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04/17/1989 BOE - 00006863� � THE MINUTES OF THE CONTINUED BOARD OF REVIEW MEETING OF APRIL 17, 1989 Mayor Nee reopened the Board of Review meeting, which had been continued from April 10, 1989, at 7:50 p.m. MEMBERS PRESENT: Mayor Nee, Councilwoman Jorgenson, Councilman Schneider, Councilman Fitzpatrick and Councilman Billings MEMBERS ABSENT: None Mr. Madsen, City Assessor, stated his office attempted to contact all persons involved in these cases to advise them of the recommendations being submitted this evening. 1. DON CRISPIN. 6820 OAKLEY STREET: Mr. Madsen stated it is recommended that the value on this property be reduced from $84,100 to $81,2D0. Mayor Nee asked if Mr. Crispin was aware of this recommendation for the reduction. Mr. Madsen stated a copy of the recommendation was left at Mr. Crispin's home, however, he has not contacted the Assessor's Office. He stated he did not know, therefore, if Mr. Crispin was in agreement with this recommendation. MOTION by Councilman Billings to concur with tiie recommendation of the Assessor's Office and reduce the estimated market value on this property from $84,100 to $81,200. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 2. GEORGE ZUK. 721 68TH AVENUE: Mr. Zuk stated he just received a letter today for tonight's meeting. Mayor Nee asked Mr. Zuk if the realtor who appraised his property had provided some comparables to support the rationale for his appraisal. Mr. Zuk stated this was not done as he did not have the time due to sickness in his family and other matters to take care of. He stated, however, he had inspected the property at 6830 Monroe and found that this garage is larger, and the interior and landscaping is in much better condition than his property. Mr. Zuk stated there is also a finished basement which he does not have in his home. � Mayor Nee stated the report from the Assessor's office shows 240 square feet of finished basement. BOARD OF REVIEW MEETING OF APRIL 17. 1989 PAGE 2 ' Mr. Zuk stated he has only one small bedroom finished and the rest of the basement is not finished whatsoever. Mr. Madsen stated the room in the basement that is finished has carpeting, a drop ceiling, and paneled walls. Mr. Madsen stated in talking to Mr. Firnstahl who had done the appraisal on this property, he indicated he did not have any comparables and his estimate was based strictly on the property itself. Mr. Madsen stated the carpeting probably needs to be replaced and some painting done in Mr. Zuk's home, however, these items are not taken into consideration when determining the estimated market value. He felt this home is comparable to the ones on Monroe and the one on Brookview Drive which have sold between $74,500 to $76,000. Councilwoman Jorgenson asked the estimated market values for the comparable homes. Mr. Madsen stated they range from $66,200 to $72,100. He stated the lowest one of $66,2�� is located on Brookview Drive right on � Highway 65 so the land value is less than the homes on Monroe Street. He stated the value of the home itself is also reduced by five percent due to the location. Councilwoman Jorgenson stated Mr. Zuk's estimated market value of $69,700 is almost $1,000 less than the property at 6830 Monroe 5treet so she felt some of the items Mr. Zuk addressed have been taken into consideration in determining the value of his property. Mr. Zuk stated he understood he had two weeks to bring additional information into the Assessor's office. Mayor Nee stated if the Board decides to uphold the Assessor's recommendation, Mr. Zuk could appeal to the County at their June 19 meeting. MOTION by Councilman Billings to concur with the recommendation of the Assessor's Office and reaffirm the estimated market value of $69,700 established for this property. Seconded by Councilman Fitzpatrick. upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 3. KENNETH THORNTON, 7325-27 EVERT COURT: Mr. Thornton presented a list of four sales of duplexes in � neighboring communities which he felt were comparable to his property. He stated there are not a lot of sales of double bungalows because they are not very marketable. He stated with the � L.� � BOARD OF REVIEW MEETING OF APRIL 17, 1989 PAGE 3 property on Woodlawn, it was a repossession, however, the amenities and building plans are the same. Mr. Thornton stated the land value on this property is $13,000 and his duplex on Evert Court has a land value of $19,700 so this would result in a difference of $6,700. Mr. Butgusaim, 6160 Kerry Lane, partner of Mr. Thornton, stated these two lots were within several thousand dollars when they were purchased in 1983 for about $19,000. Mr. Madsen questioned what the lots would sell for today. Mr. Thornton stated he did not have any idea as he was not active in the real estate business. Mr. Thornton stated he calculated the square footage for several comparable buildings and, using these figures as a basis, he ielt a value of $110,00o was a fair market value for his property. Councilman Schneider stated the recommendation of the Asesssor's Office is to reduce the value from $130,300 to $120,200. Mr. Thornton stated he still felt $110,000 was a fair value and that the gross rent multiplier should not affect the value. Mr. Madsen stated the property at 1321 Fireside Drive was built in 1978 and sold in December, 1986 for $120,000. He stated he felt a value of $120,200 on Mr. Thornton's property was fair based on the gross rent multiplier. Mr. Thornton questioned the value of the building on Fireside Drive, if the gross rent multiplier method is used since the rents are lower than his building. Mr. Madsen stated using the gross rent multiplier, the value would be $114,000, however, this method is not used for all properties. Mr. Madsen stated the Woodlawn property which is one Mr. Thornton is using as a comparision is located north of the Bellrae Ballroom and in an area of all rental properties. MOTION by Councilman Schneider to reduce the value on this property from $130,300 to $115,300. Seconded by Councilwoman Jorgenson. Councilman Schneider stated he realizes that sales of rental properties are declining due to the tax reforms. He stated he does agree, howver, that the gross rent multiplier is a fairly standard concept to use in determining value. He stated he is attempting to split the difference between the Assessor's recommended value and what Mr. Thornton felt was fair. UPON A VOICE VOTE TAKEN ON THE ABOVE MOTION, Councilman Schneider, � BOARD OF REVIEW MEETING OF APRIL 17 1989 PAGE 4 Councilwoman Jorgenson, Councilman Fitzpatrick and Mayor Nee voted in favor of the motion. Councilman Billings voted against the motion and Mayor Nee declared the motion carried by a 4 to 1 vote. 4. MR. DOWDS, FRIDLEY AUTO SALVAGE. 3737 EAST RIVER ROAD: Mr. Madsen stated he is recommending a decrease in the estimated market value from $99,700 to $71,600 for this leased land. He stated he has contacted Mr. Dowds and he is in agreement. MOTION by Councilman Fitzpatrick to concur with the recommendation of the Assessor's Office and reduce the estimated market value on this land from $99,700 to $71,600. Seconded by Councilman Billings. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 5. 5KYWOOD MALL. 53RD AND CENTRAL AVENUES: Mr. Madsen stated he would request the Board to reaffirm the value established for this property and staff would continue to work with the property owner on this matter. MOTION by Councilman Sillings to reaffirm the estimated market ' value of $6,343,9D0 for the Skywood Mall property. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. � 6. FRANK WALZ, 160 HARTMAN CIRCLE: Mr. Madsen stated he has been in contact with Mrs. Walz and she is in agreement with the recommendation to reduce the value on this property from $125,800 to $114,300. MOTION by Councilman Fitzpatrick to concur with the recommendation of the Assessor's Office to reduce the estimated market value on this property from $125,800 to $114,300. Seconded by Councilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 7. TRUSTEE GROUP REALTY. SODO UNIVERSITY AVENUE, 251-71 COMMERCE CIRCLE SOUTH. AND 7151 COMMERCE CIRCLE WEST: Mr. Madsen stated he would recommend the Board reaffirm the value placed on these properties and staff would continue to work with the property owner on this matter. MOTION by Councilman Fitzpatrick to reaffirm the estimated market value of $3,498,50� established for these three properties. Seconded by Counoilwoman Jorgenson. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. � � � BOARD OF REVIEW MEETING OF APRIL 17. 1989 PAGE 5 8. RECC - FRIDLEY LIMITED PARTNERSHIP, 7685 MAIN STREET, 7260 UNIVERSITY AVENUE AND 7280 COMMERCE CIRCLE EAST: Mr. Madsen stated he would recommend the Board reaffirm the value placed on these properties and staff would continue to work with the property owner on this matter. MOTION by Councilman Fitzpatrick to reaffirm the estimated market value of $3,767,400 established for these three properties. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 9. NORMAN WESTON, 1651 GARDENA AVENUE: Mr. Madsen stated Mr. Weston was unable to attend the meeting this evening. He stated he is recommending a reduction in value for this property from $94,80o to $8b,500. MOTION by Councilman Schneider to concur with the recommendation of the Assessor's Office and reduce the estimated market value for this property from $94,800 to $86,500. Seconded by Councilwoman Jorgenson. Upon a voiae vote, all voting aye, Mayor Nee declared the motion carried unanimously. 10. NEIL WANAMAKER. 265 STONEYBROOK WAY: Mr. Madsen stated his office is in agreement with a letter received from Dave Ryan, realtor with Coldwell-Banker, that the value of this property would be $151,000. He stated it is recommended the value be reduced from $161,200 to $151,OD0. MOTION by Councilman Fitzpatrick to concur with the recommendation of the Assessor's Office and reduce the estimated market value on this property from $161,200 to $151,000. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 11. PATRICIA LEVOIR. 6278 BAKER STREET: Mr. Madsen stated this property was inspected and he could find no reason to change the value originally established for the property at $77,100. MOTION by Councilman Schneider to reaffirm the estimated market value placed on this property at $71,100. Seconded by Councilman Billings. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 12. TILFORD AASEN, 6380 JEFERSON STREET: Mr. Madsen stated Mr. Aasen is in agreement with the value �� � � BOARD OF REVIEW MEETING OF AFRIL 17, 1989 PAGE 6 originally established for his property at $73,600. MOTION by Councilman Billings to reaffirm the estimated market value established for this property at $73,600. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. 13. VANTAGE PROPERTIES, 8150 UNIVERSITY AVENUE: Mr. Madsen stated a letter was received from Vantage Properties, after the April 10 meeting of the Board of Review, in opposition to the value of this property. Mr. Madsen stated he would recommend the Board affirm the value established for this property and staff would continue to work with the property owner on this matter. MOTION by Councilman Billings to receive the communication from Vantage Properties and reaffirm the estimated market value of $4,974,100 established for this property by the Assessor's Office. Seconded by Councilman Fitzpatrick. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously. Mr. Madsen stated there are two other issues to be resolved, the one for Mr. Sinigaglio's property and the one for Mr. Paulat's property. He suggested this meeting be continued to May 1, 1989. Mayor Nee stated he was under the impression that all decisions by this Soard had to be completed this evening. He requested that staff contact Mr. Zuk, 721 68th Avenue, and advise him that this meeting has been continued to May 1, 1989. Mayor Nee stated if Mr. Zuk chooses to come back to the Board on May 1, he may do so if he has additional information available. ADJOURNMENT: MOTION by Councilman Fitzpatrick to continue this meeting of the Board of Review to May 1, 1989. Seconded by Councilman Schneider. Upon a voice vote, all voting aye, Mayor Nee declared the motion carried unanimously and the meeting adjourned at 8:42 p.m. Respectfully submitted, Carole Haddad Recording Secretary Approved: � w�. � �-. William J. Nee Mayor