Loading...
05/14/1979 BOE - 00013836i__.I ' , THE MINUTES OF THE BOARD OF REVIEW - CITY OF FRI�LEY - P9AY 14, 1979 The City Council met as the Board of Review and the meet�ng was called to order at 7 40 p.m 6y P�1ayor Nee. PLEDGE OF ALLEGIANCE P1ayor Nee led the Council and audience in the Pledqe of Allegiance to the Flag ROLL CALL MEh1BERS PRESEPdT: Playor PJee, Councilman Barnette, Councilman Schnetder Councilwoman Moses, and Councilman Fitzpatrick f+lEM6ERS ABSENT None dOARD OF REVIEW: P1ayor Nee explatned the Council was meeting as the Board of Equalization for the purpose of considering the question of whether of not any particular piece of property in the City has not been fairly assessed. He stated, if the Council finds that the market value is not properly established or there were errors in calculations, they are empowered to make ad,7ustments. hiayor Nee stated, if any persons wished to make a protest and do not find sat�sfaction from the Council, it is still important to make thei�� feelings known since they have to be on record at th�s meet�ng in order to ta4:e the�r appeal further to the County level and possibly the State level P9r Herrmann, City Assessor, explained, in order to determine the market value, sales are checl.ed to determine what property is selling for in the City. '�^r Herrrnann reviewea the forr��ulas used to deternnne assessed value for single family homes, both which are homes;,eaded and non-homesteaded, and for commercial and tndusi.rial properties. P9r. Herrmann stated the Legislature may eliminate the "limited value" and if they do so, there would also be quite a different program for homestead credit He explained, however, at this time they couldn't guarantee what would happen �n the Legislature. Mr. H,7almet° Anderson, 1491 Rice Creek Road, stated he felt the valuation for his hoire was too high. Mayor fJee asked if he felt the house wouldn't sell �or vahat is established as the market value. Mr. Anderson stated he believes it keeps goina up, but still felt it was too high Mr. Herrmann stated there was a value for $36,OD0 placed on this property which includes the lot. He explained a good portion of the value is for the lot as it is a lot that could be developed into two lots. He stated the home is valued at $24,60D and the lot at $11,400 for a total valuat�on of �36,000. He si,ated the value last year was $27,Q00 and not only has the home increased �n value, but the City was on the low side for older homes. Mayor Nee stated that the increase was more than the 1D% allowed by State law Mr. Herrmann stated the limited value would only increase 10%. He stated if the law remains reyardiny "limrted value" the taxa6le value would be about �2,700 more. Playor Nee explained that the Council has to make a finding that it �s not l�kely that Mr. Anderson could get �36,000 for his home, if he were to sell �t, before they can, theoretically, make an ad,7ustment Mr Herrmann also pointed out this home was in the area that was phystcally re-valued this yer.r, He stated the law prov�des that at least every four years a home must be physically appra�sed and re-evaluated. P1a,�or Nee stated Mr. Anderson is on record as question�ng the value placed on and could, therefore, appeal to the County. He cautioned, however, if the value QOAR� OF REVIEW MEETING was ad�usted, it could posstbly go up instead of doHm. PAGE 2 f1r. Herrmann stated, if the Council w�shed to continue this to another date, they miqht possibly know what action the Leqislature is qoing to take as far as the l�mtted market value is concerned. NIGTION by Councilman Schneider to refer this rnatter to the staff for further discussion and report Seconded by Councilman Barnette. Councilman Fitzpatrick felt the decis�on tn the end would have to be based upon a finding that the property has been overvalued and not simply that the value went u� too much over the one year period. UPON A VOICE VDTE TAKEN IN THE ABOVE h10TI0N, all voted aye, and P�ayor Nee declared the n�otion carried unantmously. Mr Lyle Kleven appeared before the Council to protest the value of his property, the North Star Beverage, at 785 - 53rd Avenue N E He stated that the building was constructed in 1977 and the valuatton is probably $9D,000 over what they actually had tt built for and it is only 2'z years old. He stated, if they had known before that the valuation would be as such, they probably would have gone for muntcipal bonding. Mr Herrmann explained this property was valued like any other property of that type, �ust for the real estate, and not for the personal property or machinery. Mr f+ladsen, representing the City's assessing department, reviewed the square footage of the various areas in the building, and expla�ned the figures used �n arriving at the market value. f�1r. iCleven stated he didn't have any cornplaints on the land valuation, but on the value of the 6uilding. Ne felt, if everythina was takEn out of the building, there was no way you could come up with that value. Councilman Schneider questioned how they are assessed per square foot on warehouse ' space P1r Madsen stated it depended on the type of construction and the wall height and that the assessment might run between �13-$14 a square foot for the warehouse space Mayor Plee felt the argument that the market value is more than the cost to construct the building applies to everyone in the City. f+lr Kleven stated they were talkiny about a 32% tncrease. P1r. Herrmann po m ted out that last year's value was �379,300 and th�s year it is $412,200. Mr. K,leven stated to, but felt the of the build�ng. there isn't anythtng else in the City to compare this business valuation is too high in comparison to the cost for construction I�ayor Nee stated his personal feeling is that the assessor probably came close to being correct, but would have no ob,7ection to submitting this to the County. Councilman Barnette stated if P1r. Kleven feels this is excessively high, the next step would be to appeal to the County for them to look at it and they probably have similar facilit�es in the area to make a comparison. Mr Herrmann stated thar the staff wouldn't mind taking a second look, but , didn't feel they would cone up with any different figures. Mr Qureshi, City Manager stated tiie company has registered an ob,7ection so it does guarantee them the right to go to the County ��10TIOU by Councilman Schneider to refer this matter back to the staff for a report. Seconded by Councilwoman Moses. Upon a voice vote, all voting aye, Mayor Nee declared the motton carried unantmously. � � , BOARD OF REVIEW MEETING PAGE 3 P1r. Ronald f+IcCla�n, 6007 Main Street, appeared before the Council and stated he felt the value of his property was too high, He stated the value �s up $2,500 which he felt �s excessive oi� a 40 foot lot that can't be built on. He stated the previous value was $2,202 amd the new valuation is P�4,700. Mr. Herrmann stated there are two lots side-by-side and they were considered as one bu�lding site, with a total value of the two lots and home of $35,500 He stated the property is also in the area which was physically reviewed this year P1r. Herrmann stated, if the two lots were valued indiv�dually, the value would be higher on the one with the structure, and lower on the vacant lot. hir. McClain also pointed out that the value of the home �ncreased over 56,000. P10TION by Councilman Fitzpatrick that there be a review of this matter, in light of the value placed on the vacant lot, and report back to the Counc�l. Seconded by Councilwoman Moses; Upon a voice vote, all voting aye, Playor Nee declared the rnotion carried unanimously. P�r f�lcClain stated he is under the medical assistance program, and you cannot have a home valued over $28,500 or you are disqualified for the assistance. Mr. Tim Chies, 7513 Able Street, stated he works at the care center in New Brighton and knows this �s a great concern, where people exceed the State maximum requ�rements, and are forced to sell their homes �n order to obtain medical assistance. Mayor Nee stated the staff was directed to su6m�t a report and the Council will then review it. Mr. Leanard Lind, 1620 - 75'th Avenue, stated he felt there was a discrepancy in the valuations as his value went up to $45,000 and last year it was �38,700. Mr. Herrmann� Ctty Assessory stated the home is 24 x 44 feet wtth a total square footage of 1,056 with a 24 x 24 garage and was definitely sure the value was not over the market value. He stated the increase of about 16% is typical of what other property owners are experiencing. Mr. Lind stated he noted homes in other areas were gett�ng an agricultural exempt�on. Mayor Nee questioned Mr. Thurston, representing the County Assessor's Office, if the market value was affected in an agriculture land district. Mr. Thurston stated it didn't affect the market value, but that there was an additional agricultural State aid credit. Councilman Schneider questioned if there was any property in Fridley which qualtfied for the Agricultural credit. Mr. Herrmann stated that there wasn't any in the Ctty. Mr. Lind questioned �f he would be able to discuss this with the County Assessor. Mayor Nee stated they would acknowledge Mr. L�nd's protest regarding his market vabue so he would have the prerogatave of go�ng to the County. MOTION by Councilman Schneider to acknowledge the protest by Mr Lind regarding the value of his property Seconded by Councilwoman Moses. Upon a vo�ce vote, all voting aye, Mayor Nee declared the motion carried unan�mously. Mr. Tim Chies, 7513 Able Street, appeared before the Council regarding the �ialue placed on his ten double bungalows. Mr. Chies stated the value of each un�t was ra�sed about $3,500. He felt the rents should be based on 1% of the market value and indicated he would like to keep the rents reasonable and didn't feel they should have to be increased because of the increase �n the market value. Mr. Chies felt you can't assess a double bungalow as you would assess a single family home as these buildings generally depreciate, rather than appreciate, because of the extra wear and tear on the buildings from people moving in and out. He felt the market value should be based on the rent and the taxes should be in proportion to the amount of rents collected. BOARD OF REVIEW MEETING Mr. Herrmann, City Assessor, felt the properties were not avervalued. PAGE 4 Mr. Madsen, from the C�ty's assess�ng department, stated on that part�cular street they had seven sales each averaging about $50,000. He stated, based on the sales, he would see a market value of $60,500, w�th about $5,000 less if there wasn't a garage. Mr. Herrmann felt the value wasn't any higher on these praperties than what Mr. Chies would be asking for the m�f he were to sell the properties. Mr. Chies indicated he couldn't argue w�th that point alone the Council's point in establish�ng market value. He felt, be some reforms and that it shouid start on the City Tevel. and could understand , however, there should Mayor Nee suggested that Mr. Chies attend the budget hearings of the various governmental �urisdictions and school district and pointed out that only 16% of the taxes collected go to the City. LETTER OF PROTEST - DUANE AND KARDN NAROG, 1465 NORTH �ANUBE ROAD: MOTION by Councilman Schneider to receive the letter of protest dated April 20, 1979 from Duane and Karon Narog for property at 1465 North Danube Road. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unan�mously. MOTION by Counc�lman Schneider to concur with the staff recommendation to reduce the total estimated market value on the property at 1465 North Danube Road from $41,100 to $88,400 based on the reasoning put forth in the memo from staff. Seconded by Councilman Barnette. Upon a vo�ce vote, all voting aye, Mayor Nee declared the motion carried unanimously. LETTERS OF PRUTEST - SEARS, WICKES FURNITURE, STRASSBURG & COMPANY REPRESENTING FRIDLEY TERRACE MOBLIE HOME COMPANY AND DETERMAN WELDING MGTION by Councilman Schneider to receive the four letters of protest received , by the Board of Review from Sears, Wickes Furntture, Strassburg and Company representing Fridley Terrace Mobile Home Company and Determan Welding. Seconded by Councilman Fitzpatr�ck. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. MOTION by Counc�lman Fitzpatrick to continue this meeting of the Board of Review until next Manday evening, May 21,1979. Seconded by Councilman ScYm eider. Upon a voice vote, a]1 vot�ng aye, Mayor Nee declared the motion carried unanimous7y. Respectfully submitted, �l, Z'�1.�4 i.e:_. ���C. �f(.[rC'�-- Carole Haddad Secy. to the City Council Approved: ��� William J. Mayor � i I Nee '