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06-05-1986 CC MIN BOARD OF EQUALIZATION MEETING HELD AT THE SHERBURNE COUNTY ADMINISTRATION BUILDING THURSDAY. JUNE 5. 1986 e Members Present: Councilmembers Gunkel. Schuldt and Williams Members Absent: Mayor Hinkle and Councilmember Engstrom The meeting was called to order at 7:00 p.m. by Acting Mayor Schuldt. Acting Mayor Schuldt introduced the County Assessors. Ty Bischoff and Jerry Kritzek to the audience. Ty Bischoff explained that the purpose of the meeting was to review the 1986 assessments with anyone questioning or wishing to appeal their assessed property valuation. A sign-in sheet was valuation of property. used for property owners wishing to discuss assessed The following people signed the list: Ed Bailek Phil Tennenbaum Mr. Ralph C. Schmidtke Mick and Sandy Herkenoff Mr. & Mrs. Don Coleman Mike Majkrzak 1. Ed Bailek & Phil Tennenbaum e Mr. Ed Bailek indicated that he and his partner. Phil Tennenbaum owned two apartment buildings located on 7 - 3rd Street and 23 - 3rd Street. Mr. Bailek gave the following assessed valuation figures to the Council and noted he wished to appeal the fact that the valuation had raised so much since 1984. Apartment Complex located on 7 - 3rd Street (12 units) - $202.800 - 1984 $304.900 1985 $282.000 1986 Apartment Complex located on 23 3rd Street (18 units) - $309.700 - 1984 $462.900 1985 $428.500 1986 Mr. Bailek indicated he has filed a petition with the court to receive a tax release, but the case is still pending. He indicated Mr. Kritzek. Assessor. used the income approach method to determine the valuation. and further indicated he agreed with Mr. Kritzek's approach but felt he did not use the actual figures in determining the assessed valuation, which in turn caused the valuation to be too high. E-=! indicated the buildings are not built very well and they have had ongolg problems with the plumbing work and electrical work. He further indicated he has owned the buildings for ten years. Mr. Bailek compared his Elk River apartment buildings with a building he ovhled in Ar:oka of comparable size and indicated the assessed valuation was much lower for the Anoka building. e e e e Page2 Board of Equalization June 5, 1986 Assessor, Jerry Kritzek, indicated that the increase in valuation was based on the letter they received from the State recognizing Elk River's poor aggregate ratio for apartment building classification. Councilmember Gunkel indicated she felt the Council should not act on this at the present time due to the pending court case. Councilmember Williams indicated that whatever happened in court would indicate what should be done with the 1986 and 1987 assessed valuations. He further stated that therefore, no decision from the Council would be necessary at this time. 2. Mr. Ralph C. Schmidtke Mr. Ralph C. Schmidtke indicated he owned a vacant parcel of land located in Knollwood West 2nd Addition. He stated that the property had an assessed value of $7,200 for 1986. He indicated this was the same as last year. Mr. Schmidke indicated that part of his lot is 4 or 5 feet below street level and the back of the lot rises. He further stated he has had the lot for sale and has not been able to sell it. He indicated he has been offered a high of $4,000 for the lot. Mr. Schmidke noted that he would have to spend a lot of money in order to make the lot buildable. COUNCILMEMBER WILLIAMS MOVED TO ADJUST THE VALUE OF THE LAND TO $5.500. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 3-0. 3. Mick and Sandy Herkenoff Mick and Sandy Herkenoff indicated they were considering purchasing a house on 413 Rush Avenue. Mr. Herkenoff indicated that the house had an assessed valuation of $70.000. and they were considering purchasing the house at a price of $63.000. The size of Mr. Herkenoff condition. the house was discussed, as was the condition of the house. stated the house needed some work and was in a run down Assessors Bischoff and Kritzek stated they felt the house should be looked at again due to the neglect of the home. COUNCILMEMBER GUNKEL MOVED TO CONTINUE THE APPEAL UNTIL THE PROPERTY HAS BEEN REEVALUATED BY THE COUNTY ASSESSOR. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED 3-0. It was the consensus of the City Council to bring this matter back to the Council on Monday. June 16, 1986 at 7:15 p.m. Page 3 Board of Equalization June 5. 1986 e 4. Mr. & Mrs. John Coleman Mr. Coleman indicated that they live in the Hobbit Hills development. He stated they were requesting that lots 1.2.5. and 6 of Block 2 be granted agricultural status. He stated the lots at one time had been classified as agricultural but now are classified as homestead. He indicated the land is used to harvest trees. Mr. Bischoff indicated that the Hobbit Hills plat has been accepted by the City and is therefore. not considered agricultural. Councilmember Gunkel stated that if the class were returned to agricultural. a precedent would be set. Mr. Bischoff indicated that if agricultural use was considered on this platted land for cutting wood. it would be hard to deny an agricultural class to others requesting agricultural status for platted land. Councilmember Gunkel stated she felt the Colemans were already getting an exception by being granted homestead status on lots 1-9. . Mr. Kritzek stated this was the only case in Elk River which was being granted a homestead class for this many lots. Mr. Bischoff indicated that if the lot lines were vacated. the land could be considered agricultural because the intent would no longer be residential. e Councilmember Williams indicated he felt the classification for the land should not be changed because it would be setting a precedent for others. COUNCILMEMBER GUNKEL MOVED THAT THE HOMESTEAD CLASSIFICATION REMAIN ON COLEMAN'S LOTS. AND FURTHER THAT AN AGRICULTURAL CLASSIFICATION NOT BE GRANTED AS REQUESTED FOR LOTS 1. 2.5. AND 6. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED 3-0. 5. Mike Majkrzak Mr. Majkrzak indicated he owned the building located at 17501 Highway #10. He stated he has had a $56.000 increase in his assessed valuation. He indicated his total investment in the building is $76.000. and stated most of the building is a wood structure. Mr. Majkrzak indicated he felt the assessed valuation is too high. and further that the taxes he is paying is making it difficult for him to come out ahead and to offer rent in his building at an affordable price. in order to keep the building occupied. Mr. Kritzek noted that the State has raised the assessed valuation for commercial property 5% because of the fact that Elk River's commercial mean ratio was less than 85%. e Mr. Kritzek pulled some valuations for other buildings comparable to Mr. Majkrzak's. one of which was the Proglass building. It was noted that Mr. Majkrzak's assessed valuation was in line with other buildings comparable to his in the City of Elk River. e e e Page4 Board of Equalization June 5. 1986 COUNCILMEMBER WILLIAMS MOVED THAT THE VALUATION OF MR. MAJKRZAK'S BUILDING LOCATED AT 17501 HIGHWAY 10. REMAIN THE SAME. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 3-0. Written notices of appeal were received from Lyman Marshall for property at 379 Baldwin Avenue and also from Harold Gramstad. COUNCILMEMBER GUNKEL MADE A MOTION RECOGNIZING THE WRITTEN NOTICES OF APPEAL FROM LYMAN MARSHALL AND HAROLD GRAMSTAD. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED 3-'-0. There being no further busines. COUNCILMEMBER GUNKEL MOVED TO ADJOURN THE MEETING. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED 3-0. The Board of Equalization meeting adjourned at 9:30 p.m. J~ Sandy Thackeray Recording Secretary