05-10-1989 CC MIN - BOR
MEETING OF THE ELK RIVER BOARD OF REVIEW
HELD AT THE SHERBURNE COUNTY ADMINISTRATION BUILDING
MAY 10. 1989
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Members Present: Mayor Tralle. Councilmembers Kropuenske and Schuldt
Members Absent:
Councilmembers Dobel and Holmgren
Also Present:
County Assessor. Ty Bischoff; Jerry Kritzeck and John Cullen
Pursuant to due call and notice thereof. Mayor Tralle called the meeting
of the Board of Review to order at 7:00 p.m.
Mayor Tralle stated that Councilmember Holmgren has a conflict of interest as
he is an employee of the County Assessor's Office. Therefore. he will not be
participating in the Board of Review meeting.
Ty Bischoff. County Assessor. stated that the purpose of the Board of Review
is to review the 1989 assessments and taxes which are payable in 1990. He
stated that anyone who has a conflict with their taxes may appear before the
Board of Review at which time property values and classifications will be
reviewed individually.
Ty Bischoff stated that it is the duty of the Assessor's Office to estimate
the market value of existing land and homes in the city of Elk River. He
further indicated that the Commissioner of Revenue will not accept a level of
assessment lower than 90% of the market value. Mr. Bischoff stated that Elk
River's assessments did not reflect the 90% market value. therefore. the
market value of all Elk River property owners was raised to reflect this 90%.
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1. Tom Hipsag - 115-140-060010 (75-428-0610)
Mr. Hipsag indicated that his property valuation dropped from $88.000 to
$84.300. He stated that although it did drop. he did not feel it was low
enough. Mr. Hipsag indicated that he could not sell the home for
$84.300. He indicated that it has been on the market for about two years
and the most he has been offered is $74.000. Mr. Hipsag stated that the
home is a duplex which he is trying to convert into a single owner. zero
lot lined home. In order to do this he would have to add another well
and put in a fireproof barrier wall.
Jerry Kritzeck. Deputy County Assessor. indicated that the property value
was lowered to compensate for the addition of the well and for the
construction of the wall. He further indicated that the market valuation
is consistent with the way other similar homes are appraised.
Mayor Tralle indicated that the duplex has been assessed comparably to
other duplexes in the area and further that a $4.000 decrease was an
adjustment and he felt the property valuation should remain.
COUNCILMEMBER SCHULDT MOVED THAT
COUNCILMEMBER KROPUENSKE SECONDED
THE VALUATION OF $84.300 REMAIN.
THE MOTION. THE MOTION CARRIED 3-0.
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Board of Review Minutes
May 10. 1989
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2. Ronald Wright - 75-488-0160
Mr. Wright indicated that he owned commercial property with a commercial
building on the property. He stated his property was appraised at
$61.700. Mr. Wright indicated that his land was appraised at $12.000 and
stated that he paid $6.500 for the land. He further indicated that there
are other commercial lots that front along the road which have just
recently sold for $9.000. He stated that the total he spent on the lot
and the building was $56.000 and felt that the building and lot were over
appraised.
COUNCILMEMBER SCHULDT MOVED TO LOWER THE MARKET VALUATION TO $59.000 AND
INDICATED THAT THE VALUATION WAS BEING MARKED DOWN FROM THE BUILDING NOT
THE LAND. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION
CARRIED 3-0.
3. Chuck Ragen - 75-408-0635
Mr. Ragen stated that he received a valuation for his property of $95.500
which was an increase of $6.100 from the previous year. He stated he
felt the valuation was high due to the location of his home. He
indicated that he lived next door to the Landmark Motel and because of
this he would have problems selling his home.
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The Council discussed the problems created by the Landmark Motel which
consisted of the large number of occupants. noise. and the uncleanliness
of the site.
COUNCILMEMBER SCHULDT MOVED TO REDUCE THE VALUATION OF MR. RAGEN'S
PROPERTY (75-408-0635) BY 10% RESULTING IN A PROPERTY VALUATION OF
$86.000; AND TO REDUCE THE PROPERTY VALUATION OF MR. WILLIAM MCGREGOR'S
PROPERTY. PARCEL iI (75-408-0625). BY 10% RESULTING IN A VALUATION OF
$55.000. BECAUSE THIS PROPERTY IS LOCATED ON THE OTHER SIDE OF THE MOTEL;
AND FURTHER THAT THE REDUCTIONS ARE BEING MADE BECAUSE OF THE NUISANCE
FACTOR CREATED BY THE MOTEL. COUNCILMEMBER KROPUENSKE SECONDED THE
MOTION. THE MOTION CARRIED 3-0.
Mayor Tralle indicated he would be contacting the Fire Marshal for an on-
site inspection of the premise. He also stated that when the problem was
corrected the assessment would be reinstated.
4. Jim Hudson - 75-401-0430
Mr. Hudson indicated that he just recently built a house on Gates Avenue
and paid $78.000 for the home and land together. He stated that his home
was valued at $87.100 by the County Assessor. He felt this appraised
value was too high due to the fact that he spent $78.000 for the house
and further because the location of the house is on a very busy street.
It
COUNCILMEMBER KROPUENSKE MOVED TO ADJUST THE LAND VALUE DOWN $3,500 DUE
TO THE TRAFFIC ON THE STREET. WHICH WOULD BRING THE TOTAL VALUATION OJ'
THE PROPERTY TO $83.600. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE
MOTION CARRIED 3-0.
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Board of Review Minutes
May 10, 1989
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5. Hubert Marty - 75-428-0256
Mr. Marty indicated that he owned a townhome and the valuation he
received from the Assessor's Office for the townhome was $73,600. He
indicated a similar townhome just recently sold for $65,000. Mr. Marty
noted that he has had his townhome on the market for some time but has
been unable to sell it. He stated that his debt service on the home is
very high and that he is losing money.
COUNCILMEMBER KROPUENSKE MOVED TO ADJUST THE VALUATION OF THE PROPERTY
OWNED BY HUBERT MARTY, 75-428-0256, TO $69,900 BECAUSE THE STYLE OF THE
HOME CREATED A HIGH DEBT SERVICE AND FURTHER DUE TO THE LOCATION OF THE
HOME. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED
3-0.
COUNCILMEMBER KROPUENSKE MOVED TO ADJUST THE VALUE OF PROPERTY OWNED BY
HUBERT MARTY, 75-428-0254. TO $69.900 DUE TO THE STYLE OF THE HOME
WHICH CREATED A HIGH DEBT SERVICE AND ALSO DUE TO THE LOCATION OF THE
HOME. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED
3-0.
6.
Cretex, Don Schumacher - 75-405-2310
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Mr. Schumacher indicated that a house owned by the Cretex Company.
located downtown on commercial property, increased from $58.100 to
$88.700 and questioned the reason for the increase. Jerry Kritzeck
indicated that land value in the downtown commercial area has increased
due to the area being commercial. He indicated that all of the
commercial property in the downtown area has received increased property
valuations.
Mr. Ty Bischoff indicated that the buildings on the property have not
received an increase in valuation but only the property. He stated that
the property is assessed at its highest and best use. Mr. Bischoff
further indicated that there has been no adjustments in the land values
in the downtown area since 1981. Therefore, the adjustments have been
made all at once. He indicated that the reason for this is because in
the past there had been no sales to determine the land values in the
commercial area. and recently sales have been made in the commercial
area which determine the land values.
75-405-2315, Mr. Schumacher indicated that this is another house which is
being rented out by a commercial business. He indicated that the
evaluation of the property went from $66,100 last year to $104,000 this
year.
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75-405-2305, Mr. Schumacher indicated that the Cretex building was
assessed at $433,300 last year and has been increased to $484,200. Mr.
Schumacher indicated that he is contesting that the assessed values for
all three properties are too high.
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Board of Review Minutes
May 10, 1989
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COUNCILMEMBER KROPUENSKE MOVED THAT NO CHANGE BE MADE TO THE ASSESSED
VALUATIONS OF THE FOLLOWING PROPERTIES, 75-405-2310, 75-405-2315,
75-405-2305. COUNCILMEMBER. SCHULDT SECONDED THE MOTION. THE MOTION
CARRIED 3-0.
8.
Al Nadeau - 75-405-0470
Mr. Nadeau indicated that his property has been increased from $123,700
last year to $155,500 this year. He stated that he owns property in the
downtown area.
Jerry Kritzeck indicated that there has been no change to the buildings
in the assessment, but there has been a change in the land. Mr. Kritzeck
explained that the entire downtown commercial property has been re-
evaluated and that assessed valuation of property has increased.
Mr. Nadeau indicated that he also
river which is almost nonexistent.
property cannot be combined because
other property.
owns a small strip of land by the
Jerry Kritzeck indicated that the
it is in a different plat than his
COUNCILMEMBER KROPUENSKE MOVED TO REDUCE THE VALUE OF THE PROPERTY OWNED
BY AL NADEAU. PARCEL 1115-020-000141 TO $100.00. COUNCILMEMBER SCHULDT
SECONDED THE MOTION. THE MOTION CARRIED 3-0.
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Mr. Nadeau indicated that he is contesting the appraised value of the
building he owns. He indicated that he purchased the property two years
ago and paid $135,500 and the recent valuation he received from the
County was $155,500. He stated that part of the building is made of tin
and is very poorly constructed.
Jerry Kritzeck indicated that when his property was appraised, the
property was valued lower than similar properties in the same area due to
the fact that consideration was given to the configuration of the land
and to the part of the building that was poorly constructed.
COUNCILMEMBER
In 5-405-0470.
CARRIED 3-0.
SCHULDT MOVED TO MAKE NO CHANGE IN VALUATION FOR PROPERTY
COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION
9. Dale Johnson - 75-405-0110, 75-405-0130
Jerry Kritzeck indicated that he had received a letter from Dale Johnson
indicating that the assessed value on two parcels of his property has
increased dramatically. Jerry Kritzeck indicated that the property is
located in the downtown area and is commercial property. He indicated
that parcel # 75-405-0110 is appraised at $57,600 and parcel #75-405-0130
is appraised at $100.500. Mr. Kritzeck indicated that this is consistent
with other property in the downtown area.
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COUNCILMEMBER KROPUENSKE MOVED THAT NO CHANGE BE MADE TO THE ASSESSED
VALUATIONS FOR PROPERTY IDENTIFICATION # 75-405-0110 AND 175-405-0130.
COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 3-0.
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Board of Review Minutes
May 10, 1989
10. Ron Langbehn - 80-002-4315
John Cullen indicated that the County received a letter from Mr.
Langbehn indicating that he is contesting the increase in valuation of
his property.
COUNCILMEMBER SCHULDT MOVED THAT THE VALUATION OF PARCEL #80-002-4315
REMAIN, AS IT IS CONSISTENT WITH OTHER SIMILAR PROPERTIES. COUNCILMEMBER
KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 3-0.
11. Joe Sipe - 75-405-0380
Jerry Kritzeck indicated that Mr. Sipe had registered an objection to the
increase on the assessment to part of his lot. Mr. Sipe claims that a
part of this area is not buildable.
COUNCILMEMBER KROPUENSKE MOVED THAT THE EVALUATION FOR MR. SIPE'S LOT
REMAIN THE SAME BASED ON THE RE-EVALUATION OF THE ENTIRE DOWNTOWN AREA.
COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 3-0.
12.
Adeline Dietz - 75-437-0130
Jerry Kritzeck indicated that Adeline Dietz of Barrington Place sent a
letter contesting that the market value of her property was assessed too
high. Jerry Kritzeck indicated that the property value had increased 6%
along with the other homes in that area.
COUNCILMEMBER KROPUENSKE MOVED THAT THE PROPERTY VALUATION OF PARCEL #
75-437-0130 REMAIN, AS IT IS CONSISTENT WITH THE OTHER PROPERTY IN THE
AREA. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED
3-0.
13. Sheldon Vie - 540 Auburn - 75-435-0312
Jerry Kritzeck indicated that he received a letter from Sheldon Vie
contesting the valuation of his property. Mr. Vie was contesting that
the property was valued too high. Jerry Kritzeck indicated that the
value had increased 6%, along with other properties in the area.
COUNCILMEMBER SCHULDT MOVED
75-435-0312 REMAIN THE SAME.
MOTION. THE MOTION CARRIED 3-0.
THAT THE PROPERTY VALUATION OF PARCEL /1
COUNCILMEMBER KROPUENSKE SECONDED THE
14. Richard Bury - 80-104-4400
Mr. Bury had submitted a letter claiming that his property valuation was
too high. Jerry Kritzeck indicated that there had been a classification
change in his valuation due to the fact that gravel was being extracted
from the property.
COUNCILMEMBER KROPUENSKE MOVED THAT NO CHANGE BE MADE TO THE PROPERTY
VALUATION OF PROPERTY #80-104-4400 DUE TO THE CLASSIFICATION CHANGE.
COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 3-'-0.
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Board of Review Minutes
May 10, 1989
There being no further business, COUNCILMEMBER SCHULDT MOVED TO ADJOURN THE
BOARD OF EQUALIZATION MEETING. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION.
THE MOTION CARRIED 3-0.
The Board of Equalization meeting adjourned at 10:50 p.m.
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Sandy Thackeray ()
Deputy City Clerk