04-11-1991 CC MIN - BOR
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MEETING OF THE ELK RIVER BOARD OF REVIEW
HELD AT THE SHERBURNE COUNTY ADMINISTRATION BUILDING
THURSDAY, APRIL 11, 1991
Members Present:
Mayor Tralle, Councilmembers Dietz, Kropuenske and
Schuldt
Members Absent: ~ Councilmember Holmgren - Councilmember Holmgren is
employed by the Sherburne County Assessor's Office and,
therefore, felt it was a conflict of interest to
participate on the Board of Review.
Also Present:
Sandy Thackeray, City Clerk; Ty Bischoff, Jerry Kritzeck
and John Cullen, County Assessors
Pursuant to due call and notice thereof the meeting of the Board of Review
was called to order at 6:04 p.m. by Mayor Tralle.
Mayor Tralle explained that the City Council is acting as the Board of
Review, whose primary job is to review the assessments made by the County
Assessors for the 1991 tax year.
Ty Bischoff, County Assessor, stated that the County has made an attempt to
reassess all of Elk River during the last two years. He indicated that
those who have a question or problem regarding the assessment of their
property should bring the matter before the Board of Review. The following
cases were heard by the Board of Review.
1. TOM HIPSAG - 75-529-0110 Residential tH1Q.600
Mr. Hipsag presented a prepared appraisal by Triggs showing the value
of his property at $172,948. John Cullen explained that the difference
between the two appraisals was the land value. He indicated that he
appraised the land according to surrounding land values.
COUNCILMEMBER SCHULDT MOVED TO TAKE NO ACTION ON THE REQUEST TO LOWER
THE ASSESSMENT FOR MR. HIPSAG'S PROPERTY. COUNCILMEMBER KROPUENSKE
SECONDED THE MOTION. THE MOTION CARRIED 4-0.
TOM HIPSA9 - COMMERCIAL
75-457-0120
75-457-0130
75-457-0110
- $39,200
- $12, 900
- $12,900
Mr. Hipsag explained that his business located on Parcel 75-457-0120
was assessed at $29,200 last year and was raised to 39,200 for the 1991
assessment. He further indicated that the other two parcels of
property were vacant land and were assessed $6,400 in 1990 and raised
to $12,900 in 1991.
Board of Equalization Minutes
April 11, 1991
Page 2
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Jerry Kritzeck, County Assessor, stated that the reason for the
increase on the two vacant parcels of land was because they were vacant
lots and after three years can be reassessed due to the sale of other
lots in the area. Therefore, the value of the lots were raised to be
comparable to other lots sold in the surrounding area. Mr. Kri tzeck
explained that the assessed value for Parcel 75-457-0120 was raised
$10,000 for the same reason. He indicated that the land was being
assessed at a low rate and was raised due to the sale of another lot
sold in the plat.
COUNCILMEMBER
APPRA I SAL FOR
75-457-0110.
CARRIED 4-0.
KROPUENSKE MOVED TO ACCEPT THE COUNTY ASSESSOR'S
THE FOLLOWING PROPERTIES; 75-457-0120, 75-457-0130,
COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION
2. MS. HARSTAD - 75-404-0122 Residential $76.600
Ms. Harstad indicated that she had a market analysis done on her
property which came in at $69,900. She stated that the analysis was
done by Century 21. She further indicated that she did not feel she
could sell her property for the assessed value put on by the County
Assessor of $76,600.
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Assessor Jerry Kritzeck stated that Ms. Harstad's home is in a
commercially zoned area and due to this the land value has raised.
COUNCILMEMBER KROPUENSKE MOVED TO APPROVE THE ASSESSED VALUE SUBMITTED
BY THE COUNTY ASSESSOR'S FOR 75-404-0122 AT $76,600. COUNCILMEMBER
DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0.
3. RQY-.AND A~NILIULLMAIUL=-75-405-1550 Four Pl~x $130.800
Roy Billmark stated that he and his brother Arnie had recently
purchased the four-plex through HUD. He stated that they had paid
$115,101 for the property. He stated that he did not feel that the
four-plex was worth $130,800 as nobody bid to pay that much for the
four-plex.
Jerry Kritzeck, County Assessor, stated that the Assessor has not been
out to reassess the property for the last four years. He indicated
that because it was a HUD house there was a possibility that the
assessment could be lowered.
It was the consensus of the Board to table any decision on this
property until the property has been reappraised by the County Assessor.
4.
DA~ BALLOY - 75-478-Q350 Re~~de~tial $85.40Q
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Mr. Balloy stated that his property sold for $67,000 in 1990 and that
he purchased the property in 1991 for $72,725. He stated that he did
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Board of Equalization Minutes
April 11, 1991
Page 3
not feel the property was worth the value put on by the Assessor's
Office of $85,400.
John Cullen, County Assessor, stated the sale in 1990 for $67,000 was
probably a stress sale and did not show true market value under those
circumstances. He further indicated that according to other properties
in the area the property was valued at a comparable market value.
COUNCILMEMBER KROPUENSKE MOVED TO ACCEPT THE ASSESSOR'S EVALUATION OF
THE PROPERTY 75-478-0350 OF $85,400 DUE TO COMPARABLE MARKET VALUES IN
THE AREA. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION
CARRIED 4-0.
5. HARVEY RICHNEF - 75-114-4320 Resident!~~.20Q
Mr. Harvey Richner stated that his market value increased from $56,200
to $79,200 in one year and felt that the assessed value was too high at
$79,200. The County Assessor stated that the property had not been
reassessed for approximately seven years and also, during the seven
years, improvements have been made to the property such as a garage
addition and a finished basement. He stated that he felt the assessed
value was comparable to other property in the area.
COUNCILMEMBER SCHULDT MOVED THAT THE MARKET VALUE REMAIN AT $79,200 FOR
PROPERTY 75-114-4320. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE
MOTION CARRIED 4-0.
6.
ALLAH-KREM~R - 75-47~-0260 Residential $120,200
Mr. Kremer stated that he was surprised with the increase in valuation
on his property which was valued at $100,600 in 1990. The County
Assessor indicated that the land value has increased in the area and
also there was an increase to the market value due to addition of a
deck, a finished basement and a fireplace.
COUNCILMEMBER DIETZ MOVED THAT THE PROPERTY VALUE REMAIN AT $120,200
FOR PROPERTY 75-473-0260. COUNCILMEMBER KROPUENSKE SECONDED THE
MOTION. THE MOTION CARRIED 4-0.
7. PETE ROHLF - 75-432-0110 Commercial $76,300_and 75~~~~~121 Commercial
~9_~_30Q_
Pete Rohlf questioned the reason for the assessed valuation of $96,300
for his mini storage building. He indicated that the new building, is
not full and therefore he is not receiving as much income from that
building.
Jerry Kri tzeck, County Assessor, explained the process of evaluating
commercial property. He explained that Mr. Rohlf's buildings are
quality buildings and, therefore, are assessed at a higher rate. Pete
Rohlf explained that even though his buildings are assessed higher due
Board of Equalization Minutes
April 11, 1991
Page 4
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to the quality of the building, he cannot charge any more for renting
his buildings than the surrounding buildings because of the fact that
the people will pay the lower price. The County assessor indicated
that next year the Assessor's Office is considering another approach to
assessing these rental units. He indicated that they are going to try
to look at the units according to income versus expenses and assess
accordingly. The Assessor explained that the appraisal this year was
based on the Marshall and Swift Book and that all other rental units
were appraised on these qualifications.
COUNCILMEMBER DIETZ MOVED THAT THE APPRAISAL FOR PROPERTIES 75-432-0110
AND 75-432-0120 REMAIN AT $76,300 AND $96,300 AS SET BY THE COUNTY
ASSESSOR'S OFFICE. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE
MOTION CARRIED 3-0. Councilmember Schuldt was away from the table
during this vote.
8. S.{~RBURNE--1QpGE . KEN WARNEKE - 75-402-P255 Vacant Lot $6,000 AND
75-~QZ::.Q21L3_.'pommercial $240 I@O
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Mr. Warneke explained that last year the assessed value was $226,300
for the commercial property. The Assessor's Office explained that the
land value has increased and the price per square foot for the building
also increased in 1991. Mr. Warneke questioned whether the vacant lot
which is appraised at $6,000 could be assessed as part of the
commercial property. He indicated that the lot is actually the parking
lot for the property.
COUNCILMEMBER KROPUENSKE MOVED THAT THE ASSESSOR'S OFFICE CLASSIFY THE
VACANT LOT 74-402-0255 AS PART OF THE COMMERCIAL PROPERTY 75-402-0253
COMBINING THE TWO AND ASSESSING AS ONE PARCEL. COUNCILMEMBER DIETZ
SECONDED THE MOTION. THE MOTION CARRIED 4-0.
9. !JOHN CURTIS 75-126_-.-1101 Residentia,Ull.lli.800
Mr. Curtis explained that during a project done by the City to upgrade
Tyler Street, a guardrail was placed in his yard and stated that this
guardrail project caused an unsightliness which could devalue his
property. After discussion by the Board of Review, it was the
consensus to have the appraiser reassess the property as it has not
been assessed since the guardrail has been put on the property.
COUNCILMEMBER KROPUENSKE MOVED TO TABLE ANY DECISION ON THIS PROPERTY
UNTI L THE ASSESSOR HAS MADE A REASSESSMENT OF THE PROPERTY.
COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0.
10.
PARHEtLPJ!E.FJ 75_:Jl~t-.-Z31ULR~!lidential~70,J)~(received by ma.HI
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Ty Bischoff explained that he talked to Ms. Duffy prior to the
meeting. He stated that her home was arbitrarily assessed due to the
fact that they could not get in the home to assess the property.
Arrangements with Ms. Duffy to reappraise the home.
Board of Equalization Minutes
April 11, 1991
Page 5
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There was no action taken on this as the home will be reappraised by
the County Assessor.
11.
BON:ITA HOPPER 75-401-0445 Resid~ntial $72.300
Jerry Kritzeck stated that a mistake was made by the County Assessor's
Office with this appraisal and that some flat charges were not added,
to the assessed value of the home. The appraisal will increase from
$72,300 to $78,300 when these flat charges are added.
COUNCILMEMBER KROPUENSKE MOVED TO ADD THE FLAT CHARGES RAISING THE
APPRAISAL FOR PROPERTY 75-401-0445 TO $78,300. COUNCILMEMBER DIETZ
SECONDED THE MOTION. THE MOTION CARRIED 4-0.
The Assessor noted that Bonita Hopper has been informed of the
additional charges.
12.
L.IQN~_PA~K PARTNERSHIP 75-134-2202 Co~mercial $2.011.800
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Jerry Kritzeck stated that he received a phone call from Allan
Stellmark. Mr. Stellmark expressed his feeling that the value of the
Lion's Park Apartments was too high due to the increased vacancy for
apartments in the City of Elk River.
COUNCILMEMBER DIETZ MOVED THAT THE ASSESSED VALUE FOR THE LION'S PARK
APARTMENTS REMAIN AT $2,011,800 BASED ON COMPARABLE VALUATIONS.
COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 4-0.
13. H~FOLD GRAMSTAD 75-433-0)40_ Commercial $l2.fJ00
Harold Gramstad stated that his commercial property consisted of rental
units and felt that they were assessed too high. Jerry Kri tzeck
indicated that he felt the appraised value represented the market value
for the units.
COUNCILMEMBER SCHULDT MOVED THAT THE APPRAISED VALUE FOR PROPERTY
75-433-0140 REMAIN AT $126,700. COUNCILMEMBER DIETZ SECONDED THE
MOTION. THE MOTION CARRIED 4-0.
There being no further business, COUNCILMEMBER SCHULDT MOVED TO ADJOURN THE
MEETING. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED
4-0.
The meeting of the Elk River Board of Review adjourned at 8:35 p.m.
. ;?J~aitted'
Sandra A. Thackeray
City Clerk