for the undertakings on its part herein contained: a. The City is a municipal corporation under the laws of the State _and has the power to enter into this Agreement and carry out its obligations hereunder. b. The undertaking of the Housing Improvements and the issuance by the Municipality of the Bonds are authorized by the Act. C. On October 8, 2001, after receipt of petitions by owners of at least 25 percent of the Housing Units in the Housing Improvement Area and after due publication and mailing of notice of hearing, the Council held a public hearing on the adoption of the Enabling Ordinance and adopted said Enabling Ordinance. d. On December 10, 2001, after receipt of petitions by owners of at least 25 percent of the Housing Units in the Housing Improvement Area and after due publication and mailing of notice of hearing, the Council held a public hearing on the adoption of the Fee Resolution and adopted the Fee Resolution. e. The periods for veto of both the Enabling Ordinance and the Fee Resolution have expired without objection or habe been waived by owners of at least 35 percent of the Housing Units in the Housing Improvement Areas all in accordance with the Act. f. The City proposes to internally finance the cost of the Housing Improvements through its Temporary Financing Construction Fund. There is currently $250,000.00 in the Temporary Financing Construction Fund earmarked to cover the total construction costs for the housing improvements. This money shall be disbursed to the Association in accordance with Article III of this "Agreement ". However, it is the right of the City, acknowledged by the Association, to issue bonds as provided by the Act to reimburse its Temporary Financing Construction Fund in an amount equal to the total cost of the housing improvements. Said costs shall include the actual construction costs of the improvements and administrative, finance and legal costs equal to no more than 25 % of the actual construction costs, all of which shall not exceed $250,000.00. Included in the 0 administrative, finance and construction costs shall be the building permit fee, all bond issuance costs and all of the City's legal and other private consulting costs. However, the State's surcharge in the building permit fee equal to .0005 % of the valuation of the housing improvements shall not be included in the referenced costs herein and must be paid separately by the Association. g. There will be an Amendment to the Fee Resolution No.01- after final construction costs are determined on the project which shall implement the following changes: i. It is estimated that actual construction costs will not exceed $200,000.00. If actual construction costs are less than $200,000.00 the housing improvement special assessment fee will be reduced on a pro rata basis to each unit within the housing improvement area in an amount equal to the amount of the reduction. This may also result in an amount equal to a corresponding reduction to the City's fees for administrative, legal and finance costs since said fees are based on an amount not to exceed 25 % of the actual construction costs. Further, the City will charge the Association the City's actual cost for administrative, legal and finance costs as these costs are defined in Section 1.1 of this Agreement. The parties hereto acknowledge and agree a charge for City staff time expended on this project shall be billed to the Association in the amount of $5,000.00. This charge for City staff time expended on this project shall be in addition to bills incurred by the City for legal, planning and engineering services to implement and finance this project in determining the City fee for administrative, legal and finance costs. ii. There will be an Amendment to Section 2.02 of Fee Resolution No. O1- extending the time for prepayment of the Housing Improvement Fee until the close of the City's business day on October 31, 2002. iii. There will be an Amendment to Section 2.03 of Fee Resolution No. O1- changing the interest initiation date on the fee to October 1, 2002. iv. The intent of these Amendments to Fee Resolution No. 01- referenced above is to waive the cost of capitalized interest on the Association's use of the City's interim construction financing prior to the sale of bonds authorized by the Act and conform the interest calculation to the formula used by the City in determining the total fee to each unit set out in Exhibit A to Resolution No. 01- . The amendments will also permit prepayment on actual rather than estimated construction costs. Further, section (g) above constitutes a waiver by the City of the building permit fee. These charges are being made in consideration for making the housing improvement special assessment fee subject to a 6.27% interest rate. 7 V. The parties to this Agreement acknowledge and agree the City will finance, on an interim basis, the housing improvements proposed by this Agreement with its Temporary Construction Financing Fund. It is further agreed that the total project amount shall not exceed $250,000.00. The total project amount shall be calculated and disbursed as (i) actual construction costs payable to the Association's contractors for construction of the housing improvements set forth on Schedule B attached hereto, and (ii) administrative, legal and financing costs payable to the City. It is also understood and agreed by the parties that the City's obligation to finance actual construction costs shall not exceed $200,000.00 and that the administrative, legal and financing fees payable to the City by the Association shall equal the City's actual costs for said fees but not to exceed 25 % of the actual construction costs; h. There is no litigation pending or to the best of its knowledge, threatened against the City relating to the Housing Improvements or the use of the Temporary Construction Financing Fund or questioning the powers or authority of the City under the Act, or questioning the corporate existence or boundaries of the City or the title of any of the present officers of the City to their respective offices. L The execution, delivery and performance of this Agreement does not violate any agreement or any court order or judgment in any litigation to which the City is a party or by which it is bound. Section 2.2. Representations and Warranties by the Association The Association represents and warrants that: a. The Association is a nonprofit corporation, duly organized and in good standing under the laws of the State of Minnesota, is not in violation of any provisions of its articles of incorporation, bylaws or the laws of the State, is duly authorized to transact business within the State, has power to enter into this Agreement and has duly authorized the execution, delivery and performance of this Agreement by proper action of its board of directors. b. The Association will construct, operate and maintain the Housing Improvements in accordance with the terms of this Agreement, the Financial Plan, and all local, state and federal laws and regulations (including, but not limited to, environmental, zoning, building code and public health laws and regulations). C. The Housing Improvements constitute a permitted use under applicable zoning laws. d. The Association has received no notice or communication from any local, state or federal official that the activities of the Association or the City in the Housing :? Improvement Area may be or will be in violation of any environmental law or regulation (other than those notices or communications of which the City is aware). The Association is not aware of any facts the existence of which would cause it to be in violation of or give any person a valid claim under any local, state or federal environmental law, regulation or review procedure. e. The Association will construct the Housing Improvements in.accordance with all local, state or federal energy- conservation laws or regulations. f. The Association will obtain, in a timely manner, all required permits, licenses and approvals, and will meet in a timely manner, all requirements of all applicable local, state and federal laws and regulations which must be obtained or met before the Housing Improvements may be lawfully constructed. g. Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any corporate restriction or any evidences of indebtedness' agreement or instrument of whatever nature to which the Association is now a party or by which it is bound, or constitutes a default under any of the foregoing. h. Whenever any Event of Default occurs and if the City shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement of performance or observance of any obligation or agreement on the part of the Association under this Agreement, the Association agrees that it shall, within ten days of written demand by the City pay to the City the reasonable fees of such attorneys and such other expenses so incurred by the City. ARTICLE III Construction Finance; Disbursement of Proceeds Section 3.1. Housing Improvement Funds a. The parties acknowledge and agree the interim construction financing for the actual housing improvements will be paid from the City's Temporary Financing Construction Fund. The parties further acknowledge and agree the City will sell bonds as authorized by the Act to reimburse the City for its interim financing from the Temporary Financing Construction Fund. The bond sale shall be equal to the total project amount as stated in Section 2.1(f) of this Agreement. The fee revenue established by Resolution No. 01- will be used to pay the City's debt service on the bonds. The Association acknowledges and agrees however, the total project amount will be based on a 6.270 interest rate and the actual interest rate on the Bond Sale will not cause a reduction to the I fees charged against the individual units as established by Resolution No. 01- or any subsequent resolution amending Resolution 01- ; provided that the Total Project Amount may be such lesser amount mutually agreed by the Association and the City in the event the cost of the Housing Improvements and the total Fee is reduced in accordance with Section 2.1(g) of this Agreement. b. Payment to the City of its administrative, legal and financing costs shall occur immediately upon the City's receipt of proceeds from the bond issuance in addition to the reimbursement for actual construction costs paid from the Temporary Financing Construction Fund. Moneys in the Temporary Financing Construction Fund shall be subject to withdrawal from time to time only for the purposes of paying the actual construction costs of the Housing Improvement incurred by the Association for such costs. None of the Funds in the Project Fund shall be used by the Association for any purposes other than payment or reimbursement of actual construction costs of the Housing Improvements. Section 3.2. Conditions Precedent to Initial Disbursement The obligation of the City to make the initial disbursement hereunder shall be subject to the condition precedent that the Association shall be in compliance with the conditions contained in Section 3.3 hereof and the further condition precedent that the City shall have received, on or before the date of such initial disbursement hereunder, the following: a. A copy of the Construction Plans, approved by the City Building Official in accordance with Section 4.2 hereof and in detail sufficient to enable the Association to authorize commencement of construction of the Housing Improvements, certified by the Engineer and the Association. b. Copies of the Construction Contract and such subcontracts as may be reasonably requested from time to time by the City. C. A sworn construction statement duly executed by the Association for the Housing Improvements showing estimates of all anticipated Contractors' contract or subcontracts for specific portions of the work on the Housing Improvements and the amounts anticipated to become due each such Contractor, including all costs and expenses of any kind incurred and to be incurred in construction of the Housing Improvements. d. A total project cost statement, incorporating estimates of the construction costs as shown on the sworn construction statement described in paragraph (c) above and setting forth all other costs and expenses of any kind anticipated to be incurred in completion of the Housing Improvements and sworn to by the Association to be a true, complete and accurate account of all costs actually incurred and a reasonably accurate estimate of all costs to be incurred in the future. 10 e. Copies of any licenses and permits necessary and sufficient to construct the Housing Improvements, including all foundation and grading permits and building permits from time to time necessary for such construction. Section 3.3. Further Conditions Precedent to All Disbursements. The obligation of the City to make the initial disbursement hereunder and each subsequent disbursement hereunder shall be subject to the condition precedent that the Association shall be in compliance with all conditions set forth in Section 3.2. hereof, and the further conditions precedent that on the date of such disbursement: a. The City has received a written statement from the Association's Authorized Representative certifying with respect to each payment: (I) that none of the items for which the payment is proposed to be made has formed the basis for any payment theretofore made from the Project Fund; (II) that each item for which the payment is proposed to be made is or was necessary in connection with the Housing Improvements; and (III) that following such proposed payment sufficient moneys will remain on deposit in the Project Fund to provide for payment in full of all remaining costs estimated to be incurred in order to complete the Housing Improvements. In the case of any contract providing for the retention of a portion of the contract price, there shall be paid from the Project Fund only the net amount remaining after deduction of any such portion. b. No Event of Default under this Agreement or event which would constitute such an Event of Default but for the requirement that notice be given or that a period of grace or time elapse, shall have occurred and be continuing. C. No determination shall have been made by the Inspecting Engineer that the amount of undisbursed moneys and any other funds deposited in the Project Fund by the Association or to be deposited under Section 3.7 hereof, are insufficient to pay expenses of any kind which reasonably may be anticipated in connection with the completion of the Housing Improvements; or if such a determination has been made and notice thereof sent to the Association, the Association has deposited the necessary funds with the City in accordance with Section 3.7 hereof. d. The disbursement requirements set forth in Section 3.4 hereof have been satisfied. e. If requested by the City, the City shall be furnished with a statement of the Association and of any Contractor, in form and substance satisfactory to the City setting forth the names, addresses and amount due or to become due as well as the amounts previously paid to every Contractor, subcontractor, person, firm or corporation furnishing materials or performing labor entering into the construction of any part of the Housing Improvement. 11 f. No license or permit necessary for the construction of the Housing Improvements shall have been revoked or the issuance thereof subjected to challenge before any court or other governmental authority having or asserting jurisdiction thereover. Section 3.4. Requests for Disbursement a. Whenever the Association desires a disbursement to be made hereunder, which shall be no more often than monthly, the Association shall submit to the City a Draw Request, duly executed on behalf of the Association, setting forth the information requested therein. Disbursements will be made the Wednesday following the second Monday of each month, provided the Draw Request is received by the 20th day of the , preceding month. Each Draw Request shall be limited to amounts equal to (i) the total of such costs actually incurred and owing (or previously paid by the Association to the date of such Draw Request for work performed on and materials used in the Housing Improvements, plus (ii) the cost of materials and equipment not incorporated in the Property, but delivered to and suitably stored at the Property; less, (iii) (a) a minimum of five percent, and (b) at all times less prior disbursements. Notwithstanding anything herein to the contrary, no disbursements for materials stored at the Property will be authorized unless the Association shall provide adequate security for such storage. Each Draw Request shall constitute a representation and warranty by the Association that all representations and warranties set form in this Agreement are true and correct as of the date of such Draw Request. b. At the time of submission of each Draw Request, the Association shall submit the following to the City: L A written lien waiver from each Contractor for work done and materials supplied by it which were paid for pursuant to the next preceding Draw Request. ii. Such other supporting evidence as may be requested by the City to substantiate all payments which are to be made out of the relevant Draw Request and /or to substantiate all payments then made with respect to the Housing Improvements. C. If on the date a disbursement is desired, the Association has performed all of its agreements and complied with all requirements theretofore to be performed or complied with hereunder, including satisfaction of all applicable conditions precedent contained in Article III hereof, upon approval by the Council the City shall make a disbursement to the Association in the amount of the requested disbursement, or such lesser amount as shall be approved. 12 Section 3.5. Conditions Precedent to the Final Disbursement. The making of the final disbursement by the City shall be subject to the condition precedent that the Association shall be in compliance with all conditions set forth in Sections 3.2 through 3.4 hereof and, further, that the following conditions shall have been satisfied prior to the Completion Date: a. The Housing Improvements have been substantially completed in accordance with the Construction Plans and Article IV hereof, and the City shall have received a certificate of completion from the Association and the Inspecting Engineer, certifying that to the best of their knowledge: i. Work on the Housing Improvements has been completed in accordance with the Construction Plans and all other labor, services, materials and supplies used in such work have been paid for; ii. The completed Housing Improvements conform with all applicable building laws and regulations of the governmental authorities having jurisdiction over the Housing Improvements; and iii. Lien waivers submitted to the City under Section 3.5(c) cover all labor, services, materials and supplies in connection with the Housing Improvements. b. The City shall have received satisfactory evidence that all work requiring inspection by municipal or other governmental authorities having jurisdiction has been duly inspected and approved by such authorities and by the bureau, corporation or office having jurisdiction, and that all requisite certificates of occupancy and other approvals have been issued. C. The City shall have received a lien waiver from each Contractor for all work done and for all materials furnished by it for the Housing Improvements. Section 3.6. Waiver The City may, in its sole discretion, without notice to or consent from any other party, waive any or all conditions for disbursement set forth in this Article. However, the making of any disbursement prior to fulfillment of any condition therefor shall not be construed as a waiver of such condition, and the City shall have the right to require fulfillment of any and all such conditions prior to authorizing any subsequent disbursement. Section 3.7. Deposit of Funds by Association If the City shall at any time in good faith determine that the actual construction costs will exceed $200,000.00 to pay all costs and expenses of any kind which reasonably may be anticipated in connection with the completion of the Housing Improvements and shall thereupon send written notice thereof to the Association specifying the additional amount required to be deposited by the Association to provide sufficient funds to complete the Housing Improvements, the Association agrees that it will, within ten (10) calendar 13 days of receipt of any such notice, deposit with the City the amount of funds specified in the notice and shall authorize the City to disburse such funds prior to disbursement of additional money in the City's Temporary Financing Construction Fund or actual construction costs. ARTICLE IV Construction of Housing. Section 4.1. Construction of Housing; Improvements The Association agrees that it will construct the Housing Improvements on the Property in accordance with the approved Construction Plans and will operate and maintain, preserve and keep the Housing Improvements or cause the Housing Improvements to be maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good repair and condition, all in accordance with Article VI hereof. Section 4.2. Construction Plans a. Before disbursement of any funds from the Temporary Financing Construction Fund, the Association shall submit the Construction Plans to the City Building Official, who shall review such plans on behalf of the City. The Construction Plans shall provide for the construction of the Housing Improvements, and shall be in conformity with this Agreement, and all applicable State and local laws and regulations. The City Building Official will approve the Construction Plans in writing if: (i) the Construction Plans conform to the terms and conditions of this Agreement; (ii) the Construction Plans conform to all applicable federal, state and local laws, ordinances, rules and regulations; (iii) the Construction Plans are adequate to provide for construction of the Housing Improvement; and (iv) no Event of Default has occurred. No approval by the City Building Official shall relieve the Association of the obligation to comply with the terms of this Agreement, applicable federal, state and local laws, ordinances, rules and regulations, or to construct the Housing Improvements in accordance therewith. No approval by the City Building Official shall constitute a waiver of an Event of Default. If approval of the Construction Plans is requested by the Association in writing at the time of submission, such Construction Plans shall be deemed approved unless rejected in writing by the City Building Official, in whole or in part. Such rejections shall set forth in detail the reasons therefore, and shall be made within 30 days after the date of their receipt by the City Building Official. If the City Building Official rejects any Construction Plans in whole or in part, the Association shall submit new or corrected Construction Plans within 30 days after written notification to the Association of the rejection. The provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the City Building Official. The City Building Official's approval shall not be unreasonably withheld. Said approval shall constitute a conclusive determination that the Construction Plans (and the Housing Improvements, constructed in accordance with said plans ) comply 14 to the City Building Official's satisfaction with the provisions of this Agreement relating thereto. b. If the Association desires to make any material change in the Construction Plans after their approval by the City Building Official, the Association shall submit the proposed change to the City Building Official for approval. For the purposes of this Section, a "material change" means any change that: i. Increases or decreases the total cost of the Housing Improvements by more than $10,000.00; or ii. Involves any change in construction materials or design that reasonably requires review for compliance with state and local law and regulations. If the Construction Plans, as modified by the proposed change, conform to the requirements of this Section 4.2 of this Agreement with respect to such previously approved Construction Plans, the City Building Official shall approve the proposed change and notify the Association in writing of its approval. Such change in the Construction Plans shall, in any event, be deemed approved by the City Building Official unless rejected, in whole or in part by written notice by the City Building Official to the Association, setting forth in detail the reasons therefor. Such rejection shall be made within ten (10) days after receipt of the notice of such change. The City Building Official's approval of any such change in the Construction Plans will not be unreasonably withheld. Section 4.3. Commencement and Completion of Construction Subject to Unavoidable Delays, the Association shall complete the construction of the Housing Improvement by September 30, 2002. All work with respect to the Housing Improvements to be constructed or provided by the Association on the Property shall be substantially in conformity with the Construction Plans as submitted by the Association and approved by the City. The Association agrees for itself, its successors and assigns and every successor in interest to the Property, or any part thereof, that the Association, and such successor and assigns, shall promptly begin and diligently prosecute to completion the construction of the Housing Improvements thereon, and that such construction shall in any event be commenced and completed within the period specified in this Section 4.3 of this Agreement. Until construction of the Housing Improvements has been completed, the Association shall make reports, in such detail and at such times as may reasonably be requested by the City as to the actual progress of the Association with respect to such construction. Section 4.4. Certification of Completion a. Promptly after substantial completion of the Housing Improvements in accordance with those provisions of the Agreement relating solely to the obligations of the 15 Association to construct the Housing Improvements (including the dates for beginning and completion thereof), the City will furnish the Association with an appropriate instrument so certifying. Such certification by the City shall be a conclusive determination of satisfaction and termination of the agreements and covenants in the Agreement with respect to the obligations of the Association, and its successors and assigns, to construct the Housing Improvements and the dates for the beginning and completion thereof. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Association under Article VI hereof. b. The certificate provided for in this Section 4.4 of this Agreement shall be in such form as will enable it to be recorded in the proper office for the recordation of deeds and other instruments pertaining to the Property. If the City shall refuse or fail to , provide any certification in accordance with the provisions of this Section 4.4 of this Agreement, the City shall, within thirty (30) days after written request by the Association, provide the Association with a written statement, indicating in adequate detail in what respects the Association has failed to complete the Housing Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the City, for the Association to take or perform in order to obtain such certification. C. The construction of the Housing Improvements shall be deemed to be substantially completed as determined by the City Building Official, who may execute the certificate of completion on behalf of the City. ARTICLE V Insurance Section 5.1. Insurance a. The Association will provide and maintain or cause to be provided and maintained at all times during the process of constructing the Housing Improvements an All Risk Broad Form Basis Insurance Policy and, from time to time during that period, at the request of the City, furnish the City with proof of payment of premiums on policies covering the following: i. At any time that construction is taking place at the Property, Builder's risk insurance, written on the so- called "Builder's Risk - Completed Value Basis," in an amount equal to One hundred percent (100 %) of the insurable value of the Housing Improvements at the date of completion, and with coverage available in nonreporting form on the so- called "all risk" form of policy provided that the Association need not provide such insurance at any time that the Association's existing hazard insurance policy provides coverage equivalent to the 16 builders risk insurance coverage. The interest of the City shall be protected in accordance with a clause in form and content satisfactory to the City; ii. Comprehensive general liability insurance (including Operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) together with an Owner's Contractor's Policy with limits against bodily injury and property damage of not less than $1,000,000.00 for each occurrence and $2,000,000.00 in the aggregate (to accomplish the above required limits, an umbrella excess liability policy may be used); and Workers' compensation insurance provided by all Contractors. b. Upon completion of construction of the Housing Improvements, the Association shall maintain, or cause to be maintained, at its cost and expense, and from time to time at the request of the City, shall furnish proof of the payment of premiums on, insurance as follows: i. Insurance against loss and /or damage to the Property and the Housing Improvements under a policy or policies covering such risks as are ordinarily insured against by similar businesses. ii. Comprehensive general public liability insurance, including personal injury liability (with employee exclusion deleted), against liability for injuries to persons and /or property, in the amount for each occurrence and for each year of $1,000,000.00 and shall be endorsed to show the City as additional insured. iii. Such other insurance, including workers' compensation insurance respecting all employees of the Association, in such amount as is customarily carried by like organizations engaged in like activities of comparable size and liability exposure; provided that the Association may be self - insured with respect to all or any part of its liability for workers' compensation. C. All insurance required in Article V of this Agreement shall be taken out and maintained in responsible insurance companies selected by the Association which are authorized under the laws of the State to assume the risks covered thereby. Upon request, the Association will deposit annually with the City policies evidencing all such insurance, or a certificate or certificates or binders of the respective insurers stating that such insurance is in force and effect. Unless otherwise provided in this Article V of this Agreement each policy shall contain a provision that the insurer shall not cancel nor modify it in such a way as to reduce the coverage provided below the amounts required herein without giving written notice to the Association and the City at least thirty (30) days before the cancellation or modification becomes effective. In lieu of separate policies, the Association may maintain a single policy, blanket or umbrella policies, or a combination 0 17 thereof, having the coverage required herein, in which event the Association shall deposit with the City a certificate or certificates of the respective insurers as to the amount of coverage in force upon the Housing Improvements. d. The Association agrees to notify the City immediately in the case of damage exceeding $100,000.00 in amount to, or destruction of, the Property, the Housing Improvements or any portion thereof resulting from fire or other casualty. In such event the Association will forthwith repair, reconstruct and restore the Housing Improvements to substantially the same or an improved condition or value as it existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction and restorations the Association will apply the Net Proceeds of any insurance relating to such damage received by the Association to the payment or reimbursement of the costs thereof. The Association shall complete the repair, reconstruction and restoration of the Housing Improvements and the Property, whether or not the Net Proceeds of insurance received by the Association for such purposes are sufficient to pay for the same. Any Net Proceeds remaining after completion of such repairs, construction and restoration shall be the property of the Association. e. The Association and the City agree that all of the insurance provisions set forth in this Article V shall terminate upon termination of this Agreement. Section 5.2. Subordination Notwithstanding anything to the contrary contained in this Article V, the rights of the City with respect to the receipt and application of any proceeds of insurance shall, in all respects, be subject and subordinate to the rights of any lender holding a mortgage on a Housing Unit. Special Covenants Section 6.1. No Warranty of Condition or Suitability Indemnification a. The City does not make any warranty, either express or implied, as to the design or capacity of the Housing Improvements, as to the suitability for operation of the Housing Improvements or that they will be suitable for the Associations purposes or needs. The Association releases the City from, agrees that the City shall not be liable for, and agrees to hold the City, its Council and its respective officers and employees, harmless against any claim, cause of action, suit or liability for any loss or damage to property or any injury to or death of any person that may be occasioned by any cause whatsoever pertaining to the Housing Improvements or the Property or the use thereof. b. The Association further agrees to indemnify and hold harmless the City its officers and employees, against any and all losses, claims, damages or liability to which the City its officers and employees, may become subject under any law arising out of any act, omission, representation or misrepresentation of the Association in connection with the issuance and sale of the Bonds and the carrying out of the transactions contemplated by this Agreement, and to reimburse the City, its officers and employees, for any out -of pocket legal and other expenses (including reasonable attorney fees) incurred by the City, its officers and employees, in connection with investigation of any such losses, claims, damages or liabilities or in connection with defending any actions relating thereto. The City agrees, at the request and expense of the Association, to cooperate in the making of any investigation in defense of any such claim and promptly to assert any or all of the rights and privileges and defenses which may be available to the City. The provisions of this Section shall survive the payment and redemption of the Bonds. C. All covenants, stipulations, promises, agreements and obligations of the City contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the City and not of any governing body member, officer, agent, servant or employee of the City in the individual capacity thereof. Section 6.2. Financial Statements The Association agrees to furnish to the City, by no later than 120 days after the end of each Fiscal Year, beginning with Fiscal Year 2002, until a copy of the annual audited financial statements of the Association for the preceding Fiscal Year, including a balance sheet and operating statements, audited by an Independent certified public accountant. Such financial statements shall be accompanied by a separate written statement from such Independent certified public accountant preparing such report that such Independent accountant has obtained no knowledge of any default by the Association in the fulfillment of any of the terms, covenants, provisions or conditions of this Agreement or if such accountant shall have obtained knowledge of any such default the accountant shall disclose in such statement the default and the nature thereof, but such accountant shall not be liable directly or indirectly to any party for failure to obtain knowledge of any default the Association and the City agree and understand that compliance with this Section constitutes compliance with Section 1.807 of the Enabling Ordinance. Section 6.3. Financial Plan: Annual Reports The Association agrees to furnish to the City, by no later than 120 days after the end of each Fiscal Year: a. An updated Financial Plan for the Property prepared by a Management Consultant acceptable to the City, in substantially the form of the Financial Plan dated , and providing plans for capital improvements to the Property and projected Association dues. The updated Financial Plan shall include a schedule for the replacement reserves required to maintain the Common Areas and the other portions of the Property which the Association is obligated to maintain pursuant to the Declaration. The Financial Plan shall also include the proposed increases in assessments payable by Owners 19 of the Housing Units. The City shall have thirty (30) days after receipt to approve or reject the updated Financial Plan, which approval shall not be unreasonably withheld or denied. If the City rejects the updated Financial Plan the City shall give written reasons for the rejection to the Association and the Association shall submit a revised updated Financial Plan to the City which the City shall review and approve or reject within ten (10) days. The above procedure shall be followed until the City approves the updated Financial Plan, provided that if the City reasonably withholds its approval and does not approve a updated Financial Plan within six (6) months the City may engage a consultant to prepare an updated Financial Plan and the Association shall reimburse the City for reasonable costs incurred by the consultant in the preparation of the updated Financial Plan. b. A written report by an Independent engineer describing the physical condition of the Property and the Housing Improvements as of the end of the preceding Fiscal Year, with detail sufficient to enable the City to evaluate compliance with the Financial Plan, the Reserve Plan and the Association's obligations under this Agreement. C. A written report regarding the status of qualifying for FHA /HUD insurance for the Housing Units in accordance with Section 6.14 hereof, the expected date for approval, if known, and any known impediment to obtaining such qualification. d. Evidence of compliance with Section 6.15 including a copy of the written contract or agreement with the property manager and the property manager's resume. Section 6.4. Records and Inspection The Association shall maintain (i) copies of federal, state, municipal and other licenses and permits obtained by the Association relating to the operation of the Property and the Housing Improvements, (ii) financial books and records reflecting the operations of the Property and the Housing Improvements, and (iii) all other documents, instruments, reports and records required by any provision of this Agreement or the Financial Plan or by law relating to the Property or the affairs of the Association. The City shall have the right to inspect all such materials, except any materials made private or confidential by federal or state law or regulation, and the Property at all reasonable times and to make such copies and extracts as it may desire. At the request of the City the Association shall furnish to the City, at the Association's expense, a copy of any such materials which are required by the City in the performance of its duties under this Agreement, the Enabling Ordinance, the Fee Resolution or the Act. Section 6.5. Maintenance of Property The Association agrees it will keep or cause to be kept the Property and the Housing Improvements in good repair and good operating condition at its own cost. The Association shall make all repairs, replacement, and improvements to the Property specified in the Financial Plan, as such plan may be amended in accordance with Section 6.3 hereof. 20 Section 6.6. Covenant to Maintain Net Revenues Available for Debt Service. a. In the event that thirty (30) business days before any Payment Date, the Net Revenues Available For Debt Service are or will be less than 100 percent of the total principal and interest due on the Bonds on such Payment Date, the City will provide written notice to the Association of such fact and the amount of the deficiency. Within 10 days after receipt of such notice of deficiency in Net Revenue Available for Debt Service, the Association shall be liable for and shall pay the City such deficiency. Failure on the part of the City to provide the notice of the deficiency at the time specified herein shall not relieve the Association of its obligation to make the required payment 10 days after the actual notice of the deficiency is provided by the City to the Association. Failure on the part of the Association to make the required payment under this Section within 10 days after receipt of notice thereof shall entitle the City to exercise its remedies under this Agreement, notwithstanding any cure period provided in Article VII hereof. b. In the event that the Association makes any payment to the City under Section 6.6(a) and, 10 business days before any Payment Date thereafter the City determines that Net Revenues available for Debt Service, excluding the amount of all prior payments by the Association under Section 6.6(a), are at least 100 percent of the total principal and interest due on the Bonds on such Payment Date, the City shall promptly return to the Association the amount of the prior payment, without interest thereon provided that the Association has reimbursed the City for any disbursements made out of the Special Reserve Fund pursuant to Section 3.10(a), (b) or (e). Nothing in this Section 6.6(b) shall be construed to relieve the obligation of the Association to make any payment required under Section 6.6(a) hereof. Section 6.7. Assignment of Association Assets a. As security for the Association's obligations under Section 6.6 hereof, the Association does hereby bargain, sell, assign and set other unto the City, all the dues, fees and assessments and other income of any type (the "Dues ") owing to the Association from owners of Housing Units in the Property, together with all cash, investments and securities of any type held by the Association now or hereafter in any operating or reserye accounts (the "Accounts "). The Dues and Accounts are referred to collectively as the "Association Assets ". This assignment shall constitute a perfected, absolute and present assignment, provided that the Association may, so long as no Event of Default with respect to Section 6.6 hereof occurs, collect and retain all Association Assets. The provisions of this Section 6.7 are intended to be a mere license in favor of the Association and a mere deferral of the City's exercise of its perfected, absolute and present rights hereunder, and shall not be construed to be a future assignment thereof. 21 b. The Association hereby covenants and warrants to the City that the Association has not executed any prior assignments of any Association Assets, nor has it performed any act or executed any other instrument that might prevent the Association from operating under any of the terms and conditions of this assignment or that would limit the Association in such operation. C. The Association hereby agrees that, so long as the Association' s- obligations under Section 6.6 hereof remain outstanding the Association will not, without the written consent of the City, make any other assignment, pledge or other disposition of any of the Association Assets, or consent in any assignment of same; and any such acts, if done without the written consent of the City, shall be null and void. d. Upon the occurrence of an Event of Default with respect to Section 6.6 hereof, the City shall have the right to withdraw funds from, and liquidate any securities in any Accounts, and collect the Dues from the owners of Housing Units, and apply the same for deposit in the Bond Fund. This assignment shall be binding upon the occupants of Housing Units in the Property from the date of filing by the City in the office or offices where this Agreement is filed that an Event of Default under Section 6.6 hereof has occurred and is continuing and service of a copy of the notice upon the occupants of the Housing Units. The expenses, including any attorney's fees, reasonably incurred pursuant to the powers herein contained shall be deemed to be immediately due and payable by the Association to the City and shall be secured hereby. The City shall not be liable to account to the Association for any action taken pursuant hereto other then to account for any Association Assets actually received by the City. e. The City shall not be obligated to perform or discharge, nor does it undertake to perform or discharge, any obligation, duty or liability under any agreement between the Association and or owners of Housing Units in the Property, and the Association hereby agrees to defend and indemnify the City and hold it harmless for any and all liability, loss or damage which it may or might incur under or by reason of this assignment and from any and all claims and demands whatsoever which may be asserted against it by reason of any alleged obligation or undertaking on its part to perform or discharge any of the terms or covenants contained in any agreement by and among the Association and the owners of Housing Units in the Property, except such claims and demands that arise out of the negligence or willful misconduct of the City, its officers, employees and agents. Should the City incur any such liability, loss or damage under or by reason of this assignment, or in the defense against any such claims or demands arising out of this assignment, the amount thereof, including costs, expenses and reasonable attorneys' fees, together with interest thereon at the rate of interest on the Bonds, shall be secured hereby, and the Association shall reimburse the City therefore immediately upon demand. 22 Section 6.8. Association to Maintain its Existence. The Association agrees that, so long as the Bonds are outstanding, it will maintain its existence as a nonprofit corporation under the laws of Minnesota; will not dissolve or otherwise dispose of all or substantially all of its assets; and will not consolidate with or merge into another corporation or permit one or more other corporations to consolidate with or merge into it. Section 6.9. Prohibition Atiainst Assignment of Agreement The Association represents and agrees that prior to the Maturity Date the Association has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or any trust or power, or transfer in any other mode or form of or with respect to the Association's rights, interests or obligations under this Agreement or any part thereof, or any contract or agreement to do any of the same, without the prior written approval of the City. Section 6.10. Notice of Fee Upon Transfer of Housing Units The Association agrees that it will use its best efforts to ensure that owners of each Housing Unit upon which a Fee is imposed under the Fee Resolution provide notice of the Fee to prospective buyers or transferees upon any sale or transfer of the Housing Unit. Such efforts by the Association shall include, but are not limited to ensuring that Housing Unit owners include a description of the Fee in a disclosure certificate provided to the purchaser substantially in the form required by Minnesota Statutes Section 51513.4 -107 regardless of whether such statute applies to the Housing Unit. The Association shall amend the Declaration as necessary to require the owners of each Housing Unit to provide such disclosure. Section 6.11. Repair and Replacement Policy On or before , 2002, the Association must adopt a detailed repair and replacement policy for the Common Area and other portions of the Property which the Association is obligated to maintain pursuant to the Declaration. The repair and replacement policy must be consistent with the terms of the Declaration and the Declaration must be amended prior to the date set forth above, if necessary, to conform to the repair and replacement policy. The repair and replacement policy must detail the division for repairs and replacement between the Association and the owners of the Housing Units. Section 6.12. Increases in Assessments The Association agrees to increase the assessments payable pursuant to the Declaration by owners of Housing Units by an amount sufficient to fund current operating expenses, replacement reserves and deferred maintenance costs as permitted by the Declaration until the Assessments are sufficient in accordance with the Financial Plan to pay the Project's current operating expenses' replacement reserves in accordance with the approved Financial Plan and any deferred maintenance not otherwise scheduled to be completed as part of the Housing Improvements. The Association shall give the City written notice the first time that the Association intends to increase the assessments by less than a sufficient amount. Such notice shall be submitted with the updated Financial Plan in accordance with Section 6.3(a) hereof and the City shall approve or reject the proposal to reduce or eliminate the assessments increase in the same manner that the City approves or rejects the updated Financial 23 Plan provided that the City shall not unreasonably withhold approval of the Association's decision regarding assessments. Section 6.13. Intentionally Omitted Section 6.14. FHA /HUD Insurance The Association agrees to use all reasonable efforts to qualify for FHA /HUD mortgage insurance for the Housings Units. In determining whether to take the steps necessary to qualify for such insurance the Association may take into consideration the out -of- pocket costs and administrative costs that would be incurred in qualifying for such insurance. In no event shall the Association be required to incur any environmental testing or remediation costs or to construct any improvements, other than the Housing Improvements, to qualify for FHA /HUD mortgage insurance. Section 6.15. Experienced Property Manager So long as the Bonds are outstanding, the Association agrees to maintain "experienced professional property management" for the Property. For purposes of this subsection "experienced professional property management" shall mean a full time property manager who meets the following criteria: a. Has at least five years of executive property management experiences including experience with multi -unit residential housing. b. Has experience working with boards and membership organizations. C. Has demonstrated knowledge of maintenance and construction issues. d. Has demonstrated knowledge of accounting, financial reporting, budgeting and related issues. e. Does not have an ownership interest in any Housing Unit and is not the spouse, child, parent or sibling of anyone who has an ownership interest. Events of Default Section 7.1. Events of Default Defined The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement (unless the context otherwise provides), any failure by any party to observe or perform any other covenant, condition, obligation or agreement on its part to be observed or performed hereunder. Section 7.2. Remedies on Default Whenever any Event of Default referred to in Section 7.1 of this Agreement occurs, the non - defaulting party may exercise its rights under this Section 7.2 after providing thirty (30) days written notice to the defaulting party of the Event of Default, 0 C but only if the Event of Default has not been cured within said thirty days or, if the Event of Default is by its nature incurable within thirty days, the defaulting party does not provide assurances reasonably satisfactory to the non - defaulting party that the Event of Default will be cured and will be cured as soon as reasonably possible: a. Suspend its performance under the Agreement until it receives assurances that the defaulting party will cure its default and continue its performance under the Agreement. b. Use any balance in the Special Reserve Fund to cure the event of Default. C. Take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant under this Agreement. Section 7.3. No Remedy Exclusive No remedy herein conferred upon or reserved to the City or Association is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the City to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article VII. Section 7.4. No Additional Waiver Implied by One Waiver In the event any agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. it Additional Provisions Section 8.1. Conflict of Interests; City Representatives Not Individually Liable The City and the Association, to the best of their respective knowledge, represent and agree that no member or official of the City shall have any personal interest, direct or indirect in the Agreement, nor shall any such member or official participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership, or association in which be is, directly or indirectly, interested. No member or official of the City shall be personally liable to the Association, or any successor in interest, in the event of any default or 25 breach by the City or for any amount which may become due to the Association or successor or on any obligations under the terms of the Agreement. Section 8.2. Equal Employment Opportunity The Association, for itself and its successors and assigns, agrees that during the construction of the Housing Improvements provided for in the Agreement it will comply with all applicable federal, state and local equal employment and non- discrimination laws and regulations. Section 8.3. Provisions Not Merged With Deed None of the provisions of this Agreement are intended to or shall be merged by reason of any deed transferring any interest in the Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 8.4. Titles of Articles and Sections Any titles of the several parts, Articles, and Sections of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 8.5. Notices and Demands Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally: a. In the case of the Association, is addressed to or delivered personally to the Association at 8010 - 51 Avenue North, New Hope, Minnesota, 55428, Attention: Kathy Koons, L'Esperance Homeowners Association. b. In the case of the City, is addressed to or delivered personally to the City at 4401 Xylon Avenue North, New Hope, Minnesota 55428, Attention: Daniel J. Donahue, City Manager, or at such other address with respect to either such party as that party may, from time to time designate in writing and forward to the other as provided in this Section. Section 8.6. Counterparts This Agreement may be executed in any number of counterparts, each of which shall constitute one and the sane instrument. Section 8.7. Recording The City shall record this Agreement and any amendments thereto with the Hennepin County Recorder or Registrar of Titles. The Association shall pay all costs for recording. Section 8.8. Binding Act This Agreement shall inure to the benefit of and shall be binding upon the City and the Association and their respective successors, heirs and assigns. Section 8.9. Amendment This Agreement may be amended only by written agreement of he parties hereto. 26 IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and the Association has caused this Agreement to be duly executed in its name on or as of the date first above written. VESPERANCE OWNERS ASSOCIATION STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of 20q, by W. Peter Enck and Daniel J. Donahue, the Mayor and City Man6ier, respec vely, of the City of New Hope, Minnesota, a municipal corporation on behalf of the City. Notary Public r W 27 (Notarial Stamp or Seal) 'kY VALERIE J. LEONE 4 NOTARY PUBLIC- MINNESOTA My Commission t, Expires Jan. 31, 2005 Notary Public r W 27 STATE OF MINNESOTA Association, a Minnesota nonprofit corporation on behalf of the corporation. LQ RENEE L. MARTSCHINSKE NOTARY PUBLIC - MINNESOTA My ComiMsslon Expires :Jan. 39, 2005 P:%Atton.yNSASD.u..PmkCNH99.80112-004 DA.-Pd w - 7 Notary Public SCHEDULE A L'Esperance Townhomes Legal Description The L'Esperance Housing Improvement Area is hereby defined as that area of the City legally described as follows: Lots 1 through 6, Block 1, Soukups Addition Lots 1 through 6, Block 2, Soukups Addition Outlot A, Soukups Addition Hennepin County, Minnesota. SCHEDULE B L'Esperance Town House Ass. 7924-8020 51st Ave N. New Hope MN 55428 ONE Town House's 1212101 One Way Remodeling 2125 Brookdale Drive Brooklyn Park MINI 55444 612-991-0689 " REMODELING ONE WAY-THE RIGHT WAY" L'Esperence Homeowners Ass. 7924 —8020 51 " Ave. N New Hope MN 55428 Contract Specifications; Remodel & Upgrade Buildings Phase I Windows: 2125 Brookdale Drive Brooklyn Park, MN 55444 763 -566 -0545 a. Remove old window sashes and haul away b. (Crest Line) Install vinyl tilt sash replacement windows in existing jams a total of 116 windows Low E ( White or Tan ) c. Remove and replace basement windows with Vinyl sliders or awning, total of 48 c. Install plastic window shutters 36 pairs Doors: a. Remove old doors and jams haul away Entry Doors Back/ Front b. Install new per hung steel doors and storms (Reuse Owners Hardware) c. Includes painting doors (Door allowance $260.00 door and storm (Master Craft) Phase 2 Rap existing Fascia and soffit with aluminum, siding: a. Install new fascia and soffit system continuos venting b. Rap exterior trim( Doors and Windows) (Owens Corning) (Gauge .019) c. Install vinyl siding on overhangs over entryways (Ashland Davis or Alside) ( Gauge .042 ) Install Rod Iron Railing a. Install iron railings between on steps total of 5 Feet per two units Fencing a. Install Tan vinyl fence 6' high total 110 Feet between buildings Repair and replace fence around dumpster enclosures on existing concrete slab Phase 3 Insulation & Installation of fire separation walls a. Sheet rock between Units on truss webbing as needed (Testing of existing product maybe needed) b. Blow -in Fiberglass Insulation 12 "R -28 Phase 4 Roofing: a. Remove 2 layers of shingles b. Removal of gutters c. Install 30 year three tab or 25 year architectural shingles d. Install new seem less aluminum gutters and down spouts Repair roof as needed ( Time & Materials at rate of $30.00 per hour) Electric up grades: a. Do services upgrade on units 150 Amp b. Replace outside GFI in front of each unit car plug (12) c. Install new flood lamps with automatic shutoffs In front of units Phase 6 Plumbing Waste Line a. Excavate old waste line Remove bad sections b. Dig up and repair the broken 6" PVC sewer line at building 8012 at location as shown on video cameras. If damage pipe is not at the location as shown hourly charges will apply while we try to locate the damaged area. Back fill and compacting. (Asphalt & Sod Extra) At Building 7928 we will dig up and repair the bad joint outside building as shown on video. As we are excavating at the Video locations and we find other problems of damage to the pipe, We will repair them at an hourly rate of $ 370.00 per hour plus any materials. Tree Removal a. Remove trees from front of buildings, causing sewer problems. (Right in front of buildings) 1) Replace basement fixtures after drain tile, toilet, washer, dryer, sink, laundry tub. ( Allowance of $150.00 Labor and Materials per unit) After drain Tile Installed Phases above maybe completed in different orders depends on weather conditions Customer must pick colors materials before starting, siding, shingles. By Signing Customer Understands what is listed above and agrees With What Is Stated One Way Remodeling g L Esperence Homeowfiers Ass. (Name & Title) (Names & Titles) Item Code Qty Unit Material Labor Total Phase 1 Exterior Exterior Base Dimensions: 90' 0" L x 25'0" W x 20'0" H Division: 01 Plans and Permits ALL REMODELING AND RENOVATION WORK Plans & Permits 01.000. 1.0 EA 0.00 0.00 0.00 Division Total: 0.00 0.00 0.00 Division: 02 Site Preparation Removal Of Upper And Lower Sashes And Hardware / Complete Removal Of Basement Windows Wood window removal, to 15 SF 02.226. 166.0 EA 0.00 4,017.20 4,017.20 Complete Removal Of Doors And Jams Exterior door removal 02.214. 48.0 EA 0.00 2,337.98 2,337.98 Complete Removal Of Shingles And Under Laments Shingle removal over 8/12 pitch 2 layer 02.803. 6000.0 SF 0.00 2,640.00 2,640.00 Complete Removal Gutters And Strap's Metal gutter removal 02.130. 600.0 LF 0.00 1,108.80 1,108.80 Division Total: 0.00 10,103.98 10,103.98 Division: 03 Excavation Remove Small Trees Growing In Front Of Buildings Causing Sewer Problems Clear 24" tree 03.013. 4.0 EA 440.00 704.00 1,144.00 Division Total: 440.00 704.00 1,144.00 Division: 09 Roofing, Flashing INSTALL 30 YEAR THREE TAB OR 25 YEAR ARCHITECTURAL "ALL ROOF REPAIRS IF NEEDED WILL BE CHARGED AT A RATE OF $30.00 AN HOUR PLUS MATERIALS 260 lb. roof shingles, < 6 in 12 pitch 09.012. 6000.0 SF 5,940.00 5,280.00 11,220.00 GUTTERS AND DOWNSPOUTS 6" seamless aluminum gutter 09.743. 600.0 LF 1,584.00 4,230.60 5,814.60 Division Total: 7,524.00 9,510.60 17,034.60 Town House's Page # 1 Item Code Qty Unit Material Labor Total Division: 10 Exterior Trim, Decks CONTINOUS VENTING Aluminum Soffit all Over Hangs 10.103. 1408.0 LF 4,646.40 3,872.00 8,518.40 BRAKE AND FORMED TO MEET SOFFIT AND COVER REVEAL Aluminum fascia 8" 10.106. 680.0 LF 748.00 1,496.00 2,244.00 INSTALL IRON RAILING BETWEEN UNIT ENTREANCE ON STAIRS Custom built and installed iron railing 10.452. 42.0 LF 960.04 460.15 1,420.19 BRAKE AND FORM TO MATCH TRIM AROUND WINDOWS AND DOORS Wrap trim 10.123. 166.0 LF 730.40 6,661.25 7,391.65 Division Total: 7,084.84 12,489.40 19,574.24 Division: 11 Sidings INSTALL SIDING ON GABLE END ON FRONT OVERHANGS 8" smooth vinyl siding 11.405. 800.0 SF 1,073.60 880.00 1,953.60 Division Total: 1,073.60 880.00 1,953.60 Division: 12 Doors and Trim MASTER CRAFT STEEL ENTERANCE REUSE OLD DOOR HARWARE ( WAGON WHEEL GLASS) PAINTING INCLUDED 4 panel 3 -0 x 6 -8 metal entrance door 12.321. 12.0 EA 1,848.00 1,584.00 3,432.00 MASTER CARFT STEEL DOOR REUSE OLD DOOR HARDWARE (9 LIGHT GLASS) PAINTING INCLUDED 4 panel 2 -8 x 6 -8 metal entrance door 12.320. 12.0 EA 1,848.00 1,584.00 3,432.00 LARSON VALUE CORE ( WOOD CORE) WHITE Economy white combination door 12.440. 24.0 EA 3,696.00 1,926.14 5,622.14 Division Total: 7,392.00 5,094.14 12,486.14 Division: 13 Windows and Trim VINYL NEW LOW E SLIDERS (WHITE) Basement Window 5 - 4 x 1- 8 13135. 48.0 EA 7,022.40 3,009.60 10,032.00 Town House's Page # 2 ll Code 4W Unit Material L abor • , CREST LINE VINYL REPLACMENT WINDOWS LOW E TILT SASH ( WHITE) TRUE GRILLS ON WINDOWS IN FRONT OF BUILDINGS Vinyl replacement window < 72 UI 13.S12. 118.0 EA 29,854.00 11,682.00 41,536.00 Division Total: 36,876.40 14,691.60 51,568.00 Division: 14 Plumbing DIG UP AND REPAIR THE BROKEN 6" PVC SEWER LINE AT BUILDING 8012 /106 FEET FROM BUILDINGAND 7928 BAD JOINT OUTSIDE AT LOCATIONS AS SHOWN ON VIDEO. PRICE INCLUDES BACK FILL, COMPACTING, SOD. IF THE DAMAGED PIPE IS NOT AT THOSE LOCATIONS AN HOURLY CHARGE OF $370.00 PLUS MATERIALS *RE- ESTIMATE IN THE SPRING TRY TO GET LOWER PRICE Waste line below ground 14.014. 1.0 EA 2,970.00 3,300.00 6,270.00 REINSTALL TOILET,WASHER,DRYER,SINK,WASH TUB AFTER DRAINTILE COMPLETED. ( DOES NOT INCLUDE NEW FIXTURES OR LOCATIONS) Replace fbdures after drain file comple 14.243. 12.0 EA 264.00 1,320.00 1,584.00 Division Total: 3,234.00 4,620.00 7,854.00 Division: 17 Insulation BLOWN -IN FIBERGLASS INSTALL BAFFLES BETWEEN TRUSS R -28 12" blown in fiberglass 17.217. 5500.0 SF 3,811.50 6,534.00 10,345.50 Division Total: Division: 18 Interior Walls 3,811.50 6,534.00 10,345.50 DRYWALL BETWEEN UNITS FOR FIRE SEPARATION AS NEEDED 5/8" Firecode drywall new work 18.009. 2400.0 SF 1,214.40 2,666.40 3,880.80 Division Total: Division: 22 Specialties 1,214.40 2,666.40 3,880.80 INSTALL ONE PAIR PER WONDOW ON FRONT OF BUILDINGS Plastic 1-6 x 4-2 window shutters 22.114. 36.0 PR 1,679.04 1,26720 2,946.24 INSTALL WHITE VINYL FENCE 6" HIGH BETWEEN BUILDINGS ON PROPERTIE LINE FROM BACK YARD FENCE TO FRONT SET BACK ( MAYBE ELIMINATED DO TO CITY CODES) White Vinyl fence 72 " 22.243. 110.0 LF 2,178.00 1,655.28 3,833.28 Town House's Page # 3 teTT-G�*A( Unit Material Labor Tota' REPAIR FENCING AROUND DUMPSTER, REPLACE DOORS Cedar board on board fencing 22.260. 48.0 LF 739.20 528.00 1,267.20 Division Total: 4,596.24 3,450.48 8,046.72 Division: 25 Clean-up DEMOLITION DUMPSTER FEE'S Debris Removal 25.010, 1.0 EA 649,00 0.00 649.00 Division Total: 649.00 0.00 649.00 Phase Total: 73,895.98 70,744.60 144,640.58 Phase 2 Electric Electric Base Dimensions: 0'0" L x 0'0" W x 0' 0" H Division: 02 Site Preparation REMOVE OLD SERVICE PANELS AND METER SOCKETS Remove 60 amp service 02,431. 12.0 EA 0.00 1,320.00 1,320.00 Division Total: 0.00 1,320.00 1,320.00 Division: 16 Electrical SERVICE INCREASE TO 100 AMP, INSTALL NEW SERVICE PANELS AND METER SOKETS (THERE WILL BE A CHARGE IF OVER HEAD LINES NEED TO CHANGED A MIN. $150.00 PER UNIT) Increase Service To 100 Am 16.000. 12.0 EA 5,940.00 9,240.00 15,180.00 DUPLEX OUTLETS REPLACE CAR PUGINS IN FRONT OF BUILDINGS Weatherproof outlet 16.103. 12.0 EA 330.00 1,003.86 1,333.86 SPOTLIGHT REPLACE AND REROUT FRONT ENTRY WAY HANGING LIGHTS TO WALL MOUNT Outside spotlight, two lamp positions 16.130. 12.0 EA 739.20 739.20 1,478.40 Division Total: 7,009.20 10,983.06 17,992.26 Phase Total: 7,009.20 12,303.06 19,312.26 ��M, Town House's 163,952.84 Page 4 SCHEDULE C (Intentionally Left Blank) U Di l DISBURSEMENT REQUISITION OF ASSOCIATION'S AUTHORIZED REPRESENTATIVE TO: City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 DISBURSEMENT DIRECTION The undersigned Authorized Representative of the L'Esperance Owners Association, a Minnesota nonprofit corporation (the "Association "), hereby authorizes and request you to disburse from the Project Fund held by you pursuant to the Development Agreement between the City of New Hope, Minnesota and L'Esperance Owners Association, dated as of , 2002 (the "Agreement "), the following amount to the following person and for the following proper Housing Improvement cost and purpose: 1. Amount: 2. Payee: 3. Purpose: all as defined and provided in said Agreement. The undersigned further certifies that (i) none of the items for which payment is proposed to be made has formed the basis for any payment theretofore made from the Project Fund, and (ii) each item for which the payment is proposed to be made is or was necessary in connection with the Housing Improvements, and (iii) the amount of funds to remain on deposit in the Project Fund following this disbursement is currently estimated to be sufficient to pay all future costs of the Housing Improvements. Dated: 9 Association's Authorized Representative ® v 4401 Xylon Avenue North New Hope, Minnesota 55428 -4898 www.ci.new- hope.mn.us January 29, 2002 City Hall: 763 - 531 -5100 Police: 763 - 531 -5170 Public Works: 763 - 533 -4823 TDD: 763 - 531 -5109 City Hall Fax: 763 - 531 -5136 Police Fax: 763- 531 -5174 Public Works Fax: 763 - 533 -7650 Ms. Rita Kolodjski, President L'Esperance Owners Association 8014 51 st Avenue North New Hope, MN 55428 Dear Ms. Kolodjski: Enclosed is a fully executed development agreement between the City of New Hope and L'Esperance Owners Association relating to housing improvements. The agreement was approved by the New Hope City Council at its meeting of January 14, 2002. Questions regarding the agreement may be directed to Ken Doresky, Community Development Specialist, at 763 - 531 -5137. Sincerely, Valerie Leone, CMC City Clerk Enc. cc: Ken Doresky, Community Development Specialist Steve Sondrall, City Attorney Family Styled City , For Family Living f J ry rerell"Orall REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development 8-26-02 Consent Item No. By: Ken Doresky, Community Development Specialist By 6.5 MOTION APPROVING FINAL PAYMENT IN THE AMOUNT OF $8,868.49 TO ONE-WAY REMODELING FOR COMPLETION OF HOUSING' IMPROVEMENT AREA REHABILITION PROJECT FOR THE L'ESPERANCE TOWNHOMES LOCATED AT 7924-8020 51ST AVENUE NORTH (IMPROVEMENT PROJECT NO. 695) ACTION REQUESTED Staff recommends approval of a motion authorizing final payment to One-Way Remodeling in the amount of $8,868.49 for completion of Housing Improvement Area rehabilitation project for the L-Esperance Townhomes located at 7924-8020 51 st Avenue North. POLICY/PAST PRACTICE Before final payment is made for Housing Improvement Area contracts, the request is brought before the Council for consideration. BACKGROUND Over the past three years, City staff has been working with representatives of the L'Esperance Owner's Association on the creation of a Housing Improvement Area to finance needed improvements to the properties. On October 8, 2001, the Council adopted an ordinance establishing a Housing Improvement Area for the L'Esperance Townhomes, 7924-8020 51st Avenue North. On January 14, 2002, the Council approved the Housing Improvement Special Assessment Fee resolution for the L'Esperance Housing Improvement Area, Pursuant to Minn. Stat. § §428A.11 — 428A.21. The L'Esperance properties are located on the north side of 51st Avenue North, just west of Winnetka Avenue. There are two buildings included in the Owner's Association (7924-7934 and 8008-8020) and each building contains six units for a total of twelve units. Zoning of the subject properties is R-3, Medium Density Residential. The buildings were constructed in 1962 and are noted in the Comprehensive Plan for declining building and site conditions. One-Way Remodeling was one of four contracts that were maintained by the Association for this project. Draintile, paving and smoke detectors were to be completed under separate contracts managed by the Association. Paving approved in the amount of $7,900 remains to be completed for final assessment purposes. The Association is currently considering the addition of garages, If arages are added by MOTION BY SECOND BY TO: Request for Action Page 2 8 -26 -02 assessment, the paving item would be removed and included with the garages. It is anticipated that the Association will decide on garages shortly. Staff has requested that the Association make a decision on paving or garages in order to certify the assessments to Hennepin County by October so that repayment can begin in 2003. Currently, the City has over $200,000 invested in the project. The existing Housing Improvement Area was approved in January 2002 for a maximum of $250,000 based on requested improvements and administrative costs. If the costs are less than $250,000.00, the Development Agreement requires the City to amend the resolution to reflect the actual construction cost. Per Resolution No. 02 -19, the amount they will be required to pay will be $20,833.33, or $1,883.74 annually for twenty- years, per unit, based on the total construction cost including administrative, legal and finance fees not to exceed 25% of the actual construction costs and simple interest at an annual rate of 6.27 %. With the addition of garages, staff would support a recommendation to the Council to consider a thirty -year repayment period. Their contractor has estimated that the addition of garages would increase the project cost by $135,301.11. The assessments will be recalculated to reflect actual costs. The maximum construction costs approved was $200,000. Per the Development Agreement, the Association will be required to pay $5,000 for City staff time, plus any private consultant fees. Fees above and beyond the $200,000 construction limit are estimated to total $15,000. A public hearing to consider the adjusted assessments will be conducted in October. The townhome rehabilitation contract was the largest of all contracts for the project, therefore for procedural purposes, staff is requesting consideration of this portion of the project for final payment. All lien waivers have been received. The City's General Inspector has inspected the project to ensure completion of all items. The Association has notified staff that the contractor has completed all obligations and requested that final payment be processed. Please see the following payment summary: Project Summary: Project Cost Summary Amount Retaina a (5 %) Paid Pending Completion One-Way Remodeling $ 177,369.88 $ 8,868.49 $168,501.39 $ 8,868.49 100% Drain Tile $ 12,400.00 $ 620.00 $ 12,400.00 $ 0.00 100% Paving $ 7,900.00 $ 0.00 $ 0.00 $ 0.00 0% Smoke Detectors $ 124.99 $ 6.25 $ 124.99 $ 0.00 100% Total $ 197,794.87 $181,026.38 Total Approved $ 200,000.00 Contingency Remaining $ 2,205.13 Staff recommends approval of this motion. FUNDING This Housing Improvement Area proposal is funded internally with EDA funds and repaid through an assessment agreement with the L'Esperance Owner's Association. ATTACHMENTS • Location Map • Final Payment Invoice FzUO ev 8320 I !2 8324 8321 \ /8311 360 `�\ 4989 4956 1 4981 4965 Q 4957 Z• 49 4949 . 34 t\ 4D72 4964 4933 MOOM 16 i /x,07 5322 7E25 S� 7800 / 5306 1 52is 5212 7801 52Da ; H 22 1 15200 ;5207 a e. J ^� Q� 4 49TH " REMODELING ONE WAY!!! THE RIGHT WAY " 2125 Brookdale Drive Brooklyn Park, MN 55444 612- 991 -0689 Final Payment Price Brake own: 1) Electric Up Grade Total Price $19312.26 Lien Release American Electric $17560.00 2) Railings Installed on steps (front) Total Price $1420.00 3) Basement windows back of buildings Total of 24 Removal Of Old Price $ 697.20 Install Windows Price $ 5016.00 Total Price $ 5713.20 Lien Release Menards Lumber $3715.0(t, & One Way Remodeling 4) Exterior Aluminum Soffit Price $8518.40 Aluminum Fascia 8" Price $2244.00 Wrap Window trim aluminum Price $7391.65 Gutters I Down Spout aluminum Price $5814.60 Siding Vinyl Price $1953.60 Shutters elastic Price $2946.24 Lien Releases, Bond Concrete $11291.00 enards $2665. One Way Remodeling Total This Page $77833.95 Total From Pervious Paae $77933.95 ** Mistake made with last invoice was not paid for storm doors. It should of stated Materials where listed in Lien .Release from enards not payment Final Payment Total $79628.44 1) Cost of basement windows including Materials & Labor $5016.00 tranyo na First Payment $67823.00 Second Payment $29918.44 Final Payment $79628.44 Total $177369.88 Replace interior trim around windows NO CHARGE Budget ►_ ► $200000.00 Paid .► It , ► One Way n;►. ► Con ► 4I000 Total Remaining $10230.00 Lien Waiver State of X� County of has a contract to provide L�� 0` with t for an improvement to property located at -- We hereby waive our construe 'on ien in the amount of $ ' For labor or materials provided through date of -a i This waiver is condit' u o he actual payment of the amount shown above. Signature '�'` Title: _� Company Name: ' LC. C-✓ Company Address:h� Date: -- 6 , � , ^,#V 5 ?l COUNCIL REQUEST FOR ACTION 2�� H 0 Originating Department Approved for Agenda Agenda Section Community Development µY~ 9 -23 -02 Development & Plannin Item No. By: Ken Doresky, Community Development Specialist By: , 8.3 RESOLUTION AMENDING RESOLUTION 02 -19 APPROVING A HOUSING IMPROVEMENT SPECIAL ASSESSMENT FEE FOR THE UES'PERANCE HOUSING IMPROVEMENT AREA PURSUANT TO MINN. STAT. § §428A.11 THROUGH 428A.21 (IMPROVEMENT PROJECT NO. 695) ACTION REQUESTED Staff recommends approval of this resolution amending Resolution 02 -19, approving a housing improvement special assessment fee for the L'Esperance Housing Improvement Area pursuant to Minn. Stat. § §428A.11 — 428A.21. The L'Esperance Townhomes are located at 7924 -8020 51st Avenue North. The County must certify the assessments by October so that repayment can begin in 2003. POLICY /PAST PRACTICE City goal #2 is to pursue the maintenance and redevelopment of commercial and residential properties within the City. The City Council has been addressing the residential portion of this goal through the City's many housing activities, including the creation of Housing Improvement Areas for condominium associations. When Housing Improvement Area projects are complete and final costs are determined, the Council adopts the final fee resolution and certifies those fees to the County. At times, where the fees are less than estimated, the actual assessment is reduced. Due to the fact that a public hearing was held when the initial resolution was considered and the fees are to be reduced as a result of this action, a public hearing to consider this amended resolution is not necessary. BACKGROUND Over the past three years, City staff has been working with representatives of the L'Esperance Owner's Association on the creation of a Housing Improvement Area to finance needed improvements to the properties. On October 8, 2001, the Council adopted an ordinance establishing a Housing Improvement Area for the L'Esperance Townhomes, 7924 -8020 51st Avenue North. On January 14, 2002, the Council approved the Housing Improvement Special Assessment Fee resolution for the L'Esperance Housing Improvement Area, Pursuant to Minn. Stat. § §428A.11 — 428A.21. The L'Esperance properties are located on the north side of 51st Avenue North, just west of Winnetka Avenue. There are two buildings included in the Owner's Association (7924 -7934 and 8008 -8020) and each building contains six units for a total of twelve units Zoning of the subject p roperties is R - Medium Densit MOTION BY {,rZ_� �i1./( SECOND BY TO: .Request for Action Page 2 9 -23 -02 Residential. The buildings were constructed in 1962 and were noted in the Comprehensive Plan for declining building and site conditions. One -Way Remodeling completed the majority of the construction activities for this project. Draintile, paving and smoke detectors were to be completed under separate contracts managed by the Association. Paving costs of $7,900 approved as part of the original project has not been completed and $2,205.13 remains in contingency, totaling $10,105.13. To accommodate the uncertain future improvement plans for the site (potential garage addition), the Association has verbally requested that the City include the remaining $10,105.13 in the overall assessment. The City requested that the Association provide a written statement regarding the request, but has not received anything. Staff is recommending that the Council approve this concept and provide a refund if the paving is not completed and payment issued by September 30, 2003. If paving is completed and the costs exceed the available $10,105.13, the Association would be required to bear the additional cost. The Association is currently considering the addition of garages. If garages are added by assessment, the paving item would be removed and included with the garages. The existing Housing Improvement Area was approved in January 2002 for a maximum of $250,000 based on requested improvements and administrative costs. If the costs are less than $250,000, the Development Agreement requires the City to amend the resolution to reflect the actual construction cost. Per Resolution No. 02 -19, the amount they were required to pay will be $20,833.33, or $1,883.74 annually for twenty - years, per unit, based on the total construction cost including administrative, legal and finance fees not to exceed 25% of the actual construction costs and simple interest at an annual rate of 6.27 %. With the addition of garages, staff would support a recommendation to the Council to consider a thirty-year repayment period. Their contractor has estimated that the addition of garages would increase the project cost by $135,301.11. The petition requesting the imposition of a housing improvement special assessment fee for this project was submitted to the City prior to the January 2002 Council approval. The petition included a provision for waiving any objection to the special assessment fee. This provision was included by the City Attorney in order to accommodate the Association's request to begin construction prior to the 45 day waiting period for individual owners to contest the special assessment fee and to insure that 100% of the owners were in agreement with this project. The petition was signed by all twelve property owners. The provision is as follows, "If the housing improvement special assessment fee is set at a maximum amount of $250,000 apportioned equally to each unit with annual assessments and payments commencing with 2003 real estate taxes at a rate of 6.27% per annum over a 20 -year term, the undersigned hereby waive their rights to object to the imposition and amount of the special assessment fee as provided by Minn. Stat. § §428A.13 and 428A.13 and 428A.18 and hereby accept said fee as a special assessment against our individual units. The individual assessment to each unit based on the terms referenced above would be a maximum of $20,833.33 with an annual payment of $1,883.74." The assessments have been recalculated to reflect actual costs. The maximum construction costs approved was $200,000. Per the Development Agreement, the Association was required to pay $5,000 for City staff time, plus any private consultant fees. Building permit fees in the amount of $4,143.12 have been added into the assessment and agreed upon by the Association. Staff time, building permit fees and consultant fees total $16,669.35 or 8.3% of the total construction cost. In comparison, the administrative fee including building permit fees and consultant costs charged to Sandpiper Cove was 15 %. Items in the amended resolution prepared by the City Attorney are as follows: • The City of New Hope City Council at its January 14, 2002 meeting adopted Resolution 02 -19 establishing an annual special assessment fee of $1,883.74 against each of the townhome units within the L'Esperance Townhome Development. • Section 2.05 of Resolution No. 02 -19 provides that the City shall reduce the special assessment fee if the total actual cost of the housing improvement is less than $250,000 including the administrative charge payable to the City. %Request for Action Page 3 9 -23 -02 ® The actual cost of the home improvements including the City's 8.3% administrative charge is $216,699.35, for the L'Esperance Townhome Development. • Based on said actual costs as reference above, the total assessment per housing unit should be $18,055.78 plus $283.02 for capitalized interest for October 1 through December 31, 2002 and the annual fee per housing unit should be $1,634.08 based on a per annum interest rate of 6.27% with a 20 -year term and Exhibit A to Resolution 02 -19 should be amended to indicate these amounts. Please see the following project cost summary: Project Summary: Total Approved $ 250,000.00 Period Fee Per Unit with No Interest Added Oct. 1 — Dec. 31 2002 interest Cost Summary Amount Paid One-Way Remodeling inc. Change Orders $ 177,369.88 $177,369.88 Drain Tile — Standard Water Control $ 12,400.00 $ 12,400.00 Paving $ 7,900.00 $ 0.00 Contingency $ 2,205.13 $ 0.00 Smoke Detectors $ 124.99 $ 124.99 City Fees $ 16,669.35 $ 16,669.35 Total $ 216,669.35 $206,564.22 Repayment Summary: Total Interest Period Fee Per Unit with No Interest Added Oct. 1 — Dec. 31 2002 interest Annual Fee Per Unit Including Interest $216,669.35 6.27% 20 Years $18,055.78 $283.02 $1,634.08 City Fees — Breakdown: Task Amount Staff Time $ 5,000.00 Building Permit Fees $ 4,143.12 Le al Fees $ 6,785.70 Publishing $ 736.45 Postage $ 4.08 Total $ 16,669.35 Staff would like to make the Council aware that members of the Association have contacted City staff with objections to a number of the City fees. Staff is scheduled to meet with the Association on Thursday, September 19 to discuss their concerns further. Although the Association submitted the petition requesting the imposition of the assessment for this project, waived rights to object to the special assessment through the petition, signed the development agreement stating the amount of City fees ($5,000 staff time and consultant fees), signed an agreement that building permit fees would be added to the assessment and were aware that fees would be included and would likely be reduced from the maximum 25% the Association members are objecting to a number of the fees. Staff recommends approval of this resolution. FUNDING This Housing Improvement Area project is funded internally with EDA funds and repaid through an assessment agreement with the L'Esperance Owner's Association. . Request for Action Page 4 9 -23 -02 ATTACHMENTS • Resolution • City Attorney Correspondence, 8 -30 -02 (Two Letters) • Notice of Amendment to Housing Improvement Special Assessment Fee • Location Map • City Correspondence Regarding Final Assessment, 8 -29 -02 • Project Cost Summary • Payment Schedule • Development Agreement Excerpts • City Correspondence Regarding Building Permit Fee, 3 -4 -02 • Building Permit Fee Payment Agreement (Signed by L'Esperance) • Petition requesting Imposition of Housing Improvement Special Assessment Fee • Resolution No. 02 -09, Including Exhibit A • Notice to Association regarding Resolution No. 02 -09 RESOLUTION NO. 02 - 142 RESOLUTION AMENDING RESOLUTION 02 -19 APPROVING A HOUSING IMPROVEMENT SPECIAL ASSESSMENT FEE FOR THE L'ESPERANCE HOUSING IMPROVEMENT AREA PURSUANT TO MINN. STAT § §428A.11 THROUGH 428A.21 BE IT RESOLVED by the City of New Hope, Minnesota as follows: WHEREAS, The New Hope City Council at its January 14, 2002 meeting adopted Resolution No. 02 -19 establishing an annual special assessment fee of $1,883.74 against each townhome unit within the L'Esperance Townhome Development, a copy of which is attached as Exhibit A; and WHEREAS, Section 2.05 of Resolution No. 02 -19 provides that the City shall reduce the special assessment fee if the total actual cost of the housing improvement is less than $250,000.00 including the administrative charge payable to the City; and WHEREAS, the actual cost of the home improvements including the City's 8.3 % administrative charge is $216,669.35 for the L'Esperance Townhome Development; and WHEREAS, based on said actual costs as referenced above, the total assessment per housing unit should be $18,055.78 plus $283.02 for capitalized interest for October 1 through December 31, 2002 and the annual fee per housing unit should be $1,634.08 based on a per annum interest rate of 6.27% with a 20 -year term and Exhibit A to Resolution No. 02 -19 should be amended to indicate these amounts. NOW, THEREFORE, BE IT FURTHER RESOLVED by the City Council of the City of New Hope, that: 1. That Exhibit A to Resolution No. 02 -19 shall be amended to indicate the total fee per housing unit within the L'Esperance Townhome Development shall be $18,055.78 and the annual fee per housing unit shall be $1,634.08. 2. That the City Clerk shall within five (5) days after the adoption of this resolution mail to the owner of each housing unit within the L'Esperance Townhome Development written notice of the reduction of said fee and the owner's right to prepay said fee without interest until November 30, 2002. 3. That the City Clerk shall file by November 15, 2002 a Certified Copy of Resolution No. 02 -19 with a revised Exhibit A with the Hennepin County Recorder of Taxation to be recorded on the property tax lists of the County. 1 1 " .111W 061 a 11 • ► f Total Fee Per Housing Unit: $18,055.78 Annual Fee Per Housing Unit: $ 1,634.08 Adopted by the City Council this 23" day of September, 2002. i 1'e —vto—/ W. Peter Enck, Mayor Attest: D Valerie Leone, City Clerk P: \Attomey \Cnh Resolutions \CNH99.80112.001 -Reno Amend Assess Fee for L'Esperance(D2).doc �-- - va.+i♦r✓uav az i✓V1vLl \L,1LLr I .rl. — L1vR LF-jUUJ i ':. , r, FEE FOP. VESPERANCE HOUSING IM AR EA (IM / Y O PLEA TAKE NOTICE that on Monday, September 23, 2002, the New Hope City Council adopted Resolution No. 02- , "A Resolution Amending Resolution 02 -19 Approving a Housing Improvement Special Assessment Fee for the L'Esperance Housing Improvement Area Pursuant to Minn.. Stat § §428A.11 through 428A.21 ". Said Resolution has resulted in a reduction of the special assessment fee from $20,833.33 per unit to $18,055.78 per unit, The revised annual fee per housing unit is $1,634.08 based on a per annum interest rate of 6.27% with a 20 -year term. The annual fee includes $283.02 for capitalized interest for the period October 1 through December 31, 2002. The reduction is based on final improvement costs of $216,669,35 which include a City administrative fee of 8.3%. The fee may be prepaid without interest until November 30, 2002. If only a portion of the fee is prepaid, the prepayment amount must be at least 25 of the total fee per unit, or at least $4,514.00. If it is not prepaid, the fee will be payable as a special assessment in equal installments over 20 years with the first installment payable in calendar year 2003. In subsequent years, the principal balance re mainin g may be paid to the Finance Director of Assessment Clerk at any time prior to November 15' of any year_ This Notice is provided pursuant to Section 2.05 of Resolution No. 02 -19. Please call Gail Van Krevelen, Special Assessment Clerk, at (763) 531 -5132 if you have any questions regarding prepayment of the fee. Dated: September 24, 2002. Valerie Leone City Clerk 1':\Auomcy \Cnh Reso1udon9\CNH99.80112 -=- Notice of Reno Amend Assess Pee for L'Espersace(02).doc 4+ U) 0 I to E E 2 E a. G 0 0 L) N LL� 0-a.0- CO 72 m - 2 m - 2 m M m - 2 m m M C) C) � 't 0) r— C) C) C) 0 0 C� 1 : 1 C� c C) 06 06 4 1 4 C\l C) r 04 CN M 0 00 It C� CO — cc � E r ci m 0) 4) m O C O 6 6 69- � 6 ,- (D w 0 U) a. 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However, the State's surcharge in the building permit fee equal to .0005 % of the valuation of the housing improvements shall not be included in the referenced costs herein and must be paid separately by the Association. g. There will be an Amendment to the Fee Resolution No. 01- after final construction costs are determined on the project which shall implement the following �i L It is estimated that actual construction costs will not exceed $200,000.00. If actual construction costs are less than $200,000.00 the housing improvement special assessment fee will be reduced on a pro rata basis to each unit within the housing improvement area in an amount equal to the amount of the reduction. This may also result in an amount equal to a corresponding reduction to the City's fees for administrative, legal and finance costs since said fees are based on an amount not to exceed 25 % of the actual construction costs. Further, the City will charg the Association the City's actual cost for a dministrative l al r A. A t Th and finance this iii. There will be an Amendment to Section 2.03 of Fee Resolution No. 01- changing the interest initiation date on the fee to October 1, 2002. iv. The intent of these Amendments to Fee Resolution No. 01- referenced above is to waive the cost of capitalized interest on the Association's use of the City's interim construction financing prior to the sale of bonds authorized by the Act and conform the interest calculation to the formula used by the City in determining the total fee.to each unit set out in Exhibit A to Resolution No. 01- . The amendments will also permit prepayment on actual rather than estimated construction costs. Further, section (g) above constitutes a waiver by the City of the building permit fee. These charges are being made in consideration for making the housing improvement special assessment fee subject to a 6.27% interest rate. 7 ii. There will be an Amendment to Section 2.02 of Fee Resolution No. 01- extending the time for prepayment of the Housing Improvement Fee until the close of the City's business day on October 31, 2002. nance maintenance and operation of the common elements in the L'Esperance Townhome elopment and a long -range plan to conduct and finance capital improvements therein; and WHEREAS, the City believes that development of the improvements to the Property cant to this Agreement, and fulfillment generally of this Agreement, are in the vital and best --sts - of the City and health, safety, morals and welfare of its residents, and in accord with the c purposes and provisions of the applicable State and local laws and requirements under a the L'Esperance Townhome Housing Improvement Area has been undertaken. VREAS, the Association intends to complete the housing improvements as further described in this Agreement. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: Definitions Section 1.1. Definitions In this Agreement, unless a different meaning clearly appears from the context: "Act" means Minn. Stat. § §428A.II through 428A.21. "Actual Construction Cost" means that amount necessary to complete all housing improvements as set forth in Schedule B not to exceed $200,000.00. "Administrative, Legal and Finance Cost" means the actual costs billed to the City by private consultants retained by the City for legal, planning and engineering work in connection with the L'Esperance Townhome Improvement Area. These costs shall include all costs incurred by the City to issue bonds to finance the construction of the improvements in the event the City, in its sole discretion, issues bonds for this purpose. Also, these costs shall include a $5,000.00 payment to the City for all time expended by City employees to implement this project and administer this Agreement. However, these private consulting costs and the City's $5,000.00 administrative fee for City employee time shall not exceed 25 % of the actual construction costs. "Annual Debt Service" means the amount of principal and interest payable on the Bonds on February 1 and August 1 of each year. "Association" means L'Esperance Owners Association or its permitted successors and assigns. N RESOLUTION NO. 02 -19 RESOLUTION APPROVING A HOUSING IMPROVEMENT SPECIAL ASSESSMENT FEE FOR THE L'ESPERANCE HOUSING IMPROVEMENT AREA PURSUANT TO MINN.STAT. § §428A.11 THROUGH 428A.21 BE IT RESOLVED by the City Council of the City of New Hope as follows: Section 1. Recitals 1.01 The City of New Hope ( "City ") is authorized under Minn.Stat § §428A. I I through 428A.21 (the "Housing Improvement 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 By Ordinance No. 01 -12 adopted October 8, 2001 (the "Enabling Ordinance "), the Council established the L'Esperance Housing Improvement Area in order to facilitate certain improvements to property known as the "L'Esperance Townhome Development ", all in accordance with the Housing Improvement Act. 1.03 In accordance with Minn. Stat &428A.12 of the Housing Improvement Act, owners of at least 25 % of the housing units within the L'Esperance Housing Improvement Area have filed a petition with the City Clerk requesting a public hearing regarding imposition of a special assessment housing improvement fee for the L'Esperance Housing Improvement Area. 1.04 The Council has, on December 10, 2001, called and conducted a public hearing which was continued to January 14, 2002, duly noticed in accordance with the Housing Improvement Act, regarding adoption of this resolution at which all persons, including owners of property within the L'Esperance Housing Improvement Area, were given an opportunity to be heard. Prior to the date hereof, the L'Esperance Owners Association (the "Association ") has submitted to the City a financial plan prepared by DLD Bookkeeping Solutions, 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 L'Esperance Townhome Development and a long -range plan to conduct and finance capital improvements therein, all in accordance with Minn.Stat §428A.14 of the Housing Improvement Act. 1.06 For the purposes of this Resolution, the terms "L'Esperance Housing Improvement Area" and "Housing Improvements" have the meanings provided in the Enabling Ordinance set out in New Hope Code §§1.813 and 1.814. Section 2. Housing_ Improvement Fee Imposed 2.01 The City hereby imposes a fee on each housing unit within the L'Esperance 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 equally between the 12 housing units in the L'Esperance Housing Improvement Area as of the date of this Resolution. 2.02 The owner of any housing unit against which the Housing Improvement Fee is imposed may, at any time within 30 days after the effective date of this Resolution, 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 without interest thereon; provided that if only a portion is prepaid the prepayment amount must be at least 25 % of the total fee for that unit. Any Housing Improvement Fee (or a portion thereof) not prepaid in accordance with this Section shall be payable solely in accordance with Section 2.03 hereof. 2.03 If not prepaid in accordance with Section 2.02 hereof, the Housing Improvement Fee (or a portion thereof) shall be payable in equal annual installments extending over a period of 20 years, the first of the installments to be payable in calendar year 2003, which annual payment shall be deemed to include interest on unpaid Housing Improvement Fee from the date of this Resolution at a 6.27 % annual interest rate to finance the Housing Improvements in accordance with the Enabling Ordinance and the Housing Improvement Act. The annual payment for each housing unit for which the Housing Improvement Fee has not been prepaid is also stated on the attached Exhibit A to this Resolution in the City's official records. The property owner may at any time prior to November 15 of any year pay to the County Auditor, City Finance Director -or City Assessment Clerk the entire principal amount of the assessment remaining due with interest accrued to December 31 of the year in which said payment is made. 2.04 The Housing Improvement Fee, unless prepaid in accordance with Section 2.02 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 Minn.Stat §428A.15 of the Housing Improvement Act. 2.05 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 2.01 hereto, 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 Fee, the City Clerk shall cause to be prepared a revised copy of Exhibit A hereto, which shall be attached to 2 the Resolution in the City's official records and shall be promptly mailed to all housing unit owners within the L'Esperance Housing Improvement Area. 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 L'Esperance 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% of the housing units within the L'Esperance 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. Section 4. Effective Date 1 This Resolution shall be effective 45 days after adoption hereof. Section 5. Filing of Housing Improvement Fee 5.01 By November 15, 2002, 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. Dated the 14` day of January, 2002. v' -A W. Peter Enck, ayor W Attest: rj V alerie Leone, City Clerk "..- .,.- ..- I"-.„....- ,�. ---"., EXHIBIT A TO RESOLUTION 02 -19 Total Fee Per Housing Unit: $20,833.33 Annual fee per Housing Unit: $ 1,883.74 4 NOTICE TO L'ESPERANCE OWNERS ASSOCIATION PROPERTY OWNERS OF L'ESPERANCE TOWNHOMES REGARDING L'ESPERANCE HOUSING IMPROVEMENT FEE RESOLUTION NO. 02 -19 On Monday, January 14, 2002, the City Council of the City of New Hope adopted Resolution No. 02 -19 imposing a housing improvement fee to finance housing improvements within the L'Esperance Townhome Housing Improvement Area pursuant to Minn. Stat § §428A.11 through 428A.21 (the Housing Improvement Act) and the Housing Improvement Ordinance No. 01 -12 adopted by the City Council at its October 8, 2001 meeting. Owners of more than 25 % of the housing units in the L'Esperance Housing Improvement Fee filed petitions with the City Clerk requesting a public hearing regarding the fee resolution. The public hearing on this Resolution was held on December 10, 2001, and continued to January 14, 2002. The Resolution was adopted after the close of the public hearing on January 14, 2002. Within five (5) days after adoption of the resolution, the City is required under the Housing Improvement Act to mail this Notice to owners of each housing unit in the affected area. Following is a summary of Resolution No. 02 -19 and some important information about your rights as owner of a housing unit in the L'Esperance Housing Improvement Area. This information is in addition to the notice previously mailed to you regarding the summary of Ordinance No. 01 -12. SUMMARY OF RESOLUTION NO. 02 -19 Fee Imposed: The Resolution described the total Housing Improvement Fee for each housing unit, which is based on the total cost of the Improvements divided by the number of housing n \units in the L'Esperance Housing Improvement Area as of the date the fee resolution was approved. The total cost of the Housing Improvements is $250,000.00, including administrative costs. The total fee per unit is $20,833.33. Prepayment. The fee may be prepaid in whole or in part within thirty (30) days after the effective date of the Resolution (see below for details). If only a portion of the fee is prepaid, the prepayment amount must be at least 25 of the total fee per unit, or at least $5,208.33. Annual Payment: Housing unit owners who do not prepay the fee will be required to pay the fee (or the balance after any partial prepayment) in equal annual installments over 20 years, beginning in 2003. The fee will include simple interest at an annual rate of 6.27 %. Reduction in Fee. The total fee will not exceed the amount shown for each unit in the Resolution, but it may be reduced. Any reduction will be applied pro rata to each unit, on the same basis that the original fee was determined. If the fee is reduced after an owner has prepaid the fee, the owner will be reimbursed for the amount of the reduction. NOTICE OF RIGHT TO FILE OBJECTIONS Housing unit owners subject to the Housing Improvement Fee have a right to veto the fee resolution after it is adopted, if owners of at least 35% of the housing units within the L'Esperance Housing Improvement Area file an objection with the City Clerk before the effective date of the Resolution. The key dates are as follows: Resolution adopted: January 14, 2002 Effective date of Resolution: February 28, 2002 (Deadline to file veto objections) At the conclusion of the project, you will receive a notice describing the total fee for your unit and details on how to prepare the fee. I• , A copy of Resolution No. 02 -19 is on file with the City Clerk for public inspection. If you have any questions about the L'Esperance Housing Improvement Area, contact the City Community Development Specialist at 763 -531 -5137. Dated: January 16, 2002 -2- I / 4401 Xylon Avenue North New Hope, Minnesota 55428-4898 www.ci.new-hope.mn.us STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss CITY OF NEW HOPE ) City Hall: 763-531-5100 Police: 763-531-5170 Public Works: 763-533-4823 TDD: 763-531-5109 City Hall Fax: 763-531-5136 Police Fax: 763-531-5174 Public Works Fax: 763-533-7650 1, the undersigned, being the duly qualified City Clerk of the City of New Hope, Minnesota, hereby attest and certify that: 1. As such officer, I have the legal custody of the original record from which the attached resolutions were transcribed. 2. 1 have carefully compared the attached resolutions with the original records of the meeting at which the resolutions were acted upon. 3. 1 find the attached resolutions to be true, correct and complete copies of the originals: RESOLUTION NOS. 2002-19 AND 2002-142 RESQLUTION NO 200 2---3,q: RESOLUTION APPROVING A HOUSING IMPROVEMENT SPECIAL ASSESSMENT FEE FOR THE L'ESPERANCE HOUSING IMPROVEMENT AREA PURSUANT TO MINK STAT. § §428A.11 THROUGH 428A.21. RESOLUTION NO 2002-142: RESOLUTION AMENDING RESOLUTION 02-19 APPROVING A HOUSING IMPROVEMENT SPECIAL ASSESSMENT FEE FOR THE L'ESPERANCE HOUSING IMPROVEMENT AREA PURSUANT TO MINN STAT. §§428A.11 THROUGH 428A.21. 4. 1 further certify that the affirmative vote on said resolution was 4 ayes, 0 nayes, and 1 absent/abstention. 5. Said meeting was duly held, pursuant to call and notice thereof, as required by law, and a quorum was present. WITNESS my hand officially as such Clerk and the seal of said City, this 26 day of September, 2002. (Seal) Valerie Leone, city Clerk Family Styled City co For Family Living RESOLUTION NO. 02 - 142 RESOLUTION AMENDING RESOLUTION 02 -19 APPROVING A HOUSING IMPROVEMENT SPECIAL ASSESSMENT FEE FOR THE L'ESPERANCE HOUSING IMPROVEMENT AREA PURSUANT TO MINN. STAT § §428A.11 THROUGH 428A.21 BE IT RESOLVED by the City of New Hope, Minnesota as follows: WHEREAS, The New Hope City Council at its January 14, 2002 meeting adopted Resolution No. 02 -19 establishing an annual special assessment fee of $1,883.74 against each townhome unit within the L'Esperance Townhome Development, a copy of which is attached as Exhibit A; and WHEREAS, Section 2.05 of Resolution No. 02 -19 provides that the City shall reduce the special assessment fee if the total actual cost of the housing improvement is less than $250,000.00 including the administrative charge payable to the City; and WHEREAS, the actual cost of the home improvements including the City's 8.3% administrative charge is $216,669.35 for the L'Esperance Townhome Development; and WHEREAS, based on said actual costs as referenced above, the total assessment per housing unit should be $18,055.78 plus $283.02 for capitalized interest for October 1 through December 31, 2002 and the annual fee per housing unit should be $1,634.08 based on a per annum interest rate of 6.27% with a 20 -year term and Exhibit A to Resolution No. 02 -19 should be amended to indicate these amounts. NOW, THEREFORE, BE IT FURTHER RESOLVED by the City Council of the City of New Hope, that: 1. That Exhibit A to Resolution No. 02 -19 shall be amended to indicate the total fee per housing unit within the L'Esperance Townhome Development shall be $18,055.78 and the annual fee per housing unit shall be $1,634.08. 2. That the City Clerk shall within five (5) days after the adoption of this resolution mail to the owner of each housing unit within the L'Esperance Townhome Development written notice of the reduction of said fee and the owner's right to prepay said fee without interest until November 30, 2002. 3. That the City Clerk shall file by November 15, 2002 a Certified Copy of Resolution No. 02 -19 with a revised Exhibit A with the Hennepin County Recorder of Taxation to be recorded on the property tax lists of the County. 1 I I - MMIMM l R II v i I M Total Fee Per Housing Unit: $18,055.78 Annual Fee Per Housing Unit: $ 1,634.08 Adopted by the City Council this 23r day of September, 2002. W. Peter Enck, Mayor Attest: .D Valerie Leone, City Clerk P:\Attomey\Cnh Resolutions \CNH99.80112. 001 -Reno Amend Assess Fee for L'Esperance(W).doc RESOLUTION NO. 02 -19 RESOLUTION APPROVING A HOUSING IMPROVEMENT SPECIAL ASSESSMENT FEE FOR THE L'ESPERANCE HOUSING IMPROVEMENT AREA PURSUANT TO MINN.STAT. § §428A.11 THROUGH 428A.21 BE IT RESOLVED by the City Council of the City of New Hope as follows: Section 1. Recitals 1.01 The City of New Hope ( "City ") is authorized under Minn.Stat § §428A. I I through 428A.21 (the "Housing Improvement 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 By Ordinance No. 01 -12 adopted October 8, 2001 (the "Enabling Ordinance "), the Council established the L'Esperance Housing Improvement Area in order to facilitate certain improvements to property known as the "L'Esperance Townhome Development ", all in accordance with the Housing Improvement Act. 1.03 In accordance with Minn. Stat §428A.12 of the Housing Improvement Act, owners of at least 25 % of the housing units within the L'Esperance Housing Improvement Area have filed a petition with the City Clerk requesting a public hearing regarding imposition of a special assessment housing improvement fee for the L'Esperance Housing Improvement Area. 1.04 The Council has, on December 10, 2001, called and conducted a public hearing which was continued to January 14, 2002, duly noticed in accordance with the Housing Improvement Act, regarding adoption of this resolution at which all persons, including owners of property within the L'Esperance Housing Improvement Area, were given an opportunity to be heard. Prior to the date hereof, the L'Esperance Owners Association (the "Association ") has submitted to the City a financial plan prepared by DLD Bookkeeping Solutions, 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 L'Esperance Townhome Development and a long -range plan to conduct and finance capital improvements therein, all in accordance with Minn.Stat §428A.14 of the Housing Improvement Act. 1.06 For the purposes of this Resolution, the terms "L'Esperance Housing Improvement Area" and "Housing Improvements" have the meanings provided in the Enabling Ordinance set out in New Hope Code § §1.813 and 1.814. Section 2. Housing Improvement Fee Imposed 2.01 The City hereby imposes a fee on each housing unit within the L'Esperance 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 equally between the 12 housing units in the L'Esperance Housing Improvement Area as of the date of this Resolution. 2.02 The owner of any housing unit against which the Housing Improvement Fee is imposed may, at any time within 30 days after the effective date of this Resolution, 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 without interest thereon; provided that if only a portion is prepaid the prepayment amount must be at least 25 % of the total fee for that unit. Any Housing Improvement Fee (or a portion thereof) not prepaid in accordance with this Section shall be payable solely in accordance with Section 2.03 hereof. 2.03 If not prepaid in accordance with Section 2.02 hereof, the Housing Improvement Fee (or a portion thereof) shall be payable in equal annual installments extending over a period of 20 years, the first of the installments to be payable in calendar year 2003, which annual payment shall be deemed to include interest on unpaid Housing Improvement Fee from the date of this Resolution at a 6.27% annual interest rate to finance the Housing Improvements in accordance with the Enabling Ordinance and the Housing Improvement Act. The annual payment for each housing unit for which the Housing Improvement Fee has not been prepaid is also stated on the attached Exhibit A to this Resolution in the City's official records. The property owner may at any time prior to November 15 of any year pay to the County Auditor, City Finance Director-or City Assessment Clerk the entire principal amount of the assessment remaining due with interest accrued to December 31 of the year in which said payment is made. 2.04 The Housing Improvement Fee, unless prepaid in accordance with Section 2.02 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 Minn.Stat W8A.15 of the Housing Improvement Act. 2.05 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 2.01 hereto, 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 Fee, the City Clerk shall cause to be prepared a revised copy of Exhibit A hereto, which shall be attached to 2 the Resolution in the City's official.. records and shall be promptly mailed to all housing unit owners within the L'Esperance Housing Improvement Area. 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 L'Esperance 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 % of the housing units within the L'Esperance 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. Section 4. Effective Date 2. This Resolution shall be effective 45 days after adoption hereof. Section 5. Filing of Housing. Improvement Fee 5.01 By November 15, 2002, 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. Dated the 14` day of January, 2002. W. Peter Enck, Mayor Attest: alerie Leone, City Clerk EXHIBIT A TO RESOLUTION 02 -19 Total Fee Per Housing Unit: Annual fee per Housing Unit: $18,055.78 1,883.44 — $ 1,634-08 Note: Exhibit A was amended on 9 -23 -02 to the lower amounts. ILI NOTICE TO L'ESPERANCE OWNERS ASSOCIATION PROPERTY OWNERS OF L'ESPERANCE TOWNHOMES REGARDING L'ESPERANCE HOUSING IMPROVEMENT FEE RESOLUTION NO. 02 -19 On Monday, January 14, 2002, the City Council of the City of New Hope adopted Resolution No. 02 -19 imposing a housing improvement fee to finance housing improvements within the L'Esperance Townhome Housing Improvement Area pursuant to Minn. Stat § §428A.11 through 428A.21 (the Housing Improvement Act) and the Housing Improvement Ordinance No. 01 -12 adopted by the City Council at its October 8, 2001 meeting. Owners of more than 25 % of the housing units in the L'Esperance Housing Improvement Fee filed petitions with the City Clerk requesting a public hearing regarding the fee resolution. The public hearing on this Resolution was held on December 10, 2001, and continued to January 14, 2002. The Resolution was adopted after the close of the public hearing on January 14, 2002. Within five (5) days after adoption of the resolution, the City is required under the Housing Improvement Act to mail this Notice to owners of each housing unit in the affected area. Following is a summary of Resolution No. 02 -19 and some important information about your rights as owner of a housing unit in the L'Esperance Housing Improvement Area. This information is in addition to the notice previously mailed to you regarding the summary of Ordinance No. 01 -12. Fee Imposed: The Resolution described the total Housing Improvement Fee for each housing unit, which is based on the total cost of the Improvements divided by the number of housing Munits in the L'Esperance Housing Improvement Area as of the date the fee resolution was approved. The total cost of the Housing Improvements is $250,000.00, including administrative costs. The total fee per unit is $20,833.33. Prepayment. The fee may be prepaid in whole or in part within thirty (30) days after the effective date of the Resolution (see below for details). If only a portion of the fee is prepaid, the prepayment amount must be at least 25 % of the total fee per unit, or at least $5,208.33. Annual Payment: Housing unit owners who do not prepay the fee will be required to pay the fee (or the balance after any partial prepayment) in equal annual installments over 20 years, beginning in 2003. The fee will include simple interest at an annual rate of 6.27 %. Reduction in Fee. The total fee will not exceed the amount shown for each unit in the Resolution, but it may be reduced. Any reduction will be applied pro rata to each unit, on the same basis that the original fee was determined. If the fee is reduced after an owner has prepaid the fee, the owner will be reimbursed for the amount of the reduction. Housing unit owners subject to the Housing Improvement Fee have a right to veto the fee resolution after it is adopted, if owners of at least 35% of the housing units within the L'Esperance Housing Improvement Area file an objection with the City Clerk before the effective date of the Resolution. The key dates are as follows: Resolution adopted: January 14, 2002 Effective date of Resolution: February 28, 2002 (Deadline to file veto objections) At the conclusion of the project, you will receive a notice describing the total fee for your unit and details on how to prepare the fee. 1210 10 6 104 •. • A copy of Resolution No. 02 -19 is on file with the City Clerk for public inspection. If you have any questions about the L'Esperance Housing Improvement Area, contact the City Community Development Specialist at 763 -531 -5137. Dated: January 16, 2002 -2- AFFIDAVIT OF MAILING NOTICE TO L'ESPERANCE ASSOCIATION PROPERTY OWNERS ORDINANCE NO. 01 -12 STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss CITY OF NEW HOPE ) I, the undersigned being the duly qualified City Clerk of the City of New Hope, Minnesota, hereby attest and certify that: On October 11, 2001, acting on behalf of the said City, I deposited in the United States mail at New Hope, Minnesota, copies of the attached notice regarding the L'Esperance Housing Improvement. The notices were mailed first class with postage thereon fully prepaid (mailing list attached). There is a delivery service by United States mail between the place of mailing and the places so addressed. City Clerk Su cribed and sworn to before me this 11th day of October, 2001. I NOTARY LINDA C. SWEASY . PUBLIC-MINNESOTA My Commission Expires Jan, 1,2 05 l -- NOTICE TO L'ESPERANCE ASSOCIATION PROPERTY OWNERS REGARDING L'ESPERANCE HOUSING IMPROVEMENT ORDINANCE NO. 01 -12 On Monday, October 8, 2001, the City Council of the City ofNew Hope adopted Ordinance No. 01- 12 establishing L'Esperance Housing Improvement Area pursuant to Minn. Stat § §428A. I I through 428A.21 (The Housing Improvement Act). Owners of more than twenty -five percent (25 %) of the housing units in the L'Esperance Housing Improvement Area filed a petition with the City Clerk requesting a public hearing regarding the ordinance. The public hearing on this ordinance was held on August 13, 2001, and continued to October 8, 2001. The ordinance was adopted after the close of the public hearing on October 8, 2001. Within five (5) days after adoption of the ordinance, the City is required under the Housing Improvement Act to mail this notice to owners of each housing unit in the affected area. Following is a summary of Ordinance No. 01 -12 and some important information about your rights as an owner of a housing unit in the L'Esperance Housing Improvement Area. SUMMARY OF ORDINANCE NO. 01 -12 Affected Area The ordinance establishes the L'Esperance Housing Improvement Area, which is the area legally described as Lots 1 through 6, Block 1, Soukups Addition; Lots 1 through 6, Block 2, Soukups Addition; Outlot A, Soukups Addition, according to the recorded plat thereof, Hennepin County, Minnesota. Housing Improvements The ordinance specified the "Housing Improvements" that will be constructed in the L'Esperance Housing Improvement Area and financed with the Housing Improvement Fee. Those improvements are defined as follows: 1. Replacement of roofing on all twelve units, including removal of all old shingles, installation of 25 -year 3 tab shingles on all twelve units, repair of roofs where needed, removal of old and installation of new gutters and installation of new insulation. 2. Installation of 5/8 Fire Code rock on trusses between units at time of new roof installation. 3. Replacement of 116 window units with vinyl tilt sash replacement windows in existing jams, including removal and disposal of old window sashes. -1- 4. Replacement of 48 basement window units with vinyl sliders including disposal of old windows. 5. Install 36 pair of plastic window shutters. 6. Replace all front and back entry doors and jams with pre -hung steel doors and storms using existing door hardware, including disposal of old doors and painting of new doors per pre- approved door allowance. 7. Install new fascia and soffit system on all units, including continuous venting and Rap exterior trim. 8. Install custom rod iron railing on steps between all units (5 feet per 2 units). 9. Install vinyl siding on overhangs over all entryway units (.042 gauge). 10. Upgrade electrical service to 150 -amp service on all units including grounding outlets, replacing outside GFI's as needed and installing flood lamps with automatic shuttoffs. 11. Install new plumbing waste line between buildings and to the street, including: a) Removal and disposal of old line; b) Removal and repair of broken 6" PVC sewer line at 8012 building; C) Removal and repair of bad joint at 7928 building; and d) Repair of other trouble areas as shown on video of system. 12. Install 6 foot fence between buildings (110 feet total), and repair or replace fence around dumpster enclosures on existing concrete slab. 13. Removal of trees in front of building causing problems with sewer system. 14. Install interior drain tiles with sump pumps and replace basement fixtures in units as needed. 15. Move and bury overhead electrical service to each unit as proposed by Excel Energy. 16. Seal coat and /or re -pave parking lot. 17. Install smoke alarms in each bedroom in all units. -2- Housing Improvement Fee The ordinance provides that the City may impose a fee on housing units in an amount sufficient to produce revenue required to provide the Housing Improvements. The fee will be set by a separate City Council resolution after a noticed public hearing which will be held in the future, but the ordinance lays out the ground on how the fee will be determined. Those rules are summarized as follows: • The fee must be imposed based on the total cost of the Housing Improvements to be financed with such fee, divided by the number of housing units in the L'Esperance Housing Improvement Area as of the date of the fee resolution. • The fee maybe prepaid in whole or in part within thirty (30) days after the effective date of the resolution setting the fee; provided that if only a portion is prepaid, the prepayment amount must be at least twenty -five percent (25 %) of the total fee for that unit. • If the fee is not prepaid, it will be payable over a period of twenty (20) years, with interest at a rate of 6.27% per annum. However, the unpaid portion of the fee plus accrued interest is prepayable any time after the 30 -day period referred to above. + The fee will be collected at the same time and in the same manner as property taxes. • The total fee for each unit may not exceed the amount specified in the notice of public hearing for the resolution imposing the fee. • The fee will include the City's actual costs for legal, engineering and administrative costs paid on this project, but said costs will not exceed twenty -five percent (25 %) of the total costs to construct the housing improvements. Issuance of Bonds The ordinance provides that the City may issue bonds under the Housing Improvement Act to finance the Housing Improvements. The bonds may be issued any time after the City has entered into a contract with L'Esperance Owners Association for construction of the improvements, and the 30 -day period for prepayment of the Housing Improvement Fee has lapsed. Annual Report The ordinance requires that L'Esperance Owners Association submit audited financial statements to the City each year while there are bonds outstanding. NOTICE OF RIGHT TO FILE OBJECTIONS Housing unit owners subject to the Housing Improvement Fee have a right to veto the ordinance and the fee resolution after it is adopted, if owners of at least thirty -five percent (35 %) of the housing -3- units within the L'Esperance Housing Improvement Area. File an objection with the City Clerk before the effective date of the ordinance or the resolution. The key dates are as follows: Ordinance Adopted: October 8, 2001 Ordinance Published: October 17, 2001 Effective Date of Ordinance: December 3, 2001 Deadline to File Veto Objections: December 3, 2001 If the ordinance is not vetoed, you will receive a notice indicating the public hearing date to consider the resolution establishing the Housing Improvement Fee against your housing unit. You will also receive a notice describing the total fee for your unit, your right to veto the fee and procedures for doing so and details on how to prepay the fee if the fee resolution is not vetoed. A copy of Ordinance No. 01 -12 is on file with the City Clerk for public inspection. If you have questions about the L'Esperance Housing Improvement Area, contact the City Community Development Director at (763) 531 -5119. Dated: October 8, 2001. P. Attorney Coh Ordinances \CNH99.80112 - 002 -Notice otOrd Est Housing Improvement Area.wpd M 07- 118 -21 -14 -0127 07- 118 -21 -14 -0129 07- 118 -21 -14 -0128 Steven Novak Renee Martschinske Jocelyn Sumner 7928 51st Avenue North 7924 51 Avenue North 6504 Logan Avenue South New Hope, MN 55428 New Hope, MN 55428 Richfield, MN 55423 07- 118 -21 -14 -0126 07- 118 -21 -14 -0125 07- 118 -21 -14 -0124 Shane Rooney Ronald Thompson Rachel Hawkins 7930 51 st Avenue North 9182 Quantico Lane 7934 51 st Avenue North New Hope, MN 55428 Maple Grove, MN 55369 New Hope, MN 55428 07- 118 -21 -14 -0123 07- 118 -21 -14 -0122 07- 118 -21 -14 -0121 Patricia Rissinger Kathy Koons Betty Aase 8008 51 st Avenue North 8010 51 Avenue North 801251 St Avenue North New Hope, MN 55428 New Hope, MN 55428 New Hope, MN 55428 07- 118 -21 -14 -0120 07- 118 -21 -14 -0119 07- 118 -21 -14 -0118 Rita Kolodjski Mark & Jo Ellen Gappa Jill Schutrop 8014 51 Avenue North 2410 East Galer 8020 51 Avenue North New Hope, MN 55428 Seattle, WA 98112 New Hope, MN 55428 AFFIDAVIT OF MAILING NOTICE TO L'ESPERANCE ASSOCIATION PROPERTY OWNERS OF L'ESPERANCE TOWNHOMES REGARDING L'ESPERANCE HOUSING IMPROVEMENT FEE RESOLUTION NO. 02-19 STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss CITY OF NEW HOPE ) 1, the undersigned being the duly qualified City Clerk of the City of New Hope, Minnesota, hereby attest and certify that: On January 17, 2002, acting on behalf of the said City, I deposited in the United States mail at New Hope, Minnesota, copies of the attached notice regarding the L'Esperance Housing Improvement Fee. The notices were mailed first class with postage thereon fully prepaid (mailing list attached). There is a delivery service by United States mail between the place of mailing and the places so addressed, City Clerk Subscribed and 'swofn to before me this 17th day of January, 2002. BTER PAI,', F1 - A R. SYMSTER 1YPLIBLICAIINNESOTA My C ssion Expires Jan. 31, 2005 NOTICE TO L'ESPERANCE OWNERS ASSOCIATION PROPERTY OWNERS OF L'ESPERANCE TOWNHOMES REGARDING L'ESPERANCE HOUSING IMPROVEMENT FEE RESOLUTION NO. 02 -19 On Monday, January 14, 2002, the City Council of the City of New Hope adopted Resolution No. 02 -19 imposing a housing improvement fee to finance housing improvements within the L'Esperance Townhome Housing Improvement Area pursuant to Minn. Stat § §428A.11 through 428A.21 (the Housing Improvement Act) and the Housing Improvement Ordinance No. 01 -12 adopted by the City Council at its October 8, 2001 meeting. Owners of more than 25 % of the housing units in the L'Esperance Housing Improvement Fee filed petitions with the City Clerk requesting a public hearing regarding the fee resolution. The public hearing on this Resolution was held on December 10, 2001, and continued to January 14, 2002. The Resolution was adopted after the close of the public hearing on January 14, 2002. Within five (5) days after adoption of the resolution, the City is required under the Housing Improvement Act to mail this Notice to owners of each housing unit in the affected area. Following is a summary of Resolution No. 02 -19 and some important information about your rights as owner of a housing unit in the L'Esperance Housing Improvement Area. This information is in addition to the notice previously mailed to you regarding the summary of Ordinance No. 01 -12. SUMMARY OF RESOLUTION NO. 02 -19 Fee Imposed: The Resolution described the total Housing Improvement Fee for each housing unit, which is based on the total cost of the Improvements divided by the number of housing n \units in the L'Esperance Housing Improvement Area as of the date the fee resolution was approved. The total cost of the Housing Improvements is $250,000.00, including administrative costs. The total fee per unit is $20,833.33. Prepayment. The fee may be prepaid in whole or in part within thirty (30) days after the effective date of the Resolution (see below for details). If only a portion of the fee is prepaid, the prepayment amount must be at least 25 % of the total fee per unit, or at least $5,208.33. Annual Payment: Housing unit owners who do not prepay the fee will be required to pay the fee (or the balance after any partial prepayment) in equal annual installments over 20 years, beginning in 2003. The fee will include simple interest at an annual rate of 6.27 %. Reduction in Fee. The total fee will not exceed the amount shown for each unit in the Resolution, but it may be reduced. Any reduction will be applied pro rata to each unit, on the same basis that the original fee was determined. If the fee is reduced after an owner has prepaid the fee, the owner will be reimbursed for the amount of the reduction. 0'- 118 -21 -14 -0129 07- 118 -21 -14 -0128 07- 118 -21 -14 -0127 Renee Martschinske Jocelyn Sumner Steven Novak 7924 51 Avenue North 6504 Logan Avenue South 7928 51 Avenue North New Hope, MN 55428 Richfield, MN 55423 New Hope, MN 55428 07- 118 -21 -14 -0126 07- 118 -21 -14 -0125 07- 118 -21 -14 -0124 Shane Rooney Ronald Thompson Rachel Hawkins 7930 51 Avenue North 9182 Quantico Lane 7934 51 Avenue North New Hope, MN 55428 Maple Grove, MN 55369 New Hope, MN 55428 07- 118 -21 -14 -0123 07- 118 -21 -14 -0122 07- 118 -21 -14 -0121 Patricia Rissinger Kathy Koons Betty Aase 8008 51 Avenue North 8010 51 Avenue North 8012 51 Avenue North New Hope, MN 55428 New Hope, MN 55428 New Hope, MN 55428 07- 118 -21 -14 -0120 07- 118 -21 -14 -0119 07- 118 -21 -14 -0118 Rita Kolodjski Mark & Jo Ellen Gappa Jill Schutrop 8014 51 Avenue North 2410 East Galer 8020 51 Avenue North New Hope, MN 55428 Seattle, WA 98112 New Hope, MN 55428 AFFIDAVIT OF MAILING NOTICE TO L'ESPERANCE ASSOCIATION PROPERTY OWNERS OF UESPERANCE TOWNHOMES REGARDING UESPERANCE HOUSING IMPROVEMENT NOTICE OF AMENDMENT TO FEE RESOLUTION NO. 02-19 STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss CITY OF NEW HOPE ) 1, the undersigned being the duly qualified City Clerk of the City of New Hope, Minnesota, hereby attest and certify that: On September 26, 2002, acting on behalf of the said City, I deposited in the United States mail at New Hope, Minnesota, copies of the attached notice regarding the L'Esperance Housing Improvement Fee. The notices were mailed first class with postage thereon fully prepaid (mailing list attached). There is a delivery service by United States mail between the place of mailing and the places so addressed. City Clerk Subscribed and sworn to before me this 26th day of September, 2002. '(* LINDA C.SWEASY NOTARY PUBLIC • MINNESOTA My COMMISSION EXPIRES i ]_ JANUARY 31, 2005 NOTICE OF AMENDMENT TO HOUSING IMPROVEMENT SPECIAL ASSESSMENT FEE FOR L'ESPERANCE HOUSING IMPROVEMENT AREA (IMPROVEMENT PROJECT NO. _ PLEASE TAKE NOTICE that on Monday, September 23, 2002, the New Hope City Council adopted Resolution No. 02 - 142 , " A Resolution Amending Resolution 02 -19 Approving a Housing Improvement Special Assessment Fee for the L'Esperance Housing Improvement Area Pursuant to Minn. Stat § §428A.11 through 428A.21 ". Said Resolution has resulted in a reduction of the special assessment fee from $20,833.33 per unit to $18,055.78 per unit. The revised annual fee per housing unit is $1,634.08 based on a per annum interest rate of 6.27% with a 20 -year term. The annual fee includes $283.02 for capitalized interest for the period October 1 through December 31, 2002. The reduction is based on final improvement costs of $216,669.35 which include a City administrative fee of 8.3%. The fee may be prepaid without interest until November 30, 2002. If only a portion of the fee is prepaid, the prepayment amount must be at least 25 % of the total fee per unit, or at least $4,514.00. If it is not prepaid, the fee will be payable as a special assessment in equal installments over 20 years with the first installment payable in calendar year 2003. In subsequent years, the principal balance remaining may be paid to the Finance Director or Assessment Clerk at any time prior to November 15 of any year. This Notice is provided pursuant to Section 2.05 of Resolution No. 02 -19. Please call Pamela Haar, , Special Assessment Clerk, at (763) 531 -5132 if you have any questions regarding prepayment of the fee. Dated: September 24, 2002. Valerie Leone City Clerk P: \Attorney \Cnh Resolutions \CNH99.80112 -002- Notice of Reso Amend Assess Fee for L'Esperance(W)Aoc 0 0 � M � o l w U, o l U) < < < < W W W w w w W uj C' , N N R 0 0 N 0 a 0 0 N N N N N N Cl! N N ID ID ID ID . (D (D O w ID ID (0 (D 00 W w w co co 00 m 00 co co C, w LO � m LO m in 0 'o C� C� C� O Ci C, m z 64 69 61) 64 64 Vj 0A 60 d3 64 (n fPr 0 L < Z Lo < N co N (D 'n 0 z Lu :> cn LU LU w 0) u 0 z z z z z z z z z z z z U) < LLJ Lu ul w w w w w w w w > w > -i < W F- F- F- F- F- F- < 0 '42 � � c2 �2 r 1n r2 - I a 4 CL LO 0 0 LO 4 0 m m LO 0 0. N N N tD M m 0 0 M m 0 N 0 Z) 0 l I a. 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