04-30-2008 CC MIN JT BOAMETING OF THE ELK RIVER
BOARD OF APPEAL AND EQUALIZATION
HELD AT THE SHERBURNE COUNTY GOVERNMENT" CENTER
WEDNESDAY, APRIL 30, 2008
Members present: Mayor Klin in , ouncil e bers Ze va , Gumpt rey (6.-31 p.m.), lvlotin,
and F arb er
IV
le hers Absent: None
Staff present: City Clerk Tina ward and Executive Secretary/Deputy City Clerk- Jessica
Tvlffler
Also Present- Sherburne County Assessor Gerald Kxitz eck, Chef Deputy john Cullen,
Residential, .:appraisers Greg Olson, Theresa Quinn, and Shelly Murschel,
ncultural Specialist Jeanne Henderson, andCommercial/ Indus trial
Appraiser Wflliam Riley
1 Call 1\4eetin "o Order
Pursuant to due cafl and novice thereof, the meeting of the Elk- River Board of Appeal and
Equalization was called to order at 6:30 p.m. by Mayor Klix . .
Board of AD12eal and -Equalization
Gerald E,-ritzeck,, Sherburne County Assessor, indicated ffiat the purpose of the Board of
Appeal and Equalization is to consider and. review 200 estimated market values and
property classifications.
Information was presented on the assessment procedures and statistics for the City of ELk-
R ver 2008 assessments.
The Board of Appeal and Equalization heard all appeals prior to making decisions. For recording
purposes die decisions have been printed after ench appeal.
Dari Fran1din, representing Keith A. Franklin, Parcel Identification `umber
75-759-0105
N - 1r. Franklin stated. that he believes the value of $50,500 is too high for a piece of property
with a billboard on it. He requested that the property value be reduced to around $20,000.
He dicated that he is being taxed mvice for the same location; once for the land and once
for the billboard.
Nlr. Cullen epained that the lot serves a dual purpose as a drainage lot and a billboard site.
Mr. lCritze indicated thatmi this case it would be ,incorrect to include a personal property
tax on the billboard because the properV owner also owns the billboard. He stated that the
personal property tai; of $5,000 w-ffl be removed.
MOVED BY COUNCILMEMBER FARBER AND SECONDED BY
COUNCILMEMBER ZERWASTO l A NO CHANGE TO THE ESTIMATED
VALUE OF PA 75-759-0105. MOTION CARRIED 5-0.
Board of Appeal and EquiEzation uses Page 9
Ap , 2008
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2. Frank Gam, Parcel Identification Number 75-405-0260
Mr. Galli. indicated that he believes the value placed on his property is too high. He
explained that business has shred down as a result of the downtown revital.i ati n
construction and he does not believe it is fair to raise the value of downtown businesses unto
business picks up.
Mr. Cu ern explained that a couple years ago the Department of Revenue Felt the downtown
values were too low and mandated a 0% increase across the board. He stated that the
downtown values have not been increased since that time mainly due to the traffic and
construction issues do-%vntown. Mr. Cullen indicated that he is comfortable with the value
and believes it is consistent with smear income -produce. businesses. He noted that if Mx -
Galli provided him With the income information it would assist him in assuring the value is
appropriate.
MOVED Y COUNCILTVIEMBER Mo IN AN -D SECONDED BY
COUNCILMEMBER ZERWAS TO MAKE No CHANGE O THE ESTIMATED
VALUE of PARCEL 75-405-0260. MOTION CARRIED 5-0.
. Melinda Bye (recently purchased home from Key -Land Homes), Parcel
Identification Number 75-691-0445
Ms. Bye medicated that she purchased her home in April for $260,000 but the estimated
market value is $2300,300. IIs. Bye presented ars appraisal that included three comparable
sales. Ms. Bye would like the market value decreased to the appraisal amount of -3,00 3.
els. Quinn stated tliat she already lowered the marker values on the entire Park Pointe Plat
by a little over % because the plat appeared to be distressed.
MOVED BY COUNCILMEMBER Z RWAS AND SECONDED BY
COUNCILMEMBER FARBER TO MAKE NO CHANGE TO THE AT
VA-LUE OF PARCEL -691-0445. MOTION FAILED 3-2. Mayor li. i s
ouncllme ber G mphrey, an,d Counci member l , otin opposed.
MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY
COUNCILME rBER GUMPHREY TO ADJUST THE BUILDING VALUE of
PARCEL -691-0445 TO $212,000. MOTION CARRIED 4-1. Councihnember Zenvas
apposed.
. Mark Mal ahn, Parcel Identification Number 75-549-0115
NIL. Mal ahn indicated drat his home's esti aced market value is S�, 00_ He indicated that
he hired an appraiser and based on the appraisal he would eke his market value adjusted tD
$3001000.
1 l:r. Olson noted that mo of the comparable sales included in Mr. Malzahn's appraisal Nvere
distressed properties. He also noted drat Mr. Malzahn received a depreciation o 4,5)00 due
to some tree loss e pexienced as a result of oak'N-ilt.
Board of Appeal and Equaaation lklin=5
ApH 30,22008
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Page 3
MOVED BY COUNCILMEMBER M'N AND SECONDED BY
COUNCILMEMBER ZE WAS TO MAKE NO CHANGE TO H ESTIMATED
VALUE OF PARCEL 75-549-0115. MN CARRIED 5-0.
'troy Secroral representing owner Connie Saxton, Parcel Identification
`umber -728-0172
Nfx. Segora indicated that the estimated market value on his townhome is 51993300. He
explained that there is a high vacancy rate in the to vnhomes in his development. ,fie noted
that a brand new end unit to,%mhorne in his development is currently listed for $169,000. He
would like to see his market value decreased.
Nir. Olson explained that he believes this is a development issue but was not comfortable
le
along a decision on just one property. �&. Olson added that the land value could be a little
high but he believes the total value is reasonable for the area.
The Board directed Nlr. Olson to review the land value and report back at the reconvene
Board of Appeal meeting.
6. Jack Zi ney, Parcel Identification Number � -0 .30
Ir. Zimacy stated that his neighbor's value has adways been higher than his until this year.
fr. Zisnney indicated that he compared values in the La 'eyette Woods Development and
believes his house is the highest valued in that development. He noted that it is not the
largest or nicest home in die development. Mr. money stated that he spoke to Stephanie
Daniels and based on a mar et analysis she indicated Mr. Zimney could sed his home for
a ro.K=ately $325,000. Pv1r. Zim.ey noted he would be %xv lling to obtain an appraisal if that
would assist the board in th r decision.
Ir. Olson ex lamed that the neighbor INIx. Zu' =ey is referring to contacted the assessor's
office and asked that his basement he reassessed, !,fir. Olson stated that upon reassessment,
the conclusion was made that the basement had been estimated too high and the estimated
market .et value was reduced by $48,000,
MOVED BY COUNCILMEMBER MOTIN AND SECONDED B
COUNCILMEMBER FARBER TO ADJUST THE BUILDING VALUE
PARCEL -633-TO $279flOO. MOTION CARRIED 4-1. CoundLmember Zenvas
opposed.
7, Scot WooHey, Parcel Identification Number 755-585-0650
x. Woolley indicated that he Feels his estimated market value is too high at $368,400. He
presented facts and findings to the board. Based on the current market conditions and
comparable sales in his development, he requester) his marliet value be adjusted to $314,000.
He noted that be was offered a $10,000 reduction by Mr. Olson but he did not feel this was
sufficient.
Mr. Olson reviewed comparable sales to Mr. Woolley's property. He indicated that die
market values in La 'eyette'Hoods have not been changed for three consecutive years.
MOVED BY C UNCILMEMB R GUMPHREY AND SECONDED B
COUNCILMEMBER MOTIN TO ADJUST THE BUILDING VALDE OF
Board ofAppeal ani EquaEzation Minutes
April 30, 2008
Page 4
PARCEL 75-585-0650 TO $265,000. MOTION CARRIED 4-1. Councilmen her Zenvas
opposed.
. Kathleen N le/Matthew H l eso ., Parcel Identification Number 75-701-
0101
Ms.
- 01 -
Ms. Nagle indicated that the estimated x axket value for her townho e is $174NO. She
stated that the townhome Nvas appraised in e ruaq 2008 at $147,000 and she would 1, ;:e the
market value reduced to reflect that appraisal.
Ms. Quina reviewed comparable sales that fell between the October 1, 2006 to September
0, 07 t' e came and the lowest comparable sold for $166,900. She noted that d -le entire
plat was reduced last year.
CounciLme -nber Morin questioned if distressed saps are excluded from the Est of saps. Mr.
l rlt ec dicated that dlstressed saps a -re not considered arms length saes; therefore, b
statue are not included in the 310 sales used as a deter�a on of market value. N1r.
Int eck explained that adjustments will, need to be made across the hoard next year in order
to respond to market changes.
MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY
COUNCILMEMBER FARBERTO IYLkKE NO CHANGE TO THE ESTIMATED
VALUE OF PARCEL 75-701-0101. MOTION CARRIED -0.
. Cliff Lundberg, Parcel Identificanion Number 75-404-0202
1\11x. Lundberg stated that his parcelxcreased mi value by % and he feels that is ars extreme
increase and he would n- the value to be held at the 9.007 rate o K3M
Ms. Quina explain ed that Mr. Lundberg's prop erty was part o f the reassessed. area In 2007
and .when she was entering data into the computer she noticed teat the price per square foot
had been entered Inco recdy years ago. She stated that she corrected the error to be
consistent %with the gest of die residential schedule. Ms. Qumi n reviewed comparable sales.
MOVED BY COLTNCILMEMBER ZERWA.S AND SECONDED B
COUNCILMEMBER FARBERTNO CHANGE TO THE ESTIMATED
VALE OF PARCEL 75-404-0202. MOTION CRIED -0.
0. Brad Shepard, Parcel Identification Number 75-766-0140
Mx. and Tivfxs. Shepard explained that the current value of their honne i $1,039,700 and they
believe that is excessive.
Ms. Quinn stated that she has made multiple attempts but has been unable to enter the
property to conduct an appraisal. Ms. Quinn explained tliat when access is not allowed she
must make assumptions on quality and con trucdon in order to value the home.
Ir. %rit ec . i dicated that by statute the board cannot act on this parcel until access has
been granted.
Board of Appeal aad E gunfization -mut s
April 30, 2003
'age
Ms. Quinn provided her contact in ormadon to I . and 1\/.-rs. Shepard and they agreed to
cal, her for an inspection. It was noted that the inspection must be completed prior to die
date the board reconvenes.
11. Richard Pool, Parcel Identification Number 7-431-0410
Ms. Quern presented a letter from Mr. Pool appealing his vd e. She stated that she has a
appointment with Mr. Pool to review his property,
12. David Roseland, Parcel Identification Number 75-405-1810
Mr. Roseland vas present to appeal the proposed market value on his property. Ms. Quinn
noted drat access to the property has not been granted.
Ms. Quinn provided her contact information and Iv . Roseland agreed to contact herfor an
appointment for reassessment.
13. Peggy Kaproth, Parcel Identification Number 75-409-0635
Ms. I aproth indicated that des is a vacant lot that she purchased at auction. She stated drat
tlhe 4.9%increase in market value is excessive.
l,r. Olson explained that he reassessed all of the properties on die niver ,in that area. He
adrm'tred, he had trouble th figuring out a land scheme because the lots had been
underas s es s ed previous gears .
ounce. ber Gumphrey questioned why an increase in value of a property d-lat has been
under -assessed is not spread out over a couple years. 1\1r. Olson explained that he cannot
ethically spread it out. He noted that die value is not raised simply because it has been
underassessed but: because that is what It is worth.
Mayor Klinzing questioned if the lot can be rev ewed to evaluate its condition. Mr. Olson
indicated he NviU review the proper and report hack to the board at the reconvene meeting.
14. Kenneth Dehn, Parcel Identification Number 75-733-0210 and 75-733-021
Nor. I ehn subnu'
Board of Appeal and EquaUa6on Minutes
rip 0, ?008
Page
Ms. Quinn indicated that she reviewed to rnho, e lots in other neighborhoods and gathered
m ormation on the soil type of this property and is recommending the land value be
decreased b $1.8,000,
MOVED BY COUNCILM MB R MOTIN AND SECONDED BY
COUNCILIVIEMBER FUER TO APPROVE THE ADJUSTMENT of THE
LAND VALUE FOR PARCEL 75-134-2305 TO $769,000 AS SUGGESTED BY THE
COUNTY ASSESSOR. MOTION CARRIED 5-0.
17. Michael and Meredith Quinn, Parcel Identification Naber 5-658-0120
Ms. nn presented a handout re iewiag the above parcel.
MOVED BY COUNCIL EMBER FARBER AND SECONDED BY
C UNCILMEMBER ZER AS TO APPROVE THE ADJUSTMENT THE
BUILDING VALUE FOR PARCEL 75-658-0120 TO $233,800 AS SUGGESTED B
THE COUNTY ASSESSOR. MOTION I CARRIED 5-0.
18. Eugene D. Cho i and - Trustee, Parcel Identification Number 75-404-012.3
NIS. Quinn presented a handout reviewmig the above parcel. She explained that an arbltrary
appraisal had been performed because she N as unable to make an interior mispecdon. An
interior inspect -ion was completed on April and she is recommending the value of the
biding be decreased b $82,000.
MOVED BY C UNCILMEMBER FARBER AND SECONDED B
C UNCILMEMB R ZERW S TO APPROVE THE ADJUSTMENT OF THE
BUILDING VALUE FOR PARCEL 75-404-0123 TO $15%000 AS SUGGESTED B
HE COUNTY ASSESSOR. MOTION CARRIED 4-0. Councilmember Motin
abstained as this Mr.ho m' and is his cent.
19. Douglas M & G Fiedler — Trustees, Parcel Identification Number 75-516-0510
N s. Quinn presented a handout reviewing the above parcel. She explained that a cierieai
error was made on the quantity of fireplaces in the home and that she is recommending a
decrease in the building value o $3,000.
MOVED BY C UNCIL EMBER FARBER AND SECONDED B
C UN IL EMB R ZERWAS TO APPROVE THE ADJUSTMENT OF THE
BUILDING VALUE FOR PARCEL 75-516-0510 TO $259,900 AS SUGGESTED B
THE COUNTY ASSESSOR, OMI I CARRIED 5-0.
0, Mark Pendergast, Penmar Properties, Parcel Idennificanion Numbers 75-133-
1115 and 75-133.1100 (Elk Crossing, ITC)
Mr. Riley presented a letter from Mr. Pendergast appealing his valves on the above
mentioned apartment buildings. 1 lr. Ailey explained that the appraisers Nvere not able to
review the properties tndl yesterday. He stated that h ��ro d re on rend d - lis item be
continued to the reconvene meeting so the o%vner has time to respond to the .rental data
survey that has been sent out.
Beard of Appeal and Equalization Minutes Page 7
. 30, ?008
1. Scottish Rite Childhood Language Center, Parcel Identification Number 75-
709-0105
. Riley presented a handout revieWmig the above parcel. He started drat lie would
reeonamend the valuation be louvered because the square foot of Wished space was too I.Ligh
when compared to smear U ts.
MOVED BY CoUNCILIVI MB R GUMPI REYA AND SECONDED BY
COUNCILMEMBER FARBER To APPROVE THE ADJUSTMENT CSP THE
BUILDING VALDE FOR PARCEL 7-709-0105 T $134,800. MOTION CARRIED
-0.
22. Saint Andrews Saltire, LLP, Parcel IdentificationN Number 75-709-0145
Mr. Riley presented a handout re ieWing the above parcel. He stated that the
valuation increased due to square Foot of Wished space being complete for the 9.005
assessment.
MOVED BY COUNCILMEMBER PARBER. AND SECONDED BY
COUNCILMEMBER GI MPHR Y To APPROVE THE ADJUSTMENT OF
THE BUILDING VALUE FOR PARCEL 75-709-0145 TO $162)200 AS
SUGGESTED BY THE COUNTY ASSESSOR. MOTION CARRIED -0.
3, Scott Powell, Parcel Ide tl eado Number -011.2215, -011-22203 75-011-
2245,
- 1-
, and 75-011-2105
Nix. Rileypresented a handout revie v g recommendations for changes to the above parcels.
He stated that the adjust. eats to parcels 75 -0 1 -2215, ? 5-011-2-122 0, a d 7 5-011 -2245are
recommended due to the actual square foot of tar finish. He stated that the adjustment to
parcel -01 -2 105 is re ommen ded clue to the square foot cost of the car wash.
MOVED BY CO TNCILMEMB R GUMPHREY AND SECONDED BY
COUNCILMEMBER PARBER TO APPROVE THE ADJUSTMENT OF THE
BUILDING VALUE FOR PARCEL 75-011-2215 To $152,500 AS
RECOMMENDED BY THE COLWTY ASSESSOR. MOTION CARRIED 5-0.
MOVED BY COUNCILMEMBER ZERWAS ASD SECONDED BY
COUNCILMEMBER MOTIN To APPROVE THE ADJUSTMENT OF THE
BUILDING G VA UE FOR 'ARCM 75"011-2220 VALUE TO $10137 A
RECOMMENDED B THE COUNTY ASSESSOR. MOTION CARRIED 5-0,
MOVED BY COUNCILMEMBER Z RWAS AND SECONDED BY
COUNCILMEMBER PARB R To APPROVE THE ADJUSTMENT .1. "
BUILDING VALUER PARCEL 5-011-2245 T $207900 AS RECOMMENDED
BY THE COUNTY ASSESSOR. MOTION CARRI 'D -0.
MOVED BY COUNCILMEMBER MOTIN AND SECONDED B
COUNCILMEMBER FARBER TO .APPROVE THE ADJUSTEMENT OF THE
BUILDING VALUE FOR PARCEL 75-011-2105 To $1.20,100 AS RECOMMENDED
BY THE COUNTY ASSESSOR. MOTION CARRIED -0.
Board of Appeal and Equalization Minutes Page 8
April 30,2008
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4. Gary 'woodruff, Parcel Identification Nur b r 75-120-2311
IIx. Olson stated that It has been deterred that 1\/Ir. Woodmff no longer has a Wished
basement due to some flooding and has requested his assessed value he louvered.
MOVED BY C UN CILM MB R M OT IN AND SECONDED B
C U CIL EMB R Z RWAS TO APPROVE THE ADJUSTMENT OF THE
BUILDING VALU FOR PARCEL 75-120-2311 " $109,300 AS
RECOMMENDED BY THE COUNTY ASSESSOR. MOTION N CARRIED -0.
. James Dalton, Parcel Identification Number 75-585-0215
Mr. Olson explained that Mr. Dalton questioned his value so a reassessment was completed
and an adjustment is being rccorrnmended to the upper living area.
MOVED BY C UNCILMEMB R ZERWAS AND SECONDED BY
COUNCILMEMBER FA..RBER TO APPROVE THE ADJUSTMENT OF THE
BUILDING VALUE FOR PARCEL 75-585-0215 TO $2063600 AS
RECOMMENDED BY THE COUNTY ASSESSOR.. MOTION CARRIED -0.
6. Darin Holman, Parcel Identificanion Num 75-689-0105
Ir. Olson indicated that N x. Holman currently has his house for sale and his realtor
suggested he lower the pace. The assessment was reviewed and was fourid that the house
was over -valued including depreciation and overstated basement Enish.
MOVED BY C UNCILMEMB R BIOTIN AND SECONDED B
C UNCIL E B R GUMPHREY TO APPROVE THE ADJUSTMENT OF
THE BUILDING G VALUE FOR PARCEL 75-689-0105 TO 7,700 AS
RECOMMENDED BY THE COUNTY ASSESSOR. MOTION CARRIED -0.
7. Scut Breuer, Parcel Identification Numbers 75-736-0030 (S&A Family
Investment LLLP , 75-736-0020 (Woodland Hills of Minnesota LLC), 75-1,229-
1400 (Breuer Properties LLC)
I Ir. Olson presented a later from Mr. Breuer appealing the property value on the three
properties listed above. Mr. Olson outlined Mr. Breu is appeals as out d In his later.
MOVED BY C UNCILMEMBER GUMPHREY AND SECONDED B
C UNCILMEMB R PARB R TO NLAKE NO CHANGE TO THE ESTIMATED
VALUE OF PARCEL 75-763-0030. MOTION CARRIED -0.
MOVED BY C U CIL I MB R FARBER AI SECONDED B
UNCILI IEMB R GUMPHREY TO KkKE NO CHANGE TO THE
ESTIMATED VALUE PARCEL 75-736-0020. MOTION CARRIED 5-0.
MOVED BY C UNCILME IB R. Z R.WAS AN -D SECONDED B
C UNCILMEMB �MOTII /LU N CHANGE T `I` ESTIMATED
VALUE f PARCEL -129-1400+ MOTION CRIED 5-0.
Board of Appeal and EquaEzadon IMinutes page 9
Apra 30, 2008
28. LeRoy arra Louise Moyer, Parcel Identification Naber 75-697-0118
lvfx. Olson presented a letter from Mr. and Mrs. Moyer appealing their property valuation.
MOVED BY COUNCILMEMBER Z RWAS AND SECONDED BY
COUNCILMEMBER FARBER TO XIAKE NO CHANGE T PARCEL 75-697-
0118.
- 97-
o . , MOT N CARRIED 5-0.
9. Erie Balabon, Parcel Identification Number 75-673-0425
Mr. Olson presented a letter received from 1 r. Balabon appealing his property value.
MOVED BY COUNCILMEMBER FARBER AND SECONDED BY
COUNCILMEMBER MOTIN To MAKE No CHANGE To THE VALUATION
OF PARCEL 75-673-0425. MOTION CARRIED 5- .
30. ,john, Pribnow, Parcel Idendficanion Number 75-673-0310
/ r. Olson presented a letter from Mr. Pribnow requesting an appeal on his estimated mar et
value.
MOVED Y COUNCILMEMBER FARBER AND SECONDED BY
COUNCILMEMBER ZERWAS TO MAKE NO CHANGE To THE VALUATION
OF PARCEL 75-673-0310. MOTION CARRIED -0.
31. JP Chase Morgan an(Christopher Lons y has purchase agreement o
property with JP Morgan Bank), Parcel Identification Number 75-690-0170
Mi. Olson presented a letter from TVL. ons -y appealing the esdmated market value on the
property.
MOVED BY COUNCILMEMBER FARBER AND SECONDED BY
COUNC I 75-690-0170.
i+ r ' E ll T � N CHANGE T THE VALUATION
OF PARCEL I -- 1! ■ MOTI I CRIED 5.0.
32. John Talbot, Parcel Identification ation, Number 75-131-2420
Mr. Olson presented a letter from Mr. Talbot appealing his estimated market value.
MOVED COUNCILMEMBER FARBER AND SECONDED
COUNCILMEMBER MOTIN TO IVK: No CHANGE To THE VALUATION
OF PARCEL 75-131-2420. MOTION CARBJ5-0.
3. Recess
MOVED BY COU TCI, MEMBER FARBER AND SECONDED
CoUNCI r EMBER BIOTIN To ESTABLISH A RECONVENE T DATE FOR
THE BOARD of APPEAL. AND EQUALIZATION MEETING FOR IVIAY 19�
2008, AT 6.30 P.M. AT CITY HALL.
Mayor KEn ing recessed the meedng at 10:24 p.m,
Board of Appeal and EquaLizadon Mantes
Apry 0, 2008
IvEnutes prepared by jessilfa Nfifler.
Tiny ward
City Clerk
'age 1