HANDOUTS BOA 05-16-2011{ ,
2011 City of Elk River Board of Appeal and Equalization
Re-convening
May 16th, 2011
Recommendations from County Assessor
For changes to the 2011 Assessment
ALFORDS, JOHN G & JACQUELINE P.I.N. 75-408-0175
15757 228TH AVE NW
ELK RIVER MN 55330-9515
PHYSICAL ADDRESS: 330 NORFOLK AVE. N.
ELK RIVER, MN. 55330
PLAT/DESC.: 408 HOULTON'S ADDITION
SEC/TWP/RGE : 33 33.0 26
DESCRIPTION: LOT 15, BLK 1
PROPERTY TYPE: 4-UNIT APARTMENT BUILDING
2011 Original 2011 Suggested Change
Land $ 83,100. Land $ 83,100
Building $23 8,100 Building $184,100
Total $321,200 Total $267,200
Reduction: A $54,000 reduction was made to the property and allocated to the
building value.
Reason: The building was reviewed on April 11th, 2011. A reduction was made to the
building for deferred maintenance and age of the property. Also the owner provided the
income information for the building which also was considered.
City of Elk River Local Board of Appeal and Equalization Reconvene Meeting
May 16, 2011
Owner: Lori Neutgens
13260 180'" Ave NW
Elk River, MN. 55330
Parcel # 75-546-0256
By Greg Olson, Elk River City Assessor
Lori Neutgens appeared at the Local Board of Appeal and Equalization and asked for her
value to be reviewed because she made improvements to her property and felt that her
assessed value was too low. The Board asked me to review her property and report back
at the reconvene meeting.
On Tuesday May 3rd I reviewed the above referenced property with Ms. Neutgens
present. After careful review it is my recommendation to raise the value to account for
changes made to the property.
If the recommended changes are acceptable to the board, the value would adjust as
follows:
Before change Land Building Total
$41,700 $172,400 $214,100
After change $41,700 $186,000 $227,700
Difference + $13,600
~/,/
_~
MEMORANDUM
~~
TO: Housing & Redevelopment Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: May 2, 201 I
SUBJECT: Update -The Bluffs of Elk River
Attachment
• Memo from Jenny Boulton, Kennedy & Graven to HRA dated April 22, 2011.
At its March 2011 meeting the HRA requested follow up from staff and the HRA attorney
regarding the rental of housing units in The Bluffs of Elk River.
Attached is a memo from HRA Attorney, Jenny Boulton of Kennedy & Graven regarding
her review of the Development Agreement between the City of Elk River and MetroPlains
Development.
Staff will continue to work with the current property owner, MinnWest Bank and developer,
MetroPlains to market and maintain the property fox its long term intended use as owner-
occupied residential.
Kennedy
Craven
C H A R T E R E D
Offices in 470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis Minneapolis MN 55402
Saint Paul (612) 337-9300 telephone
(612) 337-9310 fax
St. ClOUd ~'~'~'•kennedy-graven.com
Affirmative Action Equal Opportunity Employer
MEMORANDUM
TO: Board of Commissioners of the Housing and Redevelopment Authority in and for
the City of Elk River, Minnesota
FROM: Jenny Boulton
DATE: Apri122, 2011
RE: Development Agreement with Metroplains Development, LLC
The City Council of the City of Elk River and the Board of Commissioners of the Elk
River HRA have requested additional information regarding the use of the Bluff Block
Development under the Development Agreement with Metroplains Development, LLC
("Metroplains").
1. Back rg_ound. On December 6, 2004 the City and Metroplains entered into a
Development Agreement to provide tax increment assistance for a development including the
construction of approximately 67 units of owner-occupied housing and approximately 11,513
square feet of retail space, together with related parking facilities (the "Bluff Block
Development"). At Metroplains' request the City amended the terms of the original agreement,
pursuant to an Amended and Restated Development Agreement with Metroplains, dated as of
February 28, 2006, (the "Development Agreement") to provide, among other things, for {i) the
Bluff Block Development to be designed and constructed by Bluff Block, LLC or CSS Builders,
Inc., or its principal, Charles Schulz and (ii) to provide a mechanism for Metroplains to secure a
construction loan (rather than permanent financing after construction and lease-up) by assigning
the payments under the tax increment revenue note to a bank. Shortly after signing the
Development Agreement, Metroplains obtained a construction loan for the construction of
approximately 32 units of rental housing and approximately 10,806 square feet of retail space,
together with related parking facilities, (the "Jackson Block Development") secured by the
payments under the tax increment revenue note. Also, the Bluff Block property was conveyed to
Bluff Block, LLC, which obtained construction financing from MinnWest Bank ("MinnWest")
secured by a mortgage on the Bluff Block property, and construction of the Bluff Block
Development proceeded to the point of a complete building shell and approximately 15
completed housing units. Bluff Block, LLC subsequently defaulted on its construction loan and
MinnWest foreclosed its mortgage and is now the owner of most of the Bluff Block property.
Three of the housing units are independently owned and one of those is occupied by its owner.
MinnWest is leasing the remaining 12 housing units to residential tenants.
2. Rental of Bluff Block Housing Units. The Bluff Block housing development is
defined in the Development Agreement as "approximately 67 units of owner-occupied housing".
Accordingly, the Bluff Block Development has been set up for separate ownership of housing
384281v2 JSB EL185-7
units under the Minnesota Common Interest Ownership Act. The Bluffs of Elk River
Condominium Amended and Restated Declaration establishes The Bluffs of Elk River
Condominium Association as the entity with authority to establish rules for the Bluff Block
Development. Both the Declaration and the Rules and Regulations adopted by the Association
provide that the units may be leased for three to twelve month terms. Throughout the
Development Agreement it is clear that the Bluff Block hausing development is intended to be
constructed and operated as owner-occupied housing and not for long term rentals. However,
while it may be possible for the City to pursue remedies under the Development Agreement,
MinnWest is not a party to the Development Agreement, Metroplains does not control the use of
the building, and Metroplains' lender is receiving the tax increment revenue stream so it is not
clear that exercising remedies under the Development Agreement will change the outcome
without cooperation from the various parties involved.
384281v2 JSB EL185-7 2
<~
City of Elk River Local Board of Appeal and Equalization Reconvene Meeting
May 16, 2011
Owner: Micah and Katy Hager
21387 Queen Ct NW
Elk River, MN. 55330
Parcel # 75-694-0146
By Greg Olson, Elk River City Assessor
On April 26 Mr. Hager called me and sent an a-mail appealing his market value for 2011.
Mr. Hager was unable to attend the local board in person and I was instructed to review
the property and report back at the reconvene meeting.
On May 9`h I reviewed the above referenced property with Mrs. Hager present. After
careful review it is my recommendation to lower the value to restore equalization with
similar homes in the area.
If the recommended changes are acceptable to the board, the value would adjust as
follows:
Before change Land Building Total
$54,500 $202,300 $256,800
After change $54,500 $183,000 $237,500
Difference - $19,300
f ~'
2011 ELK RIVER BOARD OF EQUALIZATION RECONVENING
OWNER: WICKHERST, DEBRA ,ANDERSON, R
ADDRESS: 19127 CARSON ST NW
ELK RIVER MN 55330
LEGAL: Lot 9 Block 1 Deerfield Fourth Addition
PARCEL# 75-532-0118
An arbitrary assessment was performed because Appraiser was unable to make an interior
inspection. On Apri128th, 2011 an interior inspection was completed. I recommend the
following changes.
Assessment of property is as follows:
Before change
Land Building Total
$46,000 $220,100 $266,100
After change
Land Building Total
$46,000 $163,100 $209,100
~~
Decrease : $57,000
~ • t
2011 ELK RIVER BOARD OF EQUALIZATION RECONVENING
OWNER: WICKHERST, DEBRA
ADDRESS: 19127 CARSON ST NW
ELK RIVER MN 55330
LEGAL: Lot 7 Block 3 Deerfield Fourth Addition
PARCEL# 75-532-0314
PHYSICAL ADDRESS: 19052 DODGE ST NW ELK RIVER, MN 55330
An arbitrary assessment was performed because Appraiser was unable to make an interior
inspection. On April 28th, 2011 an interior inspection was completed. I recommend the
following changes.
Assessment of property is as follows:
Before change
Land Building Total
$46,000 $127,000 $173,000
After change
Land Building Total
$46,000 $94,200 $140,200
Decrease : $32,800
1 4 ~ ~ r
2011 ELK RIVER BOARD OF EQUALIZATION RECONVENING
OWNER: ROOS, RONALD & LOUENE
ADDRESS: 11404 202ND AVE NW
ELK RIVER 1VIN 55330
LEGAL: Lot 4 Block 3 Deerfield First Addition
PARCEL# 75-508-0340
An arbitrary assessment was performed because Appraiser was unable to make an interior
inspection. On May 10th, 201 I an interior inspection was completed. I recommend the
following changes.
Assessment of property is as follows:
Before change
Land Building Total
$50,700 $220,600 $271,300
After change
Land Building Total
$50,700 $144,400 $195,100
Decrease : $76,200