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05-14-2012 BOE• • MEETING OF THE ELK RIVER BOARD OF APPEAL AND EQUALIZATION HELD AT ELK RIVER CITY HALL MONDAY, MAY 14, 2012 Members Present: Mayor Dietz, Councilmembers Zerwas, Gumphrey, Westgaard, and Motin Members Absent: None Staff Present: City Administrator Calvin Portner, Finance Director Tim Simon, and City Clerk Tina Allard Also Present: Sherburne County Assessor Daniel Weber, Residential Appraiser Kristi Botzek, and Commercial / Industrial Appraiser William Riley 1. 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 Appeal Equalization The Board of Appeal and Equalization heard appeals continued from the April 30, 2012, meeting as outlined below: 1. April Westgaard, Parcel Identification Number 75- 111 -2100 Ms. Botzek provided a handout with suggested changes. She explained that she visited the property and compared it to similar properties, sales, as well as aerial and FEMA maps. Ms. Westgaard indicated she believes the value should still be lower and she is not clear on what type of wetland is on her property and whether or not it should be exempt. Ms. Botzek explained that the Army Corps of Engineers identified the property as a Type 2 wetland, also known as wet meadow, on August 30, 2011. She stated that the Type 2 designation is appropriate based on maps and adjacent properties. Mr. Weber stated that Ms. Westgaard has until July 1 to present his office with proof that the wetland on her property should be exempt. He noted that the Board does not have the authority to exempt a property from taxation. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER GUMPHREY TO ADJUST THE TOTAL VALUE OF PARCEL 75- 111 -2100 TO $346,900 BY REDUCING THE LAND VALUE FROM $206,200 TO $172,200. MOTION CARRIED 4 -0. Councilmember Westgaard abstained. 2. Gary Santwire, Parcel Identification Numbers 75- 435 -0630, 75- 435 -0640, 75- 445 -0120, 75- 547 -0105, 75- 616 -0110, 75- 762 -0001, 75- 762 -0003, 75- 762 -0004, 75- 762- 0005,75- 762- 0006,75- 762 - 0007,75- 762 -0008, and 75- 616 -0105 Board of Appeal and Equalization Minutes May 14, 2012 Page 2 Mr. Santwire distributed an updated handout of the properties he is appealing including 11 factors that he believes need to be reviewed when considering the value. He stated that he • met with representatives from the assessor's office and there was not enough time to review all of the properties thoroughly. Mr. Weber indicated that the River's Crossing parcels listed are classified as apartment but he believes they should be classified as residential, non - homestead because each unit is independently leased and rented and can be sold separately. This will reduce the net tax capacity on the properties by approximately 25 %. Mr. Weber recommended that this item be referred to the County Board because there was not enough time to completely review the properties. MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY COUNCILMEMBER GUMPHREY TO MAKE NO CHANGE TO THE PARCELS LISTED ABOVE AS RECOMMENDED BY THE COUNTY ASSESSOR. MOTION CARRIED 5 -0. 3. Provo Enterprises, LLC, Parcel Identification Number 75- 757 -0115 Mr. Weber stated that at the last meeting, the Board increased the value of parcel 75 -757- 0115 because of a garage addition. He stated that an updated notice was sent to the property owner and he is present this evening to discuss the value. Mr. Provo distributed a handout outlining his values and that of two similar businesses. He requested his value be reduced to $877,530 to be consistent with the other properties or that the value on the other properties be increased. • Mr. Weber stated that the Board reduced the value of Exhibit A on Mr. Provo's handout at the last meeting due to their sale price and a reduction in their office space. He explained that the sale in Exhibit B was rejected because the seller assisted the buyer in financing the purchase. Mr. Riley distributed a handout with his recommendation to lower the value to $1,045,300. Mr. Provo stated he is requesting an additional 15% reduction. MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY COUNCILMEMBER ZERWAS TO ADJUST THE TOTAL VALUE OF PARCEL IDENTIFICATION NUMBER 75- 757 -0115 TO $956,300 BY LOWERING THE PRICE PER SQUARE FOOT TO $42.50. MOTION CARRIED 5 -0. Mayor Dietz adjourned the meeting at 7:02 p.m. Minutes prepared by Jessica Miller. Tina Allard, City Clerk J 4yn J. Die , NYayor •