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04-29-1992 CC MIN - BOR . . . MINUTES OF THE ELK RIVER BOARD OF REVIEW HELD AT THE SHERBURNE COUNTY ADMINISTRATION BUILDING WEDNESDAY, APRIL 29, 1992 MEMBERS PRESENT: Councilmembers Schuldt, Dietz, and Kropuenske MEMBERS ABSENT: Mayor Tralle and Councilmember Holmgren. Councilmember Holmgren was absent because he is an employee of the Assessor's Office. STAFF PRESENT: Sandy Thackeray, City Clerk; Ty Bischoff, County Assessor; Jerry Kritzeck, Commercial Assessor; John Cullen, Residential Assessor Acting Mayor Kropuenske called the meeting to order at 6:00 p.m. Ty Bischoff explained the purpose of the Board of Review meeting which is to review 1992 assessed property valuations. The following property owners appeared before the Board of Review. Steve and Diane Bockwitz - 75-518-0220 - $167,800 Steve Bockwitz stated that his property was originally assessed at $175,500 and after reviewing the situation with the Assessor, the value was decreased to $167,800. ~ Bockwitz explained that prior to building his home, he showed the blue prints to the Assessor and asked for an estimated assessed valuation. The estimated assessed valuation received by the Assessors office was $152,000. Bockwitz stated that the purchase price for the home and land was $157,900. He further stated that he recently had the property appraised by a mortgage company and the appraisal came in at $152,000. He also had a real estate market analysis of the property in April, 1992 that came in at $160,000. He indicated that his market analysis included six comparison sale prices plus assessed property valuations. He indicated that the six comparisons were all sold and were assessed at 92% - 94% of the market value. He stated that his complaint is that his property assessed at 105% of the market value based on the real estate market analysis of a $160,000 purchase price. He requested the Board of Review to consider assessing his property in the 95% range of the market value. John Cullen, County Assessor, reviewed comparable sales in the Brentwood area selling for more than $150,000. He indicated that after assessing Bockwitz's property, he was still within the required margin at 105%. COUNCI LMEMBER DIETZ MOVED TO REDUCE THE ASSESSED VALUE OF PROPERTY '75-518-0220 TO $163,900 BASED ON THE EVIDENCE PRESENTED BY STEVE AND DIANE BOCKWITZ. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 3-0. Gordon Cornelius - 75-432-0236 - $9,000 & 75-432-0234 - $9,000 . . . Board of Review Minutes Wednesday, April 29, 1992 Page 2 Mr. Cornelius explained that both of these lots are vacant. The property owner of the neighboring lot has done some landscaping to his lot next to the lot line of one of Cornelius' lots. The landscaping process has created a steep knoll on one of Cornelius' lots which also affects his other lot. He stated that he has been trying to sell both lots for a total of $12,900 and has been unsuccessful. He indicated that in order to sell the lots he will have to remove the knoll. COUNCILMEMBER DIETZ MOVED TO TABLE A DECISION ON THIS ISSUE UNTIL THE ASSESSOR CAN VISIT THE PROPERTY AND RECOMMEND A NEW ASSESSED VALUE TO THE CITY COUNCIL (BOARD OF REVIEW). COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 4-0. Richard Pool - 75-431-0410 - $78,000 Mr. Pool stated that his property was appraised based on a 7.5 class appraisal. He stated that he disagrees with the appraised value. He indicated that he paid $51,000 for his home and that the interior of his home is finished with low quality materials. Assessor Jerry Kritzeck indicated that he decreased the valuation by $20,000 to allow for the uncompleted portion of the home and the low quality of the interior fixtures. COUNCILMEMBER DIETZ MOVED THAT THE ASSESSED VALUE OF PROPERTY REMAIN AT $78,000. COUNCILMEMBER SCHULDT SECONDED THE MOTION. CARRIED 3-0. 75-431-0410 THE MOTION Bill Cherrier - 75-127-4201 - $227,200 (22.72 Acres) Jerry Kritzeck stated that he assessed the property at a commercial rate of $10,000 per acre based on what he felt was the highest and best use of the property. Bill Cherrier stated that his property was appraised at $120,000 in 1991. Mr. Cherrier explained that about 5 acres of the property is wetland. He indicated this will be an obstacle in developing the property as he will need approval from the DNR. He further stated that if the property is not developed soon, the property could be tied up by the Federal Wetlands Preservation Act for a long time. He indicated that he did not feel it was fair that his property was being assessed at a commercial rate when it would be some time before it is developed. COUNCILMEMBER SCHULDT MOVED TO REASSESS PROPERTY #75-127-4201 A1 $5,000 PER ACRE BASED ON THE FACT THAT THE PROPERTY IS UNDEVELOPED. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 3-0. Mike Wallin - 75-405-0630 - $98,300 Mike Wallin indicated that this parcel is commercial and is located on Main Street. He indicated that the past two sales of the property were about $20,000 to $30,000 less than the assessed valuation. Mr. Wallin indicated that the only portion of the house being used was the front. Councilmember Kropuenske suggested assessing the front of the house only as the back of the house is unusable. . . . Board of Review Minutes Wednesday, April 29, 1992 Page 3 COUNCILMEMBER DIETZ MOVED TO REASSESS PROPERTY 75-405-0630 AT $80,000 BASED ON A PORTION OF THE HOUSE BEING UNUSABLE. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 3-0. MARK MARTIN - 75-114-3311 - $94,000 Mr. Martin noted that the appraised value of his home increased approximately $26,000 in the last two years. He indicated that the home is 26 years old and was moved onto the property. He stated that although he has made improvements to the outside of the home and added a pole barn to the property, no improvements have been made to the inside of the home. Mr. Martin noted that he would not be able to sell his home for $94,000. John Cullen, Assessor, indicated that he raised the grade from 6 to 6.5 when the improvements were made to the home. The assessed valuation was also raised when the pole building was constructed plus there was an increase of $5,000 to the land which was an overall assessment to all 5 acre parcels in the City. COUNCILMEMBER DIETZ MOVED TO LOWER THE ASSESSED VALUATION OF PROPERTY 75-114-3311 TO $90,000 BASED ON THE AGE OF THE HOME AND THE FACT THAT THE INTERIOR HAS NOT BEEN IMPROVED. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 3-0. Tom Hipsag - 75-457-0110 - $21,500 and 75-457-0130 - $21,5000 Tom Hipsag explained that both parcels are industrial lots. Jerry Kritzeck explained that the lots increased from 12,900 in 1991 TO $21,500 in 1992. He stated that the increase was based on comparison sales and because of State Law which requires industrial property to be assessed within 95% - 100% of the market value. Tom Hipsag explained that a portion of one of the lots is unsaleable because of low land. COUNCILMEMBER 75-457-0130 TO UNSALEABLE. CARRIED 3-0. DIETZ MOVED TO LOWER THE ASSESSED VALUE $17,500 BASED ON THE FACT THAT A PORTION OF THE COUNCILMEMBER SCHULDT SECONDED THE MOTION. OF PROPERTY PROPERTY IS THE MOTION COUNCILMEMBER DIETZ MOVED THAT THE ASSESSED VALUE OF PROPERTY REMAIN AT $21,500. COUNCILMEMBER SCHULDT SECONDED THE MOTION. CARRIED 3-0. 75-457-0110 THE MOTION Tom Hipsag - 75-428-0610 - $86,900 Tom Hipsag stated that he refinancing appraisal came the valuation for the property year before that the Board of stated that a similar property $86,500. was unable to refinance his home as the in at $81,000. Jerry Kritzeck indicated that has not increased since last year, and the Review lowered the assessed value. He further was sold next door to Hipsag's property at . . . Board of Review Minutes Wednesday, April 29, 1992 Page 4 COUNCILMEMBER DIETZ MOVED THAT THE ASSESSED VALUE OF PROPERTY 75-428-0610 REMAIN AT $86,900. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 3-0. Wesley Hunt - 75-114-3300 - $102,400 Wesley Hunt stated that last year the assessed value of his property was $99,500. Mr. Hunt explained that the house is 20 years old, and is due for many improvements both inside and out. John Cullen explained that the increase in property value was due to a land increase to the green acres property and a slight increase to the property containing the dwelling. COUNCILMEMBER SCHULDT MOVED THAT THE ASSESSED VALUE FOR PROPERTY 75-114-3300 REMAIN AT 102,400. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 3-0. Al Nadeau - 75-404-0141 - $500 Al Nadeau stated that the assessed value of this parcel increased from $100 to $500. He stated that the land is totally unusable and does not feel the value of the property should be increased. Jerry Kritzeck explained that $500 is used as a minimum property valuation. COUNCILMEMBER DIETZ MOVED TO LOWER THE 75-404-0140 TO $100 BASED ON THE FACT COUNCILMEMBER SCHULDT SECONDED THE MOTION. PROPERTY VALUE OF PROPERTY THAT THE PROPERTY IS UNUSABLE. THE MOTION CARRIED 3-0. Al Nadeau - 75-405-0470 - $174,200 Al Nadeau stated that he felt the assessed high. Jerry Kritzeck stated that the from last year. value of his property is too property valuation did not raise No action was taken by the Council to lower the assessed valuation of this property. Adrian Barnier - 75-418-0220 - $6,700, 75-418-0225 - $6,000 Mr. Barnier indicated that according to the westwood appraisal done by the City, his two lots should be worth $10,000 after the improvements are installed. He indicated that if this is the case, then his lots should have a lower assessed value than $6,000 and $6,700. Councilmember Kropuenske explained that the lots would be worth $10,000 more after improvements are installed. COUNCILMEMBER DIETZ MOVED THAT THE ASSESSED AND 75-418-0225 REMAIN AT $6,000 and $6,700. THE MOTION. THE MOTION CARRIED 3-0. VALUE FOR PARCELS 75-418-0220 COUNCILMEMBER SCHULDT SECONDED . . . Board of Review Minutes Wednesday, April 29, 1992 Page 5 Dick Gruys - 75-101-3101 - $106,100 Mr. Gruys indicated that his property value increased by $3,000 from last year. He requested the Council to consider the adjoining property and land use of that property. He stated that the adjoining property is a feedlot presently containing 2,700 hogs. He indicated that this lowers the value of his property. COUNCILMEMBER DIETZ MOVED TO LOWER THE ASSESSED VALUE OF PROPERTY 75-101-3101 TO $103,100 BASED ON THE LAND USE OF THE ADJOINING PROPERTY. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 3-0. Dennis Peterson - 75-101-2101 - $220,500 Mr. and Mrs. Peterson stated they owned 153 acres of property. They stated that the condition of Jarvis street is very poor. Mr. Peterson indicated that several years ago, a black substance was put on the road. He stated the condition of the road is very poor and may be due to the black substance on the road. The substance creates soot leaving it very undesirable to leave windows open in the summer. He further stated that he has contacted City Hall and they have responded by grading the road, however, grading no longer helps the condition of the road. He stated it was unfair that he was required to pay such high property taxes and did not receive service for his road. Councilmember Kropuenske indicated he would contact City Staff regarding the repair of this road and suggested that Mr. Peterson contact him in a couple of weeks to see what action has been taken. No action was taken on the assessed value of the Peterson Property. Gary Santwire - See attached list of properties Gary Santwire was present and submitted a list of properties with a request to reduce the assessed values by 20%. 75-435-0620 75-445-0110 75-435-0640 75-445-0120 75-435-0630 75-435-0420 75-435-0410 Gary Santwire requested the Council to reconsider the assessed value of the two lots on Auburn Place (75-435-0420 and 75-435-0410) because there is no sewer and water available to the lots and they cannot be developed without this improvement. He indicated that the Assessor should consider the cost to bring utilities to the lots in the assessed value. COUNCILMEMBER DIETZ MOVED TO REQUEST ASSESSOR JERRY KRITZECK TO DETERMINE THE COST TO STUB IN SEWER AND WATER TO THE LOTS AND THEN BRING THIS BACK TO . . . Board of Review Minutes Wednesday, April 29, 1992 Page 6 THE COUNCIL FOR A DECISION. COUNCILMEMBER SCHULDT SECONDED THE MOTION. MOTION CARRIED 3-0. THE No action was taken by the Council regarding the remaining parcels of property submitted by Gary Santwire. Robert & Elaine Stueffen - 75-468-0235 Ty Bischoff indicated that he received a letter of appeal from the Stueffens. He stated that their property value increased $3,000 due to an increase in the land. COUNCILMEMBER DIETZ MOVED THAT THE ASSESSED VALUE FOR PROPERTY REMAIN THE SAME. COUNCILMEMBER SCHULDT SECONDED THE MOTION. ,CARRIED 3-0. 75-468-0235 THE MOTION Red Carpet Inn - 75-011-2245 Ty Bischoff indicated that a letter of appeal has been received by the President of Red Carpet Inn disagreeing with the assessed value. The letter states that the value increased from $6,000 to $10,000. Ty Bischoff indicated that the increase was due to the parking lot improvements. COUNCILMEMBER DIETZ MOVED THAT THE ASSESSED REMAIN THE SAME. COUNCILMEMBER SCHULDT SECONDED CARRIED 3-0. VALUE OF PARCEL 75-011-2245 THE MOTION. THE MOTION Elk River Bowl - 75-132-1200 - $514,200 Ty Bischoff indicated that a letter of appeal has been received by Elk River Bowl contesting the property valuation. The City Council received the letter of protest from Elk River Bowl. There being no further business, COUNCILMEMBER DIETZ MOVED TO ADJOURN. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 3-0. The meeting of the Board of Review adjourned at 9:30 p.m. Jl ~ ,--/51 >4~aJ~ /sandra A. Thackeray ~ City Clerk