1.0 SR 04-30-2012REQUEST FOR ACTION
TO ITEM NUMBER
Mayor and City Council
AGENDA SECTION MEETING DATE PREPARED BY
A ril 30, 2012 Tina Allard, Ci Clerk
ITEM DESCRIPTION REVIEWED By
Board of Appeal and Equalization Meeting
REVIEWED BY
ACTION REQUESTED
1. Sherburne County will call upon each property owner. The Board is asked to listen to the
property owner and then to make a determination regarding the value or classification of the
parcel being considered.
Options for motions include:
a. No change
b. Lower the value
c. Raise the value
d. Notify property owner of intent to raise value (reconvene meeting may be needed in order to
give property owner a chance to speak, if not in attendance)
e. Change the classification
f. Have the assessor inspect the property and report back to the Board at reconvene meeting
If the Board is faced with a decision that it is not sure how to vote, the decision should be "no
change." The property owner is then able to appeal to the County Board or the Tax Court.
2. If the Board determines further review of any parcels by the assessor are needed, a reconvene
meeting must be set in order for the assessor to report back to the Board for further action. The
date and time must be determined before the recess of this meeting. The date must be set within
20 days of this meeting. This timeline would be May 1 to May 20. Council meetings are scheduled
for May 7 and May 14.
BACKGROUND/DISCUSSION
Board Purpose
The Board's purpose is to determine if 2012 values or classification of parcels has been properly set by
the assessor. It's assumed that the assessor has properly valued and classified a property and the burden
of proof rests with the property owner who must present factual evidence to disprove the assessor's value
or classification. All changes made by the Board must be based on fact.
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N:\Public Bodies\Ciry Council\Council RCA\Board of Appeal\Board of Appeal Report 2012.docx ~ p~pv~r
Reconvene Meeting
The Board should not order the assessor to review a parcel and change the valuation/classification and
then adjourn. The Board may ask the assessor to review a parcel and report back to the Board at a
reconvene meeting. All issues must be resolved before the meeting is adjourned. If issues still need to be
considered, the Board should recess until the next meeting.
Once the Board has adjourned, it can't reconvene. Reconvene meetings should be limited to appeals and
not fox hearing a property owner's initial appeal.
For a refresher, you can download the Local Board of Appeal and Equalization Handbook or a ',
PowerPoint presentation from the Department of Revenue website at:
http://taxes.state.mn.us/property tax administrators/pages/other supporting content local board tr~
ining23.aspx. The handbook has been updated for 2012. '~
CertiScation
At least one Councilmember must be at this meeting who has attended state required training. ~
Councilmembers Zerwas, Westgaard, and Morin are all certified to November 20, 2012. Staff will n~tify
Council when the new schedule is available as a couple of members will need to attend training thisyear.
Action Motion by Second by Vote
Follow Up
N:\Public Bodies\City Council\Council RCA\Board of Appeal\Board of Appeal Report 2012.docx
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Sherburne County Assessor
Sherburne County Government Center
13880 Business Center Dr NW
Elk River, MN 55330-1692
Phone: (763)765-4900
FAX. (763) 765-4905
2012 ELK RIVER CITY ASSESSMENT
Residential values decreased approximately 11.25% throughout the City of Elk River. The property value
decreases are the result of 85 "good" sales used in the residential sales ratio study (Assessed value divided
by sale price equals sales ratio). The time adjusted sales ratio for the City of Elk River came in at 113.4%.
2010 110 sales - 100.5% Ratio = (4.62%) Decrease
2011 128 sales - 99.9% Ratio = (7.41 %) Decrease
2012 85 sales - 113.4% Ratio = (11.25%) Decrease
Total Bare land market values decreased approximately 4.9% however green acres values increased due to
agricultural sales activity, in the southern part of the state.
Total Commercial & Industrial values decreased approximately 1.5%.
Taxable New Construction
2008 $35,232,600
2009 $11,431,200
2010 $ 6,785,600
2011 $12,562,000
Total City Estimated Market Values (Real Taxable Property)
2009 $2,113,528,600
2010 $2, 005, 640, 252
2011 $1,873,410,300
2012 $1,724,669,000
2012 Elk River Board of Review and Equalization
Residential Report
Good Sales 85 1281ast year
Bad Sales 278 2161ast year
Ave Sale Price $175,623 $200,590
Ave Assessed Value $176,879 $199,551 last year
Dept of Revenue Time Adjustment -10.3%
Median Ratio 101.3 (old) 113.4 (new)
Value Change (Local Effort) -11% (-$151,558,467)
Adjusted Ratio 90.16 (old) 100.93 (new)
Building Changes
Land Changes
Res. Value Change Overall
New Homes
Other Non-maintenance Permits
New Res. Improvement Amount
-10%
-10% to -20%
-11%
12
191
$2,847,100
-7.41 % last year
151ast year
1871ast year
Res Market Value $1,226,342,500 (declining)
Res % of Total MV 71 % approx
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2012 Elk River Board of Appeal and Equalization
Apri130th, 2012
Recommendations from County Assessor
For changes to the 2012 Assessment
LENZ, JOHN T -TRUSTEE P.I.N 75-520-0220
12655 INDUSTRIAL BLVD NW
ELK RIVER MN 55330
LEGAL DESCRIPTION: LOTS 1, 2 & 3, BLK 2
SEC/TWP/RGE : 28 33.0 26
ACRES: 7.85
PROPERTY TYPE: INDUSTRIAL
2012 Original
Land $ 235,700
Building $ 1,450,100
Total $ 1,685,800
2012 Suggested Change
Land $ 235,700
Building $ 1,399,500
Total $ 1,635,200
Reduction: $50,600 building reduction.
Reason: The building was reviewed per owner request. A reduction was made to the
building of 3.4% for depreciation and age of the building.
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NOTICE
April 30, 2012
TO: Local Board of Appeal & Equalization
City of Elk River
and
TO: County Board of Appeal & Equalization
Sherburne County
Per the "Notice of Valuation and Classification", the above two Boards of Appeal are
hereby timely notified that the fee owners of the fallowing properties, all located within
the City of Elk River, MN, Sherburne County, da hereby appeal as follows:
Each and every one of the following properties (identified by the Parcel I.D. #) are valued
in excess of 25°la over the value they would sell for on the open market a5 of January 2,
2012.
Equity Management Properties: Parcel I.D. #'s 75-435-0630
75-435-0540
75-445-4120
75-547-0105
75-615-0110
Rivers Crossing, Inc. Properties: Parcel I.D. #'s 75-762-0001
75-752-0003
75-762-0004
75-762-0005
75-762-0006
75-752-0001
?5-762-0008
Ripplinger Property: Parcel I.D. # 75-515-0105
This appeal process is represented on behalf of the property owner by Gary Santwire, 200-
5th Street, Elk River, MN 55330. Phone 612-817-7553.
Gary L.
cc: ~y of Elk River
Sherburne County
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Bill Riley
From: Mark Penderga
Sent: Monday, April 30, 2012 12:59 PM
To: Bill Riley
Subject: Valuation at 1175 and 1179 School Street
I wish to contest the value of parcel # 75-133-115.
Please contact me at your earliest convenience.
Thank you
Kind regards,
Mark Pendergast
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2012 Elk River Board of Appeal and Equalization
Apri130th, 2012
Recommendations from County Assessor
For changes to the 2012 Assessment
KURTH, RICHARD W & SUSAN J P.LN. 75-011-3210
16754 US HIGHWAY 10 NW
ELK RIVER MN 55330
LEGAL DESCRIPTION: ALL THAT PT OF THEN 300 FT OF THE S 601 FT
OF THE NW 1-4 OF SW 1-4 OF SEC 11-32-26 LYING
ELY OF A LINE DESC AS: BEG AT A PT ON THE S
SEC/TWP/RGE : 11 32.0 26
ACRES: 1.82
PROPERTY TYPE: COMMERCIAL BAR/RESTAURANT (BROADWAY)
2012 Original 2012 Suggested Change
Land $ 121,300 Land $121,300
Building $ 411,100 Building $ 363,300
Total $ 532,400 Total $ 484,600
Reduction: $47,800 building reduction.
Reason: The building was reviewed on April 13th 2012 at the owner request. The
building has some deferred maintenance for condition and age of building.
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2012 Elk River Board of Appeal and Equalization
April 30th, 2012
Recommendations from County Assessor
For changes to the 2012 Assessment
LHR HOLDINGS LLC P.LN. 75-405-1040
PO BOX 753
369 JACKSON AVE
ELK RIVER MN 55330
LEGAL DESCRIPTION: LOT 6 EX N 20 FT & LOT 7 E OF A
LINE BEG AT A PT 40 FT E OF NW COR OF LOT
7, THEN SWLY TO A PT ON S LINE OF LOT 7
SEC/TWP/RGE : 34 33.0 26
ACRES: .35
PROPERTY TYPE: COMMERCIAL RETAIL
2012 Original
Land $ 93,800
Building $ 89,800
Total $183,600
2012 Suggested Change
Land $ 88,900
Building $ 83,100
Total $172,000
Reduction: $11,600 total reduction
Reason: The building was reviewed and the land value was adjusted for location and the
building was adjusted for age and condition.
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2012 Elk River Board of Appeal and Equalization
Apri130th, 2012
Recommendations from County Assessor
For changes to the 2012 Assessment
ELK RIVER TOWNHOUSES
11774 HIGHLAND RD NW
ELK RIVER MN 55330
LEGAL DESCRIPTION: LOT 1-5, BLK l
SEC/TWP/RGE : 27 33.0 26
ACRES: Total of 2.83
PROPERTY TYPE: APARTMENT
P.I.N. 2012 Original
Land Building Total
75-440-0110 101,500 282,800 384,300
75-440-0120 101,500 330,300 431,800
75-440-0130 101,500 269,200 370,700
75-440-0140 101,500 290,600 392,100
75-440-0150 101,500 248,900 350,400
TOTAL 1,929,300
P.I.N. 75-440-0 l 10
75-440-0120
75-440-0130
75-440-0140
75-440-0150
2012 Suggested Change
Land Building Total
71,500 251,500 323,000
71,500 299,000 370,500
71,500 237,900 309,400
71,500 259,300 330,800
71,500 217,800 289,300
1,623,000
Reduction: $306,300 total reduction.
Reason: The building income information was recently provided and a new valuation
was reached with this data. A reduction would be appropriate for the amount of rents
and vacancy provided.
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2012 Board of Appeal and Equalization
April 30th, 2012
Recommendations from County Assessor
For changes to the 2012 Assessment
SCHMIDT, KEVIN N P.LN. 75-520-0120
19096 INDUSTRIAL BLVD
ELK RIVER MN 55330-2428
LEGAL DESCRIPTION: LOT 5, BLK 1 ELK RIVER INDUSTRIAL PARK 2ND
SEC/TWP/RGE : 28 33.0 26
ACRES: 4.12
PROPERTY TYPE: INDUSTRIAL
2012 Original
Land $ 145,400
Building $ 765,300
Total $ 910,700
2012 Suggested Change
Land $ 145,400
Building $ 823,000
Total $ 968,400
Reduction: $57,700 building increase.
Reason: Interior office finish value to be added to the assessment.
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2012 Elk River Board of Appeal and Equalization
Apri130th, 2012
Recommendations from County Assessor
For changes to the 2012 Assessment
PROVO ENTERPRISES, LLC P.I.N. 75-757-0115
ATTN: BRYAN PROVO
17520 TYLER ST
ELK RIVER MN 55330
LEGAL DESCRIPTION: LOT 3 BLOCK 1 NORTHSTAR BUSINESS PARK
SEC/TWP/RGE : Z 32.0 26
ACRES: 2.84
PROPERTY TYPE: INDUSTRIAL
2012 Original
Land $ 285,100
Building $ 882,300
Total $1,167,400
2012 Suggested Change
Land $ 285,100
Building $ 909,300
Total $1,194,400
Reduction: $27,000 building value added.
Reason: A new detached block garage to be added to the assessment.
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75-757-0115
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2012 ELK RIVER BOARD OF E UALIZATION ~~ ~ `~
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OWNER: Steven & Katherine Rusher
ADDRESS: 11189 190' Ave NW
ELK RIVER MN 55330
LEGAL: Lot 10 Block 2 Royal Oaks Ridge
PARCEL# 75-522-0250
An estimated value was placed on the property for the 2011 assessment because
Appraiser was unable to make an interior inspection. On April 24th, 2012 an interior
inspection was completed. I recommend the following changes.
Assessment of property is as follows:
Before change
Land Building Total
$42,000 $174,700 $216,700
After change
Land Building Total
$42,000 $170,100 $212,100
Decrease : $4,600
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2012 ELK RIVER BOARD OF EQUALIZATION
OWNER: Federal National Mortgage Association
ADDRESS: 14221 Dallas Parkway, Suite 11201
Dallas TX 75254-2916
LEGAL: Lot 2 Block 1 Froehlichs Happy Corner, 9641 213`h Ave NW
PARCEL# 75-809-0110
On April 18, 2012 I was informed that a detached garage had been removed from the
above property. After inspection of the property and verification by MLS listings, the
garage was removed between August 28, 2011 and November 24, 2011. I recommend the
following changes.
Assessment of property is as follows:
Before change
Land Building Total
$62,800 $336,300 $399,100
After change
Land Building Total
$62,800 $326,700 $389,500
Decrease : $9,600
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The tax representative for the following parcels asked our office to look into the
valuations of the following parcels:
75-736-0110 - $44,700
75-736-0115 - $44,700
75-736-0205 - $44,700
75-736-0210 - $44,700
75-736-0215 - $44,700
75-736-0225 - $44,700
75-736-0250 - $44,700
75-736-0255 - $44,700
75-736-0315 - $44,700
75-736-0320 - $44,700
75-736-0420 - $44,700
75-736-0425 - $44,700
75-736-0430 - $44,700
75-597-0105 - $179,700
75-597-0110 - $179,700
75-728-0122 - $13,600
75-728-0124 - $13,600
75-728-0126 - $13,600
75-728-0128 - $13,600
75-728-0138 - $13,600
75-728-0140 - $13,600
75-728-0142 - $13,600
75-728-0144 - $13,600
75-728-0186 - $13,600
75-728-0188 - $13,600
75-728-0190 - $13,600
75-728-0192 - $13,600
75-106-3202 - $30,700
75-405-0410 - $426,500
75-404-0152 - $19,300
We have reviewed the above listed parcels and recommend no change. The tax
representative would have the opportunity to appeal these values at the County Board if
they so choose.