§ 1-8.1. L'Esperance Housing Improvement Area.

The City of New Hope (hereafter city) hereby establishes pursuant to Minn. Stat. ch. 428A a housing improvement area over the property commonly known as the L'Esperance Townhome development which is legally described in subsection 1-8.1(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 L'Esperance 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 L'Esperance Owners Association and with the residents in the L'Esperance 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 August 13, 2001, and by adjournment thereafter conducted a public hearing, duly noticed in accordance with Minn. Stat. § 428.13, 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 L'Esperance 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 L'Esperance Housing Improvement Area is hereby defined as that area of the city legally described as follows:

a.

Lots 1 through 6, Block 1, Soukups Addition;

b.

Lots 1 through 6, Block 2, Soukups Addition;

c.

Outlot A, Soukups Addition;

Hennepin County, Minnesota.

(4)

Housing improvements defined. For the purposes of subsections 1-8.1(1) through 1-8.1(9) 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:

a.

Replacement of roofing on all 12 units, including removal of all old shingles, installation of 25-year three tab shingles on all 12 units, repair of roofs where needed, removal of old and installation of new gutters and installation of new insulation.

b.

Installation of five-eighths fire code sheetrock on trusses between units at time of new roof installation.

c.

Replacement of 116 window units with vinyl tilt sash replacement windows in existing jams, including removal and disposal of old window sashes.

d.

Replacement of 48 basement window units with vinyl sliders including disposal of old windows.

e.

Install 36 pair of plastic window shutters.

f.

Replace all front and back entry doors and jams with pre-hung steel doors and stormdoors using existing door hardware, including disposal of old doors and painting of new doors per preapproved door allowance.

g.

Install new fascia and soffit system on all units, including continuous venting and rap exterior trim.

h.

Install custom rod iron railing on steps between all units (five feet per two units).

i.

Install vinyl siding on overhangs over all entryway units (.042 gauge).

j.

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.

k.

Install new plumbing waste line between buildings and to the street, including:

1.

Removal and disposal of old line;

2.

Removal and repair of broken six-inch PVC sewer line at 8012 building;

3.

Removal and repair of bad joint at 7928 building; and

4.

Repair of other trouble areas as shown on video of system.

l.

Install six-foot fence between buildings (110 feet total), and repair or replace fence around dumpster enclosures on existing concrete slab.

m.

Removal of trees in front of building causing problems with sewer system.

n.

Install interior drain tiles with sump pumps and replace basement fixtures in units as needed.

o.

Move and bury overhead electrical service to each unit as proposed by Excel Energy.

p.

Seal coat and/or repave parking lot.

q.

Install smoke alarms in each bedroom in all units.

(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 L'Esperance 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 6.27 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.

g.

The housing improvement fee shall include the city's actual cost for legal, engineering and administrative expenses to administer this improvement area, but these costs shall not exceed 25 percent of the actual construction costs for the improvements referred to in subsection 1-8.1(4) of this Code.

(6)

Issuance of bonds. At any 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-day period for prepayment of the housing improvement fee has expired as described in subsection 1-8.1(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, 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.

b.

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.

(8)

Notice of right to file objections. Within five days after the adoption of subsections 1-8.1(1) through 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 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 section if owners of at least 35 percent of the housing units within the L'Esperance 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(1) through 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. 01-12, § 1, 10-8-2001; Ord. No. 16-06, § 2, 6-27-2016)