04-27-2011 CCM BOAMEETING OF THE ELK RIVER
• BOARD OF APPEAL AND EQUALIZATION
HELD AT THE SHERBURNE COUNTY GOVERNMENT CENTER
WEDNESDAY, APRIL 27, 201 I
Members Present: Mayor Dietz, Councilmembers Zerwas, Gumphrey, and Westgaard
Members Absent: Councilmember Motin
Staff Present: City Clerk Tina Allard and Executive Secretary/Deputy City Clerk Jessica
Miller
Also Present: Sherburne County Assessor Gerald Kritzeck, Chief Deputy John Cullen,
Residential Appraisers Greg Olson, Theresa Quinn, and Shelly Murschel,
Agricultural Specialist Jeanne Henderson, and Commercial/Industrial
Appraiser William Riley
Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Elk River Board of Appeal and
Equalization was called to order at 6:30 p.m. by Mayor Dietz.
2. Board of Aptieal~ qualization
• Gerald Kritzeck, Sherburne County Assessor, indicated that the purpose of the Board of
Appeal and Equalization is to consider and review 2011 estimated market values and
property classifications.
Information was presented on the assessment procedures and statistics for the City of Elk
River 2011 assessments.
The Board of Appeal and Equalization heard appeals as outlined below:
1. John Alfords, Parcel Identification Numbers 75-404-0050, 75-404-0031, and
75-408-0175
Mr. Alfords indicated he owns three apartment buildings in Elk River and questioned how
Sherburne County's figures can be so different from what he reads in the Star Tribune.
Mr. Cullen explained the process.
MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY
COUNCILMEMBER GUMPHREY TO MAKE NO CHANGE TO PARCELS 75-
404-0050, 75-404-0031, AND 75-408-0175 AT THIS TIME AND FOR THE
APPRAISER TO REASSESS ALL THREE PARCELS AND REPORT BACK AT
THE RECONVENE MEETING. MOTION CARRIED 4-0.
2. Terrance Tigges, Parcel Identification Number 75-601-0370
• Mr. Tigges stated he searched the Internet for comparable values and based on that
information, he figures his value should be appraised at between $272,438 and $291,820.
Boazd of Appeal and Equalization Minutes
Apri127, 2011
Page 2
Mr. Kritzeck explained that statute only allows the assessor to use arm's length transactions •
which would not include some of the values that Mr. Tigges is using. Mr. Olson stated he
viewed comparables of similar ramblers in comparable neighborhoods in Elk River and the
range was from $314,900 to $349,300 with the average at $330,200.
MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY
COUNCILMEMBER WESTGAARD TO ADJUST THE VALUE OF PARCEL 75-
601-0370 TO $330,200 WITH THE REDUCTION BEING MADE TO THE
BUILDING VALUE. MOTION CARRIED 4-0.
3. Jacqueline Warfield, Parcel Identification Number 75-106-1300
Ms. Warfield indicated that her property was removed from Green Acres in 2008 and she is
doing everything possible to get back in. She questioned why her neighbor's properties are
being. assessed at a lower rate per acre than her property.
Mr. Kritzeck explained that in order to qualify for the Green Acres program a property must
first be classified as Agricultural. He further explained the requirements for the property to
be classified as Agricultural.
Ms. Henderson stated that the classification of property is based on the use from the
previous year and Ms. Warfield recently completed the fencing of additional pasture but not
in time for that area to be considered for the 2011 assessment.
Mr. Kritzeck also explained why Ms. Warfield's neighbor's properties are assessed at a lower .
value.
MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY
COUNCILMEMBER WESTGAARD TO REDUCE THE VALUE OF 9 ACRES
OF RESIDENTIALLY CLASSED REMAINING ACRES FROM $4,600 AN ACRE
TO $3,600 AN ACRE ON PARCEL 75-106-1300. MOTION CARRIED 4-0.
4. Timothy Hahn, Parcel Identification Number 75-719-3108
Stated that he lives in the least expensive unit in his complex and believes his appraised value
should be reduced.
Mr. Olson reviewed sales and the value of neighboring units. He indicated that he has to
balance all of the townhome units in the city and he feels he is accurate on his appraisal
unless something is wrong with Mr. Hahn's unit.
MOVED BY COUNCILMEMBER WESTGAARD AND SECONDED BY
COUNCILMEMBER GUMPHREY TO ADJUST THE VALUE OF PARCEL 75-
719-3108 TO $104,000 WITH THE REDUCTION BEING MADE TO THE
BUILDING VALUE. MOTION CARRIED 4-0.
5. Lori Neutgens, Parcel Identification Number 75-546-0256
Ms. Neutgens explained that she believes her value is too low and she would like the
appraiser to come out and reassess her property. She noted that she has made recent •
improvements.
Board of Appeal and Equalization Minutes
Apri127, 2011
Page 3
• Mr. Olson was agreeable to reviewing Ms. Neutgen's property.
MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY
COUNCILMEMBER WESTGAARD FOR THE APPRAISER TO REASSESS
PARCEL 75-546-0256 AND REPORT BACK AT THE RECONVENE MEETING.
MOTION CARRIED 4-0.
6. KR Farm Land Holdings, LLC, Parcel Identification Number 75-136-1200
Allen Roessler, representing KR Farm Land Holdings, requested that the parcel above be
reclassified as Agricultural for the 2011 assessment.
Mr. Kritzeck explained that LLC companies are required to register with the Minnesota
Department of Agriculture in order to farm. Mr. Roessler stated that his family's LLC falls
under an exemption to that rule because their LLC is 100% owned by his father.
Ms. Henderson indicated that the property has been classified as Residential since 2007. She
stated that KR Farm Land Holdings LLC purchased the property in May 2010 but never
contacted the assessor's office to have someone review the use of the property. She stated
that the burden of proof for the use of the property lies with KR Farm Land Holdings LLC.
She noted that the company owns agricultural property in other counties so filing a schedule
F may not be sufficient to prove farm income in Sherburne County.
MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY
COUNCILMEMBER WESTGAARD TO MAKE NO CHANGE TO PARCEL 75-
• 136-1200. MOTION CARRIED 4-0.
7. KR Farm Land Holdings, LLC, Parcel Identification Number 75-125-4101
Allen Roessler, representing KR Farm Land Holdings, LLC, requested that the Board extend
his Green Acres application deadline until he can get the Green Acres issue resolved.
Ms. Henderson stated that the Agricultural and Green Acres issue is complex. She stated
that she has a letter dated December 29, 2009, regarding the corporate farm law that says
that certain entities, including LLC. companies, are required to register with the Minnesota
Department of Agriculture simply to own farm land. She stated that Mr. Roessler has
indicated that his family's LLC is exempt and she explained that the burden of proof lies
with the LLC. She stated that the assessor will need a letter from the Minnesota Department
of Agriculture proving their company is exempt.
MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY
COUNCILMEMBER WESTGAARD TO MAKE NO CHANGE TO PARCEL 75-
125-4101. MOTION CARRIED 4-0.
8. Bechtel Family Joint Revocable Trust, Parcel Identification Number 75-760-
0110
Mark Betchel, representing the Bechtel Family Joint Revocable Trust, stated he purchased
this property last year for approximately $146,000 less than what it is currently appraised at
• and requested that the value be reduced to match what he paid.
Board of Appeal and Equalization Minutes
Apri127, 2011
Page 4
Mr. Olson indicated that he did his best to evaluate but had a difficult time finding
comparables. He reviewed four comparables county-wide and stated that he believes the •
replacement cost would be at least what the property is currently valued at.
MOVED BY MAYOR DIETZ TO MAKE NO CHANGE TO PARCEL 75-760-0110.
Motion died for lack of a second.
MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY
COUNCILMEMBER ZERWAS TO ADJUST THE VALUE OF PARCEL 75-760-
0110 TO $646,100 WITH $4,200 OF THE REDUCTION BEING MADE ON THE
LAND VALUE AND THE REMAINING $45,800 REDUCTION BEING MADE
ON THE BUILDING VALUE. MOTION CARRIED 3-1. Mayor Dietz opposed.
9. Richard Hetland, Parcel Identification Number 75-584-0230
Mr. Hetland questioned how the appraiser arrived at his land value. He noted that the
property is mainly wetland.
Ms. Quinn reviewed the appraisal. She added that the appraisal has been adjusted
recognizing for the large amount of low land.
MOVED BY COUNCILMEMBER WESTGAARD AND SECONDED BY
COUNCILMEMBER GUMPHREY TO MAKE NO CHANGE TO PARCEL 75-
584-0230. MOTION CARRIED 4-0.
10. Richard Anderson, Parcel Identification Number 75-112-4410 •
Mr. Anderson questioned why his value goes down but his taxes increase.
Mayor Dietz explained the tax rate is determined by the mill rates for the City of Elk River,
Sherburne County, and the School District.
MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY
COUNCILMEMBER WESTGAARD TO MAKE NO CHANGE TO PARCEL 75-
112-4410. MOTION CARRIED 4-0.
11. Matthew Skinner, Parcel Identification Number 75-532-0120
Mr. Skinner stated he came to get educated and requested to see comparables.
Ms. Quinn reviewed comparables.
MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY
COUNCILMEMBER WESTGAARD TO MAKE NO CHANGE TO PARCEL 75-
532-0120. MOTION CARRIED 4-0.
12. Russ Bushman, Parcel Identification Numbet 75-795-0416
Mr. Bushman indicated he paid $50,000 for this condo in 2010. He stated that he rents the
unit out. He distributed a handout explaining why he believes the value should be reduced to
between $50,000 and $80,000. •
Board of Appeal and Equalization Minutes Page 5
Apri127, 2011
--------------
Ms. Quinn explained how she arrived at the assessed value.
• Mr. Kritzeck noted that the Minimum Assessment Agreement for the Bluffs expired this
year for the residential units and the assessed values have been reduced accordingly.
The Council questioned if renting the units violates the TIF agreement. Mr. Bushman
indicated that he has been issued a rental license from the city. He further indicated that as
second owner he is not bound by the TIF agreement.
MOVED BY COUNCILMEMBER WESTGAARD AND SECONDED BY
COUNCILMEMBER ZERWAS TO TAKE NO ACTION ON PARCEL 75-795-0416
AT THIS TIME AND TO GET ADVICE FROM THE CITY ATTORNEY AND
DISCUSS THIS ITEM AT THE RECONVENE MEETING. MOTION CARRIED
4-0.
The Council asked the City Clerk to forward the information to City Attorney Peter Beck.
13. MinnWest Bank, MV, CIC #61, The Bluffs of Elk River Condos, Parcel
Identification Numbers 75-795-0001, 75-795-0101, 75-795-0102, 75-795-0103,
75-795-0104,75-795-0105, 75-795-0106,75-795-0107,75-795-0202, 75-795-0203,
75-795-0204, 75-795-0205, 75-795-0206, 75-795-0207, 75-795-0208, 75-795-0209,
75-795-0210, 75-795-0211, 75-795-0212,75-795-0213,75-795-0214, 75-795-0215,
75-795-0216, 75-795-0217,75-795-0218, 75-795-0219, 75-795-0220, 75-795-0301,
75-795-0302,75-795-0303,75-795-0304,75-795-0305,75-795-0306,75-795-0307,
75-795-0308,75-795-0309,75-795-0310,75-795-0311,75-795-0312,75-795-0313,
75-795-0314, 75-795-0315, 75-795-0316,75-795-0317,75-795-0318, 75-795-0319,
• 75-795-0320,75-795-0401,75-795-0402,75-795-0403,75-795-0404, 75-795-0405,
75-795-0406,75-795-0407,75-795-0408,75-795-0409,75-795-0410,75-795-0411,
75-795-0412, 75-795-0413, 75-795-0414, 75-795-0417, 75-795-0418, 75-795-0419,
75-795-0420
Ron Touchette, Rock Solid Companies, agent for the Bluffs of Elk River, submitted a letter
appealing the property tax values of the above listed parcels.
It was noted that the letters do not indicate what action Mr. Touchette is requesting on the
parcels.
MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY
COUNCILMEMBER WESTGAARD TO MAKE NO CHANGE TO THE
PARCELS LISTED ABOVE. MOTION CARRIED 4-0.
14. GSS LLC., Parcel Identification Numbers 75-688-0114, 75-688-0334, 75-688-
0336, 75-688-0338, 75-696-0114, 75-696-0116, 75-696-0118, 75-696-0120, 75-696-
0122,75-696-0124, 75-696-0126, 75-696-0128,75-696-0]30, 75-696-0132,75-696-
0134,75-696-0136,75-696-0138,75-696-0140, 75-696-0142, 75-696-0144, 75-696-
0210,75-696-0212,75-696-0214,75-696-0216,75-696-0218,75-696-0220,75-696-
0222,75-696-0224,75-696-0226,75-696-0228,75-696-0230,75-696-0232,75-696-
0234, 75-696-0236, 75-696-0238, 75-696-0240, 75-731-0106, 75-731-0108, 75-731-
0110, 75-731-0112, 75-731-0116, 75-731-0118, 75-731-0130, 75-731-0304, 75-731-
0404,75-731-0406,75-731-0410,75-731-0412,75-731-0414,75-731-0416,75-756-
• 0302,75-756-0304,75-756-0306,75-756-0308
Board of Appeal and Equalization Minutes Page 6
Apri127, 2011
--------------
Novak-Fleck, Inc., Parcel Identification Number 75-731-0408
Novak-Fleck, Inc. submitted a letter appealing the property tax values of the above listed •
parcels.
MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY
COUNCILMEMBER WESTGAARD TO MAKE NO CHANGE TO THE
PARCELS LISTED ABOVE. MOTION CARRIED 4-0.
15. Leanne Brown, Parcel Identification Number 75-503-0625
Ms. Brown submitted a letter appealing her property tax value.
MOVED BY MAYOR DIETZ AND SECONDED BY COUNCILMEMBER
WESTGAARD TO MAKE NO CHANGE TO PARCEL 75-503-0625. MOTION
CARRIED 3-0. Councilmember Gumphrey abstained due to conflict of interest.
16. Ms. Quinn distributed a handout outlining her recommendations for changes on the
following properties:
A. Roger Gus Enterprises LLC, Parcel Identification Number 75-510-0175
Appraiser recommendation: Decrease of $67,500 by adjusting the building value
from $186,100 to $118,600.
B. Gary and Lori Berg, Parcel Identification Number 75-532-0126 .
Appraiser recommendation: Decrease of $38,300 by adjusting the building value
from $164,700 to $126,400.
C. James and Denise Stanley, Parcel Identification Number 75-532-0220
Appraiser recommendation: Decrease of $54,600 by adjusting the building value
from $167,500 to $112,900.
D. Jason Danielson, Parcel Identification Number 75-522-0314
Appraiser recommendation: Decrease of $51,600 by adjusting the building value
from $217,800 to $166,200.
E. Edward and Kristine Studniski, Parcel Identification Number 75-523-0168
Appraiser recommendation: Decrease of $75,800 by adjusting the building value
from $204,500 to $128,700.
F. Jennifer Isenga-Coblentz, Parcel Identification Number 75-508-0230
Appraiser recommendation: Decrease of $40,900 by adjusting the building value
from $138,300 to $97,400.
MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY •
COUNCILMEMBER GUMPHREY TO APPROVE THE ABOVE
Board of Appeal and Equalization Minutes Page 7
Apri127, 2011
--------------
OUTLINED ADJUSTMENTS AS SUGGESTED BY THE COUNTY
• ASSESSOR. MOTION CARRIED 4-0.
17. Ashland, Inc., Parcel Identification Number 75-566-0230
Nationwide Consulting Company, Inc. submitted a letter requesting that the tax
value of the above parcel be reviewed.
MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY
COUNCILMEMBER WESTGAARD TO MAKE NO CHANGE TO
PARCEL 75-566-0230. MOTION CARRIED 4-0.
18. C E Murphy Properties LLC, Parcel Identification Numbers 75-404-0152 and
75-405-0410
Ron Touchette, Rock Solid Companies, submitted a letter on behalf of the property
owner appealing the proposed property tax value on the above parcels.
MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY
COUNCILMEMBER WESTGAARD TO MAKE NO CHANGE TO
PARCELS 75-404-0152 AND 75-405-0410 AT THIS TIME AND FOR THE
ASSESSOR TO CONTACT MR. TOUCHETTE TO INSPECT THE
PROPERTY AND REPORT BACK AT THE RECONVENE MEETING.
MOTION CARRIED 4-0.
19. The Bank of Elk River, Parcel Identification Numbers 75-736-0030, 75-736-
• 0205, 75-736-0210, 75-736-0255, 75-736-0110, 75-736-0115, 75-736-0215, 75-736-
0225,75-736-0315,75-736-0320,75-736-0420,75-736-0425,75-736-0430,75-736-
0250, 75-130-1101,75-013-1415
Farmers State Bank of Hartland, Parcel Identification Number 75-132-2426
The Bank of Elk River, Parcel Identification Numbers
Ron Touchette, Rock Solid Companies, submitted a letter on behalf of the property
owners appealing the proposed property tax value on the above parcels.
MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY
COUNCILMEMBER GUMPHREY TO MAKE NO CHANGE TO THE
PARCELS LISTED ABOVE AT THIS TIME AND FOR THE ASSESSOR
TO CONTACT MR. TOUCHETTE TO INSPECT PARCELS 75-132-2426
AND 75-013-1415 AND REPORT BACK AT THE RECONVENE
MEETING. MOTION CARRIED 4-0.
20. Thomas and Sara Hartman, Parcel Identification Numbers 75-597-0110 and
75-597-0105
Ron Touchette, Rock Solid Companies, submitted a letter on behalf of the property
owners appealing the proposed property tax value on the above parcels.
•
Board of Appeal and Equalization Minutes
Apri127, 2011
Page 8
MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY
COUNCILMEMBER GUMPHREY TO MAKE NO CHANGE TO •
PARCELS 75-597-0110 AND 75-597-0105. MOTION CARRIED 4-0.
21. Richard Bury, Parcel Identification Number 75-104-4410
Mr. Riley presented a handout on the above parcel.
MOVED BY COUNCILMEMBER WESTGAARD AND SECONDED BY
COUNCILMEMBER ZERWAS TO ADJUST THE LAND VALUE ON
PARCEL 75-104-4410 FROM $78,300 TO $61,100 AS RECOMMENDED BY
THE COUNTY ASSESSOR. MOTION CARRIED 4-0.
22. Richard Bury, Parcel Identification Number 75-109-1100
Mr. Riley presented a handout on the above parcel.
MOVED BY COUNCILMEMBER WESTGAARD AND SECONDED BY
COUNCILMEMBER ZERWAS TO ADJUST THE LAND VALUE OF
PARCEL 75-109-1100 FROM $1,010,100 TO $828,000 AS RECOMMENDED
BY THE COUNTY ASSESSOR. MOTION CARRIED 4-0.
23. Houlton Investment Company, Parcel Identification Number 75-134-2303
Mr. Riley presented a handout on the above parcel.
MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY •
COUNCILMEMBER WESTGAARD TO ADJUST THE LAND VALUE
OF PARCEL 75-134-2303 FROM $388,000 TO $236,800 AS
RECOMMENDED BY THE COUNTY ASSESSOR. MOTION CARRIED
4-0.
24. Dean and Barbara Johnson Holding LP, Parcel Identification Number 75-
627-0110
Mr. Riley presented a handout on the above parcel..
MOVED BY COUNCILMEMBER WESTGAARD AND SECONDED BY
COUNCILMEMBER ZERWAS TO ADJUST THE BUILDING VALUE
OF PARCEL 75-627-0110 FROM $691,800 TO $576,700 AS
RECOMMENDED BY THE COUNTY ASSESSOR. MOTION CARRIED
4-0.
25. Velda Brown, Parcel Identification Numbers 75-024-2411, 75-024-2116, and
75-470-0211
Mr. Olson presented a letter submitted by Ms. Brown appealing the value of the
three parcels listed above. He stated that he is recommending no change on parcel
75-024-2411. He is recommending small changes to the other two parcels because
he believes they should be appraised together as one value, even though they must
be assessed separately. •
Board of Appeal and Equalization Minutes Page 9
Apri127, 2011
--------------
MOVED BY COUNCILMEMBER WESTGAARD AND SECONDED BY
• COUNCILMEMBER ZERWAS TO ADJUST THE LAND VALUE OF
PARCEL 75-024-2116 FROM $71,000 TO $61,400 AND TO ADJUST THE
LAND VALUE OF PARCEL 75-470-0211 FROM $29,300 TO $18,000 AS
RECOMMENDED BY THE COUNTY ASSESSOR. MOTION CARRIED
4-0.
MOVED BY COUNCILMEMBER WESTGAARD AND SECONDED BY
COUNCILMEMBER GUMPHREY TO MAKE NO CHANGE TO
PARCEL 75-024-2411 AS RECOMMENDED BY THE COUNTY
ASSESSOR. MOTION CARRIED 4-0.
26. Micah and Katy Hager, Parcel Identification Number 75-694-0146
Mr. Olson presented a written request submitted by Mr. Hager requesting that his
property be reviewed.
MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY
COUNCILMEMBER ZERWAS TO MAKE NO CHANGE TO PARCEL
75-694-0146 AT THIS TIME AND FOR THE APPRAISER TO REVIEW
THE PROPERTY AND REPORT BACK AT THE RECONVENE
MEETING. MOTION CARRIED 4-0.
27. Central Bank, Parcel Identification Numbers 75-728-0186, 75-728-0188, 75-
728-0190,75-728-0192,75-728-0122,75-728-0124,75-728-0126,75-728-0128,75-
• 728-0138, 75-728-0140,75-728-0142, 75-728-0144
Ron Touchette, Rock Solid Companies, submitted a letter appealing the proposed
property tax values on the above parcels.
MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY
COUNCILMEMBER GUMPHREY TO MAKE NO CHANGE TO THE
PARCELS LISTED ABOVE. MOTION CARRIED 4-0.
3. Recess
MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY
COUNCILMEMBER WESTGAARD TO RECESS THE BOARD OF APPEAL
AND EQUALIZATION MEETING AND RECONVENE THE MEETING ON
MAY 16, 2011, AT G:00 P.M. AT CITY HALL.
Mayor Dietz recessed the meeting at 10:07 p.m.
Minutes prepared by Jessi~Miller.
,,.7 / 1
Tina Allard, City Jerk
• hn ietz a or
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