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City Council

Regular Meeting

Hopkins, MN · February 18, 2025

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Minutes

HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS FEBRUARY 18, 2025 CALL TO ORDER Pursuant to due call and notice thereof a special meeting of the Hopkins City Council was held on Tuesday, February 18, 2025, at 6:30 p.m. in the Council Chambers at City Hall, 1010 1st Street South. Mayor Hanlon called the meeting to order with Council Members Garrido, Goodlund, Hunke and Kuznia attending. Others attending included City Manager Mornson, Assistant City Manager Casella, City Clerk Domeier, Finance Director Bishop, Director of Planning and Development Elverum and Community Development Manager Needham. ADOPT AGENDA Motion by Hunke. Second by Garrido. Motion to Adopt the Agenda. Ayes: Garrido, Goodlund, Hanlon, Hunke, Kuznia Nays: None. Motion carried. CONSENT AGENDA Motion by Hunke. Second by Goodlund. Motion to Approve the Consent Agenda. 1. Minutes of February 4, 2025, Regular Meeting Proceedings 2. Minutes of February 4, 2025, Closed Meetings Proceedings 3. Amendment to the 2025-2029 Capital Improvement Plan; Bishop 4. Resolution Accepting Gifts and Donations Received by the City in 2024; Bishop Ayes: Garrido, Goodlund, Hanlon, Hunke, Kuznia Nays: None. Motion carried. NEW BUSINESS V11.1. First Reading: Ordinance Amending Chapter 20 of the Hopkins City Code, Establishing an Affordable Housing Trust Fund; Needham Community Development Manager Needham summarized City Council Report 2025-023. There is a one-time grant opportunity to secure approximately $150,000 to fund affordable housing programs through the Local Housing Trust Fund Grant Program. The program matches funds 1:1 up to $150,000 for applicants to fund housing trust funds. To apply for the funds, the city needs to establish a housing trust fund. Further discussion was held about the grant funds, opportunities, timelines and city funding. Motion by Hunke. Second by Garrido. Motion to Approve a First Reading of Ordinance 2025-1222 Amending the Hopkins City Code. Ayes: Garrido, Goodlund, Hanlon, Hunke, Kuznia HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS FEBRUARY 18, 2025 Nays: None. Motion carried. ANNOUNCEMENTS Mayor Hanlon shared the City Council meeting schedule. City Manager Mornson spoke to the Public Works Director retirement and recruitment and the Police Department ICPOET program expanding in April. He also shared that the bid opening is coming up for the central avenues project. ADJOURNMENT There being no further business to come before the City Council, and upon motion by Hunke, second by Goodlund, the meeting was unanimously adjourned at 6:45 p.m. Respectfully Submitted, Amy Domeier, City Clerk

Agenda

HOPKINS CITY COUNCIL AGENDA Tuesday, February 18, 2025 6:30 pm THIS AGENDA IS SUBJECT TO CHANGE UNTIL THE START OF THE CITY COUNCIL MEETING I. CALL TO ORDER II. ADOPT AGENDA III. PRESENTATIONS IV. CONSENT AGENDA 1. Minutes of February 4, 2025, Regular Meeting Proceedings 2. Minutes of February 4, 2025, Closed Meetings Proceedings 3. Amendment to the 2025-2029 Capital Improvement Plan; Bishop 4. Resolution Accepting Gifts and Donations Received by the City in 2024; Bishop V. PUBLIC HEARINGS VI. OLD BUSINESS VII. NEW BUSINESS 1. First Reading: Ordinance Amending Chapter 20 of the Hopkins City Code, Establishing an Affordable Housing Trust Fund; Needham VIII. PUBLIC COMMENT IX. ANNOUNCEMENTS • Next City Council Regular Meetings: Tuesday, March 4 and 18 at 6:30 p.m. X. ADJOURN HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS JANUARY 21, 2025 CALL TO ORDER Pursuant to due call and notice thereof a special meeting of the Hopkins City Council was held on Tuesday, January 21, 2025, at 6:30 p.m. in the Council Chambers at City Hall, 1010 1st Street South. Mayor Hanlon called the meeting to order with Council Members Garrido, Goodlund, Hunke and Kuznia attending. Others attending included City Manager Mornson, Assistant City Manager Casella, City Clerk Domeier, Finance Director Bishop, Special Projects and Initiatives Manager Imihy, Arts Center Director Anderson and City Attorney Riggs. ADOPT AGENDA Motion by Garrido. Second by Hunke. Motion to Adopt the Agenda. Ayes: Garrido, Goodlund, Hanlon, Hunke, Kuznia Nays: None. Motion carried. PRESENTATIONS III.1. Update from Hennepin County Commissioner Edelson; Hanlon Hennepin County Commissioner Edelson provided an update to the City Council on District 6 and other Hennepin County items. III.2. Craft and Crew Update on Pub 819 Operations; Hanlon Luke Derheim with Craft and Crew provided an update on Pub 819 operations. Mr. Derheim shared his appreciation of the city department and City Council for their support during and after the building fire. III.3. Hopkins Center for the Arts Update; Anderson Arts Center Director Anderson summarized the memo provided in the packet. Additional information was provided by Stages representatives. CONSENT AGENDA Motion by Hunke. Second by Kuznia. Motion to Approve the Consent Agenda. 1. Minutes of the January 7, 2025, Regular Meeting Proceedings 2. Minutes of the January 14, 2025, Work Session Proceedings 3. Minutes of the January 14, 2025, Closed Session Proceedings 4. Approval of Cooperative Agreement with the City of Minnetonka for Joint Recreation Services; Imihy 5. Approval of the Pay Equity Compliance Report; Casella Ayes: Garrido, Goodlund, Hanlon, Hunke, Kuznia Nays: None. Motion carried. HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS JANUARY 21, 2025 PUBLIC HEARING V.1. First Reading: Ordinance Amending Chapter 2 of the Hopkins Charter (Mayor’s term); Domeier City Clerk Domeier summarized City Council Report 2025-008. The Hopkins Charter Commission is proposing amending the City Charter to change the length of the mayor’s term of office to a four-year term. Mayor Hanlon opened the Public Hearing at 7:43. Nathan White, Charter Commissioner, resident at 421 Wayside Road, shared his support for the proposed amendment. Michelle Maurer, Charter Commissioner, resident at 306 10th Avenue North, shared her support for the proposed amendment. Jason Gadd, Charter Commissioner, resident at 209 Wayside Road West, shared his support for the proposed amendment. William Anderson, 108 Wayside Road West, shared that he did not support the proposed amendment. Carol Dunn, Charter Commissioner, resident at 421 Hazel Lane, shared her support for the proposed amendment. Motion by Hunke. Second by Kuznia. Motion to Close the Public Hearing. Ayes: Garrido, Goodlund, Hanlon, Hunke, Kuznia Nays: None. Motion carried. Mayor Hanlon and Council Members Garrido, Hunke and Kuznia shared their support for the amendment change. Reasonings for support included the stability of the mayor’s term, the opportunity to build relationships with other government officials and agencies and the amount of time campaigning takes away from the regular mayoral duties. Council Member Goodlund did not support the amendment change. Reasonings for not supporting the amendment were to have a checks and balance in place and to be more accountable to the resident’s constant shifting of community needs. He wanted to see the item on the next ballot. Motion by Garrido Second by Hunke. Motion to Approve for First Reading Ordinance 2025-1218 Amendment of the Hopkins Charter by Ordinance. Ayes: Garrido, Hanlon, Hunke, Kuznia Nays: Goodlund. Motion failed. HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS JANUARY 21, 2025 City Clerk Domeier stated that the amendment would be sent back to the Charter Commission. V.2. First Reading: Ordinance Amending Chapter 4 of the Hopkins Charter (Municipal Elections); Domeier City Clerk Domeier summarized City Council Report 2025-009. The Hopkins Charter Commission is proposing amending the City Charter to change municipal elections from odd-year to even-year. Ms. Domeier also explained that the School District is responsible for conducting their own elections in off-year where a municipality does not have an election. Mayor Hanlon opened the Public Hearing at 8:37 pm. Kristin Hanneman, Charter Commissioner, resident at 154 Meadowbrook Road, shared her support for the proposed amendment. Carol Dunn, Charter Commissioner, resident at 421 Hazel Lane, shared her support for the proposed amendment. Jason Gadd, Charter Commissioner, resident at 209 Wayside Road West, shared his support for the proposed amendment. Nathan White, Charter Commissioner, resident at 421 Wayside Road West, shared his support for the proposed amendment. Motion by Garrido. Second by Hunke. Motion to Close the Public Hearing. Ayes: Garrido, Goodlund, Hanlon, Hunke, Kuznia Nays: None. Motion carried. Council Member Goodlund did not support the amendment change. Reasonings for not supporting the amendment were to advocate for democracy, find other ways to save money in the budget, local candidates would be crowded out by a national election and that the issue should go back to the voters. Mayor Hanlon and Council Members Garrido, Hunke and Kuznia shared their support for the amendment change. Reasonings for support included the voter turnout in the even years, election data provided by staff, cost and time savings, creating efficiencies, voter fatigue, and having a fiscal responsibility to the residents. Motion by Hunke. Second by Garrido. Motion to Approve for First Reading Ordinance 2025-1219 Amendment of the Hopkins Charter by Ordinance. Ayes: Garrido, Hanlon, Hunke, Kuznia Nays: Goodlund. Motion failed. HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS JANUARY 21, 2025 City Clerk Domeier stated that the amendment would be sent back to the Charter Commission. V.3. First Reading: Ordinance Amending Chapter 4 of the Hopkins Charter (Candidate Filing); Domeier City Clerk Domeier summarized City Council Report 2025-010. The Hopkins Charter Commission is proposing amending the City Charter to change the candidate filing language to align with the process and dates outlined in state statute. Mayor Hanlon opened the Public Hearing at 9:01 p.m. Motion by Garrido. Second by Hunke. Motion to Close the Public Hearing. Ayes: Garrido, Goodlund, Hanlon, Hunke, Kuznia Nays: None. Motion carried. Motion by Hunke. Second by Garrido. Motion to Approve for First Reading Ordinance 2025-1220 Amendment of the Hopkins Charter by Ordinance. Ayes: Garrido, Goodlund, Hanlon, Hunke, Kuznia Nays: None. Motion carried. City Clerk Domeier stated that the amendment would be on the February 4, 2024, City Council agenda. V.4. First Reading: Ordinance Amending Chapter 4 of the Hopkins Charter (Write- in Candidates); Domeier City Clerk Domeier summarized City Council Report 2025-010. The Hopkins Charter Commission is proposing amending the City Charter to change the process for counting write-in votes during municipal elections. Mayor Hanlon opened the Public Hearing at 9:11 p.m. Jason Gadd, Charter Commissioner, resident at 209 Wayside Road West, shared his support for the proposed amendment. William Anderson, 108 Wayside Road West, shared that he did not support the proposed amendment. Motion by Hunke. Second by Garrido. Motion to Close the Public Hearing. Ayes: Garrido, Goodlund, Hanlon, Hunke, Kuznia Nays: None. Motion carried. HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS JANUARY 21, 2025 Motion by Hunke. Second by Goodlund. Motion to Approve for First Reading Ordinance 2025-1221 Amendment of the Hopkins Charter by Ordinance. Ayes: Garrido, Goodlund, Hanlon, Hunke, Kuznia Nays: None. Motion carried. City Clerk Domeier stated that the amendment would be on the February 4, 2024, City Council agenda. ANNOUNCEMENTS Mayor Hanlon shared the City Council meeting schedule. ADJOURNMENT There being no further business to come before the City Council, and upon a motion by Hunke, second by Goodlund, the meeting was unanimously adjourned at 9:26 p.m. Respectfully Submitted, Amy Domeier, City Clerk HOPKINS CITY COUNCIL CLOSED MEETING PROCEEDINGS FEBRUARY 4, 2025 CALL TO ORDER Pursuant to due call and notice thereof a closed session of the Hopkins City Council was held on Tuesday, February 4, 2025, at 7:52 p.m. in the Raspberry Room at City Hall, 1010 1st Street South. Mayor Hanlon called the meeting to order with Council Members Garrido, Goodlund, Hunke and Kuznia attending. Others attending included City Manager Mornson, Assistant City Manager Casella, City Clerk Domeier, Special Projects and Initiatives Manager Imihy, Director of Planning and Development Elverum, Community Development Manager Needham, Planner Krzos, Finance Director Bishop and City Attorney Riggs. Motion by Kuznia. Second by Garrido. Motion to go into closed session pursuant to Minnesota Statutes, Sections 13D.05, subd. 3(c) and 13.44, subd. 3, to conduct a closed council meeting concerning the properties identified as (PID’s and location): 102 10th Avenue North (PID No. 2411722310095; PID No. 2411722310094; PID No. 2411722310002); 501 Mainstreet (PID No. 2411722420009); 525 Main Street (PID No. 2411722420166); 15 6th Avenue North (PID No. 2411722420017) (hereinafter collectively referred to as the “Properties”) and to consider strategies and to develop or consider offers or counteroffers for the purchase or sale of the Properties and to review confidential appraisal information for the Properties. The need for confidentiality outweighs the purposes of the open meeting law because the City Council, City staff and City Attorney intend to candidly discuss the City’s options and potential strategies related to these Properties. Ayes: Garrido, Goodlund, Hanlon, Hunke, Kuznia Nays: None. Motion carried. Motion by Goodlund. Second by Hunke. Motion to go out of closed session. Ayes: Garrido, Goodlund, Hanlon, Hunke, Kuznia Nays: None. Motion carried. ADJOURNMENT There being no further business to come before the City Council, and upon a motion by Hunke , second by Kuznia, the meeting was unanimously adjourned at 8:42 p.m. Respectfully Submitted, Amy Domeier, City Clerk HOPKINS CITY COUNCIL CLOSED MEETING PROCEEDINGS FEBRUARY 4, 2025 CALL TO ORDER Pursuant to due call and notice thereof a closed session of the Hopkins City Council was held on Tuesday, February 4, 2025, at 8:46 p.m. in the Raspberry Room at City Hall, 1010 1st Street South. Mayor Hanlon called the meeting to order with Council Members Garrido, Goodlund, Hunke and Kuznia attending. Others attending included City Manager Mornson, Assistant City Manager Casella, City Clerk Domeier, Special Projects and Initiatives Manager Imihy, Director of Planning and Development Elverum, Community Development Manager Needham, Finance Director Bishop and City Attorney Riggs. Motion by Hunke. Second by Garrido. Motion to go into closed session pursuant to Minnesota Statutes Sections 13D.05, subdivision 3(c) and 13.44, subdivision 3, to conduct a closed meeting concerning real property located at the address of 101 Oakwood Road (PID No. 19-117-21- 44-0039) in the City of Hopkins, to consider strategies and to develop or consider offers or counteroffers for the sale of the property and to review confidential appraisal information for such property. Ayes: Garrido, Goodlund, Hanlon, Hunke, Kuznia Nays: None. Motion carried. Motion by Garrido. Second by Hunke. Motion to go out of closed session. Ayes: Garrido, Goodlund, Hanlon, Hunke, Kuznia Nays: None. Motion carried. ADJOURNMENT There being no further business to come before the City Council, and upon a motion by Goodlund, second by Hunke , the meeting was unanimously adjourned at 9:21 p.m. Respectfully Submitted, Amy Domeier, City Clerk Finance Department Public Work Department CITY OF HOPKINS City Council Report 2025-024 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Nick Bishop, Finance Director Dustin Pavek, Assistant Public Works Director Date: February 18, 2025 Subject: Amend 2025-2029 Capital Improvement Plan _____________________________________________________________________ RECOMMENDED ACTION MOTION TO approve an amendment to the 2025-2029 Capital Improvement Plan adding $90,000 for the construction of a yard waste storage building. OVERVIEW The City Council approved the 2025-2029 Capital Improvement Plan (CIP) on November 12, 2024. The approved CIP did not include the yard waste storage building. Currently, storage space is congested and trailers and kept outside in the elements. With the addition of this project, the Refuse Fund is projected to end 2025 with a $862,853 fund balance, which is appropriate for its operational needs. SUPPORTING INFORMATION • Project Detail for 24-CIP-U024 Finance Department CITY OF HOPKINS City Council Report 2025-025 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Nick Bishop, Finance Director Date: February 18, 2025 Subject: Accept 2024 Gifts and Donations _____________________________________________________________________ RECOMMENDED ACTION MOTION TO adopt Resolution 2025-008 Accepting Gifts and Donations Received by the City in 2024. OVERVIEW Minnesota State Statute 465.03 requires that the City Council officially accept gifts to the City through a resolution. The attached resolution includes all gifts and donations received throughout 2024, totaling $39,265.18. Certain gifts and donations are reflected in the annual budget due to their recurring nature. Acceptance of additional gifts or donations may result in additional or offsetting expenditures. Acceptance 2024 Gifts and Donations will not create any additional long- term costs or expenditures for the City. SUPPORTING INFORMATION • Resolution 2025-008 Accepting Gifts and Donations Received by the City in 2024 CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION 2025-008 RESOLUTION ACCEPTING GIFTS AND DONATIONS RECEIVED BY THE CITY IN 2024 WHEREAS, MN Statute 465.03 requires that cities accept donations for the benefit of its residents in accordance with the terms prescribed by the donor; and WHEREAS, MN Statute 465.03 requires that all gifts and donations be accepted only with the adoption of a resolution of the governing body by two-thirds of its members; and WHEREAS, additional revenues received may require the City to incur additional expenditures in order to comply with restricted donations; and WHEREAS, the City has received the following gifts and donations during 2024: Donor Amount Designated Use Anonymous 20.00 Depoty Youth Advisory Board Anonymous 1,297.72 Arts Center Depot Gala Silent Auction 906.00 Depoty Youth Advisory Board Donations through ActiveNet Registration 11,186.60 Activity Center Donations through AudienceView Ticketing 1,009.00 Arts Center Friends of HCA 12,500.00 Arts Center Fundraising 6,622.10 Activity Center Gethsemane Lutheran 2,000.00 Hopkins Race & Equity Initiative Hopkins ISD #270 2,000.00 Hopkins Race & Equity Initiative Karen Monson 150.00 Arts Center Kennedy & Graven Chartered 250.00 Depot Youth Advisory Board LHB, Inc. 250.00 Depot Youth Advisory Board Nathan Viste-Ross 120.00 Arts Center Payroll Contributions 139.91 Activity Center Payroll Contributions 279.93 Depot Payroll Contributions 533.92 Arts Center NOW THEREFORE BE IT RESOLVED, that the gifts and donations are hereby officially accepted by City Council with acknowledgement and gratitude to the donors. Adopted by the City Council of the City of Hopkins this 18th day of February, 2025. By:___________________________ Patrick Hanlon, Mayor ATTEST: _______________________________ Amy Domeier, City Clerk Planning & Economic Development CITY OF HOPKINS City Council Report 2025-023 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Revée Needham, Community Development Manager Date: February 18, 2025 Subject: Ordinance Amending Chapter 20 of the Hopkins City Code, Establishing an Affordable Housing Trust Fund _____________________________________________________________________ RECOMMENDED ACTION MOTION TO Approve a First Reading of Ordinance 2025-1222 Amending the Hopkins City Code. OVERVIEW There is a one-time grant opportunity for the City of Hopkins to secure approximately $150,000 to fund affordable housing programs through the Local Housing Trust Fund Grant Program. The program matches funds 1:1 up to $150,000 for applicants to fund housing trust funds. In order to apply for these funds, the City of Hopkins needs to establish a housing trust fund. Local Housing Trust Fund Grant Program In 2021, the Minnesota Legislature appropriated $1 million in funding for a local housing trust funds grant program. The program uses state funding to match a portion of new housing trust fund dollars to encourage local investment in affordable housing across Minnesota. These funds may come from any source other than the state or federal government. In 2023, the Minnesota Legislature appropriated an additional $4.8 million to the program. The grant funds: • Must be used for households at or below 115% of state median income • May be used for o Development, rehabilitation or financing of housing o Downpayment assistance o Rental assistance o Homebuyer counseling services o Administrative expenses, up to 10% of grant • Must be used within five years. Any unspent funds must be returned to Minnesota Housing. Eligible applicants to the grant program include cities, counties, tribal governments, and collaborations between multiple eligible entities. The grant program provides a one-to- one match on the first $150,000 of new revenue invested in housing trust funds by cities and counties, and a one-to-two match on the next $150,000 of available funds, pending fund availability. The RFP for the grant program opened on February 12, 2025, with applications due in March 19, 2025. To take advantage of this program, staff are proposing establishing an affordable housing trust fund and applying to the program. Affordable Housing The City Council has heard several presentations on affordable housing in the recent years including on September 13, 2022, March 14, 2023 and May 21, 2024. A more comprehensive overview of affordable housing and specific affordable housing units in Hopkins can be found in those presentations. In addition, the City Council has identified affordable housing policies as a goal for the past several years. Cultivate Hopkins identifies Affordable Housing as a goal and includes policy directives to support the preservation, production, and protection of affordable housing units. Local Housing Trust Funds Local Housing Trust Funds (LHTF) are funds established by local governments by dedicating local public revenue for housing. They are a consistent, flexible resource for housing within a local jurisdiction. Trust funds help communities leverage public and private resources and jumpstart projects that draw investment and jobs. LHTFs enable prioritizing developments that maximize benefit to the community. As of February 2023, there were over 20 LHTFs in Minnesota, including neighboring cities Eden Prairie, Edina, Minnetonka, and St. Louis Park. The common funding sources for LHTFs include: • HRA levy • TIF pooling • Housing related funds (including land sale proceeds, in lieu of fees, etc.) • Federal and State Formula Funds (CDBG, HOME, ARPA, etc.) • One-time Funds (initial funding, annual appropriations, etc.) • Donations (individual and organizational) LHTFs are notable in their flexibility for responding to community needs. LHTFs can fund a variety of programs and can be tailored to specific geographic areas, income groups, types of housing, housing gaps (i.e. senior housing, etc.), and more. These programs can change over time to adapt to the changing community. Common programs include: • Homebuyer Assistance • Preservation (single family rehab, multi-family rehab, NOAH preservation) • Gap financing (new construction, redevelopment) • Creating deeper affordability • Housing Stability (emergency housing assistance) Hopkins Affordable Housing Trust Fund Staff drafted an ordinance based on peer cities and State Statute. The attached draft ordinance was reviewed by the City Attorney. This ordinance is simple and largely mirrors State Statute requirements. Further program specifics would be developed later. The City can fund the AHTF through multiple sources including the existing balance in the Economic Development Fund, Local Affordable Housing Aid (LAHA) and/or a General Tax Levy. • Staff would recommend using existing fund balance in the Economic Development Fund as a one-time match for Minnesota Housing’s Local Housing Trust Fund Grant Program. • While not eligible for the grant program local match, LAHA could be transferred into the AHTF. In 2024, the City received $172,642. The Minnesota Department of Revenue has not yet certified amounts for 2025. • The City Council could also levy additional taxes for this purpose. The grant application is scored higher if additional funds are committed to the AHTF after the grant funds have been expended. Through approval of this ordinance, City Council would authorize staff to apply to the program. Staff will return on March 4th with a resolution for an internal transfer from the Economic Development Fund to fund the AHTF to meet the grant program match requirements. The maximum grant award is $225,000 if an entity matches with $300,000 in local funds, depending upon application demand and availability. However, given the high interest in the program, the maximum grant award may be $150,000 if an entity matches with $150,000 in local funds. AHTF Uses, LAHA, and Community Engagement Staff are recommending the establishment of the AHTF and application to the State matching program and then returning to the City Council with a funding plan when we have a more complete picture. In addition to not knowing if we will receive the additional AHTF dollars from the State, at this time, there is also uncertainty over cuts to federal housing programs which could impact the funding for Dow Towers. We are also waiting to hear back on available state funding for the sprinkler system at Dow Towers. Therefore, staff are recommending waiting on final decisions for LAHA and other AHTF fund uses until we know more about other funding sources. Staff are recommending that we ask for feedback on the funding plan from the community. There has been interest from several housing providers, developers, and other interested members of the public regarding LAHA and other affordable housing programs. To gather feedback, staff are proposing to add a webpage to the City website outlining these affordable housing funding sources and distribute an online survey to assess the prioritization of multiple areas of opportunity for affordable housing policies (i.e. homeownership, rental rehabilitation, new construction, etc.). This survey would also be shared with a more targeted list of service providers in Hopkins, such as ICA Food Shelf, ResourceWest, and others. After gathering feedback and hearing back on the local housing trust fund grant program application, staff would return with recommendations on developing any policies or programs for the AHTF and/or LAHA funds. SUPPORTING INFORMATION • Ordinance 2025-1222 • Hyperlink to Minnesota Statute 426C.16 • Hyperlink to Minnesota Housing Partnership’s Local Housing Trust Fund Overview • Hyperlink to Local Housing Trust Fund Grants Program Webpage CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA ORDINANCE 2025-1222 AN ORDINANCE AMENDING CHAPTER 20 OF THE HOPKINS CITY CODE ESTABLISHING AN AFFORDABLE HOUSING TRUST FUND THE COUNCIL OF THE CITY OF HOPKINS HEREBY ORDAINS AS FOLLOWS: SECTION 1. Amending Chapter 20 of the Hopkins City Code to amend Article II, Section 20-19 to Section 20-23 as follows: ARTICLE II. – AFFORDABLE HOUSING TRUST FUND. Sec. 20-19. - Purpose Pursuant to Minnesota Statutes, Section 462C.16, the City of Hopkins (the “City”) is authorized to establish a local housing trust fund. The City is creating an Affordable Housing Trust Fund to encourage the creation of affordable housing for rental housing and owner-occupied housing, to promote the preservation of existing affordable housing and naturally occurring affordable housing, and to provide rental assistance and homeownership assistance to persons of very low income, low income, and moderate- income. Sec. 20-20. – Definitions The following words, terms, and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning. Additionally, the words and phrases used in this article which are defined in Minnesota Statutes, Section 462C.16, shall have the meanings ascribed to them in those statutes. Persons of very low income means individuals or families whose incomes do not exceed 50 percent of area median income as most recently determined by the United States Department of Housing and Urban Development for the Minneapolis- St. Paul-Bloomington, Minnesota Metropolitan Statistical Area, as adjusted for family size. Persons of low income means individuals or families whose incomes do not exceed 80 percent of the area median income as most recently determined by the United States Department of Housing and Urban Development for the Minneapolis-St. Paul- Bloomington, Minnesota Metropolitan Statistical Area, as adjusted for family size. Persons of moderate-income means individuals or families whose incomes exceed 80 percent, but do not exceed 120 percent, of area median income, as most recently determined by the United States Department of Housing and Urban Development for the Minneapolis-St. Paul-Bloomington, Minnesota-Wisconsin Metropolitan Statistical Area, as adjusted for family size. Sec. 20-21. – Establishing the Affordable Housing Trust Fund Pursuant to the authority granted to the City under Minnesota Statutes, Section 462C.16, an affordable housing trust fund is established to provide the following: (a) Grants, loans, and loan guarantees for the development, rehabilitation, or financing of housing. (b) Match other funds from federal, state, or private resources for housing projects. (c) Downpayment assistance. (d) Rental assistance to persons of very low, low, and moderate income. (e) Homebuyer counseling services. (f) Payment of administrative expenses of the Affordable Housing Trust Fund in the maximum amount of ten percent of the balance of the Affordable Housing Trust Fund. Sec. 20-22. – Funding Sources The City Council may pledge sources of funding to the Affordable Housing Trust Fund, which may include, but are not limited to: (a) Private donations from individuals and corporations designated for the Affordable Housing Trust Fund. (b) Grants or loans from a state, federal or local government or private sources. (c) The sale of real and personal property. (d) Local government appropriations, development fees, and other funds as designated from time to time by the City Council. (e) Investment earnings from the Affordable Housing Trust Fund. (f) Tax Increment Finance (TIF) pooled funds. (g) Housing and Redevelopment levy funds. (h) Payments in lieu of participation in current or future affordable housing programs. (i) Other sources of funding approved by the City Council. Sec. 20-23. – Administration of the Affordable Housing Trust Fund (a) The Housing Redevelopment Authority in and for the City of Hopkins (the “Authority”) shall administer the Affordable Housing Trust Fund on behalf of the City. (b) Terms and Conditions of Repayment. The Authority shall determine the terms and conditions of repayment of loans and grants from the Affordable Housing Trust Fund, including but not limited to, the appropriate security and interest, if any, should repayment be required. Interest on loans and grants shall be established by the Authority from time to time or at the time of approval of a specific project or program. (c) Annual Report. The Authority shall report annually to the City on the use of the Affordable Housing Trust Fund, including the number of loans and grants made, the number and types of residential units assisted, and the number of households provided rental assistance and down payment assistance. The City shall post the report on its website. Sec. 20-24 – 20-118. – Reserved SECTION 2. SUMMARY PUBLICATION. In accordance with Section 3.03 of the City Charter and Minnesota Statutes Section 412.191, the City Council determines the publication of the title and a summary of the Ordinance would clearly inform the public of its intent and effect, and so City staff shall have the following summary printed in the official City newspaper in lieu of the complete ordinance: ORDINANCE NO. 2025-1222 AN ORDINANCE ESTABLISHING AN AFFORDABLE HOUSING TRUST FUND On March 4, 2025, the Hopkins City Council adopted Ordinance 2025-1222 that amends Chapter 20 of the Hopkins City Code. The purpose of amending the City Code was to establish an Affordable Housing Trust Fund. A printed copy of the ordinance is available for inspection during regular business hours at Hopkins City Hall and at the Hopkins Library and is available online at the City's website located at www.hopkinsmn.com. SECTION 3. EFFECTIVE DATE. The effective date of this ordinance shall be March 14, 2025. First Reading: February 18, 2025 Second Reading: March 4, 2025 Date of Publication: March 13, 2025 Date Ordinance Takes Effect: March 14, 2025 By:___________________________ Patrick Hanlon, Mayor ATTEST: _______________________________ Amy Domeier, City Clerk

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