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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. ~P~~EREEf !1' 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 -~-~,-Y~ou+- 41 ~G I ~a 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 -F~anc! a u ~ ~. ~ ~ll~lr a 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. 75-520-0220`; ~~ . ,. '.. ~` .: ~ ; ~ ,. u,(~" ~ ~~, r . t ~'t y k, t ~', ~ ,~ '~ r r '' ~. n ~ a ~~ ~ ~. ,1 '~ `gist t ~ ,~~ ~ ~' 'i ~l ~ s ~~ d k~ .: ~~~i ~v. r f n'~ ~' l ~~v ~~J y 5 ~. r~ ;~ ~ ~ ' `~ ~ t ,~ r j ti ~~ ~~" ; e ;~ ~`~,~~ ~ dli+~ Y r ?,~ , `t ] ~; r; ~. .frky%~. ~Alr?~-iR.r,...~:.wr..o.. ««.>w,.~n».,,«.~.+.«..r- -~ ~.. ,, ~. :...~ i ~1 rt r ~ ~~ ~~ ~~ ~.. 1 < ~ ~~~_~ ti ,.~~~ !1i ~''s .~•~ '}ta ~.1' !~„ > .<y I~ ~' ~: .E ~ ~ .,y,1p.f7x.h .< ~k~~ .sue i ~ ~ ~~~r +t rye 4r~ .» { K "4r ~ S. ~ TN ~ '~'':a P v? r v~ ~ ~ x~ x x ; s s ~ Y .ty.HN7a1' .1/~ }f '~tR C' ~ L .~ ~`> wry r 4 4 J' at S _ f Y ~ r. a t ~ ~I i 3..f ti ',+t-fi ~x r akc" .F> ' 1 , t ..i ~ w~ v k ;~ t E r > . ~ t~ ~ t. w .'1 > > y. ,~ x -t. ,y.- E'4.4 ,~ ,~ -a 1 x~:< +' .ae,V+~+ "'Hi~we, t 't f ~ y.t.1 3 m ; "+P :7< .~ .~ v E '~., Y ,,;'. ,} <t.» ut+~';' a' ~ i P k r` ,4, ~ ~ 0 3a-`.'.< re 1K.i'; ~,:,•,x.. <._ ~' Y .«!'xr tt.t !s r f• .r' v~ r... ~ ~ < < u r ~'~ ~ ~ i r' s ,;,~ ~t• ~.`I' ~ K ~ i> y,. ' ~ . t '~ E ~ s R s~ ~~r~ ~ 1 v }~k ~i ~ ~ ' f ~~ k* y `~1 we' s .. ~ t~ ifl~lAkk ~ `l~tt.'~`! r s x Mf F i a'~R .. rY~lx#. 1~ ~l~A ~ 'r y d!S r l r ..... .. ,~~ ~ ~~,~"i~j 3y+~'~is i {.. ., v ~'~i'h.. .; t» fF ' ~ '. ra,.,~~ '~• yI ~4D s r,,.~ .'. ut~y '~ Iy w..c ~ si<~r a~; .,.~E t [ .. ~~r- .r:. z~_..Y'c ..t. 1'i }> a-!~. .:.G.~,~..r~. .r.ic..s.E 3.s' d S: *~ a.~t+» ~.ssi~lrr','~1~-}..,..iii <' J-:.~..d<!:r» [`"> ah.+.. a..'. ca::„y.'W,t .°..' ,,.i4 lt'sk..~ ><a +.~"~S+ ~ .. : .. € -i4aric~Gc~ ~3 ~I~~~a 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 ~~~~~ ~c~ ~I~l~a 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 ~~ ~~;~~1A~ I'd~t)~'r- I2 t`I~a ~~~~~ 4~3~~i~ 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. 75-~ 11-321 ~ ~~ .a ~. _ .. 'F ~.:. ~~„~ ~~ , F ~ r. .kya ~,lczna`c'~ ~ (~ ~l/3oli a 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. 1/T !.l fF '+i ~1 .~. ~ ~ y 'tr ,~ ~' ~=' *~~ t ice- "~A ' , i . ~, ' i• ~ •~ ; ' 's,~~~.~! ~ aw r'; i , .., -~-I~e~ ~ -~7 4/30/~ a 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. .ti 75-44D-D110 'irk`. l z.s~, ' ~ ~ , r; }~'... ,. '" ~ "R4 ~~ ~ ' ~^xtr ti . ~ '~^x ' ~`~`~ r..i" 'i 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. ~ . .. w 7~'~ ~'~a o ~ d t~ a ~.: z 7 • ~tl~l~a 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. v 75-757-0115 ~.. _, c~;;~. ~~~~~ ~~ ~~~ 2012 ELK RIVER BOARD OF E UALIZATION ~~ ~ `~ Q 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 ~-lay-~c~ gu t ~ I I ~I~l~a 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 a ~~1 ~~~ 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.