05/31/1973 BOE - 00016507THE MINUTES Of THE BORRD OF EQUALI2ATIpN MEETIHG OF MAY j1, 197�
' The annual Board of Equalization meeting was called to order at 8:04 P.N „ May 91�
t��3, by Mayor Liob1.
!':_F4Gc 4F ALLEGIANCEs
l3�vor LiebS led the Council and audiente in saying the Ptedge of Allegiance to the
Fiag.
ATTENDANCE:
Present were Mayor Liebl; Councilman Utter; Louncilman Nee; Councitman Breider;
Councaiman Starwatt arrived at 8:14 P.M.; Mr. Davis,, City Manager; Mr. Herrmanrv�
r.,ry as3�sso�; Mr. Madse�n, Deputy Assessar; Mr. Mulcahy, Apqraiser; and Mr. Schwartz,
Rrioka �ounty Assessor.
Wa�or Lyebl explained the purpose of the meeting was to hea� any citizen rrho xished
ta cami�nt on the real estate value placad Qn his home as ;�f January 2, 1973� �ot
to adjust the 1973 tax bilt.
Mayor tiebl introduced the members of the stafi and Mr. Schwarta, Aawka County
Rssessor. Mr. Hervin Herrmann, City Assessor, called on Mr. Schmartz to present
che critcria of the present real estate valuation.
�ir> Sehrrartz said there are some drastic changes in the assrss�ne�a� nf �F�a value
� of r�rx�1 Froperty as stated by the D973 Legislature. He said he �c+uFd si�Ye s�me
ai the criteria. Mr. Schwartz referred to th� valuation of ��mt �Frsy��r�;a� which
is hamestead, fiomes that are rented for a pmriod greater than tE�ir�� d��s� nursing
F�crc,es, and mobile home parks, stating the eurrent regulations prot�ibit a�� in-
ceease of over 5% an these types of real prop�rty. He explaine� t�e a�aa��e,t value
an resfdents'al property cannoY be iacreased mare than 5;6, but rtevr �cosast�^�scl�ion
can be added to the market vaiue and ti�� 3ncrease tould exceed 5"� �� th�s, �actor.
�tr. Schwartz continued by saying that those wPro had received an i�re�ease �re excess
of ihe 53a on �heir notice �eou6d hE eligible for a reduction of tt+a¢ rai�ue equat
ta the required 5,�,' and reducticaes notices wroutd be forthcoming. Ylc said tfie
�otices woutd be scnt to the presperty� wmersg
Mr. SchxarCz said the reductiaca of tFs� �roperty value not to exe�ed 5� wac�Rd
not apply to industrial or caemmrercial prop�r�i�s.
The Couniy Assessor comi+enled ehat there are many other factors �}c� s�aae4� be
invol�ed in the criteria ior tha Sanuar}� 2, 1973 valuation such a� the €reeze
on praacrty of those prope�ty ormess wFro exceed 65 years of age,'Ffi� �x�ls�ned
th�y had not yet had the opportunity tn study the additional cioas�g�s a� tk�ure
was not enough information available at the present time. Mrs S�ct�t�artx sa4d
he wau9d make the informatio� knawn to the pubTic as soan as �sxab9ep �nd
probabiy through newspaper media.
� Mr. Schwartz aaid the year of 1973 was not a year of extre�me vaitaatfian, but
more a year to equalize the commuaity and create uniform real estate values
based on the market value. Ne said this being the prime factor is evident in
the reduction in the audience size as compared io the attendance of iast year.
��
�ORRD bF E 11A�IZRTI6N HEETIIiC� MAY 31, 1973 PAGE 2
�r. Schwartz said if any information is passed on to hi� by the Department af
7axati�n, he would inform the public throuah the newspeper. He said if any ,
individuai citizen desired additional information about his real estate value�
hc couDd contact either Mr. Herrmann at the City of Fridley or himself at the
Anoka Gounty Assessor's Office.
N0. 9-- HR. GEORGE NICKLUN�, 101 GIBRALTAR ROAD (LOT 16, BLOCK 2, GARLSON�S
S��MMIT MANOR 56UTM AD�ITIDN, PLAT 55259, PARC�L 66�):
Mro �icklund addsessed the Board of Equalization, stating he questioned the in-
creasa in his valuation again this year. He said last year his vaivation had
beert rais�d by $2,g40 and this y�ar it was raised another $720, Me said it
seem�d 2o him that the increase of the previous year would have been sufFicienL.
Mr. :�rcklvnd questioned if there could be an increase in the Frercentaga a1lo+red
for hornestead.
Mr. 4�errmann sa9d the vatuaiinn on Mr. lJicklund's Qroperty had been rais�d fraa
$2C,220 to $20,9�0, an increase of $720 for the current year� and the previous
year the valuation was raised from $17,280`to $2D,220. Mr. Herrmann said the
Statc Law states that the homastead levei will be $12,000. He questioned if
it wou}d be possible to get into a home for $12,000.
Mr. Wicklund asked why the valuation was raised. Mr. Herrmann said Lhis was a
raise of '' on structures which was uniform throughout the City, with the
GXCN�.f�iri91 uf Pearson's Lraigway Estates and those homes in District 11 ataic9�
had not f�een assessed in 1970 and 1972. �
Mr, Herrmann explair�ed the reason for a large increase in same cases yaas dua
to the fact that it is not possible for the assessor to get back and reassass
for a period of four years in some cases, aend at this time the value would
jump and the peop}e camplain.
Mr. Wickiuod asked the City Assesso�• how Fridley compared to Blaine ar�e! Sprfraq
Lake Park. Mr. Herrmann said Blaine is higher and 5pring Lake ?ark is lower.
Mr, ilicklund askod if this vras determined ay what the ave�age house wovld seii
for. Mr. Herrmann said yes, it is based on the average of the assessor wPuich
may inc)ude 95% or 92% of the market, Mr. Herrmann said if assessing disYricts
are too far off, they get a blantcet irxreasa.
Mr. blicklund questioned if the assessor foresaw any more increases. Mr. FEnrrenann
said previousiy the reevaluatron was done on the evsn year and has been c��anged
to the odd year. Mr. Herrmann s�ed this was the reason that Mr. Nickiund had
received the increase two years in a row. He said this Mill not hapQen agaiee
unless there are improvements or additions such as a garage to the present strutture.
NQ, 2-- MR, K€NNETH ISAACSON, 75a1 HIGHWAY N0. 65, REARESENTE� BY ATiORHEM 4PYNAN
SMTTH �SEC710N 12L PLAT 53912, PARCEL 2850), VIKING CHEVROLET:
Mr. Wyman Smith, Attorney for Mr. Isaacson, addressed the Board of Equalization and
introduced Mr. Mark Dooley, Sales Manager at Viking Chevrolet. Nr, Smith said he �
had visited with Mr. Herrmann and Mr. Madsen and they had made a recaimendation
to the Baard of Equalization for a reduction oF $24,300 in the real property
valuaiion of the Viking Chevrolet property. He said he thought the assassors
arere very kind and there was a good feeling between them,
SUARa OF EQUALLZATION MEETING, MAY 31, 1973 PAGE 3
Mr. Smith said Mr. Isaacson, President of Viking Chevroleq had asked Mr. Oooley
� and hi�self to attend the meeting. Mr. 5mith said the total evaluation in
S97? haA been $265,200 and this year it had raised to $43$,000, an increase of
$Y72,a0� or 65%. Hr. Smith said after the recommendation of the assessing
departreent� the valuation rnouid be $413,700, or an increase of 55�.
Mr. Srnith said this increase came as a shock to Mr. Isaacson. He said he felt
it was way out of line with the other valuations, He said he thought there
should he some harmony. Mr. Smith said the building was there before and it
had been assessed before. He questioned how the valuation could be bumped 65%
for a n�w bvsiness.
Mr. Smith said the origina) structure planned by Mr. Isaacson was planned for
eonstruction on University Avenue. He said Mr. Isaacson had come before the
Cauneil, met with the Engineering Department, and tried 2o meet the exacting
stendards at that time for the eonstruction of the planned 6uilding. He said
the plasned expenditure would have been from $325,000 to $350,000. He said
there bas a study made, and General Motors would not approve 4he site on
University Avenue. '
lie said the existing building on Mighway No. 65 was purchased and the display
area could not be raised to comply with the needs of the type of business.
He said the building had to be modified for the new use. �fr. Smith :�aid beeause
the display floor could not be seen frem the roadway and beca�sse mf YFte� modi-
fications, the Assessing Department had recommended the re�eci�cen iro t3me
� valuation in the amount oi $24,30D.
Mr, Smi th sai d Mr. Iseacsan sti 11 feel s&�i s i s out of i i ne �r«d tcMa PaiqE�. Ha
said no matter how many modifications are made, he coutd not �sar�ic� aa good
a structure as pl anned on LIn3 versi i�ta Mr. Smi th sai d he di d leav�e k�.r{edge
of the purchase pri+ce A1r. Isaacsan had paid for the property, brct � c£i� not
have the authoriza8ion ta give t�aaC price ta the Board. He did say ttre purchase
price was lower than wFeat the valuaiion xas, but he was not surr of Hl�e
relevan�y of this faet. F% said Mr. Esaacson had to move and �anted'� to �e in
Fridiey, but was limited to where Gerseral 14otors wanted the busaness, k% said
he had compared this to what the construction vrould have been on Univ�crsity
Avenue, and this daes oot eaepare to that plan arxl is valued higher�
Mayor Liebt said he is very a�►are af �haY kr. Smith was talking abou#„ He said
he knew Mr. Isaacsorr wanted to buiid a nes�r structure, but did nat ge4 tha okay
from Deiroit. He said he thought thatk G� ras too great an increasa,�
Mr. Smith said it had' been reduced' ta �4R3,700.
Mayor Liebl said they w�re unabie to charege the structure, ar Ft uvow�d have des-
troyed it. He said this is not a n�w stru,cture, but is ranr�?��a�. 4%my�ar Lieb1
asked what the 65� inerease representad.
Mr. Harrmaen, the City Assessor, said the valuation was mvsit�r ��ar tha strutture.
He said it had been reevalued because the value had been toa #ew. Ne said they
� did reduce the valuation because of the display floor elevatiorro not being
visibte from the roadway,
B�ARD OF EOUALI2ATION MEETING, MRY 31� 1973 PAGE 4
Mr, Madsen said tevo structures had bean reduced in the City. '
MayQr LiEbl asked yf tho type and amaunt of 6usiness done'is considered when �
the va9uation is made.
Mr, kerrmann said no.
Mayor Liebl said this is a big square building that had been remodeled.
MrA klcrrmann said thn structure originally was used for traiter repair and
�ras at grour�d i evel i n the di spl ay area. He sai d thi s i s di fferent tFtan
other car display structures.
Mayor Lieb1 asked the tatal amount of square f�et in the disp9ay xtructure.
Mr> Herrmann sai�d there are 4,800 square feet.
Mayor Liebl said if the structure was new, he feit this amount e�u1d be jus#i-
fied, but this structure had only been rertndaled. He said he 'Felt art ietcrease
af 45� would be more 9n line.
Councilman Utter asked what the assessed value veas in 1972. Mayear Liebi said
Viking Chevrotet has spent a great deal of money to cane up to the City stapdards
and they had to maka financiai commitments to come up to these stanEdards.
Mr. Hsrrmann saicl the value last year was $26;,200.
Councilman Breider asked which portion of the total valuation+�as the isnd vatue.
Mro Ft�rrman� said this would be $111,400. tour�cilman 8reider esked h�s megaey �
srfuare feet are in the structure. Mr. Herrmann seid there a�e 2;,pa@ �s� an� area
and 4,8G0 in the office area fnr a total of 27,800 squaro feet.
Mr. Mark Dooley said this would inelude the counter area, double decker, and
the service department. We said they had no objection to paying ta�cesa but
that they just thought an increase of 65� was out of line. He said th� i0�
on fPoe land he had no objections to.
Mr, Herrmann said the increase was down to 56% at the present time. 1ie sai�d
the reduction had made some difference.
Laancilman Nee said the valuation now should be the market value, and asked if
this is what the properYy would sell for. Mr. Herrmann said they did p�Rehas�
the prvperty for less and had rertadeied it.
Mr. Smith referred to a baok used for the calculation of the values and s�id it
was a California book that had been updated for this area, taking inta eansidera-
tion the economic changes and the geography. He said he felt it could no� be
second-guessed. He said the Assessor had 6een very fair and had expia�ned every-
thing, but if they did not have the racent experience of what they could have
purchased iand for and constructad a structure for, they wouSd not be amare of
this factor,
Mr. Smith said the structure had all sorts of paneled roans rdien it �ras purchased.
Ne said these paneled rooms had to be taken out and dumped, the doors had to 1
be changed, and many things that had been paid for were wasted.
BOARO OF EQUALIZATION MfETING, MAY jl, 1973 PAGE 5
He said this should have been a consideration in the vaivation. He added that
� rw new partitions were installed, and they had ended up with the same amount
of t�tal space. Mr. Smith said there was an increase in �the amount of black-
topping.
Councitman Breider asked the City Assessor what the square foot building costs
are. Mr. Herrmartn said that according to the book the comparable figure would
be $15.b9 per square foot, and this had beert a��usted to $18.33 to alloa for
height, etc. on Yhe office portion of the building. Ne said the base figure for
the remaining portion of the building was $10.20 per square foot before tha
reduction was made. He said this amount of $iD.20 would be for new buildir�g, and
depreciation has to be allowed for,
Mr. Dootey asked if the $]O.Z� per square foot included the few ehanges in the
iighti�g and the btacktopping.
Cou�cilman Breider said this rrould be the market value, Mr. kerrmann said this
�aauid be the replacemertt cost of the structure taking into cnnsideration the
depreciation factor. Mr. Herrmann said thi`s reduction for depreciation would
be 6� after the 6lacktop and tighting were inciuded, to a re�uced fiqure of $9.59.
A eouncilman questioned why enyone wouid want an old building fflr $9.$.9 per square
foat when a new building ►auld be $10.20 per square foot. Mr, Ffcrrenann sa#ai this
did not cover the entire buiiding.
� CounciTman Breider esked what the value was on dten thevrolet. I��b t�r�mann said
he did not know. Mr. Schwartz said ihere are t�vo ather newer �st�ess�s �� �fte
same type in the Gounty. He said he eouid get some informatio� a�o �.k�.esc axs�ssed
values if the Board desired. He said there is a Chrysler and aFs� a Fca�^t� cY�aie�r.
Coursciiman Breider said he wouqd Bike to see �hat other valuatiro�s foc° fi� sarne
type of business were, He said he arould lik� to compare the totaAsy 4a�i�� ireto
consideration the depreciatiort. Fie sasd he �ict nat feel the reductiaxt, cauY�F, ts4
made without looking at other assessmen�s on �9ie same type of businesx.
Mayor Liebi said no property owner sheuld gmt an increase of 65%. He �aid t1�ia
was a substantial ificrease, withouC ihe dmprawements to justify it� Nua sa}d Fre
fett 45� would be more in the batY park.
Mr. Madsen said he had compared the va�ue te othor sales in Fridte�-4 and'the
sales would exceed the assessed valuee
Councilman Utter said Yiking Chevrat�t �ad st�me probiems, and they had meL Ll+a�
requirements to become accepta6le.
Mayor Lieb1 said he would like to hawe furthcr information fro�+�tf�e ,4ssessmr pra
tne properties that are similar in Anoka Ctwnty. He said thes.� �hmrs€� 6e� caa�t-
pared, reatizing these are new twild{ngs.
Gouncilman Utter said those areas have a different tax structure. !t� �a4d oven
� if the Viking LhevroTet structure were new, it wautd not be eomparable because
of the location. Councilman Breider said !he evaluations were to be standard
according to the State. He added that this shouid be the market value.
BOARD GF EQUPLIZATiQlJ eYEETIPIG, MAY 31, 1913
rac� 6
� Hr. Herrmann agreed that the location af a structure daes make a difference.
�fe r�fe^rred to the irtfiormatio¢� related to assessnrs at appraisal sthools„
stating ttzat an apartment in the d�sert has a great east'and no value.
Ccu�nci4rtwrs UYYer said ihe Ford dealer in Andca has no traffic nw+. He said
he thought the Chrysier dealer was sti11 in the traffic some.
Rlaycr Lsebl asked the members of the Board �at they woutd like to do on the
matter -- obtain a comparisen and tken act ort the matter in two weeks. He
said he would like t;o have sanc indication on what they have in mind. He said
he thought the icxr�ase of 45% rauld be sufficient at this tirne. He said
perhaps in two years the valuation coutd be looked at again.
Co�ncilm�n Breider said the valuation by market value is set up by State
legislatiun. and that the Board should cunsider this along stdth ihe other
6usinesses in the cormx.inity. He ssid he thought the City should look at ot9�er
properties, so Yhey couTd compare the valuations.
Councilr.�an Utter said he agreed, but that more could�6e scarnxf out than could
be �otten, if the area is over-taxing.
Maycr Lieh1 questioned who is to say what the market value is et a giver� tiaoe.,
Fte said if this was a new buitding, they wauld know ahat the value eaf it +aau�+�
be. He said that in this case they havo to use their own judgmcnt., }{c
sugqestad, in order to expedite the matter, tfiat other businesses shautd be
tooked at. He said he wovld like to kraow the range of assessments that are
�iven. He said it shouid also be cansidered that they should have a chance to
make a go of their business. He said the Councif was elecCed to malce decesiwns
on behatif of the cammunity.
Councilman Breider asked if an evaluation cauld be obtaincd from Henmep�ee
County. Mr. Herrmann said it ca+ild be. Counci]man Breider said he wauld �
interested in the amaunt of the valuation of Iten Chevrotet. Mr. 1Ser�mann seid
he would check into this, and try to fierd out the amount and aiso haw much
area they have. �
MOYION by Counciiman Utter to authorize the assessing staff to obtain mote
iniormation by r�orking with the Anoka County Assessar to get figures ort the
Fard ancf Lhrysler dealers in Mdca ta get are idea pf other appraisals, takirtg
into consid�retion the locatians and age of the structu�as. Seconded by
Cauncilman Breider. UpQn a vaice vote, ai1 voting aye, Nayor Liebl dectared
3he motion carried unanimausly.
�l0. 3-- MRS. D4RI5 AND MR. RIGHARU LEVINE, 1630 - 6@� AVEtA3E NQSTHEAST �Lt�T t,
BLOCK 2, MOORE LAK£ P0.�iK FIRST A�OYTION, PLAT Sb890„ PARCEL 80 }s
Mrs. Levine addressed the Board and stated that they,are new citizens in IFr3d�ey.
Si� said the real property value on their home had increased by $640. She ques=
tioned if the,ASSesscr,had ehecked into what tha home had been purchased far.
Mrs. Levine said they do not have a qarage and they have a leaky roof. 5he said
she thought some consideratio� should be made of the incane of the hus6and. Sha
said her husband was nat able to attend the�preseAt meating as he had to work.
L__.J
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�
BOAR� 0� EQUALIZATION MEETINC, MAY 31, 1973 , PAGf
Mr« Herrmann said the former oMner had refused to allow the assessor to enter
� thz hame. .
Mrs. Levine said there is not a rug in the entira house. She said the former
property owt�er said she loved the outside of the hane� and that she had fallen
in lave with the lot but not the inside of the hane. She said she would
gladiy show the inside of the house to Che assessor.
Counciiman Breider said the appraiser should go into the house. He sald the
former value may have been a little high.
Mayor Lieb1 said the Assessor �uld be sent out to re-vatue the house.
MOTTON by Councilman Breider to authorize the City Assessor to re-avatuate
the property by first looking at 1630 - 66g Avenue Northeast. Seconded by
Councilman Utter. Upon a voiee vote, a11 voting aye, Mayar Liebi declared
the motion carried unanimously.
NU. 4-- MR. KENNETH PETERSON� SQO �OVER STREET NORTHEAS� (LUTS 1-3 ANQ
LOTS 22-24, BLOCK 8� SPRING BROOK PRRK ADDITION, PLAT 59��, PARGEE, 14�7�):
Mr. Peterson addressed the 8oard and said he questioned t�e evsluaE�oe� fr��+m
ig72 to 1973. He said the assessment had gone up $4,260, and Ehis ;�e�r LEaey
had gone up another $400.
� Mr. Peterson said there are stiD9 many things to do to ca�wSet� �6z� #�enee Rie
said the landscaping and the basement are nnt done. Mr. Pe�.ers�a sas`d �ra makes
less than $5.00 per hour, and h3s was the oniy check caming n�ta �rfa hc�erem He
said he lives within Schoo! Distsict Na, iti. He said this is, 6�c��romg Fcim �f�an
his home. He said he cannot see his futura �here, with such a�aa�r �aal�catien.
He said he felt he had more interest in t6�ia factor, as he had buiA� Ihis rn�
home. He added that the taxes are dr�ving him out. He said thc�r are gofirg
up and up again, and he saw no end te 4t. He said he did not ker,�+��xat they
�vere assessing his homc so high oa, as he dad not have a cement driwe�,ray,v btrt
a dirt driveway. Mr. Pete�soo said he did not make enough money tm keep up
with the increases.
Mayor Liebl asked rrhat the assessments �erc„ Nr. Herrmann sai�d �h� assexs�eaat
was for $22,420, and $235 was paya6le for special assessments,�
Mr. Herrmann said there wer� a graup of imprmv�ments added.
Mayor Liebi said the taxes ae the prop�rYy are $k71.3Q.
Mr. Peterson said his basement is not fin9shed, the drivewa� �s �aast i�p arret
he does not have a11 of the cabinets up.
Mr. HErrmann said the bi11 was for $707 and $235 of this amesun� is fvr special
assassmenis. Mr. Herrmann continued by saying that almos� one-half of the bi11
� ►vas not for taxes, but for special assessments.
BOARD �F E UQ AlIZATEOk �EETINGs HAY 31� 1973 PAGE 8
Cnuncilmart said sf the taxes are $707 for a home vaiued at $22�000, he thought
khey six�uld take artothrr look at it. Mayor Liebl said the tax �ovld be �
averaae for thSs v�1ue of har� without the speciat assessmentsa Counciiman
9reider asked wt�n the last physical assessment had bcen made of the home.
Mr. H�rrmann said this was tast fail, September 28, 1972.
Councilman �reider asked what the other homes in the area are assessed at.
P1r. Herrmann said they were assessed on the same basis.
Mre Peterson said he did keep his hane tooking good. He said he did iqt ►►ant
i4 loaki�g i9ke a dump.
Gounci�man Utter asked how many square feet the hanc had. Mr. Flerrmann said
there rnPg 1,057 square feet and a 12 by 20 foot garaqe. Mr. Fierrmann said
15% F+ad been taken off for the garuge because it is narrow. The assesr�r
said he has three lots in the f�ont and three lots in the back.
Councilman Nee asked why the evaluation had raised $4,000 i� one pear.
hira hlerrmann said this was due to the flood scare. He said the peopla� daad
vary tow taxes in these areas.
Caun,cilmaR Nee said what the assessor is saying is that it rrouid cost $22„0�166
to buy or build his home. Councitroan Mee asked Mr. Peterson if what 1ae reas
saying is that the home was not worth that much. Mr. Peterson said h� fis
campa�ing his home to that of his neaghtxirso He said he tived in Sci�aat
district No. lt, and they had just gorie for a seven million dotlar 6aawi issuer. �
He said he catr net see his future 7iviag in this home. Ne said the C�ty� is
farcing him out. He said School District Na. 11 wiil eome arouv�d for mora.
Mr, Schwartz said the seven million d�a3larYbond issue had been defeated.
Mr. Herrmann compared the property ta that of a neighbor, and stated t�
diff�rencos. .
Hayor Liebl said maybe this shauid be yone over again, and the recommendaC{ans
of the staff obtained.
Mr. Peterson referred to the ad}acent prQperYy owned by his sister, aad stated
that they had purchased their propert%es at the same time, and his sister
sti11 had six lots and he did not. He repaated that they have their fu1F s#x
1oYs.
r4r. Nerrmann said it is correct that there are utiiity easements.
Councilman Mee suggnsted the City Assessor take a look at this..
lleyor Liebl said he believed the $400 in taxes was in line with th� area.
lAr. Peterson said he would like Lo ba thare when the assessor looked at the
pruperty. He said he knew tfie assessor had bean there in the past, but he
had not been able to be there. Mr. Nerrmann said Mr. Peterson shou9d call �
the City Assessor�s office and make arrangements for the visit. Mr. Peterson
said he would make arrangements to get off work early to be there when the
Assessor came.
BOARD OF EOUALIZA7ION MEETING, MAY 31, 1973 PAGf 9
' M07ION by Councilman Nee to have tha property owned by Hr. Kenneth Peterson,
� Sa0 �ovar Street Northeast� be re-evaluated. Secondad by Gouncilman Star�valt.
Ursan a voice vote, all voLing aye, Mayor Lieb1 dectared 4he motion carried
unanimously.
N0. 5-- MR. AUQJST Ft1NAR0, 1620 ONON64GA (LOT 1, BLDCK 1, MARXEN TERRACE ADOI-
TTON PLAT 56748 PARCEL 1Q): '
� �
�
Mrse �unaro addressed
creased from $19,�0
bsnkrupt or move ouL.
the Board and said that the valuation on her hom9 had in-
in 1911 to $31�620 in 1973. She said they would either go
Mrs. Funaro said she has never seen taxes this high. She said thero are two
working in her family, but her husband only worked sewren months out of the year.
Mrs. Funaro said they had done a little remodeling to the home, but not e+wugh
to make it a$31,000 home. She said they had put in a garage and a cement
driveway. She said the carpeting in their hane is eig�t years old� and thny had
moved iY from Ohio. She said they had no dishwasher or disposal. She said they
had tried to make their home livable for their two higlu school boys.
Nr. Funara said they have two different tax statements �r`two d4fferent bi►ia.
Mr. Nerrmann said the lots have been cocnbined, and from raow on tl�ey w4i1 be
getting only one statement. Mr. Funaro said they had tr�ed to comb4ne C#ea lots
when they bought the property. Mr. Herrmann said thR assessments last pear had
not been combined, but they wi11 be in the futuro. Ha said t'his v�autd nai change
the assessments.
Mrs. Funaro questioned the $3,�10 vatue on the tot. She sai� t�sy� ha+t pro�r�
$2,8p0 for the land. The speciai assesssaents had been $1,04�A ax� �kne t�xcs" $30U.
She said they had not had the property for a year.
Hr. Herrmann said his 1ot was worth $2,00(1 when he purchased �t,� an� 6t ded not
have any sewer or water in the street. Now, he said, it does and� rt �s �t8�
$b,000, Mrs. Funaro said you pay tr�iee -- first for the assessz�e�ts �rvc� �h�n
for the taxes because of the aasessments. Mr. Herrmann said 75,'�, o€ a11 t�one2s
are buiit witfi mortgages on them, but the assessments are not tt� �nG of
the mortgage. Mr. Herrmann said th� assessmants are part of the value o€ tha
property.
Mrso Funara said she did pay for the property.
Mayor Liebl repeated the yearfq #ncreases in the amount of the assessed v�C�e
since 1971, a�d said the vaiue had increased $11,000 in the kast Acau ye�rx«
He added this was almost haif of the totel value. `
Nrs. Funaro sai d even if the other iot i s not fi gured i n, xkav` S f s aca i�acr�ase
of $7,000.
Councilman Utter said they did build a garage. Hrs. Fvs�arp xaid thi� ts +xP:y
she had not come to the Board of Equalization last year, bsat she thought sha
should come this year.
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A6Al2D Or^ i?U'#LI7ATION MGhTINC',y MAY 31� 1973 PAGE ZO
— .
Mr, Herrmann said there was no change in the value of the property for some
tuie in this area, ,
Councilman Utter asked if the value for last year was §27�000, Mrs. Funaro
said yes, and that this year it was $31,000, Councilman lltter asked the size
of the other lot, Mrs, Funaro said the lot was G6 by 138 feet, She added
that she di.d not feel the lot was worth this amount, Councilman Utter said the
66-foot lot �aas noi a buildable site, p1rs, Funaro said the house is on a lot
this siZe, but they had to buy another lot to build the garage, .
P7r. Herrmann said his
�aid they had to �et
had paid �75 for rt.
able site,
records had two buildable lots listed. Pfrs, Funaro
a new survey, even though the City had a survey, and they
She aslced if the site would be reeomputed as one build-
Cour,cilman Starwalt asked Mrs. Funaro Lf this would be satisfactory if the
property would be re-evaluated as one buildable site and not two. Pirs, Funaro
questioned the �ump from �19,000 to �527�000 in one year, Mr. Herrmann said
this had to take place to be in accordance with the addition of the garage and
the undating of the re-evaluation, Mr, Herrmann said this would have been over
ttso years and according to the guide book,
Councilman Utter asked the value of the garage, He said the garage is 24 by
2II feet, Mr. Herrmann said the value was placed at �2,807 accordin� to the
assessment records, Councilman Utter said this brings the valuation up to
$,22,Q00� but the other $5�000 had to come from someplace,
Mrs, I'unaro said the house could not be sold f or �31�000 �ith the garage and
the other lot,
MOTION by Councilman Starwalt to re-evaluate the groperty as one buildable lot
rather than t�ao buildable lots, and reduce the $31,000 evaluation accordirig
to Lhe re-e-valuation, Seconded by Councilman Nee,
Councilman Breider asked if this was a three-bedroom house, Councilman Utter
said they were very small bedrooms,
Mrs. �naro said perhaps they shpuld let theLr home run down to the �sound to
get a tax break,
Mayor Liebl asked how much the valuation would be decreased by the cor.�bination
of the lots to one buildable lot, Mr, Herrmann said Lt wauld be abaut $1,500
that it would go down, Mr, Herrmann said this could be taken into consideration.
IJoon a voice vote, all votittg aye, Mayor Liebl declared the. motion cart�ied
unanimously,
N0, 6 -- MR. LACRY GRIPL'TTH, 5401 EAST P.IVE3 RQ9D (Ldt" 1, ELOCK 1, GREAT
NO^'LIIPRiC ItdDUSTP.IIL CENTEP.� PLAT 56113, PAS?CliL 10), PLYbfQO� MINNESOTA
P1r. Griffith addressed the Board and said he would like this item tabled
until L-he next meeting of the Board to allow him a chance to discuss the
matter �arth P4r, Madsen, Ae added that he believed it would just waste the
73oard's time at the present meetiqg,
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nOF,RD OP �QUALIZATION D1rETING, A1AY 31, 1973 PAGE 11
ffayor Liebl said this would be taken care of by the staff,
P;O, 7-- MR, DOUGLrLS OSIECZAN�Ei, 101 CROSdiV P,O_4D (Ldf 8, BLOCK 3, CARLSDN�S
SLR•NSIT I�L�IS�OR NOP.TII _"vDDITION, PLAT 55258, pARCEL 84�i:
r]r, Osieczanek said his evaluation had raised $900 this year and it seemed to
raise every year. He said he has to contend with Midland Co-op, snowplows, aad
he has a lealcino roof. He sai.d he thought his evaluation cs,uld go docan with
the factw-s that could provide for depreciation to the value of his home,
hSayor Liebl said hir, Osieezanelc had added a garage. Mr, Osiee2anelc said nothing
Zad been done to the basement, Mr. Herrmann saLd the hose was evaluated at
$25,000� and the garage was 22 by 24 feet,
2?r. Osieczanek said he did not think there would be any reason to fix his
house so he had done nothing to it, Re said he was goir� to let it run dowa.
He sa�d he had lived up north where people do not have any�hing� so he would
be used to this type of living.
P1r, Herrmann said the total amount billed on the tax statement was 3`554,78, o£
which $112 was for special assessments, The total real estate ta7c on the
property caas a442,46, according to Mr, Herrmann,
htr. Osieczanek said he had attempted to register his children £or the. reerea-
tion nrogram and there was no park in the area available for tfiis, He sa�d
there is no permanent shelter in the area, He said the people i.sa this area
are ta�ced as high as those who do not have camnercial proper��= �r� tY3eir ar�aa
Mr, Osieczanek stated there is a dupleac down the street from hES tvssne t��i is
not homesteaded, and the tases are just a little higher than hi.s. T�e ��i�
the people across the street have new carpeting and they are payinS th� s�ause.
as he is. �
Mr. Herzmann said Mr. Mulcahy was out there and said there was same evicurnce
of ihe roof leaking in the past, but this is not to say that iti is still
]eaking. LSr, Herrmann said he wou3d 2ike to see the property during the day
when it is raining. Mr. Osieczanek said all he would have to do is look at
the shingles, as there is a bi.g gag i.n them�
Mr. Mulcahy said he had sezn sar,ie stains and sane evidence of repair.
r3r. Os�eczanek said the reoair was only on one side, Mr. Mulcahy sa'sd Is.e gaaa
not sure the stains had been caused by rain. They may have been cause� hX
condensation,
Mr. Osieczanek astced it the �ssessor could c�e down soele ni�rt whzl� i_L-
i^, raini�a and he is home, Mr. Herrmann said Dfr, Melcahy did Iive r�uite a
distance from the sLte and could not make the trip in the evecei.rs�o 2�3aqnr
Liebl suggested he call the Police Department and they coulct docuaaent whether
or not the roof leaked, Mr. Osieczanek said he could not get the police out
there iohen his home coas burglarized� so how could he get them out to see it
rain,
I30A2D OP t,pUALI'LATION bL:ETING, bfAY 31, 1973 PAGE 12
Mayor Liebl said he had checked into the cirecmistances of the burglary after
i•eceivino infoxmation frrni A1r. Osieczanek �aho had told him that the police had '
nat come out, Mayo: I.iebl said this information was not correct� and that the
golice nad bee❑ there and had a lengthy report on the matter, t,r, Osieczanek
said he felt they were not there at the right ti-ne, They had arrived after the
completion of the theft, which was too late,
Councilman Starwalt asl:ed Lf the house across the street could be checked by
the assessor to compare the features and the evaluation, Mr, ilerxmann said
this coulri be done,
Cour.cilman Starwalt asked Mr. Os�_eczanek if he felt that if his hane were in
a different area that it caould be valued higher, Mr, Osieczanel: said yes, He
said a realtor said he could sell his home for the evaluation if the nrospective
buyer would come to look at it aPter midnight when the lights fron Midland Co-op
are o£f.
Councilman Starwalt said the evaluation of his hane is less than what it could
Ue sold for on the marlcet, D�h-. Osieczanek�said the assessed value should be
$1�000 to `�2,000 less than the market value, Ae added ihat he had realtors
from Spring Company and also Rose Real Cstate at his hane, and both had told
him that he could not sell the property £or �525,000,
Councilnan Nee said if this is the case, i�1r. Osieczanek would have a point,
bSr. Osieczanek agreed, saying he could not sall the hane because of the area.
Mr, Herrmann said the home had been crnnpletely rebuilt after the tornado izr �
19C5, and this was the date the assessing department used as the buildit� �eas,
P1r. Osieczanel: said the basement has no improvement-s, and is still c7ide ape;�.
Mr. Herrmann said the hane across the street was only repa1red after the
storm� and Mr, Osieczanek's hane was completely rebuilt on the top,
PIr, Osieczanelc said the home across the street had carpeting and his did not.
Councilman Nee asl:ed the City Assessor if he felt ihe hane would sell for
�25,000, b?r. Aerrmann said he thought it would.
Cuunc�lman Nee said he was told he could not sell for this amount, and he
Eelt Lhi� would be material for reconsuleration on the evaluation,
i•Ir, riadsen said two years depreciation had Ueen figured for the basement, hut
Lhe structure was conpleted in the year of the tornado. He said tahen a harse
�.s only repaired that the actual age of the hane is used. He said when a
r�ew top is put up, this would call f or a new e£fective age, h1r. Pfadsen said
t�his area did not have any special rules, This had been done consistently
�hroughaut the City,
�buncilman Nee said people c�ould not buy the house because of the traffie,
a�nd asl;°d if this is considered in the evaluation. Mayor Liebl asked iE the
area is detr unental to the value. Mr. Madsen saLd all of the structures o�tt
TMlain Street had been evaluated in the same manner, ' �
BO�PS� OF LQUALIZATION P1E�TING, NiAY 31. 1973 PAGS 13
` Mr, lierrmann said the home across the street caas given a different age. He
� added Yhat I�:r, Osieczanek had no carpeting� and Lhe other hane did not have
a-,y carpeting or any driveway listed. Mr. Herrmann said all they had listed
for the other home was a hood £an,
Mr. Madsen said the assessing department re-evaluates by area, and there are
m2ny thLngs going on that they do not knoca about, h7r. Herimann said they
cannot trade iniormation from one homeocm er concerning the next homeocmer,
Mr. Osieczanek said if he did not �et some results, he would go to the State,
CoLncilman Nee said he had a question, How could this be figured as the
assessed market value iE he could not sell the hane for this? Mayor %iebl
said the traff-ic in the area is a big problem. P1r, Osieczanek is on tihe
corner and he has trouble caith the snao plocas, P1r, Osieczanek said tl�ere
are trucks pulling in and out at all times o£ the day and tt�ht, Ha said
this goes on taenty-four hours a dap with more than two hundred trucl:s per day,
A3r, fierrmann said there are many homes on Uriiversity Avenue that have to put
up with the traffic day and night,
Councilman Nee asked if there caas evidence the formula bein� useci at the
present tine did not work� would the assessor like to chan�e this foxmula,
P+h-, Herrmann asked iL they would li.ke to send another appraiser out to the
property, Pir. Madsen asked if this would be a fee appraxser, t�ir. Ilernn�r�n
� said this ��ould cost money, anywhere from "�75 to �100, Covsicz3mace Nee A�i:ed
if the men in the assessL:�; department were qualified to malce an w�praisa3,
rir, Madsen said they tiad done it,
nSOTI0P7 by Councilman Nee to review the evaluation on the Dougl�s� �ic�aree3e
hane. 101 Crown Road, as the ho�c across the street is assessed� at $22',�047
and tiie Osieczanek home i.s assessed at $25�000, Seconded by Ccccneai;vaa�
Starwalt,
Mr. Osieczanel: said the hane directly behind h�s sold for $21�O�D@ teeaee yearw
ago. He said this was a walk-aut waih three bedrooms, and has a�ara�e as
big as his home,
Mr, Herrmann said he ras familiar with the home, It had a four-e�r gala�e,
t�Ir, Aernnann sazd the three }eazs caould make a great deal of dif�ersnce n�
the narlcet value of the hoa�, Cauncil!nan 3tarwalt agreed, sayi�� tha� T.wo,
tu three years taould make a Uig @ifference in the price of a hc€�. Cc��enenZ�
maa Starwalt asked 3f Mr. Osieczanek �oould talce less than $24,Q02 io-r his
home, Hfr. Osieczane.; said yes if it was cash. Councilman �tar�+alt asked
hun if he had put the home up fnr sale, Mr, osieczanek said he x4ia axot lt�vc
any place to mwe to at the present time, He said he was sta>�ir�; �n .*tTe GkYg
because of hi.s motFier. Hc said this was the only thing that was �e;ax�a hixu
there,
Mr. Herrmann said he would like to have the County Assessor with him whesi he
' made the return trip to the Osieczanek property, fte said he thought it
should be done this caay as he had already made one appraisal oE the property,
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Upon a voice vote, all voting aye, bfayor Liebl declared the motion carried
unanimously,
D04RD OF 13�U4LI7,ATIPN P1LrTING, h1AY 3I, 1973 PAGE 14
NG, 8-- hiP.S, T1AitVF^,D NII:LSON, 4G55 - 2y STRP�T NORT3T'AST (LOTS 29 AND 30�
SL(Y'[i 10, PLY110lPPH ADDITION, PLAT 57352, PARCEL 5958): .
P4ayor Liebl called on Pfrs, Nielson to present her thoqghts to the Board� but
she caas no longer in attendance at the meeting,
The City Assessor said this property had been given an arbitrary appraisal and
crould be re-evaluated,
NG. 9-- M^. D�RTL*IN DAT1L, 245 STONEY3P.0�(t Sd�Y ( L07 11, BLdCK ]� PEARSON�S
CRAIGwAY ESTATES 2N0 ADDlTIQNt P1.AT 57309, PARCfI 2060):
Mr, Dahl addressed the 13nard and said the 1971 evaluation had bee;t $33�360,
the 1972 evaluation °�3£39840, and the 1973 evaluation $46�500,
Mr. Her�ann said the reason there had been an increase both years is that it
nad been evaluated in 197D and again this year, ,
Mr. Herrmann said the first evaluation did not include the dishcaaslxer and
several other items, He said the air conditioning is also newe Mr, Herrmann
sa�d ihe increase in evaluation according to the law can only be 5ox but there
ean be an addition for those items which are improvements on the home,
Mr. Dahl said the overall increase would be lunited to 5o with the exception
oL the addLtional uaprovements,
Mr. Herrmann said he is lucky that this law had been passed, but the evaluatiotf
r�ould be raised another 5o next year, until the market value amount z, zeacheci,.
P1r. Schwartz said P1r. Dahl would be receiving a notice of reductian in evalxza4:ion
exclusive of the improvements,
Mr. Dah1 said he had paid $46�000 for the nroperty a year ago and s�ouPd Iilce
to compliment the City on its competent staff, Mayor Liebl agreed,
Mr. Dahl qu�stioned Pir, Herrmann as to whether, if his evaluation �oould hav$
�one up thi= �nount in two years, would he think this was too much,
r1r. Herrmann said the amount was lefY. the same in 1971, but they had t�s go
bacl; in 1972, Mr. Dahl said the house vas new in 1971. -
Mr, Dahl asked what the 5% would apply to. Mr. Hertmann said the tot�l value,
Mayor Liebl said all those who had anpeared at the meetinq had be�n talceac care
of, so nocv they would go through the letters that had been suUmitted to the
Board,
N0, 10 -- MR, i,1ILLIAM C, iiOFFI�1Ai1N, 6900 1�IChQ^,Y DRIJE (LOT 184 BLGCK 4� OS'IriAI3'S
3RD .'1IlDITION, PLAT 57235, PM.CfiL 3100):
MOTION by Councilman Utter to receive the communication from Mr, Noffman� 6900
Hicicory Drive, regardin,^, the increase in valuation� dated May 24� 1973,
Seconded by Councilman Stanaalt, Upon a voice vote, all voting aye� Mayor
Liebl declared the motion carri,ed unanimously,
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?�OAnD GP E2UALI2✓1TION MG&'I'ING, I�'AY 31. 1973 PAGE I5
The City Assessor said the value had increased �1,200 over the previous year�
, and thi, �vas the same percenta�e that had been used city-s.�ide, which was 42�.
Pdr. Iierrnann said this crould be on the structure, and not the land,
Mayor Liebl confirmed the opinion o£ the City Assessor and stated that the
assessor caould have no reason to cut the value. Mr. Herrmann said this was
c�r rect,
r10TI0N by Councilman Nee to concur with the recommendation of the City Assessor
and Tal<.e no action on the value of the property at 6900 Hickory Drive, Seconded
bp Councilman Utter, Itpon a voice vote, all votin; aye� Tl�yor Liebl declared
the motion carried unaniunously,
Ma;pr Liebl said Mr, lioffman had been treated fairly and had been treated as
ever;�one else in the City,
N0, 11 -- T4R. K�I�ETH riOXNGSS, 1604 - 66TH AVFNLIE NORTIiEAST (LOT 1, BlDCX 2,
CLAREC'S ADDITION, PLAT 55430, PARCEL 350):
?fayor Liebl read the letter submitted to the IIoard by rir, Moxness� 16D4 - 6Gth
Avenue Northeast, regardin� the amount of his value, dated May 31, 1973,
MOTION by Councilman Utter to receive the letter from Mr. Placness, dated
b?ay 31, 1973, Seconded by Cnuncilman Starwalt. Upon a vcuir.e votv, ai1 vating
sye� ilayor Liebl declared the motion carried unanimously,
' 47a��nr Liebl asked the City Assessor if he had a recommendatie��. �x. �lessmas�sa
s�id he had talked �oith Mr. Moxness that day, and had said he e,rekvealri nt�:� a�
inspection of the nroperty, Mr. Herrmann explained that two g�onerties 7xa d_t}e
area� includins the hane o�,ned by i�Sr, Moxness, had come up wi�h �cce• sa�a
dollar amount, but not for the same reasons, He said one oE t3ne hcmes izad �
single-car oarage and a lot of extras, iie said Mr, t�foxness had �iven zua aei�-
sideration to the inside of the hane,
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Mayor Liebl said the house was purcn,ssed for �23,900 in 1971,
PiOTTON by Councilman Utter to concur with the recanr,iendation of tFie Citg
Assessor. Seconded by CouiYCi)man Star�oa3t, Upon a voice vote, a31 voiing
aye, riayor Liebl declared the motion carried unanimously,
N0, 12 -- M=^.. DC1i`7ALB C. SAT7FLKOUL, SIGAL t;'B SAVCLKOL�I,, RPG.ARDSNf� '£''li GC��"�FTi4LDT
IAIVESThIFNT COTiFANY PROPE?TY AT G290 EIIGIiiJAY N0. 65 NORTHEA�T (P��?T' C_' f.�L``l"[,t7£S 2'
APID 3, ELOCK 1, MOORfi LAK.� i�IGHL�ilS FOUR11i Ai]DITION, PL9T 558S�P��C?!� 7�Q)�
MOTIOId by Councxlman Starwalt to receive the letter from Mr, Ilr�raTct C, SaasYicuskl
regnrdLn� the property oc.med by Gottwaldt InvesLment Comparetr a3: 629c� d€ivEncra}� i�6aa
65 Northeast, dated May 14� 1973, Secnnded by Councilman C��ter, Upo�x a voi�e
vote, all voting aye, Mayor Liebl declared the motion c�rri�d unanimously,
AOAP,D OF EQU4LIZATION PIRBTING, P1AY 31, i973 PAGE 16
b��. Flerrmann said the amount represer�ted an evaluation of $1,27 per square ,
foot and dul not include the v�lue o£ the structure. He etxplained that the
County Assessor did the evaluations on all gas statians in FrLdley. He said
the amount per square foot on the Veterinary Clinic was fi;ured ati $1.37,
r1r, llerrmann said the other station in the area had been figured at �1,76, and
the property across the street tifi ich is the prooerty where the Fridley Office
Supnly buLldin�; had been located was figured at $1,44 per square foot, He said
he caould not mcommend a reduction,
Mayor Liebl said the property is in 1Lne with the property in the zmmediate
area. Pir, I�ernnann said there are scme lower, but they are r.much larger pieces,
Mayor I.iebl sa�d Mr. Savelkoul had stated in his letter that the value had
Lncre�sed $2,521, and that he caas receivinq �4,800 rental per year from Sinclair,
P1ayor Liebl said Mr, Savelkoul thought the market valne c�as way out of line.
t1r. Schwartz said the mana�ement has a great deal to do c�ith the rent, He said
there was no change in the ouild u� value and no change in the machinery value,
He added that the machinery will be removed,�and this will reduce the evaluatian
aboat $37,SOD,
Councilman Bmider stated the amount of rent is an agree�ent between the ownet
and the renter, but that this is not up to the Council,
Counc�lman Utter said he did not think this would be out of line as the morL-uary
pronerty sold for $6�,000, pir. Iierrmann said there cvas a$22,0(10 value placcd on �
this lot. Councilman Utter repeated his belief that this was not out o£ lsne.
21r. Herrmann said they have an option to renew the rental agreement, h�ut there
m,�y be some chat�es since the change in the gasoline business since the first
of January,
Councilman Utter said there will be some reduction on the value a£ the maehin�ry,
MO'LILIN by Councilman UtL-er to concur with the reco�+m�endation of the City Assessor
and not reconsider the evaluation on the property at 6290 Highway Tdo, 65 Northeaat,
Seconded Uy Councilman S�anaalt. Unon a voine vote, all voting aye, Nlayor �a.ebY
declared the motion carried unanimously,
SETTING DAT� POR NTXT ME�TING OF THP BOAP.➢ OP �Qill'S.IZATION:
T;ae CLty hssessor said the meeting c.x�uld have to be reconvened within a twentp-
�'a}* period, and this would not include the present day, Mr. Herrmann su;g�sted
*.Fr� meeting be set for a date around June 20� 1973, •
4?e,syor Liebl said the �eting could be scheduled for June 1°, 1973,
1?r�"�TION by Councilman Nee to set the meetin; of the Soard of Equalization for
r�une 19, 1973, at 8:00 P,M, Seconded by Councilman Utter. Upon a voice vote�
�11 vot u�; aye, Mayor Liebl declared the motion carried unanimously. �
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BOAP.D Q� �OU�i,IZATIpN hfEETIIQG, rtAY 31, 1973
P,�CLSSED:
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�AGS 17
hiC�PIfiIQ Uy CouncLlman Utter to recess tLe tneetin� �f ihe Board of Equalization,
Secot�ed �y Councilman Nee. Upon a voice vote, all votin;; aye, Mayor Liebl
declazed the ae etin� o[ the Board of Equalization recessed at 10:30 P,M,�
Nay 31� 1973,
ResnectEully Submitted�
� t 7 // ,
l�G Lwc,�c� �y2: v'�-�
Yatricia rllis
Secretary to the City Council
PE/ps
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Franl: G. Lieb� Mayor
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