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04-11-2022 BOA CCMMeeting of the Elk River City Council Held at the Elk River City Hall Monday, April 11, 2022 Members Present: Mayor John Dietz, Councilmembers Garrett Christianson, Mike Beyer, Matt Westgaard, and Jennifer Wagner Members Absent: None Staff Present: City Clerk Tina Allard and Deputy Clerk Jolene Richter Also Present: County Assessor Michelle Moen, Deputy County Assessor David Selbitschka, Residential Appraisers Bill Holker and Casey Martin I . Call Meeting to Order Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to order at 6:00 p.m. by Mayor Dietz. The Pledge of Allegiance was recited. 2. Sherburne County Assessor's Report Sherburne County Assessor Michell Moen introduced her team and provided a report on current market trends and how values were affected. She discussed the 90- 105% ratio required to be met based on sales for the current year. She stated before making changes to market values in Elk River, they were at 77%, which is below the required ratio. She discussed the adjustments for vacant land (up 20%), residential (up 15%), and lakeshore (up 30-509/6) and how Sherburne County compared to other counties. 3. Hear Appeals Submitted by Attendees Amber Bengston Parcel Identification Number 75-112-4410 (9700 215`' Avenue) Ms. Bengston distributed part of her appraisal information. She stated she received a variance from the city in 2020 to remodel an existing pole barn style horse barn as an accessory dwelling unit so her parents could live in the main house and her family would live in the barn building. She stated they remodeled the structure with a 36x65 (about 2,300 sf living space. She reviewed her appraisal. The appraiser told her the appraisal completed on the property is a market value appraisal and it states the same in the report. The appraiser said the accessory dwelling unit can not be taxed as an additional single-family home, only as an amenity to the property, so it's not a second home on the land. The appraiser said he must determine the value based on comparable other accessory dwelling structures. She expressed concerns with selling the property and the City Council Minutes April 11, 2022 Page 2 next owner may not be interested in the secondary residence and pay the market value. Mr. Selbitschka stated the accessory dwelling is a large residential structure and when looking at its value and comparing it to the current market, he feels the value is accurate. He noted the first appraisal was in line with the county's valuation. He talked with city staff previously and there are no restrictions on how the property could be used or sold. He stated this is considered a residential structure and the county doesn't have an accessory dwelling unit classification for property tax purposes. He further asked who requested the second appraisal. Ms. Benston reiterated she is living in the accessory structure and questioned if a property is allowed to have two residential structures on it. Her appraiser told her it doesn't matter who requested the appraisal, it would be the same value if he provided it to the city. Mr. Selbitschka stated having two residential structures on one property is a city determination. Ms. Moen recommended the county be allowed to inspect all buildings on the property. Moved by Councilmember Wagner and seconded by Councihnember Beyer to vote no change to parcel 75-112-4410. Motion carried 5-0. 2. Jeff Ridley Parcel Identification Number 75-697-0130, (13070 180' Court) Mr. Ridley asked why his value increased 23% when the average was 15% per the state. Ms. Moen clarified the averages for city, counties, state. Mr. Selbitschka stated this was part of a reassessment in 2022 which was done via desktop due to the pandemic. He asked Mr. Ridley if an inspection could be completed to verify the property information. Mr. Ridley was amendable to an inspection. Moved by Councilmember Westgaard and seconded by Councilmember Christianson to vote no change to parcel 75-697-0130. Motion carried 5-0. Gary Stritesley Parcel Identification Number 75-132-4100, (12808 Orono Road) Parcel Identification Number 75-468-0270 p a W E B E 1 B I NATURE City Council Minutes April 11, 2022 Page 3 Mr. Stritesley stated he received a 56% increase and noted he has lake access but is not on the lake. He also poured a driveway. He stated his home is about 900 sf and there was an area sale for $243,000, which is much larger home. Mt. Selbitschka stated it's because the property is considered lakeshore. He discussed market extraction. He discussed the term lakeshore and what it means to metro area people and that we are valuing our lakes like they are Mille Lacs when we know they are not. He stated lakeshore home sales in Baldwin Township for older, small looking homes on Lake Cantlin are selling for $6- 800,000. He stated they don't necessarily agree with what is happening, but they must follow the data provided. They talked to the Department of Revenue regarding lakeshore because they are on life-support with the required ratios. Mr. Stritesley further stated he has two parcel identification numbers but has one legal description, which occurred due to a road constructed through his land. Ms. Moen stated Elk River is at 88% and won't meet the 90-105% ratio. She stated other townships are having the same issue. She is hoping sales will level off. She stated the Department of Revenue will put the county on a watch for a year and if they see sales on water of six or more in jurisdictions and the 90% requirement is not met, the state will implement an increase. Mr. Stritesley stated he purchased a sliver parcel and it's being charged as a residential homestead but was told he can't build on it. Mr. Selbitschka stated they have an issue with how to determine value of these small sliver parcels. He stated if the adjoining property were to be sold, the owner would most likely sell both pieces or sell the slice parcel to the neighbor. He questioned why anyone would hold onto the parcel. Mr. Stritesley stated the parcel was classified as residential unimproved and is now residential homestead. Ms. Moen stated this has changed because it's extended to the primary parcel. Mr. Stritesley stated it's not attached to his other parcel, has its own tax statement and legal description, and didn't feel the $24,000 could be justified. He stated it's currently being used as a garden. Mr. Stritesley noted he did purchase the parcel for $36,000 originally. Mr. Selbitschka stated they do what they call a common owner group and treat these as all one parcel so the combined value of the two parcels and the home is the total market value. He stated the sliver alone is not worth $24,000 but to the owner when combined with the parcels there is a total market value when sold. He stated Mr. Stritesley could work with the city and county to combine the properties. P O 1 E R E U 8 1 NAwRtl City Council Minutes Page 4 April 11, 2022 Mr. Stritesley stated he tried but was unable to. Mayor Dietz noted this had gone to Council previously and it would have been cost prohibited to have it platted and a compromise was reached. Ms. Moen noted it may be best if the parcels were linked in their system based on value. Counciltnember Westgaard stated it has a separate parcel number, is not metes and bounds, and is unbuildable so what kind of value does the parcel have as a stand-alone piece, homesteaded or not. He stated he never heard of other parcels being linked and then factoring them all together to determine an overall value. Ms. Moen stated it's toward the property owner for use. She further stated they look at total value and how the property would be marketed. Mr. Selbitschka discussed highest and best use of the property and how the land is being used today. He stated the homestead classification can be removed. Mr. Stritesley stated he'd like to leave it as is. Moved by Councilmember Beyer and seconded by Councihnember Westgaard to vote no change to parcels 75-132-4100 and 75-468-0270. Motion carried 5-0. 4. Kathy Molinari Parcel Identification Number 75-429-0210 (522 5 1/2 Street) Ms. Molinari stated the home was built in 1983 with an addition in 2001. Her value increased over $100,000 by 40%. She stated she refinanced last year and the appraisal, dated February 2021, was $270,000. She purchased the property for $223,000 in 2017. Mr. Selbitschka stated rambler style homes have a median sales price of $400,000 and based on the age of the home, the value is close to what would be expected. He suggested an inspection by the assessor. Ms. Molinari was amendable to the assessor stopping by to review the property. Moved by Councihnember Westgaard and seconded by Councilmember Wagner to vote no change to parcel 75-429-0210. Motion carried 5-0. 4. Hear Misc. Appeals by County 1. Mark Lees Parcel Identification Number 75-748-0110 (568 Tipton Circle) P o r E R E e ® Y Nr��ITURE City Council Minutes Page 5 April 11, 2022 Moved by Councilmember Wagner and seconded by Councilmember Westgaard to lower the value by $1,100. Motion carried 5-0. 2. Lori Erickson Parcel Identification Number 75-664-0215 (9878 226' Court) Moved by Councilmember Christianson and seconded by Councilmember Westgaard to lower the value by $9,900. Motion carried 5-0. 3. Tiffany and Logan Heineman Parcel Identification Number 75-134-2410 (546 Irving Avenue) Moved by Councilmember Beyer and seconded by Councilmember Christianson to lower the value by $22,000. Motion carried 5-0. 4. Matthew Westgaard Parcel Identification Numbers 75-75-111-4301 and 75-111-3401 Mr. Westgaard questioned the acreage included in the low land value. Mr. Selbitschka recommend onsite review of the parcels as he thought the values were incorrect for the low versus the high land and may need to be swapped. Moved by Councilmember Christianson and seconded by Councilmember Wagner to make no change to parcels 75-75-111-4301 and 75-111-3401. Motion carried 4-0. Councilmember Westgaard abstained. S. Establish Reconvene date if needed No reconvene date was needed 6. Adjournment There being no further business, Mayor Dietz adjourned the meeting of the Elk River City Council at 7:38 p.m. Tina Allard, City Clerk u P 0 w E H[ E B Y NATURE