Subd. 1. Definitions. For purposes of this section 910.01, the following terms shall have the meanings ascribed to them:

Act means Minn. Stat. §§ 428A.11 to 428A.21.

Association means the Clearwater Shores Townhouse Association, a Minnesota nonprofit corporation.

City means the City of Waconia, Minnesota.

Clearwater shores housing improvement area means the real property described as Lots 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 and 11, Block 1, Clearwater Shores, Carver County, Minnesota.

Council means the city council.

Housing improvement fees means the fees imposed on the housing units within the Clearwater Shores Housing Improvement Area to repay the costs of the housing improvements (including administrative and financing costs).

Housing improvements means all or any of the following: i) demolition and removal of existing retaining walls, support structures, existing garages and all other improvements necessary for site correction and stabilization; ii) design and construction of replacement retaining walls, support structures, replacement garages and all other improvements necessary for site correction and stabilization; iii) site grading; and iv) other improvements deemed appropriate by the association and approved by the city.

Housing unit owner means a housing unit owner within the Clearwater Shores Housing Improvement Area.

Subd. 2. Establishment. The Clearwater Shores Housing Improvement Area is hereby established as a housing improvement area within the city pursuant to the authority granted by the Act. The city shall implement and administer the Clearwater Shores Housing Improvement Area.

Subd. 3. Contracting for housing improvements. The association shall contract for the housing improvements, as allowed by Minn. Stat. § 428A.13. If any contracts related to the housing improvements are made by the City (pursuant to an amendment to this chapter or otherwise) such contracts shall be entered into in compliance with the requirements of Minn. Stat. § 471.345.

Subd. 4. Housing improvement fees.

A.

Authority. The city shall, by a resolution adopted in accordance with the petition, hearing and notice requirements of Minn. Stat. § 428A.14, impose housing improvement fees at a rate, term or amount sufficient to produce revenue required to provide the housing improvements. Such resolution shall not conflict with the terms of section 910.01.

B.

Allocation of fees. The aggregate housing improvement fees shall be divided equally between each housing unit owner in the Clearwater Shores Housing Improvement Area. The council specifically finds that such allocation is more fair and reasonable than a fee based on the tax capacity or square footage of each housing unit because the housing improvements are in the nature of common area improvements that benefit the housing units equally. The housing improvement fees allocated to each housing unit owner shall run with such owner's real property within the Clearwater Shores Housing Improvement Area.

C.

Payment over time. Subject to the prepayment rights described in this section 910.01, the housing improvement fees shall be paid over time in equal, semiannual installments for a period of fifteen (15) years commencing in 2015. Outstanding housing improvement fees shall bear interest at a rate of 2.77 percent. In accordance with Minn. Stat. § 428A.05, such installment payments shall be payable and collected at the same time and in the same manner provided for payment and collection of ad valorem taxes. As such, delinquent payments shall be subject to the same penalty and interest charges as ad valorem taxes not paid by their respective due date.

D.

Prepayment. Any housing unit owner may prepay the total housing improvement fees allocated to such housing unit owner on or before November 15, 2014. If full payment is made by such date, no interest shall be charged. Thereafter, any prepayment made on or before November 15 ^th of a given year must include interest through the end of such calendar year and any prepayment made after November 15 ^th of a given year must also include interest through the end of immediately following calendar year. Any payment made on November 15 ^th of any given year must be made no later than 4:30 p.m. at City Hall to qualify as being made on November 15 ^th . Further, if November 15 ^th in any given year falls on a Saturday, Sunday or legal holiday recognized by the city, then payment must be made by no later than 4:30 p.m. at City Hall on the business day immediately preceding November 15 ^th to qualify as being made on or before November 15 ^th of such year.

E.

Exclusion from levy limit calculations. As provided Minnesota Statutes § 428A.05, the housing improvement fees shall not be included in the calculation of levies or limits on levies imposed under any law.

Subd. 5. Financing. At any time after a contract for construction of all or part of the housing improvements has been entered into or the work has been ordered, the council may finance the cost of the housing improvements that have not been prepaid using either of the following financing methods, or by using a combination of both methods:

A.

Interfund loan. The council may approve an interfund loan from another city fund. Any such interfund loan shall be approved by a separate resolution of the council.

B.

Issuance of bonds. The council may issue bonds pursuant to and in accordance with Minn. Stat. § 428A.16.

Subd. 6. Annual reports.

A.

Financial statements. On August 15, 2014 and each August 15 thereafter until there are no longer any outstanding sums due in connection with the Clearwater Shores Housing Improvement Area, the association shall submit to the city administrator a copy of the association's audited financial statements.

B.

Other reports. The 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 the association and the city.

Subd. 7. Notice of right to file objections. Within five (5) days of the adoption of this chapter, the city administrator is authorized and directed to mail to each housing unit owner: i) a copy of this chapter ; ii) notice that such owner has a right to veto this chapter if owners of at least forty-five (45) percent of the housing units within the Clearwater Shores Housing Improvement Area file an objection with the city clerk before the effective date of this chapter ; and iii) notice that a copy of this chapter is on file with the city clerk for public inspection.

Subd. 8. Amendment. This chapter may be amended by the council upon compliance with the public hearing and notice requirements set forth in Minn. Stat. § 428A.13.

Subd. 9. Notice to commissioner of revenue. Within thirty (30) days after adoption of this chapter, the city administrator is authorized and directed to mail to the Minnesota Commissioner of Revenue a copy of this chapter.