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HomeMy WebLinkAboutResolution No. 2023-36 Approving HIA Fee Final 4867-0107-3503\5 RESOLUTION NO. 2023-36 APPROVING A HOUSING IMPROVEMENT FEE FOR EDINA WEST HOUSING IMPROVEMENT AREA Section 1. Recitals 1.01. The City of Edina, Minnesota (“City”) is authorized under Minnesota Statutes, Section 428A.11 to 428A.21, as amended (the “Housing Improvement Act”), to establish by ordinance a housing improvement area within which housing improvements are made or constructed and the costs of such improvements are paid in whole or in part from fees imposed within the area. 1.02 By ordinance adopted by the City Council of the City (the “City Council”) on the date hereof (the “Enabling Ordinance”), the City Council established the Edina West Housing Improvement Area (the “Edina West HIA”) in order to facilitate certain improvements to property described in the Enabling Ordinance and designated the City as the implementing entity, all in accordance with the Housing Improvement Act. 1.03 Owners of approximately 89.5% of the housing units within the Edina West HIA (which exceeds the requirement for owners of at least 50% of the housing units pursuant to Section 428A.12 of the Housing Improvement Act and the requirement for owners of at least 70% of the housing units pursuant to the City’s policy) have filed a petition with the City Clerk requesting a public hearing regarding imposition of a housing improvement fee for the Edina West HIA. 1.04. On June 6, 2022, the City Council conducted a public hearing, duly noticed in accordance with the Housing Improvement Act, regarding adoption of this resolution (the “Resolution”) and the Enabling Ordinance at which all persons, including owners of property within the Edina West HIA, were given an opportunity to be heard. 1.05. Prior to the date hereof, Edina West Condominium Association (the “Association”) has submitted to the City a financial plan prepared by an independent third party, acceptable to the City and the Association, that provides for the Association to finance the general renovation of the buildings and the site of the Association, including but not limited to improvements to the building exteriors; improvements to garages and tunnel; site and driveway improvements and water mitigation; improvements to common areas and the swimming pool, and mechanical system, plumbing, and electrical improvements and upgrades, all in accordance with Section 428A.14 of the Housing Improvement Act. 1.06. For the purposes of this Resolution, the term “Housing Improvements” has the meaning provided in the Enabling Ordinance. Section 2. Housing Improvement Fee Imposed. 2.02. The total estimated costs of the Housing Improvements are approximately $5,000,000, all of which is proposed to be paid for by the fee imposed hereby. The City hereby imposes a fee on each housing unit within the Edina West HIA (the “Housing Improvement Fee”) based on the square footage of each housing unit in the Edina West HIA based on the table below: Size (Square Feet) Amount 4867-0107-3503\5 972 $21,428 1026 22,618 1360 29,982 1598 35,228 1750 38,579 1928 42,503 2.03 The owner of any housing unit against which the Housing Improvement Fee is imposed may pre- pay the Housing Improvement Fee imposed against such housing unit to the City Finance Director in full, at any time after the effective date of this Resolution. 2.04. If not prepaid in accordance with Section 2.02 hereof, the Housing Improvement Fee shall be payable in equal installments extending over a period of 20 years, the first of the installments to be payable in calendar year 2024. The estimated annual fee imposed on each of the housing units is as follows: Size (Square Feet) Amount 972 $1,071 1026 1,131 1360 1,499 1598 1,761 1750 1,929 1928 2,125 No interest shall accrue on the Housing Improvement Fees. 2.05. 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. Section 3. Notice of Right to File Objections. Within 5 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 Edina West HIA (a) a summary of this Resolution; (b) notice that owners subject to the Housing Improvement Fee have a right to veto this Resolution if owners of at least 45% of the housing units within the Edina West HIA file an objection with the City Clerk before the effective date of this Resolution; and (c) notice that a copy of this Resolution is on file with the City Clerk for public inspection. Section 4. Effective Date. This Resolution shall be effective 45 days after adoption hereof, subject to (a) the veto rights of housing unit owners under Section 428A.18 of the Housing Improvement Act; and (b) execution in full of a development agreement between the EDA and the Association providing for construction of the Housing Improvements. Section 5. Filing of Housing Improvement Fee. After September 1, 2023, the effective date of this Resolution, the City Clerk shall file a certified copy of this Resolution to the Hennepin County Director of Taxation to be recorded on the property tax lists of the county. Adopted by the City Council this 18th day of July, 2023. 4867-0107-3503\5 ATTEST: Sharon Allison, City Clerk James B. Hovland, Mayor CERTIFICATE OF CITY CLERK I, the undersigned duly appointed and acting City Clerk for the City of Edina do hereby certify that the attached and foregoing Resolution was duly adopted by the Edina City Council at its Regular Meeting of July 18. 2023, and as recorded in the Minutes of said Regular Meeting. WITNESS my hand and seal of said City this _________ day of ___________________, 2023. City Clerk