§ 1-8. Sandpiper Cove Housing Improvement Area.

The city hereby establishes pursuant to Minn. Stat. ch. 428A a housing improvement area over the property commonly known as the Sandpiper Cove Townhome development which is legally described in subsection 1-8(3) of this Code.

(1)

Recitals. The city hereby makes the following recitals in support of its action to establish the herein housing improvement area:

a.

The city is authorized under Minn. Stat. §§ 428A.11 through 428A.21 to establish by ordinance housing improvement areas 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.

b.

The city has determined a need to establish the Sandpiper Cove Housing Improvement Area as defined herein, in order to facilitate certain improvements to the property all in accordance with the Housing Improvement Act.

c.

The city has consulted with the Rockford Owners Association and with residents in the Sandpiper Cove Housing Improvement Area regarding the establishment of said housing improvement area and the housing improvements to be constructed and financed under this section.

(2)

Findings. The city hereby makes the following findings in support of its action to establish the herein housing improvement area:

a.

The city council finds that, in accordance with Minn. Stat. § 428A.12, owners of at least 25 percent of the housing units within the housing improvement area have filed a petition with the city clerk requesting a public hearing regarding establishment of such housing improvement area.

b.

The city council has on July 28, 1997, and by adjournment thereafter conducted a public hearing, duly noticed in accordance with Minn. Stat. § 428A.13, subd. 2, regarding adoption of this section at which all persons, including owners of property within the housing improvement area were given an opportunity to be heard.

c.

The council finds that, without establishment of the housing improvement area, the housing improvements (as hereinafter defined) could not be made by the homeowners association for, or the housing unit owners in, the Sandpiper Cove Townhome development.

d.

The council further finds that designation of said housing improvement area is needed to maintain and preserve the housing units within such area.

(3)

Housing improvement area defined. The Sandpiper Cove Housing Improvement Area is hereby defined as that area of the city legally described as follows:

Lots 1 through 59, inclusive, Sandpiper Cove, all of which is according to the plat(s) thereof on file and of record in the office of the Registrar of Titles, Hennepin County, Minnesota. Said housing improvement area consists of 36 housing units as of the adoption of this section.

(4)

Housing improvements defined. For the purposes of subsections 1-8(1)—(9) of this Code, the term "housing improvements" shall mean those improvements to the housing units, garages, and common areas within Sandpiper Cove Housing Improvement Area as set out in the December 23, 1997, Overview Specifications (Preliminary) prepared by Construction Consulting & Inspections, Ltd. for the Rockford Owners Association as follows:

a.

Replacement of 234 window units;

b.

Replacement of 44 patio doors;

c.

Replacement of 36 overhead garage doors;

d.

Replacement of all rear decks and side entry stoops on ten duplex buildings and replacement of all rear decks and front entry stoops/decks on four fourplex buildings;

e.

Repair of all roofs and installation of new fiberglass reinforced shingles;

f.

Replacement of all gutters and downspouts;

g.

Replacement of all exterior lighting on the buildings;

h.

Replacement of all exterior siding, soffits and fascia including wrap of all windows and doors, trim and ceilings in stoops;

i.

Replacement of 20 garage mandoors in the duplex buildings;

j.

The above mentioned construction shall also include all incidental work and repairs to finish the construction to industry standards and comply with all building codes regardless of whether said incidental work is described in this Code or in the December 23, 1997 Construction Consulting & Inspections, Ltd. Overview Specifications.

k.

Housing improvements shall also be deemed to include the following costs incurred by either the Rockford Owners Association or the city:

1.

All costs of architectural and engineering services in connection with the activities described in this section.

2.

All administration, legal and consultant costs in connection with the housing improvement area.

3.

Costs of issuance of bonds, if any, to finance housing improvements under the Housing Improvement Act, subject to the terms of subsection 1-8(5) of this Code.

(5)

Housing improvement fee. The city may, by resolution adopted in accordance with the petition, hearing and notice procedures required under Minn. Stat. ch. 428A known as the Housing Improvement Act, impose a fee on the housing units within the Sandpiper Cove 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.

a.

Any housing improvement fee shall be 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 the housing improvement area as of the date of any fee resolution.

b.

Any housing improvement fee shall be imposed and payable for a period no greater than 20 years after the first installment is due and payable.

c.

Any housing improvement fee shall be prepayable in full or in part by any housing unit owners within 30 days after the effective date of the resolution setting the housing improvement fee, provided that a partial prepayment must be at least 25 percent of the total fee for that unit. After such 30-day period the unpaid portion of any housing improvement fee and accrued interest shall be prepayable only in the full amount.

d.

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 eight percent per annum.

e.

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 set 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.

f.

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.

(6)

Issuance of bonds. At any time after a contract with Rockford Owners Association, Inc. 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 subsection 1-8(5) 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.

(7)

Annual reports.

a.

On August 15, 1998, and each August 15 thereafter until all housing improvement fees derived in the housing improvement area are fully paid, the Rockford Owners Association, Inc. (and any successor in interest) shall submit to the city clerk a copy of the association's audited financial statements.

b.

Rockford Owners Association, Inc. (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.

(8)

Notice of right to file objections. Within five days after the adoption of subsections 1-8(1)—(9) of this Code, the city clerk is authorized and directed to mail to the owner of each housing unit in the Sandpiper Cove 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 section if owners of at least 35 percent of the housing units within the Sandpiper Cove Housing Improvement Area file an objection with the city clerk before the effective date of this section; and notice that a copy of this section is on file with the city clerk for public inspection. Subsections 1-8(1)—(9) of this Code shall be effective 45 days after their passage and publication.

(9)

Amendment. This section may be amended 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.

(Ord. No. 98-2; Ord. No. 16-06, § 2, 6-27-2016)