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RESO 25-070 - Approving a Housing Improvement Fee for Laurel Hill West Housing Improvement Area4901-5304-7113.4 CITY OF GOLDEN VALLEY, MINNESOTA RESOLUTION NO. 25-070 APPROVING A HOUSING IMPROVEMENT FEE FOR LAUREL HILL WEST HOUSING IMPROVEMENT AREA WHEREAS, the City of Golden Valley, Minnesota (“City”) is authorized under Minnesota Statutes, Section 428A.11 to 428A.21, as amended (the “HIA 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; WHEREAS, the City Council (the “Council”) has adopted a Housing Improvement Area Policy (the “HIA Policy”); WHEREAS, by ordinance adopted by the City Council of the City (the “City Council”) on August 6, 2025 (the “Enabling Ordinance”), the City Council established the Laurel Hill West Condominium Association Housing Improvement Area (the “Laurel Hill HIA”) in order to facilitate certain improvements to property known as the “Laurel Hill West Condominium”, all in accordance with HIA Policy and the HIA Act; WHEREAS, Owners of approximately 86% of the housing units within the Laurel Hill HIA (which exceeds the requirement for owners of at least 50% of the housing units pursuant to Section 428A.12 of the HIA Act and the requirement for owners of at least 60% of the housing units pursuant to the HIA Policy) have filed a petition with the City Clerk requesting a public hearing regarding imposition of a housing improvement fee for the Laurel Hill HIA; WHEREAS, on July 15, 2025, the City Council conducted a public hearing, duly noticed in accordance with the HIA Act, regarding adoption of this resolution (the “Resolution”) and the Enabling Ordinance at which all persons, including owners of property within the Laurel Hill HIA, were given an opportunity to be heard; WHEREAS, prior to the date hereof, Laurel Hill 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 maintenance and operation of the common elements in the Laurel Hill HIA and a long-range plan to conduct and finance capital improvements therein, all in accordance with Section 428A.14 of the HIA Act and the HIA Policy; WHEREAS, the Council finds that the Laurel Hill HIA satisfies all of the approval criteria contained in the HIA Policy (listed in Section III thereof), including the criteria that a majority of the owners within the Association support the project and the Housing Improvement Area financing and that the Laurel Hill HIA satisfies at least one of the goals in Section II of the HIA Policy; Docusign Envelope ID: D816C12A-2FCA-4798-88E2-3D7709AB7D6A Resolution No. 25-070 - 2 - August 6, 2025 4901-5304-7113.4 WHEREAS, for the purposes of this Resolution, the term “Housing Improvements” has the meaning provided in the Enabling Ordinance; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GOLDEN VALLEY, MINNESOTA as follows: Section 1. Housing Improvement Fee Imposed. 1.01. The total estimated costs of the Housing Improvements are approximately $3,400,000 a portion of which, in the amount of approximately $3,100,000, is proposed to be paid for by the fee imposed hereby. The City hereby imposes a fee on each housing unit within the Laurel Hill HIA (the “Housing Improvement Fee”) in the amount shown in the table in Section 1.03 below (plus interest plus annual bond administrative costs as provided in Section 1.03 hereof). The total costs of the Housing Improvements are allocated based on cubic footage per unit as prescribed in the Laurel Hill West Amended and Restated Declaration, as amended, and the Council finds that such basis is basis for the Housing Improvement Fee is fair and reasonable. 1.02. The owner of any housing unit against which the Housing Improvement Fee is imposed may, at any time between August 6, 2025 (the effective date of this Resolution) and September 22, 2025 pay the total Housing Improvement Fee imposed against such housing unit to the City Finance Director, in full, without interest thereon. To prepay in full, the amount due is shown in the “Total Costs (Before Bond Sale)” column of the table in Section 1.03 below. Any Housing Improvement Fee not prepaid by September 22, 2025 shall not thereafter be pre-payable, but instead shall be paid only in accordance with Section 1.03 hereof. 1.03. If not prepaid in accordance with Section 1.02 hereof, the Housing Improvement Fee shall be payable in equal annual installments extending over a period of 20 years, the first of the installments to be payable in calendar year 2026, which annual payment shall be deemed to include interest on the unpaid Housing Improvement Fee at a rate not to exceed 6.76% accruing from September 22, 2025 plus annual bond administrative costs. The estimated annual fee imposed on each of the housing units is shown in the “Total Annual Fee (105%) With Annual Bond Fees” column of the table below. Docusign Envelope ID: D816C12A-2FCA-4798-88E2-3D7709AB7D6A Resolution No. 25-070 - 3 - August 6, 2025 4901-5304-7113.4 1.04. Unless prepaid in accordance with Section 1.02 hereof, the Housing Improvement Fee 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 Section 428A.15 of the HIA Act and Minnesota Statutes, Section 428A.05. Section 2. Notice of Right to File Objections. 2.01. 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 Laurel Hill 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 Laurel Hill HIA file a written 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 3. Effective Date. 3.01. 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 HIA Act; and (b) execution in full of a development agreement between the City and the Association providing for construction of the Housing Improvements. Section 4. Filing of Housing Improvement Fee. 4.01 After August 6, 2025, 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 of Golden Valley, Minnesota this 6th day of August, 2025. ___________________________ Roslyn Harmon, Mayor ATTEST: Theresa Schyma, City Clerk Docusign Envelope ID: D816C12A-2FCA-4798-88E2-3D7709AB7D6A