3-6 SR 04-28-2014 City of
Elk Request for Action
River
To Item Number
Mayor and City Council 3-6
Agenda Section Meeting Date Prepared by
Board of App, Aril 28, 2014 Tina Allard, City Clerk
Item Description Reviewed by
Board of Appeal and Equalization Meeting Cal Portner, City Administrator
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 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 April 29 to May 16. The only Council meeting
scheduled during that timeframe is May 5.
Background/Discussion
Board Purpose
The Board's purpose is to objectively determine if 2014 values or classification of parcels has been
properly set by the assessor and should keep in mind that reductions in value shift the tax burden to
others. 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 a w E R E U 6 Y
Template Updated 4/14 INIM UREI
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 for 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 at:
Handbook
http://www.revenue.state.mn.us/local gov/prop tax admin/education/baetraining handbook.pdf
PowerPoint Presentation
http://www.revenue.state.mn.us/local gov/prop tax admin/education/baetraining presentation.pdf
Certification
At least one Councilmember must be at this meeting who attended state required training.
Councilmember Motin is certified to July 1, 2016, and Councilmember Westgaard is certified to July 1,
2017. Staff will notify Council when new training opportunities are available.
Financial Impact
N/A
Attachments
■ None
C:\Users\jmiller\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\GWL3I79K\Staff Report 2014.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
2014 ELK RIVER CITY ASSESSMENT
Residential values increased approximately 7.67% throughout the City of Elk River. The property value
increases are the result of 208 "good" sales used in the residential sales ratio study (Assessed value divided
by sale price equals sales ratio). The sales ratio for the City of Elk River came in at 84.6%.
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
2013 137 sales — 93.0% Ratio = 2.59% Increase
2014 208 sales — 84.6% Ratio = 7.67% Increase
Agricultural market values remained stable.
Commercial & Industrial values excluding new construction decreased approximately (2.0%).
Apartment values increased approximately 7.25% (The majority of this increase is due to the Bluffs
converting to apartment units).
Taxable New Construction
2008 $35,232,600
2009 $11,431,200
2010 $ 6,785,600
2011 $12,562,000
2012 $ 8,656,700
2013 $ 20,085,400
Total City Estimated Market Values (Real Taxable Property)
2009 $2,113,528,600
2010 $2,005,640,252
2011 $1,873,410,300
2012 $1,721,462,200
2013 $1,728,439,800
2014 $1,838,493,300
2014 EHk River
Local Board of Appeal and Equalization
April 28, 2014
The Department of Revenue issued a memo which indicated that the base value to be used in
calculating the average Green Acres value per acre for tillable land was to be $9,400.00. This is
based on sales for the five base counties in southwest Minnesota, Lyon, Murray,Nobles, Rock and
Pipestone. Sherburne County uses a 41% factor (3850/ac) for setting our Green Acres tillable
value.
Values are on a parcel or group of parcels 40 acres or more in sine.
2014 Estimated Market Values
2a Tillable 3600 - 4500/ac
2a/2b Pasture 4100/ac
-Sarne values have been applied to CRP land
Waste 500/ac
2b Woods 4100/ac
2014 Green Acres Values
2a Tillable 3850/ac
2a Pasture 2310/ac
-Same values have been applied to CRP land
Waste 500/ac
Wetlands 500/ac
2013 Estimated Market Values
2a Tillable and Pasture 3600 - 4500/ac
-Same values have been applied to CRP land
Waste 500/ac
2b Woods 4100/ac
2013 Green Acres Values
2a Tillable 3750/ac
2a Pasture 2060/ac
-Same values have been applied to CRP land
Waste 500/ac
Wetlands 500/ac
Elk River Local BearQll of Appeal and Equalization
El Ik River Year End Summary
2014 Assessment
Re-assessment
1,865 properties out of 8,764 parcels were re-assessed,meeting our goals of 20% of the
area.
Residential Statistics 2013 2012
New Homes 87 37
Improvement Permits 242 200
Good Sales 208 137
Bad Sales 213 243
Total Sales 421 380
Beginning Sales Ratio 84.6% 93.0%
Ending Sales Ratio 91.09% 95.41%
Change overall +7.67% 2.59%
Ave Sale Price $205,524 $180,500
Ave Assessed Value $190,281 $172,400
State Time Adjustment +8.4% none
Apartment Sales 2 (8,30 unit) 3 (24,54,16 unit)
Residential Land
Bare Land Sales in 2013 =71
Average sale price= $32,200
Residential and Ag Buildings
The house and garage schedule was increased to help raise the level of assessment.
Ag house and garage increased with the Residential Building Schedule and Pole
Buildings were individually reviewed and depreciated.
Apartments
Elk River has 39 Apartment projects with 1214 apt units. Granite Shores (formerly Bluff
Block) includes 67 apartment units for this assessment. The value of Evans Meadows
due to the Apartment Fire was lowered for the 16 units that were destroyed. A new 52
unit apartment building is planned near Elk River Station. Minor changes were made to
other Apartments for new improvements, rents, etc.
fi
Aff_>e,rzJ*a
2014 city of Elk River
Board of Appeal and Equalization
April 28, 2014
Parcel No. 75-105-3200
Fee Owner: Carl E. and Sally 3. Thompson
Address: 22017 Elk Lake Road NW, Elk River, MN 55330
Vacant Land Acreage: 20.00 acres
On April 25, 2014, appraiser conducted an on-site review of the parcel. It is the appraiser's
recommendation to correct the valuation of the parcel.
BEFORE -
Classification AgriculturaUHomestcad
Land $34,200.00
Total $34,200.00
AFTER—
Classification Agricultural/Homestead
Land $14,400.00
Total - $14,400.00
This will result in a reduction of$19,$00.00 to the estimated market value.
2014 City of Elk River
Board of Appeal and Equalization
April 28, 2014
Parcel No. 75-105-2300
Fee Owner: Carl E. and Sally J. Thompson
Address: 22017 Elk Lake Road NW, Elk River, MN 55330
Vacant Land Acreage: 40.00 acres
On April 25, 2014, appraiser conducted an on-site review of the parcel. It is the appraiser's
recommendation to correct the valuation of the parcel.
BEFORE -
Classification Agricultural/Homestead
Land $66,800.00
Total $66,800.00
AFTER—
Classification Agricultural/Homestead
Land $25,800.00
Total - $25,800.00
This will result in a reduction of$41,000.00 to the estimated market value.
A
2014 ELK RIVER BOARD OF EQUALIZATION
April 28,2014
OWNER: River Holdings, LLC
ADDRESS: 414 Main Street NW
Elk River, MN 55330
LEGAL: Lot 10, Block I Auditors Subdivision No. 5
PARCEL# 75-401-0145
On April 25, 2014 the property owner requested a review of the 2014 Estimated Market
value of the property. After review of the condition of the property on April 25, 2014, I
recommend the following changes.
Assessment of property is as follows:
Before change
Land Building Total
$32,800 $77,300 $110,100
After change
Land Building Total
$32,800 $58,100 $94,200
Decrease: $15,900
2014 ELK RIVED BOARD OF EQUALIZATION
April 28, 2014
OWNER: Michael & Carla Pietrzak
ADDRESS: 19629 Carson Circle NW
Elk River, MN 55330
LEGAL: Lot 10, Block 1 Hillside Estates Ninth Addition
PARCEL# 75-7t4-0150
On April 23, 2014 the property owner requested a reassessment of the property for an
increase in the Estimated Market Value of the property. After review of the property on
April 24, 2014 , I recommend the following changes.
Assessment of property is as follows:
Before change
Land Building Total
$45,700 $151,200 $196,900
After change
Land Building Total
$45,700 $154,100 $199,800
Increase: $2,900
2014 ELK RIVER BOARD OF EQUALIZATION
April 28, 2014
OWNER: John & Brooke Vandenhoek
ADDRESS: 10647 184" Ave NW
Elk River, MN 55330
LEGAL: Lot 26, Block 3 Trott Brook Farms Sixth Addition
PARCEL# 75-681-0352
On April 22, 2014 the property owner requested review of the Estimated Market Value of
the property. After review, I recommend the following changes.
Assessment of property is as follows:
Before change
Land Building Total
$45,700 $237,100 $282,800
After change
Land Building Total
$45,700 $225,300 $271,000
Decrease : $11,800
Arp�
2014 ELK RIVER BOARD OF EQUALIZATION
April 28,2014
OWNER: Denis & Gina Dahl
ADDRESS: 18469 Polk Circle NW
Elk River, MN 55330
LEGAL: Lot 5, Block 3 Trott Brook Farms Sixth Addition
PARCEL# 75-681-0310
On April 23, 2014 the property owner requested review of the Estimated Market Value of
the property. After review, I recommend the following changes.
Assessment of property is as follows:
Before change
Land Building Total
$45,700 $253,900 $299,600
After change
Land Building Total
$45,700 $241,286 $287,000
Decrease : $12,600
9
20➢4 ELK R:VER BOARD OF EQUALIZATION
Apr1 28, 2014
OWNER: Lori Touchette
ADDRESS: 18443 Trott Brook Parkway
Elk River, NIN 55330
LEGAL: Lot 1, Block 4 Trott Brook Farms 6th Addition
PARCEL# 75-681-0402
An Estimated value was placed on the property for the 2014 assessment because
Appraiser was unable to make an interior inspection. On April 25, 2014 an interior
inspection was completed. I recommend the following changes.
Assessment of property is as follows:
Before change
Land Building Total
$45,700 $188,800 $234,500
After change
Land Building Total
$45,700 $175,700 $221,400
Decrease: $13,100
2014 ELK RIVER BOARD OF EQUALIZATION
April 28, 2014
OWNER: Ed Specht
ADDRESS: Vacant Land
Ells River, NIN 55330
LEGAL: W 1-2 OF NE 1-4 &NE 1-4 OF NW 1-4 EX INST
NO 137945
PARCEL# 75-014-1200
On April 22, 2014 I visited with the property owners and determined one billboard site
was missing from the valuation. Per our discussion, a $500 commercial value has been
added to the value.
Assessment of property is as follows:
Before change
Land Building Total
$498,400 $0 $498.400
After change
Land wilding Total
$498,900 $0 $498,900
Increase : $500
2014 ELK RIVER BOARD OF EQUALIZATION
April 28,2014
OWNER: Capital Properties Elk River, LLC
ADDRESS: 12580192' Ct NW
Elk River, MN 55330
LEGAL: Lot 2, Block 2, Elk River Industrial Park
PARCEL# 75-427-0220
On April 18, 2014 the property owner requested review of the 2014 Estimated Market
Value of the property. After review, I recommend no change to the 2014 Estimated
Market values below.
Assessment of property is as follows:
Land Building Total
$62,600 $575,700 $638,300
Recommendation: No change
2014 ELK RIVER BOARD OF EQUALIZATION
April 28, 2014
OWNER: 429 LLC
ADDRESS: 429 Main Street NW
Elk River, MN 55330
LEGAL: Lot 1, Block 2, Village of Elk River
PARCELi# 75-405-1520
On April 18, 2014 the property owner requested review of the 2014 Estimated Market
Value of the property. After review, I recommend no change to the 2014 Estimated
Market values below.
Assessment of property is as follows:
Land Building Total
$98,000 $123,800 $221,800
Recommendation: No change
2014 ELK RIVER BOARD OF EQUALIZATION
April 28, 2014
OWNER: CE Murphy 657, LLC
ADDRESS: 657 Main Street NW
Elk River, MN 55330
LEGAL: The West 34 ft Lot 1, Block 4, Village of Elk River
PARCEL# 75-405-0410
On April 18, 2014 the property owner requested review of the 2014 Estimated Market
Value of the property. After review, l recommend no change to the 2014 Estimated
Market values below.
Assessment of property is as follows:
Land Building Total
Comm. $68,200 $256,300 $324,500
Res. $11,100 $62,600 $73,700
Total $79,300 $318,900 $398,200
Recommendation: No change