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04-24-2006 CC MIN - BOA . . . MEETING OF THE ELK RIVER BOARD OF APPEAL AND EQUALIZATION HELD AT SHERBURNE COUNTY MONDAY, APRIL 24, 2006 Members Present: Mayor Klinzing (arrived at 6:37 p.m.), Counci1members Dietz, Gumphrey, and Farber Members Absent: Counci1member Motin Staff Present: City Clerk Joan Schmidt Also Present: Sherburne County Assessor Jerry Kritzeck, Chief Deputy John Cullen, Residential Appraiser Greg Olson, Residential Appraiser Roger Hohngren, Agricultural Appraiser Jeanne Henderson, Commercial Appraiser William Riley, Residential Appraiser Theresa Quinn, and Office Staff Shelly Murschel 1. Call Meeting To Order Pursuant to due call and notice thereof, the meeting of the Elk River Board of Appeal and Equalization was called to order at 6:30 p.m. by Acting Mayor Farber. 2. Board of Appeal and Equalization Sherburne County Assessor Jerry Kritzeck explained that the purpose of the Board of Appeal and Equalization is to consider and review 2006 estimated market values and property classifications. Mr. Kritzeck introduced his staff consisting of Chief Deputy John Cullen, Residential Appraisers Roger Holmgren, Greg Olson, and Theresa Quinn, Agricultural Appraiser Jeanne Henderson, Commercial Appraiser William Riley, and Office Staff Shelly Murschel. Mr. Olson presented information on the assessment procedures and statistics for the 2006 City of Elk River assessments. The Council then reviewed concerns froni individual property owners. 1. JeffSchieck, Parcel Identification Number 75-522-0230 Mr. Schieck expressed that he feels his value on his home is too high. He stated that some homes in his area are valued for more and yet are paying less in taxes. He has a modified two-story, 1989 built, grade 9 home with a total value of $234,600. He stated that there are some issues with his home such as water damage, leaky foundation, water running towards the home, and some electrical problems. Assessor Kritzeck recommended that the appraiser be allowed to come out and do an inspection. Board of Appeal and Equalization :Minutes April 24, 2006 Page 2 Mr. Schieck was not agreeable to allowing the city inspectors or county appraiser to come out and review his property. . MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY COUNCILMEMBER FARBER THAT NO ACTION IS TO BE TAKEN. MOTION CARRIED 4-0. 2. Lois Carton, Parcel Identification Number 75-128-4205 Ms. Carton would like to reestablish green acres with the county for this acreage. Assessor Kritzeck explained that this property had been re-designated as residential and that previously it was designated as agricultural. He stated that this is metes and bounds property. She had 11 + acres but due to their GIS system, a correction was found based on the legal description, and she actually has less than 10 acres total. The law requires her classification now to be residential. The Council discussed this in some length and decided that the building inspector and engineering staff should look to see if this lot is buildable. MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER FARBER TO HAVE SOMEONE FROM THE BUILDING DEPARTMENT COME OUT AND DETERMINE IF THIS LOT HAS ANY BUILDABLE SITES. MOTION CARRIED 4-0. 3. John Talbot, Parcel Identification Number 75-131-2420 . Mr. Talbot explained that he lives across from the Allina Clinic off of Highway 10. He stated that the noise level requires him to sleep with ear plugs and that they have experienced vibration of their china even though they are 200 feet off of the main road. He stated that he now is bothered with headlights from Waco Street. He stated that his value went up by 14.3% and that he has river view land versus his neighbor who has river frontage land. Appraiser Olson compared these two properties and recommended a 5% reduction for both the land and building totals. MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER GUMPHREY TO TAKE 5% OFF THE TOTAL (THIS WOULD AMOUNT TO A $10,100 REDUCTION). MOTION CARRIED 4-0. 4. Wally Fox, Parcel Identification Number 75-429-0230 Mr. Fox explained that he had $500 in new home improvements which he could understand because of an open porch that is now 100% complete; however, he questioned why it had gone up $6,000 from the year before. It was discovered that he had an addition in 2002 for $11,000 and that it was carried incomplete for two years. It was stated that it should have been noted 100% completion in 2003 and that this was not caught until 2005. As a result, it was now put on for 100%. Mr. Fox was in agreement. . . . . Board of Appeal and Equalization Minutes April 24, 2006 Page 3 MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER GUMPHREY TO TAKE NO ACTION. MOTION CARRIED 4-0. 5. Suzette Willie, Parcel Identification Number 75-431-0150 Ms. Willie questioned the value of a new improvement in 2005 for $25,100. Appraiser Holmgren explained that there was a 16x24 addition in the back of the house that was never on their records so this was added to the value for 2006. A comparison was done of a home that sold in February 2006 for $164,900 with 1,110 sq ft versus Ms. Willie's who has 1,376 square feet with a market value of $176,700. MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY MAYOR KLINZING TO HAVE NO CHANGE IN VALUATION. MOTION CARRIED 4-0. 6. Kent and Jeanne Peabody, Parcel Identification Number 75-503-0310 Mr. and Mrs. Peabody had questions about their property valuation that was at $289,900 and had been raised to $298,100. Mrs. Peabody asked about the taxable market rate compared to other property that they owned in other counties. Assessor Kritzeck explained that it is based on the estimated taxable value and that it can be more due to amenities. Counties can vary. He explained that the valuations are always at least one year behind and that a sales study conducted from October 2004 through September 2005 indicated that the percentage went up by 8% in Elk River. MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER GUMPHREY TO HAVE NO CHANGE IN VALUATION. MOTION CARRIED 4-0. 7. Kevyn Story, Parcel Identification Number 75-006-2102 Mr. Story explained that he lived by the Pinewood development and that he had purchased his home one year ago. He stated that the assessed value was now more than what he had paid for it with a 9% increase in that one year time span. He asked how this could be justified. Appraiser Olson explained that river property went up 10% this year. He explained that there are tiers of land value for property adjoining rivers and lakes. The property was purchased in December 2004 for $220,000 and it was now valued at $236,400. MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY COUNCILMEMBER FARBER TO HAVE NO CHANGE IN VALUATION. MOTION CARRIED 3-0. Councilmember Dietz was out of the room. 8. Jerry Kunza, Parcel Identification Number 75-125-2300 Mr. Kunza had 2 Vz acres of residential homestead and purchased an additional 29.5 acres for a total of 32 acres. He now has agricultural classification. He has applied for green acres and it was explained to him that he will get some future tax reductions. Board of Appeal and Equalization 11inutes April 24, 2006 Page 4 MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER GUMPHREY TO HAVE NO CHANGE IN VALUATION. MOTION CARRIED 4-0. . 9. Lou Fountain, Parcel Identification Number 75-411-0305 Ms. Fountain explained that her house was built in 1986 and last year it was valued at $106,900 and this year $120,400. Appraiser Olson explained that building and land schedules went up and that it had nothing to do with the neighborhood receiving new curb, gutters, and street improvements. Ms. Fountain mentioned a sink hole that has developed on her property and her house slab has cracked. She was agreeable to have the appraiser come out to her property to look at the deterioration of her home. MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER GUMPHREY TO HAVE NO CHANGE IN VALUATION. MOTION CARRIED 4-0. 10. Jim Raivala, Sr., Parcel Identification Number 75-679-0232 Mr. Raivala lives by Saxon Chevrolet, west of Ford dealership, south of AmericInn, in the Powell's townhouses. He stated that he has the same value as his neighbors who have hardwood floors and a fireplace. He stated that homes in this area have been on the market for a year and currently are selling anywhere from $212,000 down to $203,000. His market value is currently at $236,500. He did purchase his townhome in February 2005 for $240,800. It was found that he was being valued mistakenly for a ftreplace. . Appraiser Olson also agreed that the land value in this area appears to be too high. MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER GUMPHREY TO REDUCE THE VALUATION FOR MR. RAIV ALA BY $3,000 BECAUSE OF NO FIREPLACE; AND TO REDUCE HIS LAND VALUE AS WELL AS THE VALUE OF THE OTHER TWENTY LOTS OF THE POWELL TOWNHOUSE DEVELOPMENT BY $4,000. MOTION CARRIED 4-0. 11. Steve Anderson, Parcel Identification Number 75-759-0105 (commercial land) Mr. Anderson was representing Carson Business Park.. He referenced Lot 1, Block 1 which has a holding pond. The value was at $290,000 and it is now at $478,000. It was discussed how this lot has a drainage easement on it and is not a buildable lot. There is a sign on it. It was felt that the value is wrong. Mr. Anderson was agreeable to have the appraiser look at this lot with the appraiser doing a comparative for the purpose of revaluing this lot. MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER FARBER THAT NO ACTION BE TAKEN. MOTION CARRIED 4-0. 12. Matt Olson, Parcel Identification Number 75-691-0705 . . . . Board of Appeal and Equalization Minutes April 24, 2006 Page 5 Mr. Olson's lot is in Park Pointe, abutting 175th and is a corner lot. He purchased this thinking it would be affordable because there is a ditch in the back of the property. He paid $315,000 from his brother for this property and it is currently valued at $278,000. Appraiser Olson found three comparables in Park Pointe which had recently sold for amounts of $301,100, $306,500, and $377,000. MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER FARBER THAT THE VALUE SHOULD REMAIN THE SAME. MOTION CARRIED 4-0. 13. Lisa Radke, Parcel Identification Number 75-431-0402 Ms. Radke was concerned because her value continues to go up. In 2003 it was $160,800; 2004 it was $187,800; 2005 it was $189,000 and there had been a big increase during that time. It is currently valued at $208,000 and she felt it had gone up quite drastically in those few short years. Appraiser Holmgren explained that these homes had been reassessed in the 2004-2005 time span and there had been changes to the grades of the home as well as some other attributable changes. Mr. Holmgren explained that at that time, they needed to do a land adjustment due to undervaluing. It is now felt that they are in the right area for the value of the homes in this part of the city. MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER GUMPHREY TO MAKE NO CHANGE. MOTION CARRIED 4-0. 14. Rich Schulz, Parcel Identification Number 75-516-0728 (residential) Mr. Schulz asked Councilmember Dietz to not vote on his property because he felt that there was some bad blood. Councilmember Dietz explained that there was no conflict of interest and did not wish to step down. Mr. Schulz explained that his value had gone up at a 15% increase and was looking at comparisons for the development of Deerfield versus Royal Oaks. Assessor Kritzeck explained 'that the price for square footage for some items such as extra bathrooms and a pool had increased the valuation of homes in this area. Mr. Schulz was agreeable to have the appraiser come out to his property when he is present. MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER GUMPHREY TO LEAVE THE VALUE THE SAME. MOTION CARRIED 4-0. 15. Rich Schulz, Parcel Identification Number 75-454-0120 (commercial) Mr. Schulz was concerned that when his property had been relooked at last year, whether they had looked at the correct unit. The building is now fully occupied and it should have been reflective of only the six units. Appraiser Riley explained that he had given him a credit for incompletion in the total value of the building and that 1,400 square feet equaling $39,600 was not listed in that total. He also explained that he did not increase the building by 5% because it was new construction, only 10% on the land. Board of Appeal and Equalization Minutes April 24, 2006 Page 6 MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER GUMPHREY TO LEAVE THE VALUE THE SAME. MOTION CARRIED 4-0. . 16. Gary Santwire, acting as agent for the following parcels: 75-616-0110, 75-547- 0105,75-435-0630,75-435-0640,75-445-0120, 75-762-001, 75-762-003, 75-762- 004,75-762-005,75-762-006,75-762-007,75-762-008 MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY COUNCILMEMBER DIETZ TO NOT CHANGE THESE VALUES. MOTION CARRIED 4-0. 17. Multiple Commercial Changes, Parcel Identification Numbers: 75-002-3320, 75-024-1105, 75-024-1110, 75-110-2400, 75-128-3206, 75-134-2305, 75-408-0630, 75-430-0105,75-596-0105,75-659-0110, 75-679-0104, 75-695-0110, 75-709-0120, 75-718-0105, 75-720-0110 The appraisers submitted a list of City of Elk River commercial changes. The owners have received the original 2006 total EMV and will shortly receive the revised 2006 EMV. MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER DIETZ TO NOT CHANGE THE COMMERCIAL CHANGES FROM WHAT THE ASSESSOR HAD RECOMMENDED. MOTION CARRIED 4-0. 18. The following properties were reviewed and the appraisers made suggested changes: 75-692-0310 75-664-0335 75-646-0126 75-708-0210 75-444-0140 Change from $331,700 to $272,900 Change from $342,300 to $335,200 Change from $260,000 to $251,800 Change from $:460,200 to $413,600 Change from $126,400 to $121,500 . MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER FARBER TO APPROVE THESE FIVE CHANGES. MOTION CARRIED 4-0. 19. A letter was received from Kelly Otto, who resides at 945 Proctor Avenue MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMER GUMPHREY TO LEAVE THE VALUE THE SAME. MOTION CARRIED 4-0. 20. The appraisers presented five parcels to the Board of Appeal and Equalization consisting of Parcel Identification Numbers 75-120-2305, 75-500-0140, 75-592- 0420, 75-594-0112, 75-672-0710 MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER DIETZ TO APPROVE THE ADJUSTMENTS AS SUGGESTED BY THE APPRAISERS. MOTION CARRIED 4-0. . . . . Board of Appeal and Equalization Minutes April 24, 2006 21 A spreadsheet starting with Parcel Identification Number 75-103-4201 and ending with Parcel Identification Number 75-121-1110 with suggested new EMV values for gravel and agricultural was presented to the Board explaining that these were adjusted for equitability. The notice that was sent was for 20% with a now recognized uniform increase of gravel. MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER FARBER TO APPROVE THE CHANGES. MOTION CARRIED 4-0. 3. Adjournment There being no further business, Mayor Klinzing adjourned the meeting at 10:15 p.m. (:1-,..'. / p~ / //V1-' . J oMchmidt City Clerk Page 7