Summary Ordinance No. 1407 05-08-2023
Summary Ordinance No. 1407
Establishing Innsbruck North Housing Improvement Area
This ordinance establishes the Innsbruck North Housing Improvement Area (Innsbruck North HIA)
and designating the City as the implementing entity thereof, all pursuant to Minnesota Statutes §§
428A.11 to 428A.21, as amended (Housing Improvement Act). The Fridley City Council will also
adopt a resolution (Fee Resolution) on May 8, 2023 imposing a housing improvement fee (Fee) to
finance various housing improvements in the Innsbruck North HIA.
Owners of approximately 62% of the housing units within the Innsbruck North 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) filed petitions with the City Clerk of the City (City Clerk) requesting a
public hearing regarding both the Ordinance and the Fee Resolution. The public hearing was held
on April 24, 2023.
Affected Area: The Ordinance establishes the Innsbruck North HIA.
Housing Improvements: This Ordinance specifies the “Housing Improvements” that will be
constructed in the Innsbruck North HIA and financed with the Fee. The Housing Improvements are
defined to include, but not limited to, the following:
(a) Site and utility improvements, including but not limited to the replacement of all streets
and driveways; the addition of new curbs and gutters; the replacement or improvement of
sanitary and storm sewer mains; the correction of drainage issues; the replacement and
renovation of retaining walls, paths, sidewalks, stairways and concrete mailbox pads; and the
replacement of the tennis court with green space;
(b) All costs of architectural and engineering services, overhead, and all similar soft costs in
connection with the activities described in paragraph (a) above, including without limitation costs
of a professional construction manager;
(c) All administration, legal and consultant costs in connection with the Innsbruck North HIA; and
(d) All financing costs related to financing the Housing Improvements under the Housing
Improvement Act, including without limitation cost of issuance associated with the issuance of
any general obligation bonds to finance the Housing Improvements, underwriter’s discount on
the bonds, the administrative fee of the City, and capitalized interest on such bonds.
Housing Improvement Fee: This Ordinance provides that the City may impose the Fee on housing
units within the Innsbruck North HIA in an amount sufficient to produce revenues required to pay
the cost of the Housing Improvements. The Fee is set by the Fee Resolution adopted by the City on
May 8, 2023, but the Ordinance lays out the ground rules on how the Fee will be determined. Those
rules are summarized as follows:
The Fee must be imposed based on the total cost of the Housing Improvements to be
financed with the Fee, allocated equally to each unit.
If the Fee is not prepaid, it will be payable over a period of 20 years, with interest as set forth
in the Fee Resolution.
The Fee will be collected at the same time and in the same manner as property taxes.
The total Fee for each unit may not exceed the amount specified in the notice of public
hearing for the Ordinance and the Fee Resolution.
Financial Statements: This Ordinance requires that the Innsbruck North Townhouses Association
(Association) submit the Association’s audited financial statements to the City each year until (i) the
Fee and any interest thereon is paid in full, and (ii) all Fee revenues have been expended.
Bonds. This Ordinance provides that 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
after the period for prepayment without interest of the Fee has ended, the City may issue bonds
(Bonds) in the principal amount necessary to finance (i) a portion of the costs of the Housing
Improvements; (ii) capitalized interest, if any; (iii) the costs of issuance of the Bonds; (iv) the City’s
administrative fee related to issuing the Bonds; and (v) any underwriter’s discount, provided that the
par amount of the Bonds shall not exceed $4,790,000. The Bonds shall be issued pursuant to and
in accordance with Section 428A.16 of the Housing Improvement Act.
Objection. The Ordinance authorizes the City Clerk is authorized and directed to mail to the owner
of each housing unit in the Innsbruck North HIA: (a) a summary of this Ordinance; (b) notice that
owners subject to the proposed Housing Improvement Fee have a right to veto this ordinance if
owners of at least 45% of the housing units within the Innsbruck North HIA file an objection with the
City Clerk before the effective date of this ordinance; and (c) notice that a copy of this Ordinance is
on file with the City Clerk for public inspection.
Effective Date. This ordinance shall be effective 45 days after adoption hereof, or on the date that is
15 days after the publication of this ordinance, whichever is later, subject to the veto rights of housing
unit owners under Section 428A.18 of the Housing Improvement Act.
Map of Innsbruck North HIA