5.0. SR 05-11-1998'ity of
River
MEMORANDUM
TO:
FROM:
DATE:
Mayor and City Council
Sandra Thackeray, City Clerk
May 11, 1998
SUBJECT: Board of Review
Item 5.
The Board of Review was held on April 30, 1998. There was not a
quorum of the City Council members during that meeting. Those
present on April 30 heard grievances of property owners in the City,
but took no action. The Council will be required to act on those
grievances during the May 11 Council meeting.
The minutes of the meeting are attached for your review. Either Ty
Bischoff or Jerry Kritzeck will be present to present information
and answer questions. I believe that Mr. Larry Hickman will also be
present as he had presented a written objection to the assessed
valuation for his furniture store on Jarvis Street. This objection is
also attached for your review.
\\elkriver\sys\shrdoc\council\bormemo.doc
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
MEETING OF THE ELK RIVER CITY COUNCIL
ACTING AS THE BOARD OF REVIEW
HELD AT THE SHERBURNE COUNTY GOVERNMENT CENTER
THURSDAY, APRIL 30, 1998
MemDers Present:
Councilmembers Farber and Thompson
Members Absent:
Mayor Duitsman, Councilmembers Dietz and Holmgren
Staff Present:
Ty Bischoff, Sherburne County Assessor; Debbie Huebner,
Recording Secretary
Also Present:
County Assessors
1. Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Elk River Board of
Review was called to order at 6:10 p.m. by Ty Bischoff, County Assessor. Ty
Bischoff explained that the purpose of the meeting was to review the 1998
assessed property value. Due to the fact there was not a quorum of the City
Council members, Mr. Bischoff explained that the two Councilmembers in
attendance would hear their grievances and make a recommendation to the
City Council at a future meeting. Mr. Bischoff indicated that increases in assessed
valuation must be made in order to be consistent with the state requirements of
staying within 90 - 105% of the market value.
2. James and Marjorie Anderson - 75-571-0115 (Heritage Landing)
Mr. and Mrs. Anderson expressed their objection to the increase in their property
valuation from $175,200 in 1997 to $188,800 in 1998. Mr. Anderson explained the
increase is approximately 7% ($13,000). Ty Bischoff explained that the increase is
largely due to increased land value, noting that land values are rising
dramatically in Sherburne County. Mr. Anderson questioned if land values were
to go down, would their valuation go down as well. Mr. Bischoff stated that this
has happened in the past with agricultural land. Mr. and Mrs. Anderson
requested that the assessed valuation increase be modified to a more
reasonable amount. Councilmembers Farber and Thompson indicated they felt
the increase was fair and they would find it difficult to support a reduction in the
Anderson's' valuation.
3. Scott Flett - 75-444480-0124 (Riverview Heights 3rd Addition)
Mr. Flett indicated he opposed the increase in his valuation. Ty Bischoff explained
the increase is for the land only and not the building; from ,$22,100 in 1997 to
$30,000 in 1998. Mr. Flett indicated he did not object to the increase in the land
value, but felt the condition of his home warranted a reduction in value. He
requested an assessor visit his home to re-evaluate his property. Ty Bischoff
indicated there may be a need to depreciate the house. An appointment was
scheduled for Tuesday, May 5th, with the deputy assessor to review Mr. Flett's
property. Mr. Flett will be notified of any adjustment in valuation and if an
objection is raised, Mr. Flett's objection will be reviewed by the City Council.
4. Kenneth Harell- 75-503-0724 (Brentwood)
Mr. Harell indicated he did not feel his assessed valuation was fair in comparison
to other properties in the neighborhood. He stated his lot is 40% smaller, it has a
Board of Review Minutes
April 30, 1998
Page 2
sharp hill in the back and is the least desirable lot on the cul-de-sac.
Councilmember Farber indicated he is very familiar with Mr. Harell's property and
agrees witl~ Mr. Harell. Ty Bischoff explained that the value of Mr. Harell's lot has
increased from $34,000 in 1997 to $40,000 in 1998. Deputy Assessor John Cullen
explained the valuations of the lots are similar even though they vary in size
because riley have similar usable space. Mr. Harell explained the valuation of his
t~ouse is also higher than any other house on the Dlock and that is not the case.
Mr. Bischoff suggested Mr. Harell's lot valuation be decreased to $35,000.
Discussion followed regarding the valuation of the house in comparison to
neighboring homes. No recommendation for adjustment in the house valuation
was made.
5. Larry Hickman - 75-587-0105 IFurniture and Thinqs - 15612 Jarvis Street)
Chief Deputy Assessor Jerry Kritzeck presented a written objection to the
$3,013,400 1998 assessed valuation (which includes $150,000 for land) from Larry
Hickman for the Furniture and Things property. Mr. Kritzeck referred to the 1996
building permit application which shows a valuation of the work at $3,047,330.
Mr. Kritzeck also referred to information from Mr. Hickman including the Sworn
Builder's Statement showing the total construction cost to be $2,020,885.50, plus
costs paid directly by Mr. Hickman of $149,794 for additional improvements and
$141,000 for the raw land. Also included was a market value appraisal stating a
value of $2,060,000 for the property which includes $150,000 for land. The
Councilmembers and assessors discussed the valuation of other large buildings for
comparison purposes including the Target store at $4.9 million ($3.8 mil. for the
building and $1.1 mil. for the land), and Cub Foods at $3.6 million ($2.6 for the
building and $1 mil. For the land). Councilmember Farber indicated he was in
agreement with the County Assessor's valuation. The packet of information
regarding this issue will be distributed to the City Council for review of the
assessed valuation.
6. Mark Joncas - 75-584-0120 (11966 215th Avenue NW)
Mr. Joncas expressed his objection to the large increase in his assessed valuation,
referring to the calculation formula on the back of the card he received from the
County. Mr. Bischoff explained the increase is due to the fact the previous years
valuation was based on raw land and the 1998 valuation reflects construction of
a new home. Mr. Joncas stated he understood the reason for the increase.
7. Adjournment
The meeting of the Elk River City Council was continued to May 11, 1998.
Respectfully submitted,
Debbie Huebner
Recording Secretary
(7:35 p.m.)
FURNITURE & THINGS, INC.
15612 Jarvis Street NW
Elk River, MN 55330
612 441-7011
612 422-0340 (fax)
April 21, 1998
Jerry Kdtzeck
Sherbume County Assessor
1380 Hwy 10
Elk River, MN 55330
Dear Mr. Kdtzeck:
Regarding our conversation this morning, I am sending you a copy of the Appraisal
on 15612 Jarvis Street Northwest. I would like you to reassess the tax amount on
1997 also. I do not want to pay on a $3,000,000 base. If you have any questions,
you can reach my secretary Penny or myself at 441-7011.
Sincerely,
Larry Hickman
President
Ellf River
P.O, Box 490
Elk River, MN 55330
612/441-4900
PERMIT NO.: ~,
DATE ISSUED: 960146,3
Address :
PIN :
Legal. Desc :
_.
Permit Type :
Property Type :
Construction Type:
Act ivity :
REPRINTED ON 09/24/96
Jarvis St Nw
Rennet Addition
Block 1 Parcel
15612
T0-330
Subdivision
Lot 1
Building
Commercial
New
327 Stores & Customer Services
Sewer Units
Valuation
32
09/24/96
OWNER
::kman, Larry
~888 187th Cir Nw
Elk River, MN .... P
APPLICANT
JOHN WEICHT
g'o Box 368
& ASSOCIATES
Elk River, MN 55330
:'ermi't Fee Schedule
--'lan Check Commercial
Bta'te Surcharg Building
Sewer availablility charge
Sept ic
TOTAL
:'aid with check ~ 19767
IMPORTANT! PLEASE READ
The work for which this permit is issued shall be per-
formed according to: (1/the conditions of this permit
(2) the approval plans and specifications; (3) the appli-
cable City approvals, Ordinances, and Codes; and (4)
the State Building Code. This permit is for only the
work described, and does not grant permission for ad-
ditional or related work which requires separate per-
mits. This permit will expire and become null and void
if work is not started within 60 days, or if work is sus-
pended or abandoned for a:period of 120 days any
time after work has commenced. The applicant is re-
sl ible for assuring all required inspections are re-
qu~ted in conformance with the State Building Code.
~ o,Fo / Signature
SEPARATE PERMITS REQUIRED FOR WORK OTHER THAN DESCRIBED ABOVE.
$10,587.00
$6,881.55
$1,209.47
$0.00
$60.00
$18,738.02
Elk,-River BUILDING PERMIT APPLICATION
Applicant to complete numbered spaces only.
JOB ADDRESS
2 OWNER MAIL ADDRESS ZIP PHONE
CONTRACTOR ~ MAIL ADDRESS PHONE
ARCHITECT OR DESIGNER
ENGINEER
MAIL ADDRESS PHONE
MAIL ADDRESS '
PHONE
STATE L~CENSE
STATE LICENSE #
STATE LICENSE #
6 USE OF BUILDING
7. Class of Work: ~EW ~ ADDITION ~ ALTERATION ~ REPAIR ~ MOVE ~ REMOVE
8. Describe Wo~ " /Z ~
9, Valuatio Work: $,~ ~ - ~
Type of ancy Group
Size of Bldg. No. of Stories
('Total Sq. Ft.
Use Zone
No. of Dwelling Units
Special Approval~
ZONING
HEALTH DEPT.
FIRE DEPT.
SOIL REPORT
OTHER (Specif~l
ENGINEERING:
ATTORNEY:
APPLICATION
ACCEPTED BY
Division
SPECIAL CONDITIONS
Max. Occ. Load
Fire Sprinklers
Yes [] No
I OFFSTREET PARKING SPACE 3:
Covered Uncovered
Required Received
Not Re(
NOTICE
SEPARATE PERMITS ARE REQUIRED FOR ELECTRICAL, PLUMB-
ING, HEATING, VENTILATING OR AIR CONDITIONING.
THIS PERMIT BECOMES NULL AND VOID IF WORK OR CONSTRUC-
TION AUTHORIZED IS NOT COMMENCED WITHIN 180 DAYS, OR
IF CONSTRUCTION OR WORK IS SUSPENDED OR ABANDONED
FOR A PERIOD OF 180 DAYS AT ANY TIME AFTER WORK IS
COMMENCED.
I HEREBY CERTIFY THAT I HAVE READ AND EXAMINED THIS APPLICATION AND
KNOW THE SAME TO BE TRUE AND CORRECT. ALL PROVISIONS OF LAWS AND
ORDINANCES GOVERNING THIS TYPE OF WORK WILL BE COMPLIED WITH
WHETHER SPECIFIED HEREIN OR NOT. THE GRANTING OF A PERMIT DOES NOT
PRESUME TO GIVE AUTHORITY TO VIOLATE OR/(~ANCEL THE PROVISIONS OF
I ANY 0TJ'IER STATE OR LOCAL LAW,REGULATING, CONSTRUCTION ~)R THE PER-
I FORM~CE OI~0NSTRUOTION./ './" J /'
I/Signature of Contractor or Authorized Agent/
I--Signature of Owner (If Owner BudderI Date
SAC UNIT CHARGE
ENGINEER FEE:
IPLANS CHE~KEDI APPROVED-'~FOR SURCHARGE: ),~/~,
BY . ' ' A ',(3Y
~ VALIDATED (IN THIS SPACE) THIS IS YOUR PERMIT
ATTORNEY FEE:
LICENSE CHECK:
pLAN CHECK:
TOTAL: )~/ ~_~',0,~ __
TOT COST
ITEMS FURNISHED BY TELEPHONE BLDG 1
51 Garage Doors Industrial Door Co. 612-786-4730 $ 1,022.00
52 Oven/Rng Top/Hd/Fan N/A
53 Suspended Ceiling J. Weicht & Assoc. 612-441-4112 $ 78,120.00
54 Exhaust Fans (Part of #39)
55 Sign DeMars Signs 612-434-9263 $ 32,959.00
56 Window Shades N/A
57 Carpeting (Part of #50)
58 Blacktopping Oman Brothers, Inc. 612-497-8259 $ 53,283.00
59 Sodding, Seed (Part of #60)
60 Landscaping Greenscape 612-441-2141 $ 4,794.00
61 Carpentry, Labor J. Weicht & Assoc. 612-441-4112 $ 234,460.00
62 Banking Owner
63 Appraisal N/A
64 Soil Testing N/A
65 Land Owner
66 Misc./Contingency J. Weicht & Assoc. 612-441-4112 $ 34,892.50
67 Contractor's Fee J. Weicht & Assoc. 612-441-4112 $ 84,196.00
68 City Fees J. Weicht & Assoc. 612-441-4112 $ 18,738.00
TOTAL
$1,948,242.50
PREVIOUS PAYMENT
REQUEST REQUEST
$ 1,022.00 $ -
$ 78,120.00 $
$ 32,959.00 $
$ 43,338.00 $ 9,945.00
$ - $-----4,794.00
$ 227,000.00 $ 7,460.00
TOTAL
PAYMENTS BALANCE
1,022.00 $
78,120.00 $ -
32,959.00 $ -
53,283.00 $
4,794.00 $
234,460.00 $
$ 33,381.00 $ 1,511.50 $ 34,892.50 $ -
$ 84,196.00 $ - $ 84,196.00 $
$ 18,738.00 $ - $ 18,738.00 $
$1,857,355.00 $ 90,887.50
$ 1,948,242.50 $
%
COMPLETE
100%
100%
100%
100%
100%
100%
1 OO%
100%
100%
100%
ITEMS
1 Blacktop
2 Curbs
3 Survey/Drainage
4 Storm Sewer
5 City Fees a & Inspect.
6 Labor
7 Contractor's Fee
STREET TOTAL
GRAND TOTALS
FURNISHED BY
Oman Brothers, Inc.
Curb Master, Inc.
J. Oliver & Assoc.
Brenteson Construction
J. Weicht & Assoc.
J. Weicht & Assoc.
J. Weicht & Assoc.
TOTAL COST
TELEPHONE STREET 1
612-497-8259 $ 8,450.00
612-653-9866 $ 5,388.00
612-441-2072 $ 6,064.00
612-441-1407 $ 25,674.00
612-441-4112 $ 21,509.00
612-441-4112 $ 2,000.00
612-441-4112 $ 3,561.00
$ 72,646.00
$ 2,020,888.50
PREVIOUS PAYMENT
REQUEST REQUEST
6,000.00 $ 2,450.00
5,388.00 $ -
6,064.00 $
25,674.00 $
21,509.00 $
2,000.00 '$
2,846.00 $ 715.00
$ 69,481.00
$1,926,836.00 $
Page 3
TOTAL
PAYMENTS
$ 8,450.00
$ 5,388.00
$ 6,064.00
$ 25,674.00
$ 21,509.00
$ 2,000.00
$ 3,561.00
BALANCE
-
-
-
-
-
$ 3,165.00 $ 72,646.00 $
94,05~~-
%
COMPLETE
100%
100%
100%
100%
100%
100%
100%
100%
I OO%
MARKET
VA~.,UE
APPRATSAL
of the
Proposed Furniture and Things Building
at
15580 Jarvis Street Northwest
Elk River, Minnesota
in
Sherburne County
Minnesota
BY
R. A. Field & Associates
Mark R. Schwab
License #20005641
Richard A. Field
License #4000115
as of
June 29, 1996
SECTION 18
HISTORY
The subject property was purchased by the present owner, Larry S. Hickman, in
1996 for $141,000. Mr. Hickman contracted with John C. Weicht and Associates,
General Contractors, to construct a 89,370 square foot building and site improvements
for a total cost of $1,769,206. ,,Hr. Hi=kman directly furnished a security system,.
telephone system and all soft co~ts._ Mr. Hio~anan's total cost in the pro~ect was_
approximately'~2,060,000. After the ap'pralsal dated June 29, 1996 was con~31eted and
before the subject improvements were completed, Mr. Hickman changed the heating
system from a forced air, natural gas system to a high tach ground source heat pump
system, the additional cost was $200,000. In 1998, Mr. Hickman plans to add a 40,000
square foot addition, with 20,000 square feet on the main level and 20,000 square
feet on the upper level, to the existing building for a total cost of $1,244,663.
Mr. Hickman's total cost in the existing and proposed addition project will be
approximately $3,500,000.
SECTION 19
MARKET AREA DISCUSSION
EXTENDED MARKET AREA
The extended market area is defined as Central Minnesota, which is dominated
by the Minneapolis and St. Paul Metropolitan Area and surrounding communities. See
AREA MAP in Section 21 for visual representation.
The Minneapolis and St. Paul Metropolitan Area is well established and
commands national and international recognition for its business centers, industrial
capabilities, manufacturing and its agricultural production. Population is steadily
increasing and stood at about 2.5 million in 1990. The Minneapolis/St. Paul
Metropolitan Statistical Area enjoys a net immigration of about .5% per year.
The area is home for many large companies, including IBM, Minnesota Mining and
Manufacturing Company, Cargill, Carlson Companies, General Mills and many other large
companies that manufacture a variety of products and are well known and operate in
the Minneapolis and St. Paul area. These companies are a positive influence in the
community and offer the public many benefits and services as well as many jobs in
the area.
The area is well served by many major highways such as Interstate Highway 94
which connects with St. Cloud, Fargo, Bismarck and Seattle to the West and LaCrosse,
Madison, Milwaukee and Chicago to the east. Interstate highway 1-694 and 1-494 act
as a "belt-line" around the metropolitan area. Interstate Highway 35 connects the
metropolitan area with Duluth to the north and Des Moines, Kansas City, Oklahoma City
and Dallas to the south. 1-35 divides just to the north and to the south of the
metropolitan area into two freeways, with one running through each of the Minneapolis
and St. Paul downtown areas. Interstate Highway 394 connects the downtown
Minneapolis area with the affluent suburbs to the west. Numerous all-weather
highways interconnect throughout the metropolitan area.
Transportation facilities include an international airport, several regional
airports, two major railroads, three bus companies and riverboats on the Mississippi
River south to Davenport, St. Louis, Memphis and New Orleans. The metro area is
loosely governed by a Metro Council which is composed of representatives from the
metro municipalities.
The area boasts many higher education institutions, including the University
of Minnesota, the College of St. Thomas, Hamline university and Macalester College.
There are numerous junior colleges throughout the area.
Minnesota business, industrial, manufacturing and agricultural markets have
maintained a steady growth in the marketplace. Our economy has enjoyed a long period
of steady growth and a low rate of inflation. The appraiser has formed the opinion
that these economic conditions may not continue into the new millennium.
SECTION
AP;'RAISAL
THIS IS A SUMMARY REPORT OF A COMPLETE APPRAISAL
THE PROPERTY OWNER OR REPRESENTATIVE DID NOT ACCOMPANY ME ON MY PROPERTY INSPECTION
APPRAISERS:
Richard A. Field
Mark R. Schwab
R. A. Field & Associates
520 Northeast 218th Avenue
Cedar, Minnesota 55011
(612) 434-3316
OWNER(S):
Larry S. Hicknmn, dba
Furniture and Things
15580 Jarvis Street Northwest
Elk River, Minnesota
(612) 441-7011
COUNTY PID NUMBER:
ZONING:
SCHOOL DISTRICT:
1996 REAL ESTATE TAXES:
SPECIAL ASSESSMENTS:
Not yet assigned
C-3; Highway Commercial
I-l; Light Industrial
Elk River
Not yet determined
Not Searched
VALUE OF LAND ZNDZCATED BY MARKET APPROACH
150,000
VALUE OF SUBJECT INDICATED BY THE COST APPROACH
$ 2,183,000
VALUE OF SUBJECT INDICATED BY THE INCOME APPROACH
1,905,000
VALUE OF SUBJECT INDICATED BY THE DIRECT SALES COMPARISON APPROACH
REAL PROPERTY RECORD AND APPRAISAL CARD
y= 75-587-0105 728
75-5~7-01J5 075-07 28-00-00-00-[
CKMAr4 LAND i.'iVEST~IE=~TS TXP 38137
888 I~7T~ CIP,
233-~
CT-24 TWP-032.O ~AN6-26
NNER AD~ Il' lob
T 1, ~L~ L
.OOA 06/30/9':
;hec~ STIMATEO MAR~T VALUE CA~ ~OE 6 LIMITED U~ET VALUE ~ CODE 7 ~q/ - 72 / ADDITIONS & IMPROVEMENTS
Green 4
~es NO Land Bldgs Mach TOTAL Dale Acres Ciassmcatlcn Land Slag Math TOTAL 1 Acre 112 Acre Dwelling G~een Acres Exempl Type of Improvement SEQ
Assessed Total Total C~ 2 C~e 4 ~f Code Code
~"~/'~ Pmcels covered by
19 ~' / 19 19 19 19 19 ~me homestead ~ NOTES
NO Of Value MARKET Value MARKET Value MARKET Value MARKET Value MARKET Value MARKET
Acres Per ~te VALUE Pe~ Acre VALUE Per ~re VALUE Per Acre VALU~ Per Acre VALUE Per Acre VALUE 7~
HJ
EL
. ~ ~ /~/ / /'.~ ~