HomeMy WebLinkAboutResolution No. 2008-62RESOLUTION NO. 2008-62
CITY OF COLUMBIA HEIGHTS
APPROVING A HOUSING IMPROVEMENT FEE FOR SULLIVAN SHORES
HOUSING IMPROVEMENT AREA
Section 1. Recitals.
1.01. The City of Columbia Heights ("City") is authorized under Minnesota Statutes,
Section 428A.11 to 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. 1539 adopted March 24, 2008 (the "Enabling Ordinance"), the
Council established the Sullivan Shores Housing Improvement Area (the "Housing Improvement
Area") in order to facilitate certain improvements to property known. as the "Sullivan Shores
Townhouses," all in accordance with the Housing Improvement Act.
1.03. In accordance with Section 428A.12 of the Housing Improvement Act, owners of at
least 25 percent of the housing units within the Housing Improvement Area have filed a petition
with the City Clerk-Treasurer requesting a public hearing regarding imposition of a housing
improvement fee for the Housing Improvement Area.
1.04. The Council has on March 24, 2008 conducted a public hearing, duly noticed in
accordance with the Housing Improvement Act, regarding adoption of this resolution at which all
persons, including owners of property within the Housing Improvement Area, were given an
opportunity to be heard.
1.05. Prior to the date hereof, Sullivan Shores Townhouses Association, Inc. (the
"Association"} has submitted to the City a financial plan prepared by Gassen Companies, 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 Sullivan Shores
Townhouses and along-range plan to conduct and finance capital improvements therein, ail in
accordance with Section 428A.14 of the Housing Improvement Act.
1.06. For the purposes of this Resolution, the terms "Housing Improvement Area" and
"Housing Improvements" have the meanings provided in the Enabling Ordinance.
Section 2. Housing Improvement Fee Imposed.
2.01. The City hereby imposes a fee on each housing unit within the Housing Improvement
Area (the "Housing Improvement Fee"), as specified in Exhibit A attached hereto, which Housing
Improvement Fee is imposed on the basis of the total cost of the Housing Improvements to be
financed by the Housing Improvement Fee divided by the number of housing units in 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 Treasurer, 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 unpaid portion thereof) shall be payable in equal annual installments extending over a period of
15 years, the first of the installments to be payable in calendar year 2009, which annual payment
shall be deemed to include interest on unpaid Housing Improvement Fee accruing from June 1,
2008 at an annual interest rate that will produce total fee revenue collected from all units in the
Housing Improvement Area in an amount that equals (a) 105 percent of the debt service payable
each year on bonds to be issued by the City issued to finance the Housing Improvements (the
"Bonds") in accordance with the Enabling Ordinance and the Housing Improvement Act; plus (b)
$5,000 annually to compensate the City for administrative costs of the Housing Improvement Area.
Upon. issuance of the Bonds, the City Clerk-Treasurer shall cause to be prepared a schedule
indicating the annual payment for each housing unit for which the Housing Improvement Fee has
not been prepaid, which schedule shall be attached as Exhibit B to this Resolution in the City's
official records.
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 Sections 428A.14 and 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 hereof; and
further provided that if any housing unit owners have prepaid the Housing Improvement Fee prior
to any reduction in that fee, the City shall promptly reimburse such housing unit owner in the
amount of the pro rata share of any reduction in the fee amount. Upon any reduction in the
Housing Improvement Fee, the City Clerk-Treasurer shall cause to be prepared a revised copy of
Exhibit A hereto, which shall be attached to this Resolution in the City's official records and shall
be promptly mailed to all housing unit owners within the Housing Improvement Area. Within 30
days after issuance of the Bonds the City Clerk-Treasurer shall mail to each housing unit owner a
copy of Exhibit B to this Resolution showing the final annual fee imposed against each housing
unit for which the Housing Improvement Fee has not been prepaid.
Section 3. Notice of Right to File Objections.
3.01. Within five days after the adoption of this Resolution, the City Clerk-Treasurer is
authorized and directed to mail to the owner of each housing unit in the Housing Improvement
Area a summary of this Resolution; notice that owners subject to the Housing Improvement Fee
have a right to veto this Resolution if owners of at least 35 percent of the housing units within the
Housing Improvement Area file an objection with the City Clerk-Treasurer before the effective date
of this Resolution; and notice that a copy of this ordinance is on file with the City Clerk-Treasurer
for public inspection.
Section 4. Effective Date.
4.01. This Resolution shall be effective 45 days after adoption hereof.
Section 5. Filing of Housing Improvement Fee.
5.01. Within 30 days after issuance of the Bonds, but it no event later than November 15,
2008, the City Clerk-Treasurer shall file a certified copy of this resolution together with a final
update of Exhibits A and B hereto to the Anoka County Auditor to be recorded on the property tax
lists of the county.
Approved by the City Council of the City of Columbia Heights this 24th day of March, 2008.
Offered by: Kelzenberg
Second by: Williams
Roll call: Ayes: Peterson, Williams, Nawrocki, Diehm, Kelzenberg
i
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,. ~ .
Mayor Garye L. Peterson
Attest:
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!Patricia Muscovitz, CMC _,~_.
City Clerk
EXHIBIT A TO RESOLUTION N0.2008-62 REVISED 10-10-2008
Total fee per housing unit: $42,]1!Q
EXHIBIT B TO RESOLUTION N0.2008-62
[Description of annual fee for each housing unit; to be inserted upon issuance of the Bonds in
accordance with Section 2.05 of this Resolution.)
Annual fee per Housing Unit: (See Attached Schedule)
City of Columbia Heights, MN
Assessment Payment Schedules Per User
Sullivan Shores Housing
$0 Prepayment
Assessment. Paymen# Schedules
$20,000 Prepayment $21,000 Prepayment
Assessment Amount 42,100 ? Assessment Amount 42,100 Assessment Amount 42,100
Pre aids ear 1
p y - Pre aids ear 1
p y
(20,000)
~
Prepaids year 1
(21,000)
Asmnt Amt Remaining 42,100 ~ Asmnt Amt Remaining 22,100 = Asmnt Amt Remaining 21,100
i
Ra#e 6.30% ~ Rate 6.30% Rate 6.30%
Start Year (Collection) 2009 Start Year (Collection) 2009 ~ Start Year (Collection) 2009
Term 1S ? Term 15 ~ Term 15
Calculation Method Equal P ~ I ~ Calculation Method Equal P 8~ 1 ~ Calculation Method Equal P 8~ I
Asmnt Collect Total ~ Total ~ Total
Tenn Year Year Principal Interest Assessmt y Principal Interest Assessmt ~ Principal Interest Assessmt
1 2008 2009 (373.43) (4,199.48) (4,572.91) (196.05) (2,204.48) (2,400.53} {187.16) (2,104.73) (2,291.89)
2 2009 2010 {1,944.14) {2,628.77) (4,572.91) ~ {1,020.56) (1,379.95) (2,400.51) ~ {974.38) (1,317.51) (2,291.89}
3_ 2010 2011 {2,066.62) (2,506.29) (4,572.91} # (1,084.85) (1,315.65) (2,400.51} ~ (1,035.76) (1,256.12) {2291.89}
4 2011 2012 {2,196.82) {2,376.10) (4,572.91) ~ (1,153.20) (1,247.31) (2,400.51} ~ (1,101.02} (1,190.87) (2,291.89)
5 2012 2013 (2,335.22) (2,237.70) (4,572.91} (1,225.85) (1,174.66) (2,400.51) ~ (1,170.38) (1,121.51) (2,291.89)
6 2013 2014 (2,482.33) (2,090.58) (4,572.91} ~ (1,303.08) (1,097.43) {2,400.51} ~ (1,244.12} {1 047.77) (2 291.89)
7 2014 2015 (2,638.72} (1,934.19) (4,572.91) ~ (1,385.17) (1,015.33) (2,400.51) t (1,322.49) {969.39) (2,291.89)
8 2015 2016 (2,804.96) (1,767.95} (4,572.91) ~ (1,472.44} (928.07) (2,400.51) P (1,405.81) {886.08) (2,291.89}
9 2016 2017 (2,981.67) (1,591.24) (4,572.91)
~ (1,565.20) (835.31) (2,400.51) (1,494.38) (797.51) (2291.89)
10 2017 2018 (3,169.52) (1,403.39) (4,572.91)
~ (1,663.81) (736.70) (2,400.51) (1,588.52) (703.36) (2,291.89)
11 2018 2019 3,369.20
( ) 1,203.71
{ )
(4,572.91)
,
(1,768.63)
(631.88)
(2,400.51) '
~
(1,688.60}
(603.29)
(2,291.89)
12 2019 2020 (3,581.46) (991.45) (4,572.91) j
? (1,880.05) (520.45} (2,400.51) ~ (1,794.98) (496.90) (2 291.89)
13 2020 2021 (3,807.09) (765.82} (4,572.91} ~ (1,998.49) (402.01} (2,400.51) (1;908.07) (383.82) (2,291.89}
14 2021 2022 (4,046.94) (525.98} (4,572.91} ~ {2,124.40) (276.11) (2,400.51) (2,028.27) (263.61) (2,291.89)
15 2022 2023 (4,301.89) (271.02} (4,572.91} E {2,258.24) (142.27} {2,400.51} ~ (2,156.06) (135.83) (2,291.89}
(42,100.00) (26,493.68) (68,593.68) ~ (22,100.00} (13,907.60) (36,007.601 ~ {21.100.00) (13.278.301 (34.378.301
Prepared by Ehlers & Associates, lnc. 10!1412008 ; FREERS