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HomeMy WebLinkAboutOrdinance No. 1539ORDINANCE NO. 1539 CITY OF COLUMBIA HEIGHTS AN ORDINANCE ESTABLISHING SULLIVAN SHORES HOUSING IMPROVEMENT AREA BE IT ORDAINED by the Council of the City of Columbia Heights as follows: Section 1. Recitals. 1.01. The City of Columbia Heights ("City") is authorized under Minnesota Statutes, Sections 428A.1 I 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. The City has determined a need to establish the Sullivan Shores Housing Improvement Area as further defined herein, in order to facilitate certain improvements to property known as the "Sullivan Shores Townhouses," all in accordance with the Housing Improvement Act. 1.03. The City has consulted with the Sullivan Shores Townhouses, Inc. (the "Association"} and with residents in the Sullivan Shores Housing Improvement Area regarding the establishment of such area and the housing improvements to be constructed and financed under this ordinance. Section 2. Findings. 2.01. The Council finds that, in accordance with Section 428A.12 of the Housing Improvement Act, owners of at least 25 percent of the housing units within the Sullivan Shores Housing Improvement Area have filed a petition with the City Clerk requesting a public hearing regarding establishment of such housing improvement area. 2.02. The Council has on March 10, 2008 conducted a public hearing, duly noticed in accordance with the Housing Improvement Act, regarding adoption of this ordinance at which all persons, including owners of property within the Sullivan Shares Housing hrlprovelnent were given an opportunity to be heard. 2.03. The Council finds that, without establishment of the Sullivan Shores Housing --- - improvement ~u-ea, Ine tiouslrlg impIUVeIRCI1lS ~aS ilCrClIldllGI UCll11GU) I:UUlU 11Ut UG 111t1UG U~' t11G townhouse association for, or the housing unit owners in, the Sullivan Shores Townhouses. 2.04. The Council further finds that designation of the Sullivan Shores Housing Improvement Area is needed to maintain and preserve the housing units within such area. Section 3. Housing Improvement Area Defined. 3.01. The Sullivan Shores Housing Improvement Area is hereby defined as the area of the City legally described as follows: Lots 1-65, Block 1, Sullivan Shores, Anoka County, MN 3.02. The Sullivan Shores Housing Improvement Area contains 65 housing units as of the date of adoption of this ordinance, along with common area. Section 4. Housin~Improvements Defined. 4.01. For the purposes of this ordinance and the Sullivan Shores Housing Improvement Area, the term "Housing Improvements" shall mean the following improvements to housing units, garages, and common areas within the Sullivan Shores Housing Improvement Area: • Remove all exterior cladding (including siding, soffits, fascia and trim boards), roofing materials and damaged roof decking. • Framing repairs, including replacement of deteriorated sheathing, wall studs and damaged framing members. • Replace window flashing. • Remove and re-install windows. • Install new siding, soffits and fascia. • Install new shingle roof and related ventilation. • Install new gutters and downspouts at points of entry, entry doors, garage doors and rear entries at decks and patios. • Miscellaneous mechanical repairs related to above work. 4.02. Housing Improvements shall also be deemed to include: (a) all costs of architectural and engineering services in connection with the activities described in Section 4.01; (b) all administration, legal and consultant costs in connection with the Sullivan Shores Housing Improvement Area; and (c) costs of issuance of bonds to finance Housing Improvements under the Housing hnprovement Act, subject to the terms of Section 5.04 hereof. Section 5. Housing hnprovement Fee. 5.01. The City may, by resolution adopted in accordance with the petition, hearing and notice procedures required under the Housing Improvement Act, impose a fee on the housing units within the Sullivan Shores Housing Improvement Area, at a rate, term. or amount sufficient to produce revenues required to provide the Housing Improvements (hereinafter referred to as the "Housing Improvement Fee"), subject to the terms and conditions set forth in this Section. 5.02. Any Housing Improvement Fee shall be imposed on the basis of the total cost of the Housing hnprovements to be financed by the Housing Improvement Fee, divided by the number of housing units in the Sullivan Shores Housing Improvement Area as of the date of any fee resolution. 5.03. The Housing Improvement Fee shall be imposed and payable for a period no greater than 15 years a$er the first installment is due and payable. 5.04. Any Housing hnprovement Fee shall be prepayable in full or in part by housing unit owners within 30 days after the effective date of the resolution setting the Housing Improvement 2 Fee, provided that if only a portion is prepaid, the prepayment amount must be at Least 25 percent of the total fee for that unit. After such 30-day period the Housing Improvement Fee (or unpaid portion thereof) shall not be prepayable. 5.05. The resolution imposing the Housing Improvement Fee may provide that any fee not prepaid by the housing unit owner shall be deemed to include interest on unpaid Housing Improvements costs at a rate that will produce total fee revenue collected from all units in the Sullivan Shores Housing Improvement Area in an amount that equals 105 percent of the debt service payable each year on the bonds to be issued under Section 6 hereof. 5.06. The Housing Improvement Fee shall be collected at the same time and in the same manner as provided for payment and collection of ad valorem taxes, in accordance with Section 42$A.15 of the Housing Improvement Act and Minnesota Statutes, Section 428A.05. As set forth in Section 428A. 14, subd. 2 of the Housing Improvement Act, the Housing Improvement Fee is not included in the calculation of levies or limits on levies imposed under any law or charter. 5.0'7. The 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 hmprovement Fee, in the manner specified in such resolution. Section 6. Issuance of Bonds. 6.01. At any time after a contract with the 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 Section 5.04 hereof, the Council may issue bonds in the principal amount necessary to fmance 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 Section 428A.16 of the Housing Improvement Act. Section 7. Annual Reports. 7.01. On August 15, 2008 and each August 15 thereafter until there are no longer any outstanding bonds (including refunding bonds) issued under the Housing Improvement Act in connection with the Sullivan Shores Housing Improvement Area, the Association (and any successor in interest) shall submit to the City Clerk Treasurer a copy of the Association's audited r ~ ..... .. _. llnanclal SLdLCI11CI1L5. 7.02. The 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. Section 8. Notice of Right to File Objections. 8.01. Within five days after the adoption of this ordinance, the City Clerk Treasurer is authorized and directed to hail to the owner of each housing unit in the Sullivan Shores Housing hmprovement Area: a sulnrnary of this ordinance; notice that owners subject to the proposed Housing Ilnprovelnent Fee have a right to veto this ordinance if owners of at least 35 percent of the housing units within the Sullivan Shores 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. Section 9. Amendment. 9.01. 'This ordinance may be amended by the Council upon compliance with the public hearing and notice requirements set forth in Section 428A.13 of the Housing Improvement Act. Section 10. Effective Date. 10.1. This ordinance shall be effective 45 days after adoption hereof, or 30 days after the date of publication of this ordinance, whichever is later. First read at a regular meeting of the Council of the City of Columbia Heights held on March 10, 2008, and finally read, approved and adopted and ordered published at a regular meeting of said Council on March 24, 2008. First Reading: March 10, 2008 Second Reading: March 24, 2008 Date of Passage: Offered by: Williams Seconded by: Kelzenberg Roll Call: Ayes: Peterson, Williams, Nawrocki, Diehm, Kelzenberg ~- ~~ ~ ,~ ~~ ~ ` ~ jf'L,.~ Mayor Gary ~,. Peterson Attest: ,--._ _.~. if ~~,.. r~',; `a ~!`,../ , •~ ~ `~/-.~...l~c ~'~. Patricia Muscovitz, CMC 'a 4 City Clerk ~`~~"~ 4