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04/09/2007 BOR - 6126ANOKA COUNTY 2007 FRIDLEY LOCAL BOARD OF APPEAL AND EQUALIZATION COUNTY ASSESSOR'S REPORT Anoka County • • • •� 1 l =� 1 l �- City of Fridley Agenda..................................................................................................................1 AssessmentCalendar ...........................................................................................2 The2007 Assessment .......................................................................................... 3 QuintileMap ......................................................................................................:...4 Reassessment...................................................................................................... 5 MarketValue ......................................................................................................... 5 Authority of the Local Board of Appeal and Equalization ..................................... 6 MarketValues ...:.................................................................................................10 2007 Market Value by Property Class ................................................................11 Residential Appraisal System .............................................................................13 SalesStudies ......................................................................................................14 Sales Statistics Defined ......................................................................................14 Current Sales Study Statistics ............................................................................15 2007 Anoka County Ratio Study ........................................................................16 Residential Ratio by Zones .................................................................................17 Residential Tax Changes Examined ..................................................................18 ADDENDA...........................................................................................................19 Statutes...............................................................................................................20 Appraisal Terminology ........................................................................................ 51 AppealsProcedure .............................................................................................57 Sample Market Value Notice ..............................................................................59 Minneapolis Area Association of Realtors0 2005 Residential Real Estate Activity Report .....................................................61 Anoka County 2007 Board of Review �qenda �9�� Call the Board of Review to Order 2. Roll Call 3. 4 5. Read Official Notice of the Board of Review City of Fridley Board Chair outlines the ground rules for the meeting. The specific ground rules may vary for each local board but should include: �► Purpose of the meeting; �» Remind property owners that only appeals for the current year valuation or classification may be made. The 2007 board is to review the assessment as of January 2, 2007, which will be used to compute the property taxes payable in 2008. Prior years' assessments or taxes (including taxes payable in 2007) are not within the jurisdiction of the board; �► The order of the appellants - by appointment first, followed by walk-ins on a first-come basis. The board will also receive written appeals from property owners. The secretary will record the required information (name, mailing address, telephone number, and address of property, etc.) �► The expectations of the appellant when presenting their appeal (i.e. the appeal must be substantiated by facts; where the appellant should stand or sit; the appellant should be prepared to answer questions posed by the board, etc.); �► Time limits imposed (if any); �► The procedure the board will follow for making decisions (Will the board hear all appeals before making any decisions? Will the board send a letter to appellants to inform them of the decision? Etc.) The Board may correct any erroneous valuation and add any omission of properties or increase of value after due process. The total decrease of valuations may not exceed one percent of the total valuation of the taxing district; The Board Chair should give the assessor the opportunity to present a brief overview of the property tax process and a recap of the current assessment. 6. Appellants should then present their appeals to the board. If the assessor has had a chance to review the property prior to the meeting, the assessor can present facts and information either supporting the valuation and or classification, or recommend that the board make a change. If the assessor has not had a chance to review the property prior to the meeting, the board may ask the assessor to review the property and present his/her findings to the board at a reconvene meeting. 7. Recess or Close the Meeting. If needed, the meeting will be reconvened at a date to be determined. The Board of ' Appeal and Equalization of any city, unless a longer period is approved by the Commissioner of Revenue, must complete its work and adjoum within twenty days from the time of convening specified in the notice of the clerk. No action taken subsequent to such date shall be valid. Anoka County Assessment Staff City Assessor Mary Smith Anoka County Assessor Mike Sutheriand City of Fridley Appraiser Lynn Krachmer 2007 Assessment Calendar 2007 Market Values for Propert Established Final Da to Deliver Assessment Records to Count Final Day to File for an Exemption from Taxation Final da to file for 1 B with Commissioner of Revenue 2007 Valuation Notices Mailed Local Board of Appeal and Equalization Final Da to File a Tax Court Petition for 2006 Assessment Final da to file application for Green Acres First Half Pa able 2007 Taxes Due Final Date for Manufactured Homes assessed as personal State Board of Equalization County Board of Appeal and Equalization 2007 Assessment Finalized Date by which taxable property becomes exempt Final Day to File for 2006 Property Tax Refund Final Day to Pay the First Half Manufactured Home Taxes 2007 Abstract to the Department of Revenue Second Half Pay 2007 Taxes Due Final Day to Mail 2008 Proposed Tax Notices Final Day to File Homestead Application for 2007 2 to establish homestead Anoka County The 2007 Assessment City of Fridley The 2007 assessment should be a reflection of the 2006 market conditions. Sales of property are constantly analyzed to chart the activity of the market place. The Assessing staff does not create value; they only measure its movement. Assessing property values equitably is part science, part judgment and part communication skill. Training as an assessor cannot tell us how to find the "perfect" value of a property, but it does help us consistently produce the same estimate of value for identical properties. That after all, is the working definition of equalization. As of January 2, 2007, there were 10,462 parcels in the City (including manufactured homes). That is an increase of 36 or less than 1% over the 2006 parcel count. This total includes: 8,660 residential parcels 649 exempt and forfeit parcels 559 commercial and industrial parcels 175 apartment parcels 397 manufactured homes 22 personal property, railroad and utility parcels Distribution of Parcels by Property Type Residential 89.2% 3 Exempt and Forfeit 4.9% Commercial Industrial 1.5% Apartment 0.2% Other 0.0% Manufactured Homes 4.1 °/a Anoka County City of Fridley Current state law mandates that all property must be re-assessed each year and physically reviewed once every five years. We also inspect all properties with new construction each year. During 2006 there were over 1,400 properties reviewed including 11 new homes built in 2006. City of Fridley � City Baundary - 2Q06 Re-Rssessn�nt Area 2D�7 Pro�ected Re-Assessment Area � S�ct=on Lines ��. Q�. �PtssJc�.PtcpeR} Rc�1rJe a��.n� This map illustrates the 2006 (2007 assessment for pay 2008) review area and the projected review area for 2007 (2008 assessment for pay 2009). 4 Anoka County Reassessment City of Fridley State Statute reads: "All real property subject to taxation shall be listed and reassessed every year with reference to its value on January2nd preceding the assessment" This has been done, and the owners of property in Fridley have been notified of any value change. Minnesota Statute 273.11 reads: "All property shall be valued at its market value." It further states that "In estimating and determining such value, the Assessor shall not adopt a lower or different standard of value because the same is to serve as a basis for taxation, nor shall fhe assessor adopt as a criferion of value the price for which such property would sell at auction or at a forced sale, or in fhe aggregate with all the property in the town or district; but the assessor shall value each article or descripfion of property by itself, and at such sum or price as the assessor believes fhe same to be fairly worth in money." The Statute says all property shall be valued at market value, not mav be valued at market value. This means that no factors other than market factors should affect the Assessor's value and the subsequent action by the Board of Appeal and Equalization. Market Value Market value has been defined many different ways. One way used by many appraisers is the following: The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by any undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: ��) �2) (3) (4) buyer and seller are typically motivated: both parties are well informed or well advised, and acting in what they consider their own best interests; a reasonable time is allowed for exposure in the open market; payment is made in terms of cash in U.S. doltars or in terms of financial arrangements comparable thereto; (5) the price represents the normal consideration for the properiy sold unaffected by special or creative financing or sales concessions , granted by anyone associated with the sale. 5 Anoka County City of Fridley Authority of the Local Board of Appeal and Equalization Assessments of property are made to provide the means for the measuring of the relative share of each taxpayer in meeting the costs of local government. It is the duty of the Assessor to assess all real and personal property except that which is exempt or taxable under some special method of taxation. If the burden of local government is to be fairly and justly shared among the owners of all property of value, it is necessary that all taxable property be listed on the tax rolls and that all assessments be made accurately. Whenever any property that should be assessed is omitted from the tax rolls, an unfair burden falls upon the owners of all property that has been assessed. If any property is undervalued in relation to the other property on the assessment record, the owners of the other property are called upon automatically to assume part of the tax burden that should be borne by the undervalued property. Fairness and justice in property taxation demands both completeness and equality in assessment. Minnesota Statutes Section 274.01 provides that the council of each city shall be or appoint a Board of Appeal and Equalization. The charter of certain cities provides for the establishment of a Board of Equalization. The provisions of Section 274.01 and this regulation apply to all Boards of Appeal or Boards of Equalization. The 2003 Legislature enacted State Statute 274.014 which requires that there be at least one member at each meeting of a Local Board of Appeal and Equalization (beginning with the 2006 local boards) who has attended an appeals and equalization course developed or approved by the Commissioner of Revenue within the last four years. (The member must attend the course by no later than January 1, 2006 and each year thereafter.) Section 274.01 states the county assessor shall fix a date for each Board of Appeal and Equalization to meet for the purpose of reviewing the assessment of property in its respective town or city. The county assessor is required to serve written notice to the clerk of each of such bodies on or before February 15th of each year. These meetings are required to be held between April 1 st and May 31 st; and the clerk of the Board of Appeal and Equalization is required to give published and posted notice at least ten days before the date set for the first meeting. s Anoka County City of Fridley The Board of Appeal and Eaualization of anv citv, unless a lonaer period is approved bv the Commissioner of Revenue, must complete its work and adiourn within twentv davs from the time of conveninq specified in the notice of the clerk. No action taken subseauent to such date shall be valid. A request for additional time in order to complete the work of the Board of Appeal and Equalization must be addressed to the Commissioner of Revenue in writing. The Commissioner's approval is necessary to legalize any procedure subsequent to the expiration of the twenty-day period. The Commissioner of Revenue will not, however, extend the time for local Boards of Appeal and Equalization to meet beyond the time when the County Board of Equalization meets, which is the Final two weeks of June. The authority of the local Board extends over the individual assessments of real and personal property. The Board does not have the power to increase or decrease by percentage all of the assessments in the district of a given class of property. Changes in aggregate assessments by classes are made by the County Board of Equalization. Although the Local Board of Appeal and Equalization has the authority to increase or reduce individual assessments, the total of such adjustments must not reduce the aggregate assessment made by the Assessor by more than one percent of said aggregate assessment. If the total of such adjustments does lower the aggregate assessment made by the Assessor by more than one percent, none of the adjustments will be allowed. This limitation does not apply, however, to the correction of clerical errors or to the removal of duplicate assessments. � The Local Board of Appeal and Equalization does not have the authority in any year to reopen former assessments on which taxes are due and payable. The Board considers only the assessments � that are in process in the current year. Adjustment can be made only by the process of abatement or by legal acfion. � In reviewing the individual assessments, the Board may find instances of undervaluation . Before the Board can raise the market value of property it must notify the owner. Th� law does not prescribe any � particular form of notice except that the person whose property is to be increased in value must be notified of the intent of the Board to make the increase. The Local Board of Appeal and Equalization meetings assure a property owner an opportunity to contest any other matter relating to the � taxability of their property. The Board is required to review the matter and make any corrections that it deems just. � � � � Anoka County City of Fridley When a Local Board of Appeal and Equalization convenes, it is necessary that a majority of the members be in attendance in order that any valid action may be taken. The local assessor is required by law to be present with his/her assessment books and papers. He/she is required also to take part in the proceedings but has no vote. In addition to the local assessor, the county assessor or one of his/her assistants is required to attend. The Board should proceed immediately to review the assessments of property. The Board should ask the local assessor and county assessor to present any tables that have been prepared, making comparisons of the current assessments in the district. The county assessor is required to have maps and tables relating particularly to land values for the guidance of Boards of Appeal and Equalization. Comparisons should be presented of assessments of types of property with previous years and with other assessment districts in the same county. It is the primary duty of each Board of Appeal and Equalization to examine the assessment record to see that all taxable property in the assessment district has been properly placed upon the list and valu�d by the assessor. In case any property, either real or personal, has been omitted; the Board has the duty of making the assessment. The complaints and objections of persons who feel aggrieved with any assessments for the current year should be considered very carefully by the Board. Such assessments must be reviewed in detail and the Board has the authority to make corrections it deems to be just. The Board may recess from day to day until all cases have been heard. If complaints are received after the adjournment of the Board of Appeal and Equalization they must be handled on the staff level; as a property owner cannot appear before a higher board unless he or she has first appeared at the lower board levels. Pursuant to Minnesota Statute 274.01: The Board may not make an individual market value adjustment or classification change that would benefit the property in cases where the owner or other person having control over the property will not permit the assessor to inspect the property and the interior of any buildings or structures. A non-resident may fife written objections to his/her assessment with the � county assessor prior to the meeting of the Board of Appeal and Equalization. Such objections must be presented to the Board for consideration while it is in session. j [� f t � 8 Anoka County City of Fridley Before adjourning, the Board of Appeal and Equalization should cause the record of the official proceedings to be prepared. The law requires that the proceedings be listed on a separate form which is appended to the assessment book. The assessments of omitted property must be listed in detail and all assessments that have been increased or decreased should be shown as prescribed in the form. After the proceedings have been completed, the record should be signed and dated by the members of the Board of Appeal and Equalization. It is the duty of the county assessor to enter changes by Boards of Appeal and Equalization in the assessment book of each district. The Local Board of Appeal and Equalization has the opportunity of making a great contribution to the equality of all assessments of property in a district. No other agency in the assessment process has the knowledge of the property within a district that is possessed jointly by the individual members of a Board of Appeal and Equalization. The County or State Board of Equalization cannot give the detailed attention to individual assessments that is possible in the session of the Local Board. The faithful performance of duty by the Local Board of Appeal and Equalization will make a direct contribution to the attainment of equality in meeting the costs of providing the essential services of local government. The 2007 assessment should be a reflection of the 2006 market conditions. Sales of property are constantly analyzed to chart the activity of the market place. � � �� I� � � 9 �� Anoka County Market Values City of Fridley After thorough studies of the sales in the market place are conducted, we establish the assessed value of all real property. During the 2006 study period, we recorded 8,256 sales countywide (down 18% from the 2005 study period), of which we considered 4,563 "arms-length" sales. In accordance with the results of these sales studies, certain areas of the city and certain styles and grades of homes may have been adjusted in value, either lower or higher than the previous year's value. This will more properly reflect current market trends. The 2007 assessment that is up for your review has a total unaudited assessed value of $2,672,512,700, excluding exempt, forfeit, utility, manufactured homes and personal property. It reflects an approximate valuation increase of 3.4% over the 2006 assessment. The pattern of growth (including new construction) in the City's total value can be seen in the following list and chart: � � > Y N � N O H Growth in Property Values 2004 - 2007 (Total does not include manufactured homes, personal property, utilities, exempt, or forfeit) Year Residential Commercial Total % Chg 2007 $1,855,152,800 $817,359,900 $2,672,512,700 3.4% 2006 $1,835,813,100 $749,672,900 $2,585,486,000 6.1% 2005 $1,752,218,300 $684,035,400 $2,436,253,700 6.6% 2004 $1,594,199,200 $690,365,700 $2,284,564,900 NA $2,500,000,000 t $2,000,000.000 � ._.� � $1,SOQ000,000 � �x t $1,000,000,000 ' $500,000,000 � � $0 2007 2006 2005 Assessment Year Residential Commercial Industrial 2004 � Residential includes all property classified Residential, Agricultural and Apartment. Commercial Industrial includes all property classified Commercial, Industrial and Manufactured Home Park. 10 Anoka County City of Fridley On the next two pages are more detailed breakdowns of changes in the 2007 assessment as compared to prior years. The first example is the gross change in estimated market value by classification from the 2005 assessment for tax payable 2006 to the 2007 assessment for tax payable 2008. The second example is the net change in estimated market value by classification, not including new construction, from the 2006 assessment for tax payable 2007 to the 2007 assessment for tax payable 2008. GROWTH IN ESTIMATED MARKET VALUES BY PROPERTY TYPE 2005 TO 2007 ASSESSMENT YEARS FOR TAXES PAYABLE 2006 TO 2008 2005 PAY 2006 2006 PAY 2007 2007 PAY 2008 PROPERTY TYPE ESTIMATED MARKET VALUE Residential $1,562,977,300 $1,637,496,500 $1,655,469,800 Commerciallndustrial $684,647,800 $749,672,900 $817,359,900 Apartment $43,451,100 $198,316,600 $199,683,000 Total $2,291,076,200 $2,585,486,000 $2,672,512,700 $1, 750, 000, 000 $1,500,000,000 _ $1,250,000,000 � O $1,000,000,000 � � _ $750,000,000 J Q > $500,000,000 $250, 000, 000 $0 GROWTH IN ESTIMATED MARKET VALUE BY PROPERTY TYPE �....:..x .. ._,, � . 2006 2007 2008 TAX PAYABLE YEAR — Residential � Commercial Industrial Apartment 11 I� Anoka County City of Fridley � � � NET CHANGE IN ESTIMATED MARKET VALUE FOR TAXABLE PROPERTIES 2006 PAY 2007 2007 PAY 2008 2007 PAY 2008 2007 PAY 2008 2007 PAY 2008 2007 PAY 2008 GROSS EMV % OFCHANGE NEW GROSS GROSS PROPEATY TYPE ESTIMATED BEFORE NEW NOT INCLUDING IMPROVEMENT ESTIMATED % OF CHANGE MARKET VALUE IMPROVEMENTS NEW VALUE MARKET VALUE IMPROVEMENTS Residential $1,637,496,500 $1,653,628,100 1.0% $1,841,700 $1,655,469,800 1.1 % Commercial Industrial $749,672,900 $807,472,400 7J % $9,887,500 $817,359,900 9.0 % Apartment $�98,316,600 $199,683,000 07% $0 $199,683,000 0.7% Total $2,585,486,000 $2,660,783,500 2.9% $11,729,200 $2,672,512.700 3.4% Residential 61.9% DISTRIBUTION OF VALUE BY PROPERTY TYPE 12 Commercia l Industrial 30.6% Apartment 7.5% Anoka County Residential Appraisal System City of Fridley Per State Statute, each property must be physically inspected and individually appraised once every five years. For this individual appraisal, or in the event of an assessed value appeal, we use two standard appraisal methods to determine and verify the estimated market value of our residential properties: 1. First, an appraiser inspects each property to verify data. If we are unable to view the interior of a home on the first visit, a tag is left requesting a return telephone call from the owner to schedule this inspection. Interior inspections are necessary to confirm our data on the plans and specifications of new homes and to determine depreciation factors in older homes. 2. To calculate the estimated market value from the property data we use a Computer Assisted Mass Appraisal (CAMA) system based on a � reconstruction less depreciation :. method of appraisal. The cost variables and land schedules are developed through an anlaysis of stratified sales within the city. This method uses the "Principle of Substitution" and calculates what a buyer would have to pay to replace each home today less age dependent depreciation. 3. A comparative market analysis is used to verify these estimates. The properties used for these studies are those that most recently have sold and by computer analysis, are most comparable to the subject property taking into consideration construction quality, location, size, style, etc. The main point in doing a market analysis is to make sure that you are comparing "apples with apples". This will make the comparable properties "equivalent to" the subject property and establish a probable sale price of the subject. These three steps give us the information to verify assessed value or to adjust it if necessary. The following pages contain an example of the appraisal information for one property. They include data catculations, plan sketch, photo, comparative analysis, and photos and a map of comparable properties. , 13 I� Anoka County City of Fridley �� Sales Studies � According to State Law, it is the assessor's job to appraise all real properry at market value for properry tax purposes. As a method of checks and balances, the Department of Revenue uses statistics and ratios relating to assessed market � value and current sale prices to confirm that the law is upheld. Assessors use similar statistics and sales ratios to identify market trends in developing market values. A sales ratio is obtained by comparing the assessor's market value to the adjusted sales price of each properry sold in an arms-length transaction within a fixed period. An "arms-length" transaction is one that is generated after a properry has had sufficient time on the open market, between both an informed buyer and seller with no undue pressure on either party. The median or mid-point ratios are calculated and stratified by property classification. � The only perfect assessment would have a 100% ratio for every sale. This is of course, impossible. Because we are not able to predict major events that may cause significant shifts in the market, the state allows a 15% margin of error. � � � � � � The Department of Revenue adjusts the median ratio by the percentage of growth from the previous year's abstract value of the same class of property within the same jurisdiction. This adjusted median ratio must fall between 90% and 105%. Any deviation will warrant a state mandated jurisdiction-wide adjustment of at least 5%. To avoid this increase, the Anoka County Assessor requests a median sales ratio of 94.5%. In Anoka County, we have the ability to stratify the ratios by style, age, quality of construction, size, land zone and value. This assists us in appraising all of our properties closer to our goal ratio. Sales Statistics D�ned In addition to the median ratio, we have the ability to develop other statistics to test the accuracy of the assessment. Some of these are used at the state and county level also. The primary statistics used are: 14 Anoka County Eity of Fridley Aggregate Ratio: This is the total market value of all sale properties divided by the total sale prices. It, along with the mean ratio, gives an idea of our assessment level. Within the city, we constantly try to achieve an aggregate and mean ratio of 94% to 95% to give us a margin to account for a fluctuating market and still maintain ratios within state mandated guidelines. Mean Ratio: The mean is the average ratio. We use this ratio not only to watch our assessment level, but also to analyze property values by development, type of dwelling and value range. These studies enable us to track market trends in neighborhoods, popular housing types and classes of property. Coefficient of Dispersion (COD): The COD measures the accuracy of the assessment. It is possible to have a median ratio of 93% with 300 sales, two ratios at 93%, 149 at 80% and 149 at 103%. Although this is an excellent median ratio, there is obviously a great inequality in the assessment. The COD indicates the spread of the ratios from the mean or median ratio. The goal of a good assessment is a COD of 10 to 20. A COD under 10 is considered excellent and anything over 20 will mean an assessment review by the Department of Revenue. Price Related Differential (PRD): This statistic measures the equality between the assessment of high and low valued property. A PRD over 100 indicates a regressive assessment, or the lower valued properties are assessed at a greater degree than the higher. A PRD of less than 100 indicates a progressive assessment or the opposite. A perfect PRD of 100 means that both higher and lower valued properties are assessed exactly equal. Current Sales Study Statistics The following statistics are based upon ratios calculated using 2006 pay 2007 market values and 2005 sales. These are the ratios that our office uses for citywide equalizations, checking assessment accuracy, and predicting trends in the market. 2006 Anoka County Residential Sales Ratio Statistics Median Ratio 94.54 Aggregate Ratio 94.33 Mean Ratio 95.23 COD on Median 6.34 PRD 1 p1 15 I� Anoka County City of Fridley �� � Anoka County Ratio Study - 2007 Assessment Residential Single Family Sales Ratio History 2007-1998 AssessmentYear 2007 2006 2005 2004 2003 Munici alit # Median Coeff # Median Cceff # Median Coeff # Median Coeff # Median Coeff Andover __ 370 _ 93.3 _ 4.9 550 94.5 4.2' 591 95.4 23.6 479 94.4 3.6 531 94.6 3.2 Anoka 223 94.4 6.7 257 94.9 7.1 330 94.4 6.8 213 94.5 5.4 233 94.5 5.6 Bethel _ 10 91.1 4.8 8 94.5 7.4 23 99.9 27.7 7 94.4 2.4 8 94.3 5.4 Blaine 868 93.6 5.5 1007 94.4 5.5 1428 95J 17.6 900 94.4 5.4 845 94.5 4.9 Bums __ 35 90.5 9.0 44 94.2 5.2 91 95.2 51.8 77 94.5 9.2 50 94.4 8.4 Centerville 75 93.6 7.5 84 94J 6.3 106 93.7 9.1 74 94.3 5.5 77 94.5 6A� Circle Pines 70 96.7 5.5 91 94.6 4.8: 174 94.6 7.5 52 94.4 4.1 58 94.5 7.2 Columbia Hei hts 294 94.0 7.3 380 94.6 8.3 383 91.9 11.5 255 94.3 7.0 263 94.4 7.0 IColumbus 29 96.4 11.2 29 99.8 18.2 40 93.3 9.3 27 94.2 6.7 32 94.6 7.4 � Coon Rapids 1000 93.7 5.2 1268 94.5 5.8 1488 94.3 36.6 793 94.4 5.4 801 94.4 5.5 East Bethel 137 97.2 5.9 176 95.7 17.7 202 92.0 13.8 169 94.7 7.4 139 94.6 7.3 Fridle 317 93.4 6.1 429 94.7 8.4 441 98.0 7.7 290 94.5 6.5 260 94.5 6.1 ' Ham Lake 182 93.8 7.6 191 94.5 6.4 312 97.0 43.4 232 94.3 5.4 208 94.4 7.0 Hillto 1 86.0 0.0 3 93.0 1.4� 3 93.0 18.1 0 0.0 0.0 0 0.0 0.0 Lexin ton 25 92.9 9.3 30 94.3 7.2 23 95.2 7.9 14 94.6 4.1 21 94.5 4.9! i Lino Lakes _235 94.4 8.8 276 94.6 6.5 284 92.5 17.6 264 94.4 7.1 329 94.4 7.4 � Linwood 85 91.0 16.2 68 94.4 9.3, 75 94.3 23.5 66 94.4 7.4 86 94.5 7.1 Oak Grove 94 93.2 11.3 116 94.9 8.4 129 97.0 11.9 109 94.6 6.4 116 94.4 8.5 Ramse 315 93.7 6.9 379 94.6 6.7 561 95.7 13.7 351 94.4 6.6 308 94.4 6.0 �ring Lake Park 69 96.1 4.8 87 94.5 8.8 112 94.9 6.4 71 94.4 4.3 77 94.5 4.4 St. Francis 129 93.7 4.3 158 94.7 4.3'' 203 96.9 31 J 250 94.4 5.0 155 94.5 5.9 Count Total 4,563 93.8 6.3 5,632 94.5 6.3 7,000 95.2 21.7 4,693 94.4 5.7 4,597 94.5 5.9 Price Related Differential 99 101 111 101 101 AssessmentYear 2002 2001 2000 7999 1998 I Munici ali # Median Coeff # Median Coeff # Median Coeff # Median Coeff # Median Cceff Andover 683 94.6 7.6 565 94.3 7.1 722 94.5 4.9 458 94.3 5.8 448 94.5 5.2 ' Anoka 206 94.5 62 204 94.4 7.2' 218 94.5 7.5 240 94.4 6.2 207 94.3 6.2 Bethel 8 94.5 2.0 3 94.3 1.8 7 94.5 5.2 5 94.4 7.2 5 94.4 8.6! Blaine _ 906 94.5 6.7 713 94.4 5.1 859 94.4 4.7 810 94.3 4.2 583 94.3 4.3 Burns 45 94.4 8.7 48 94.4 10.4 48 94.4 4.6 29 94.5 3.1 21 94.4 6.3 �Centerville 82 94.5 5.8 53 94.4 5.0' 92 94.4 5.8 96 94.4 3.5 53 94.3 5.2 Circle Pines 54 94.5 6.5 58 94.3 6.9' 61 94.5 3.4 53 94.4 4.4 50 94.3 4.3 Columbia Hei hts 255 94.4 7.3 228 94.3 8.2 232 94.5 6.8 225 94.3 5.6 208 94.3 7.2' Columbus 44 94.2 7.5 27 94.4 7.9 31 94.5 9.9 34 94.4 5.6 40 94.7 7.1 Coon Ra ids 811 94.5 5.4 790 94.4 6.3 947 94.4 6.0 799 94.3 5.1 733 94.3 4.7 ' East Bethel 186 94.5 8.1 208 94.4 5.9' 174 94.4 5.9 189 94.3 6.7 168 94.4 6.4 Fridle 259 94.4 7.2 242 94.4 7.0 274 94.4 7.8 293 94.3 5.6 248 94.4 6.2' Ham Lake 267 94.5 7.8 225 94.4 5.7 227 94.4 5.3 199 94.3 5.0 178 94.5 5.7 Hillto 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 1 942 0.0 1 95.3 0.0 Lexington _ 12 93.8 4.9 17 94.4 7.5� 21 94.5 4.4 14 94.4 4.5 15 94.2 3.6 � Lino Lakes 402 94.4 8.8 295 94.4 5A� 324 94.4 4.6 305 94.3 4.9 296 94.4 4.6i Linwood 64 _ 94.4 7.2 50 94.4 6.6 82 94.4 5.7 76 94.4 5.6 64 94.0 7.5' Oak Grove 100 94.4 92 85 94.4 6.6 111 94.5 4.8 79 94.5 4.2 81 94.5 5.5 Ramse 339 94.4 6.3 318 94.4 5.9 407 94.5 4.1 458 94.4 5.0 367 94.6 4.7 S rin Lake Park 91 94.5 5.9 63 94.4 6.0 81 94.5 6.0 75 94.5 4.4 82 94.2 5.0 St. Francis 157 94.4 7.2 107 94.4 6.1' 182 94.4 3.7 78 94.5 3.6 59 94.5 4.2' Count Total 4,971 94.4 6.8 4,299 94.4 6.1 5,100 94.4 5.4 4,516 94.4 52 3,907 94.4 52 Price Related Differential 101 100 100 100 100 16 i� Anoka County City of Fridley 2007 Fridley Residential Ratio by Zones Number Median Coefficient Neighborhood Neighborhood of Sales of Code Description Sales Ratio Dispersion FR01-1 � FRIDLEY LAND ZONE 1 25 93.2 7.4 FR01-2 FRIDLEY LAND ZONE 2 39 91.2 5.1 FR01-3 FRIDLEY LAND ZONE 3 25 89.3 4.9 FR01-4 FRIDLEY LAND ZONE 4 69 94.7 5.4 FR01-5 FRIDLEY LAND ZONE 5 63 91.0 5.1 FR01-6 FRIDLEY LAND ZONE 6 11 91.3 8.7 FR01-7 FRIDLEY LAND ZONE 7 8 94.5 4.5 FR01-8 FRIDLEY LAND ZONE 8 1 99.8 0.0 FR01-9 FRIDLEY LAND ZONE 9 WATER 11 95.0 7.1 FR02-1 TOWNHOUSE LAND ZONE 1 2 94.8 1.4 FR02-2 TOWNHOUSE LAND ZONE 2 2 90.0 6.7 FR02-3 TOWNHOUSE LAND ZONE 3 4 99.6 6.9 FR02-4 TOWNHOUSE LAND ZONE 4 1 100.0 0.0 FR02-5 TOWNHOUSE LAND ZONE 5 7 95.4 2.9 FR02-6 CONDO LAND ZONE 6 13 93.5 5.0 FR02-7 TOWNHOUSE LAND ZONE 7 2 73.6 8.3 FR02-8 TOWNHOUSE LAND ZONE 8 19 98.1 5.0 FR02-9 DOUBLES LAND ZONE 9 15 95.6 8.0 17 Anoka County City of Fridley Residential Tax Changes Examined Although the Assessor's Office is considered by many to be the primary reason for any property tax changes there are actually several elements that can contribute to this change, including, but not limited to: • Changes in the approved levies of individual taxing jurisdictions. • Bond referendum approvals. • Tax rate changes approved by the State Legislature. • Changes to the homestead credit, educational credits and agricultural aid. • Changes in assessed market value. • Changes in the classification of the properry. A combination of any of these factors can bring about a change in the annual property tax bill. If you have questions, please call 763-323-5400. 18 Anoka County Statutes Minnesota State Statute 273.11 Minnesota State Statute 273.121 Minnesota State Statute 273.13 Minnesota State Statute 274.01 Minnesota State Statute 274.014 City of Fridley Valuation of Property Valuation of Real Property Notice Classification of Property Board of Appeal and Equalization Local Boards; Appeals and Equalization Course and Meeting Requirements 20 �� Anoka County City of Fridley �J '� li I' I� � � � � � � � � � , � � �� � 273.11 VALUATION OF PROPERTY. Subdivision 1. Generally. Except as provided in this section or section 273.17, subdivision 1, all property shall be valued at its market value. The market value as determined pursuant to this section shall be stated such that any amount under $100 is rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100. In estimating and determining such value, the assessor shall not adopt a lower or different standard of value because the same is to serve as a basis of taxation, nor shall the assessor adopt as a criterion of value the price for which such property would sell at a forced sale, or in the aggregate with all the property in the town or district; but the assessor shall value each article or description of property by itself, and at such sum or price as the assessor believes the same to be fairly worth in money. The assessor shall take into account the effect on the market value of property of environmental factors in the vicinity of the property. In assessing any tract or lot of real property, the value of the land, exclusive of structures and improvements, shall be determined, and also the value of all structures and improvements thereon, and the aggregate value of the property, including all structures and improvements, excluding the value of crops growing upon cultivated land. In valuing real property upon which there is a mine or quarry, it shall be valued at such price as such properry, including the mine or quarry, would sell for at a fair, voluntary sale, for cash, if the material being mined or quarried is not subject to taxation under section 298.015 and the mine or quarry is not exempt from the general properry tax under section 298.25. In valuing real property which is vacant, platted property shall be assessed as provided in subdivision 14. All property, or the use thereof, which is taxable under section 272.01, subdivision 2, or 273.19, shall be valued at the market value of such property and not at the value of a leasehold estate in such property, or at some lesser value than its market value. Subd. 1 a. Limited market value. In the case of all properry classified as agricultural homestead or nonhomestead, residential homestead or nonhomestead, timber, or noncommercial seasonal residential recreational, the assessor shall compare the value with the taxable portion of the value determined in the preceding assessment. For assessment years 2004, 2005, and 2006, the amount of the increase shall not exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 25 percent of the difference between the current assessment and the preceding assessment. For assessment year 2007, the amount of the increase shall not exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 33 percent of the difference between the current assessment and the preceding assessment. For assessment year 2008, the amount of the increase shall not exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 50 percent of the difference between the current assessment and the preceding assessment. This limitation shall not apply to increases in value due to improvements. For purposes of this 21 i� I� 11 � I� � � Anoka County City of Fridley subdivision, the term "assessment" means the value prior to any exclusion under subdivision 16. The provisions of this subdivision shall be in effect through assessment year 2008 as provided in this subdivision. For purposes of the assessment/sales ratio study conducted under section 127A.48, and the computation of state aids paid under chapters 122A, 123A, 123B, 124D, 125A, 126C, 127A, and 477A, market values and net tax capacities determined under this subdivision and subdivision 16, shall be used. Subd. 2.[Repealed, 1979 c 303 art 2 s 38] Subd. 3.[Repealed, 1975 c 437 art 8 s 10] Subd. 4.[Repealed, 1976 c 345 s 3] Subd. 5. Boards of review and equalization. Notwithstanding any other provision of law to the contrary, the limitation contained in subdivisions 1 and 1a shall also apply to the authority of the local board of review as provided in section 274.01, the county board of equalization as provided in section 274.13, the State Board of Equalization and the commissioner of revenue as provided in sections 270.11, subdivision 1, 270.12, 270C.92, and 270C.94. I Subd. 6. Solar, wind, methane gas systems. For purposes of property taxation, the market value of real and personal property installed prior to January 1, 1984, which is a solar, wind, ' , � � i__.7 � � � � u J or agriculturally derived methane gas system used as a heating, cooling, or electric power source of a building or structure shall be excluded from the market value of that building or structure if the properry is not used to provide energy for sale. Subd. 6a. Fire-safety sprinkler systems. For purposes of property taxation, the market value of automatic fire-safety sprinkler systems instatled in existing buildings after January 1, 1992, meeting the standards of the Minnesota Fire Code shall be excluded from the market value of (1) existing multifamily residential real estate containing four or more units and used or held for use by the owner or by the tenants or lessees of the owner as a residence and (2) existing real estate containing four or more contiguous residential units for use by customers of the owner, such as hotels, motels, and lodging houses and (3) existing office buildings or mixed use commercial-residential buildings, in which at least one story capable of occupancy is at least 75 feet above the ground. The market value exclusion under this section shall expire if the property is sold. Subd. 7.[Repealed, 1984 c 502 art 3 s 36] Subd. 8. Limited equity cooperative apartments. For the purposes of this subdivision, the terms defined in this subdivision have the meanings given them. A"limited equity cooperative" is a corporation organized under chapter 308A or 308B, which has as its primary purpose the provision of housing and related services to its members which meets one of the following criteria with respect to the income of its members: (1) a minimum of 75 percent of inembers must have incomes at or less than 90 percent of area median income, (2) a minimum of 40 percent of inembers must have incomes at or less than 60 percent � � � � ' ' Anoka County City of Fridley of area median income, or (3) a minimum of 20 percent of inembers must have incomes at or less than 50 percent of area median income. For purposes of this clause, "member income" shall mean the income of a member existing at the time the member acquires cooperative membership, and median income shall mean the St. Paul-Minneapolis metropolitan area median income as determined by the United States Department of Housing and Urban Development. It must also meet the following requirements: (a) The articles of incorporation set the sale price of occupancy entitling cooperative shares or memberships at no more than a transfer value determined as provided in the articles. That value may not exceed the sum of the following: (1) the consideration paid for the membership or shares by the first occupant of the unit, as shown in the records of the corporation; (2) the fair market value, as shown in the records of the corporation, of any improvements to the real property that were installed at the sole expense of the member with the prior approval of the board of directors; (3) accumulated interest, or an inflation allowance not to exceed the greater of a ten percent annual noncompounded increase on the consideration paid for the membership or share by the first occupant of the unit, or the amount that would have been paid on that consideration if interest had been paid on it at the rate of the percentage increase in the revised Consumer Price Index for All Urban Consumers for the Minneapolis-St. Paul metropolitan area prepared by the United States Department of Labor, provided that the amount determined pursuant to this clause may not exceed $500 for each year or fraction of a year the membership or share was owned; plus (4) real property capital contributions shown in the records of the corporation to have been paid by the transferor member and previous holders of the same membership, or of separate memberships that had entitled occupancy to the unit of the member involved. These contributions include contributions to a corporate reserve account the use of which is restricted to real property improvements or acquisitions, contributions to the corporation which are used for real properry improvements or acquisitions, and the amount of principal amortized by the corporation on its indebtedness due to the financing of real property acquisition or improvement or the averaging of principal paid by the corporation over the term of its real properry-related indebtedness. (b) The articles of incorporation require that the board of directors limit the purchase price of stock or membership interests for new member-occupants or resident shareholders to an amount which does not exceed the transfer value for the membership or stock as defined in clause (a) • (c) The articles of incorporation require that the total distribution out of capital to a member shall not exceed that transfer value. (d) The articles of incorporation require that upon IiqUidation of the corporation any assets remaining after retirement of corporate debts and distribution to members will be conveyed to a charitable organization described in section 501(c)(3) of the Internal Revenue Code of 23 Anoka County City of Fridley 1986, as amended through December 31, 1992, or a public agency. A"limited equity cooperative apartment" is a dwelling unit owned by a limited equity cooperative. "Occupancy entitling cooperative share or membership" is the ownership interest in a cooperative organization which entitles the holder to an exclusive right to occupy a dwelling unit owned or leased by the cooperative. For purposes of taxation, the assessor shall value a unit owned by a limited equity cooperative at the lesser of its market value or the value determined by capitalizing the net operating income of a comparable apartment operated on a rental basis at the capitalization rate used in valuing comparable buildings that are not limited equity cooperatives. If a cooperative fails to operate in accordance with the provisions of clauses (a) to (d), the property shall be subject to additional property taxes in the amount of the difference between the taxes determined in accordance with this subdivision for the last ten years that the property had been assessed pursuant to this subdivision and the amount that would have been paid if the provisions of this subdivision had not applied to it. The additional taxes, plus interest at the rate specified in section 549.09, shall be � extended against the properry on the tax list for the current year. Subd. 9. Condominium property. Notwithstanding any other provision of law to the contrary, for purposes of properry taxation, condominium property shall be valued in accordance with this subdivision. (a) A structure or building that is initially constructed as condominiums shall be identified as separate units after the filing of a declaration. The market value of the residential units in that structure or building and included in the declaration shall be valued as condominiums. (b) When 60 percent or more of the residential units in a structure or building being converted to condominiums have been sold as condominiums including those units that the converters retain for their own investment, the market value of the remaining residential units in that structure or building which are included in the declaration shall be valued as condominiums. � If not all of the residential units in the structure or building are included in the declaration, the 60 percent factor shall apply to those in the declaration. A separate description shall be recognized when a declaration is filed. For purposes of this clause, "retain" shall mean units that are rented and completed units that are not available for sale. (c) For purposes of this subdivision, a"sale" is defined as the date when the first written document for the purchase or conveyance of the properry is signed, unless that document is revoked. Subd. 10.[Repealed, 1999 c 243 art 5 s 54] Subd. 11. Valuation of restored or preserved wetland. Wetlands restored by the federal, state, or local government, or by a nonprofit organization, or preserved under the terms of a temporary or perpetual easement by the federal or state government, must be valued by 24 � Anoka County City of Fridley � ' assessors at their wetland value. "Wetland value" in this subdivision means the market value of wetlands in any potential use in which the wetland character is not permanently altered. Wetland value shall not reflect potential uses of the wetland that would violate the terms of any existing conservation easement, or any one-time payment received by the wetland owner under the terms of a state or federal conservation easement. Wetland value shall reflect any potential income consistent with a properry's wetland character, including but not limited to lease payments for hunting or other recreational uses. The commissioner of revenue shall issue a bulletin advising assessors of the provisions of this section by October 1, 1991. For purposes of this subdivision, "wetlands" means lands transitional between terrestrial and aquatic systems where the water table is usually at or near the surface or the land is covered by shallow water. For purposes of this definition, wetlands must have the following three attributes: (1) have a predominance of hydric soils; (2) are inundated or saturated by surface or ground water at a frequency and duration sufficient to support a prevalence of hydrophytic vegetation typically adapted for life in saturated soil conditions; and (3) under normal circumstances support a prevalence of such vegetation. Subd. 12. Neighborhood land trusts. (a) A neighborhood land trust, as defined under chapter 462A, is (i) a community-based nonprofit corporation organized under chapter 317A, which qualifies for tax exempt status under 501(c)(3), or (ii) a"city" as defined in section 462C.02, subdivision 6, which has received funding from the Minnesota housing finance agency for purposes of the neighborhood land trust program. The Minnesota Housing Finance Agency shall set the criteria for neighborhood land trusts. (b) All occupants of a neighborhood land trust building must have a family income of less than 80 percent of the greater of (1) the state median income, or (2) the area or county median income, as most recently determined by the Department of Housing and Urban Development. Before the neighborhood land trust can rent or sell a unit to an applicant, the neighborhood land trust shall verify to the satisfaction of the administering agency or the city that the family income of each person or family applying for a unit in the neighborhood land trust building is within the income criteria provided in this paragraph. The administering agency or the city shall verify to the satisfaction of the county assessor that the occupant meets the income criteria under this paragraph. The property tax benefits under paragraph (c) shall be granted only to property owned or rented by persons or families within the qualifying income limits. The family income criteria and verification is only necessary at the time of initial occupancy in the property. 25 I! � 1 � [ � � ' � i � � � � � 1 (� Anoka County City of Fridley (c) A unit which is owned by the occupant and used as a homestead by the occupant qualifies for homestead treatment as class 1 a under section 273.13, subdivision 22. A unit which is rented by the occupant and used as a homestead by the occupant shall be class 4a or 4b property, under section 273.13. subdivision 25, whichever is applicable. Any remainin�g portion of the property not used for residential purposes shall be classified by the assessor in the appropriate class based upon the use of that portion of the property owned by the neighborhood land trust. The land upon which the building is located shall be assessed at the same class rate as the units within the building, provided that if the building contains some units assessed as class 1a and some units assessed as class 4a or 4b, the market value of the land will be assessed in the same proportions as the value of the building. Subd. 13. Valuation of income-producing property. Beginning with the 1995 assessment, only accredited assessors or senior accredited assessors or other licensed assessors who have successfully completed at least two income-producing property appraisal courses may value income-producing property for ad valorem tax purposes. "Income-producing property" as used in this subdivision means the taxable properry in class 3a and 3b in section 273.13, subdivision 24; class 4a and 4c, except for seasonal recreational properry not used for commercial purposes; and class 5 in section 273.13, subdivision 31. "Income-producing property" includes any property in class 4e in section 273.13. subdivision 25, that would be income-producing properry under the definition in this subdivision if it were not substandard. "Income-producing property appraisal course" as used in this subdivision means a course of study of approximately 30 instructional hours, with a final comprehensive test. An assessor must successfully complete the final examination for each of the two required courses. The course must be approved by the board of assessors. Subd. 14. Vacant land platted before August 1, 20Q1. (a) All land platted before August 1, 2001, and not improved with a permanent structure, shall be assessed as provided in this subdivision. The assessor shall determine the market value of each individual lot based upon the highest and best use of the properry as unplatted land. In establishing the market value of the property, the assessor shall consider the sale price of the unplatted land or comparable sales of unplatted land of similar use and similar availability of public utilities. (b) The market value determined in paragraph (a) shall be increased as follows for each of the three assessment years immediately following the final approval of the plat: one-third of the difference between the properry's unplatted market value as determined under paragraph (a) and the market value based upon the highest and best use of the land as platted properry shall be 26 t Anoka County City of Fridley � � � � ' I� I� I� I ,, , � � � added in each of the three subsequent assessment years. (c) Any increase in market value after the first assessment year following the plat's final approval shall be added to the property's market value in the next assessment year. Notwithstanding paragraph (b), if construction begins before the expiration of the three years in paragraph (b), that lot shall be eligible for revaluation in the next assessment year. The market value of a platted lot determined under this subdivision shall not exceed the value of that lot based upon the highest and best use of the properry as platted land. Subd. 14a. Vacant land platted on or after August 1, 2001; located in metropolitan counties. (a) All land platted on or after August 1, 2001, located in a metropolitan county, and not improved with a permanent structure, shall be assessed as provided in this subdivision. The assessor shall determine the market value of each individual lot based upon the highest and best use of the property as unplatted land. In establishing the market value of the properry, the assessor shall consider the sale price of the unplatted land or comparable sales of unplatted land of similar use and similar availability of public utilities. (b) The market value determined in paragraph (a) shall be increased as follows for each of the three assessment years immediately following the final approval of the plat: one-third of the difference between the properry's unplatted market value as determined under paragraph (a) and the market value based upon the highest and best use of the land as platted property shall be added in each of the three subsequent assessment years. (c) Any increase in market value after the first assessment year following the plat's final approval shall be added to the property's market value in the next assessment year. Notwithstanding paragraph (b), if construction begins before the expiration of the three years in paragraph (b), that lot shall be eligible for revaluation in the next assessment year. The market value of a platted lot determined under this subdivision shall not exceed the value of that lot based upon the highest and best use of the property as platted land. (d) For purposes of this section, "metropolitan county" means the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. Subd. 14b. Vacant land platted on or after August 1, 2001; located in nonmetropolitan counties. (a) All land platted on or after August 1, 2001, located in a nonmetropolitan county, and not improved with a permanent structure, shall be assessed as provided in this subdivision. The ' assessor shall determine the market value of each individual lot based upon the highest and best use of the properry as unplatted land. In establishing the market value of the property, the assessor 27 � � � � � � I� I� I , I ' � � � � � Anoka County City of Fridley shall consider the sale price of the unplatted land or comparable sales of unplatted land of similar use and similar availability of public utilities. (b) The market value determined in paragraph (a) shall be increased as follows for each of the seven assessment years immediately following the final approval of the plat: one-seventh of the difference between the property's unplatted market value as determined under paragraph (a) and the market value based upon the highest and best use of the land as platted properry shall be added in each of the seven subsequent assessment years. (c) Any increase in market value after the first assessment year following the plat's final approval shall be added to the property's market value in the next assessment year. Notwithstanding paragraph (b), if construction begins before the expiration of the seven years in paragraph (b), that lot shall be eligible for revaluation in the next assessment year. The market value of a platted lot determined under this subdivision shall not exceed the value of that lot based upon the highest and best use of the property as platted land. Subd. 15. Vacant hospitals. In valuing a hospital, as defined in section 144.50, subdivision 2, that is located outside of a metropolitan county, as defined in section 473.121, subdivision 4, and that on the date of sale is vacant and not used for hospital purposes or for any other purpose, the assessor's estimated market value for taxes levied in the year of the sale shall be no greater than the sales price of the property, including both the land and the buildings, as adjusted for terms of financing. If the sale is made later than December 15, the market value as determined under this subdivision shall be used for taxes levied in the following year. This subdivision applies only if the sales price of the property was determined under an arm's-length transaction. Subd. 16. Valuation exclusion for certain improvements. Improvements to homestead property made before January 2, 2003, shall be fully or partially excluded from the value of the property for assessment purposes provided that (1) the house is at least 45 years old at the time of the improvement and (2) the assessor's estimated market value of the house on January 2 of the current year is equal to or less than $400,000. For purposes of determining this eligibility, "house" means land and buildings. The age of a residence is the number of years since the original year of its construction. In the case of a residence that is relocated, the relocation must be from a location within the state and the only improvements eligible for exclusion under this subdivision are (1) those for which building permits were issued to the homeowner after the residence was relocated to its present site, and (2) those undertaken during or after the year the residence is initially occupied by the homeowner, excluding any market value increase relating to basic improvements that are 2s , � � � , � I, I ' I� I' �� ' � � ' CI� Anoka County City of Fridley necessary to install the residence on its foundation and connect it to utilities at its present site. In the case of an owner-occupied duplex or triplex, the improvement is eligible regardless of which portion of the property was improved. If the property lies in a jurisdiction which is subject to a building permit process, a building permit must have been issued prior to commencement of the improvement. The improvements for a single project or in any one year must add at least $5,000 to the value of the property to be eligible for exclusion under this subdivision. Only improvements to the structure which is the residence of the qualifying homesteader or construction of or improvements to no more than one two-car garage per residence qualify for the provisions of this subdivision. If an improvement was begun between January 2, 1992, and January 2, 1993, any value added from that improvement for the January 1994 and subsequent assessments shall qualify for exclusion under this subdivision provided that a building permit was obtained for the improvement between January 2, 1992, and January 2, 1993. Whenever a building permit is issued for property currently classified as homestead, the issuing jurisdiction shall notify the properry owner of the possibility of valuation exclusion under this subdivision. The assessor shall require an application, including documentation of the age of the house from the owner, if unknown by the assessor. The application may be filed subsequent to the date of the building permit provided that the application must be filed within three years of the date the building permit was issued for the improvement. if the properry lies in a jurisdiction which is not subject to a building permit process, the application must be filed within three years of the date the improvement was made. The assessor may require proof from the taxpayer of the date the improvement was made. Applications must be received prior to July 1 of any year in order to be effective for taxes payable in the following year. No exclusion for an improvement may be granted by a local board of review or county board of equalization, and no abatement of the taxes for qualifying improvements may be granted by the county board unless (1) a building permit was issued prior to the commencement of the improvement if the jurisdiction requires a building permit, and (2) an application was completed. The assessor shall note the qualifying value of each improvement on the property's record, and the sum of those amounts shall be subtracted from the value of the property in each year for ten years after the improvement has been made. After ten years the amount of the qualifying value shall be added back as follows: (1) 50 percent in the two subsequent assessment years if the qualifying value is equal to or less than $10,000 market value; or (2) 20 percent in the five subsequent assessment years if the qualifying value is greater than $10,000 market value. If an application is filed after the first assessment date at which an improvement could have been subject to the valuation exclusion under this subdivision, the ten-year period during which 29 r� Anoka County City of Fridley the value is subject to exclusion is reduced by the number of years that have elapsed since ' the properry would have qualified initially. The valuation exclusion shall terminate whenever (1) the � � � � � � i properry is sold, or (2) the property is reclassified to a class which does not qualify for treatment under this subdivision. Improvements made by an occupant who is the purchaser of the property under a conditional purchase contract do not qualify under this subdivision unless the seller of the property is a governmental entity. The qualifying value of the property sha�l be computed based upon the increase from that structure's market value as of January 2 preceding the acquisition of the property by the governmental entity. The total qualifying value for a homestead may not exceed $50,000. The total qualifying value for a homestead with a house that is less than 70 years old may not exceed $25,000. The term "qualifying value" means the increase in estimated market value resulting from the improvement if the improvement occurs when the house is at least 70 years old, or one-half of the increase in estimated market value resulting from the improvement otherwise. The $25,000 and $50,000 maximum qualifying value under this subdivision may result from multiple improvements to the homestead. If 50 percent or more of the square footage of a structure is voluntarily razed or removed, the valuation increase attributable to any subsequent improvements to the remaining structure does not qualify for the exclusion under this subdivision. If a structure is unintentionally or accidentally destroyed by a natural disaster, the property is eligible for an exclusion under this subdivision provided that the structure was not completely destroyed. The qualifying value on properry destroyed by a natural disaster shall be computed based upon the increase from that structure's market value as determined on January 2 of the year in which the disaster occurred. A property receiving benefits under the homestead disaster provisions under section 273.123 is not disqualified from receiving an exclusion under this subdivision. If any combination of improvements made to a structure after January 1, 1993, increases the size of the structure by 100 percent or more, the valuation increase attributable to the portion of the improvement that causes the structure's size to exceed 100 percent does not qualify for exclusion under this subdivision. Subd. 17. Valuation of contaminated properties. (a) In determining the market value of property containing contaminants, the assessor shall reduce the market value of the property by the contamination value of the property. The contamination value is the amount of the market value reduction that results from the presence of the contaminants, but it may not exceed the cost of a reasonable response action plan or asbestos abatement plan or management program for the property. (b) For purposes of this subdivision, "asbestos abatement plan," "contaminants," and "response action plan" have the meanings as used in sections 270.91 and 270.92. Subd. 18. Disclosure of valuation exclusion. No seller of real property shall sell or offer � � ' � � � � � � L� � Anoka County City of Fridley for sale property that, for purposes of property taxation, has an exclusion from market value for home improvements under subdivision 16, without disclosing to the buyer the existence of the excluded valuation and informing the buyer that the exclusion will end upon the sale of the property and that the properry's estimated market value for property.tax purposes will increase accordingly. Subd. 19. Valuation exclusion for improvements to certain business property. Properry classified under Minnesota Statutes, section 273.13. subdivision 24, which is eligible for the preferred class rate on the market value up to $150,000, shall qualify for a valuation exclusion for assessment purposes, provided all of the following conditions are met: (1) the building must be at least 50 years old at the time of the improvement or damaged by the 1997 floods; (2) the building must be located in a city or town with a population of 10,000 or less that is located outside the seven-counry metropolitan area, as defined in section 473.121, subdivision 2; (3) the total estimated market value of the land and buildings must be $100,000 or less prior to the improvement and prior to the damage caused by the 1997 floods; (4) the current year's estimated market value of the property must be equal to or less than the properry's estimated market value in each of the two previous years' assessments; (5) a building permit must have been issued prior to the commencement of the improvement, or if the building is located in a ciry or town which does not have a building permit process, the property owner must notify the assessor prior to the commencement of the improvement; (6) the property, including its improvements, has received no public assistance, grants or financing except, that in the case of property damaged by the 1997 floods, the properry is eligible to the extent that the flood losses are not reimbursed by insurance or any public assistance, grants, or financing; (7) the property is not receiving a property tax abatement under section 469.1813; and (8) the improvements are made after the effective date of Laws 1997, chapter 231, and prior to January 1, 1999. The assessor shall estimate the market value of the building in the assessment year immediately following the year that (1) the building permit was taken out, or (2) the taxpayer notified the assessor that an improvement was to be made. If the estimated market value of the building has increased over the prior year's assessment, the assessor shall note the amount of the increase on the property's record, and that amount shall be subtracted from the value of the property in each year for five years after the improvement has been made, at which time an amount equal to 20 percent of the excluded value shall be added back in each of the five subsequent assessment years. For any properry, there can be no more than two improvements qualifying for exclusion under this subdivision. The maximum amount of value that can be excluded from any properry under this subdivision is $50,000. The assessor shall require an application, including documentation of the age of the building from the owner, if unknown by the assessor. Applications must be received prior to July 1 of any year in order to be effective for taxes payable in the following year. 37 ,, Anoka County City of Fridley � ' C� u � � l.� u For purposes of this subdivision, "population" has the same meaning given in Minnesota Statutes, section 477A.011, subdivision 3. Subd. 20. Valuation exclusion for improvements to certain business property. Property classified under section 273.13, subdivision 24, qualifies for a valuation exclusion for assessment purposes, provided all of the following conditions are met: (1) the building must have been damaged by the 2002 floods; (2) the building must be located in a city or town with a population of 10,000 or less that is located in a county in the area included in DR-1419; (3) the total estimated market value of the land and buildings must be $150,000 or less for assessment year 2002; (4) a building permit must have been issued prior to the commencement of the improvement, or if the building is located in a city or town which does not have a building permit process, the property owner must notify the assessor prior to the commencement of the improvement; (5) the property is not receiving a property tax abatement under section 469.1813; and (6) the improvements are made before January 1, 2004. The assessor shall estimate the market value of the building in the assessment year immediately following the year that (1) the building permit was taken out, or (2) the taxpayer notified the assessor that an improvement was to be made. If the estimated market value of the building has increased over the 2002 assessment before any reassessment due to flood damage, the assessor shall note the amount of the increase on the property's record, and that amount shall be subtracted from the value of the properry in each year for five years after the improvement has been made. In each of the next five subsequent assessment years, an amount equal to 20 percent of the value excluded in the fifth year for that improvement shall be added back. The maximum amount of value that can be excluded for all improvements to any property under this subdivision is $50,000. The assessor shall require an application. Applications must be received by December 31, 2002, or December 31, 2003, in order to be effective for taxes payable in the following year. For purposes of this subdivision, "population" has the meaning given in section 477A.011, subdivision 3 . Subd. 21. Valuation reduction for homestead property damaged by mold. (a) The owner of homestead property may apply in writing to the assessor for a reduction in the market value of the properry that has been damaged by mold. The notification must include the estimated cost to cure the mold condition provided by a licensed contractor. The estimated cost must be at least $20,000. Upon completion of the work, the owner must file an application on a form prescribed by the commissioner of revenue, accompanied by a copy of the contractor's estimate. (b) If the conditions in paragraph (a) are met, the county board must grant a reduction in the market value of the homestead dwelling equal to the estimated cost to cure the mold condition. lf a property owner applies for a reduction under this subdivision between January 1 and June 32 � r � � � L �� ' , � , ' Anoka County City of Fridley 30 of any year, the reduction applies for taxes payable in the following year. If a property owner applies for a reduction under this subdivision between July 1 and December 31 of any year, the reduction applies for taxes payable in the second following year. (c) A denial of a reduction under this section by the county board may be appealed to the tax court. If the county board takes no action on the application within 90 days after its receipt, it is considered an approval. (d) For purposes of subdivision 1 a, in the assessment year following the assessment year when a valuation reduction has occurred under this section, any market value added by the assessor to the property resulting from curing the mold condition must be considered an increase in value due to new construction. Subd. 22. Lead hazard market value reduction. Owners of property classified as class 1 a, 1 b, 1 c, 2a, 4b, 4bb, or 4d under section 273.13 may apply for a lead hazard valuation reduction, provided that the property is located in a city which has authorized valuation reductions under this subdivision. A city that authorizes reductions under this subdivision must establish guidelines for qualifying lead hazard reduction projects and must designate an agency within the city to issue certificates of completion of qualifying projects. For purposes of this subdivision, "lead hazard reduction" has the same meaning as in section 144.9501, subdivision 17. The properry owner must obtain a certificate from the agency stating (1) that the project has been completed and (2) the total cost incurred by the owner, which must be at least $3,000. Only projects originating after July 1, 2005, and completed before July 1, 2010, qualify for a reduction under this subdivision. The property owner shall apply for the valuation reduction to the assessor on a form prescribed by the assessor accompanied by a copy of the certificate of completion from the agency. A qualifying property is eligible for a one-year valuation reduction equal to the actual cost incurred, to a maximum of $20,000. If a property owner applies to the assessor for the valuation reduction under this subdivision between January 1 and June 30 of any year, the reduction applies for taxes payable in the following year. If a properry owner applies to the assessor for the valuation reduction under this subdivision between July 1 and December 31, the reduction applies for taxes payable in the second following year. For purposes of subdivision 1 a, any additional market value resulting from the lead hazard removal must be considered an increase in value due to new construction. Subd. 23. First tier valuation limit; agricultural homestead property. (a) Beginning with assessment year 2006, the commissioner of revenue shall annually certify the first tier limit for agricultural homestead property as the product of (i) $600,000, and (ii) the ratio of the statewide average taxable market value of agricultural property per acre of deeded farm land in the preceding assessment year to the statewide average taxable market value of agricultural property per acre of deeded farm land for assessment year 2004. The limit shall be rounded to the nearest 33 � , , , ' � �J L_J Anoka County City of Fridley �i o,000. (b) For the purposes of this subdivision, "agricultural property" means all class 2 property under section 273.13, subdivision 23, except for (1) timberland, (2) a landing area or public access area of a privately owned public use airport, and (3) properry consisting of the house, garage, and immediately surrounding one acre of land of an agricultural homestead. (c) The commissioner shall certify the limit by January 2 of each assessment year, except that for assessment year 2006 the commissioner shall certify the limit by June 1, 2006. History: (1992) RL s 810; Ex1967 c 32 a►t 7 s 3; 1969 c 574 s 1; 1969 c 990 s 1; 1971 c 427 s 1; 1971 c 489 s 1; 1971 c 831 s 1; 1973 c 582 s 3; 1973 c 650 art 23 s 1-4; 1974 c 556 s 14; 1975c437art8s4-6; 1976c2s93; 1976c345s 1; 1977c423art4s4; 1978c786s 10,11; 1979c303art2s7; 1Sp1981 c 1 art2s3,4; 1Sp1981 c4art2s50; i982c424s61,62; 1982 c 523art 19s2; art21 s 1; 1983c222s7; 1983c342art2s5-7; 1984c502art3s6; 1 Sp 1985 c 14 art 4 s 35; 1986 c 444; 1 Sp 1986 c 1 art 4 s 12; 1987 c 268 art 5 s 1; art 7 s 32; 1987 c 384 art 3s 10; 1988c719art5s84; 1989c329art 13s20; 1989c356s 13; 1990c480art7s5; 1990 c 604 art 3 s 9; 1991 c 291 art 1 s 12; 1991 c 354 art 10 s 7,8; 1992 c 511 art 2 s 11,12; 1992 c 556 s 2, 3; 1992 c 597 s 14; 1993 c 375 art 5 s 8-13; art 8 s 14; art 11 s 3; art 12 s 9; 1994 c 416 art 1 s 13; 1994c587art5s3-5; 1995c 1 s2; 1995c264art 16s9; 1996c471 art3s5; 1997 c 231 art2s 10,11,52; art8s2; 1997c251 s i6; 1998c397art 11 s3; 1999c243art5s6,7; 1 Sp2001 c 5 art 3 s 23-26; 1 Sp2002 c 1 s 14; 2003 c 127 art 5 s 15; 1 Sp2003 c 21 art 4 s 3; 2005 c 151 art 2 s 6; art 5 s 16; 1 Sp2005 c 3 art 1 s 8-10; 2006 c 259 art 4 s 11 34 ' 11 , ' � ' Anoka County 273.127 VALUATION OF REAL PROPERTY, NOTICE. City of Fridley Any counry assessor or city assessor having the powers of a county assessor, valuing or classifying taxable real property shall in each year notify those persons whose property is to be included on the assessment roll that year if the person's address is known to the assessor, otherwise the occupant of the property. The notice shall be in writing and shall be sent by ordinary mail at least ten days before the meeting of the local board of appeal and equalization under section 274.01 or the review process established under section 274.13, subdivision 1 c. It shall contain: (1) the market value for the current and prior assessment, (2) the limited market value under section 273.11, subdivision 1 a, for the current and prior assessment, (3) the qualifying amount of any improvements under section 273.11, subdivision 16, for the current assessment, (4) the market value subject to taxation after subtracting the amount of any qualifying improvements for the current assessment, (5) the classification of the property for the current and prior assessment, (6) a note that if the properry is homestead and at least 45 years old, improvements made to the property may be eligible for a valuation exclusion under section 273.11, subdivision 16, (7) the assessor's office address, and (8) the dates, places, and times set for the meetings of the local board of appeal and equalization, the review process established under section 274.13, subdivision 1 c, and the county board of appeal and equalization. The commissioner of revenue shall specify the form of the notice. The assessor shall attach to the assessment roll a statement that the notices required by this section have been mailed. Any assessor who is not provided sufficient funds from the assessor's governing body to provide such notices, may make application to the commissioner of revenue to finance such notices. The commissioner of revenue shall conduct an investigation and, if satisfied that the assessor does not have the necessary funds, issue a certification to the commissioner of finance of the amount necessary to provide such notices. The commissioner of finance shall issue a warrant for such amount and shall deduct such amount from any state payment to such county or municipality. The necessary funds to make such payments are hereby appropriated. Failure to receive the notice shall in no way affect the validity of the assessment, the resulting tax, the procedures of any board of review or equalization, or the enforcement of delinquent taxes by statutory means. History: Ex1971 c31 art23s2; 1973c492s 14; 1974c363s 1; 1975c437art8s7; 1980 c 437 s 3; 1982 c 523 art 23 s 1; 1 Sp 1985 c 14 art 4 s 41; 1986 c 444; 1988 c 719 art 6 s 8; 1993 c 375 art 5 s 16; 1995 c 1 s 3; 1997 c 231 art 2 s 17; 1 Sp2001 c 5 art 7 s 20; 2002 c 377 art 10 s 5 � , Anoka County City of Fridley , i ' � ' � I� I ' I ' I � li ' � � , � 273.13 CLASSIFICATION OF PROPERTY. Subdivision 1. How classified. All real and personal property subject to a general property tax and not subject to any gross earnings or other in-lieu tax is hereby classified for purposes of taxation as provided by this section. Subd. 2.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 2a.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 3.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 4.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 5.[Repealed, Ex1971 c 31 art 22 s 5] Subd. 5a.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 6.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 6a.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 7.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 7a.[Repealed, 1988 c 719 art 5 s 81 ] Subd. 7b.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 7c.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 7d.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 8.[Repealed, Ex1967 c 32 art 4 s 3] Subd. 8a.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 9.[Repealed, 1988 c 719 art 5 s 81 ] Subd. 10.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 11.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 12.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 13.[Repealed, 1974 c 313 s 1] Subd. 14.[Repealed, 1984 c 593 s 46] Subd. 14a.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 15.[Repealed, Ex1971 c 31 art 36 s 2] Subd. 15a.[Repealed, 1988 c 719 art 5 s 81 ] Subd. 15b.[Repealed, 1983 c 342 art 2 s 30] Subd. 16.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 17.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 17a.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 17b.[Repealed,l Sp1985 c 14 art 4 s 98] Subd. 17c.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 17d.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 18.[Repealed, 1983 c 222 s 45] Subd. 19.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 20.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 21.[Repealed, 1 Sp1985 c 14 art 4 s 98] Subd. 21 a. Class rate. In this section, wherever the "class rate" of a class of properry is specified without qualification as to whether it is the propert�ls "net class rate" or its "gross class rate," the "net class rate" and "gross class rate" of that properry are the same as its "class rate." Subd. 21 b. Tax capacity. (a) Gross tax capacity means the product of the appropriate gross class rates in this section and market values. (b) Net tax capacity means the product of the appropriate net class rates in this section and market values. Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and (c), real estate which is residential and used for homestead purposes is class 1 a. In the case of a duplex or triplex in which one of the units is used for homestead purposes, the entire property is deemed to be used for homestead purposes. The market value of class 1 a property must be determined based upon the value of the house, garage, and land. The first $500,000 of market value of class 1 a property has a net class rate of one percent of its market value; and the market value of class 1 a property that exceeds $500,000 has a class rate of 1.25 percent of its market value. (b) Class 1 b property includes homestead real estate or homestead manufactured homes used 38 ' Anoka County City of Fridley I� �J � , for the purposes of a homestead by (1) any person who is blind as defined in section 256D.35, or the blind person and the blind person's spouse; or (2) any person, hereinafter referred to as "veteran," who: (i) served in the active military or naval service of the United States; and (ii) is entitled to compensation under the laws and regulations of the United States for permanent and total service-connected disability due to the loss, or loss of use, by reason of amputation, ankylosis, progressive muscular dystrophies, or paralysis, of both lower extremities, such as to preclude motion without the aid of braces, crutches, canes, or a wheelchair; and (iii) has acquired a special housing unit with special fixtures or movable facilities made necessary by the nature of the veteran's disability, or the surviving spouse of the deceased veteran for as long as the surviving spouse retains the special housing unit as a homestead; or (3) any person who is permanently and totally disabled. Properry is classified and assessed under clause (3) only if the government agency or income-providing source certifies, upon the request of the homestead occupant, that the homestead occupant satisfies the disability requirements of this paragraph. Property is classified and assessed pursuant to clause (1) only if the commissioner of revenue certifies to the assessor that the homestead occupant satisfies the requirements of this paragraph. Permanently and totally disabled for the purpose of this subdivision means a condition which is permanent in nature and totally incapacitates the person from working at an occupation which brings the person an income. The first $32,000 market value of class 1 b property has a net class rate of .45 percent of its market value. The remaining market value of class 1 b property has a class rate using the rates for class 1 a or class 2a properry, whichever is appropriate, of similar market value. (c) Class 1 c property is commercial use real property that abuts a lakeshore line and is devoted to temporary and seasonal residential occupancy for recreational purposes but not devoted to commercial purposes for more than 250 days in the year preceding the year of assessment, and that includes a portion used as a homestead by the owner, which includes a dwelling occupied as a homestead by a shareholder of a corporation that owns the resort, a partner in a partnership that owns the resort, or a member of a limited liability company that owns the resort even if the title to the homestead is held by the corporati.on, partnership, or limited liability company. For purposes of this clause, properry is devoted to a commercial purpose on a specific day if any portion of the property, excluding the portion used exclusively as a homestead, is used for residential occupancy and a fee is charged for residential occupancy. The portion of the property used as a homestead is class 1 a properry under paragraph (a). The remainder of the property is classified as follows: the first $500,000 of market value is tier I, the next $1,700,000 of market value is tier II, and any remaining marlcet value is tier III. The class rates for class 1 c are: tier I, 0.55 percent; tier II, 1.0 percent; and tier III, 1.25 percent. If a class 1 c resort property has any market value in tier III, the entire property must meet the requirements of subdivision 25, paragraph (d), clause (1), to qualify for class 1 c treatment under this paragraph. (d) Class 1 d property includes structures that meet all of the following criteria: (1) the structure is located on properry that is classified as agricultural property under section 273.13, subdivision 23; (2) the structure is occupied exclusively by seasonal farm workers during the time when they work on that farm, and the occupants are not charged rent for the privilege of occupying the property, provided that use of the structure for storage of farm equipment and produce does not disqualify the property from classification under this paragraph; (3) the structure meets all applicable health and safety requirements for the appropriate season; and (4) the structure is not salable as residential property because it does not comply with local ordinances relating to location in relation to streets or roads. The market value of class 1 d property has the same class rates as class 1 a property under paragraph (a). Subd. 23. Class 2. (a) Class 2a property is agricultural land including any improvements that is homesteaded. The market value of the house and garage and immediately surrounding 39 ' � � � ' ' � ' ' Anoka County City of Fridley one acre of land has the same class rates as class 1 a property under subdivision 22. The value of the remaining land including improvements up to the first tier valuation limit of agricultural homestead property has a net class rate of 0.55 percent of market value. The remaining property over the first tier has a class rate of one percent of market value. For purposes of this subdivision, the "first tier valuation limit of agricultural homestead property" and "first tier" means the limit certified under section 273.11, subdivision 23. (b) Class 2b properry is (1) real estate, rural in character and used exclusively for growing trees for timber, lumber, and wood and wood products; (2) real estate that is not improved with a structure and is used exclusively for growing trees for timber, lumber, and wood and wood products, if the owner has participated or is participating in a cost-sharing program for afforestation, reforestation, or timber stand improvement on that particular properry, administered or coordinated by the commissioner of natural resources; (3) real estate that is nonhomestead agricultural land; or (4) a landing area or public access area of a privately owned public use airport. Class 2b properry has a net class rate of one percent of market value. (c) Agricultural land as used in this section means contiguous acreage of ten acres or more, used during the preceding year for agricultural purposes. "Agricultural purposes" as used in this section means the raising or cultivation of agricultural products. "Agricultural purposes" also includes enrollment in the Reinvest in Minnesota program under sections 103F.501 to 103F.535 or the federal Conservation Reserve Program as contained in Public Law 99-198 if the properry was classified as agricultural (i) under this subdivision for the assessment year 2002 or (ii) in the year prior to its enrollment. Contiguous acreage on the same parcel, or contiguous acreage on an immediately adjacent parcel under the same ownership, may also qualify as agricultural land, but only if it is pasture, timber, waste, unusable wild land, or land included in state or federal farm programs. Agricultural classification for property shall be determined excluding the house, garage, and immediately surrounding one acre of land, and shall not be based upon the market value of any residential structures on the parcel or contiguous parcels under the same ownership. (d) Real estate, excluding the house, garage, and immediately surrounding one acre of land, of less than ten acres which is exclusively and intensively used for raising or cultivating agricultural products, shall be considered as agricultural land. Land shall be classified as agricultural even if all or a portion of the agricultural use of that property is the leasing to, or use by another person for agricultural purposes. Classification under this subdivision is not determinative for qualifying under section 273.111. The property classification under this section supersedes, for property tax purposes only, any locally administered agricultural policies or land use restrictions that define minimum or maximum farm acreage. (e) The term "agricultural products" as used in this subdivision includes production for sale of: (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, bees, and apiary products by the owner; (2) fish bred for sale and consumption if the fish breeding occurs on land zoned for agricultural use; (3) the commercial boarding of horses if the boarding is done in conjunction with raising or cultivating agricultural products as defined in clause (1); (4) property which is owned and operated by nonprofit organizations used for equestrian activities, excluding racing; (5) game birds and waterfowl bred and raised for use on a shooting preserve licensed under section 97A.115; (6) insects primarily bred to be used as food for animals; (7) trees, grown for sale as a crop, and not sold for timber, lumber, wood, or wood products; and (8) maple syrup taken from trees grown by a person licensed by the Minnesota Department of Agriculture under chapter 28A as a food processor. (f) If a parcel used for agricultural purposes is also used for commercial or industrial 40 Anoka County City of Fridley purposes, including but not limited to: (1) wholesale and retail sales; (2) processing of raw agricultural products or other goods; (3) warehousing or storage of processed goods; and (4) office facilities for the support of the activities enumerated in clauses (1), (2), and (3), the assessor shall classify the part of the parcel used for agricultural purposes as class 1 b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use. The grading, sorting, and packaging of raw agricultural products for first sale is considered an agricultural purpose. A greenhouse or other building where horticultural or nursery products are grown that is also used for the conduct of retail safes must be classified as agricultural if it is primarily used for the growing of horticultural or nursery products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of those products. Use of a greenhouse or building only for the display of already grown horticultural or nursery products does not qualify as an agricultural purpose. The assessor shall determine and list separately on the records the market value of the homestead dwelling and the one acre of land on which that dwelling is located. If any farm buildings or structures are located on this homesteaded acre of land, their market value shall not be included in this separate determination. (g) To qualify for classification under paragraph (b), clause (4), a privately owned public use airport must be licensed as a public airport under section 360.018. For purposes of paragraph (b), clause (4), "landing area" means that part of a privately owned public use airport properly cleared, regularly maintained, and made available to the public for use by aircraft and includes runways, taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing area also includes land underlying both the primary surface and the approach surfaces that comply with all of the following: (i) the land is properly cleared and regularly maintained for the primary purposes of the landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities for servicing, repair, or maintenance of aircraft is not included as a landing area; (ii) the land is part of the airport property; and (iii) the land is not used for commercial or residential purposes. The land contained in a landing area under paragraph (b), clause (4), must be described and certified by the commissioner of transportation. The certification is effective until it is modified, or until the airport or landing area no longer meets the requirements of paragraph (b), clause (4). For purposes of paragraph (b), clause (4), "public access area" means property used as an aircraft parking ramp, apron, or storage hangar, or an arrival and departure building in connection with the airport. Subd. 24. Class 3. (a) Commercial and industrial properry and utility real and personal property is class 3a. (1) Except as otherwise provided, each parcel of commercial, industrial, or utility real property has a class rate of 1.5 percent of the first tier of market value, and 2.0 percent of the remaining market value. In the case of contiguous parcels of property owned by the same person or entity, only the value equal to the first-tier value of the contiguous parcels qualifies for the reduced class rate, except that contiguous parcels owned by the same person or entity shall be eligible for the first-tier value class rate on each separate business operated by the owner of the property, provided the business is housed in a separate structure. For the purposes of this subdivision, the first tier means the first $150,000 of market value. Real property owned in fee by a utility for transmission line right-of-way shall be classified at the class rate for the higher tier. For purposes of this subdivision, parcels are considered to be contiguous even 'rf they are separated from each other by a road, street, waterway, or other similar intervening type of properry. Connections between parce►s that consist of power lines or pipelines do not cause the parcels to be contiguous. Properry owners who have contiguous parcels of property that constitute separate businesses that may qualify for the first-tier class rate shall notify the assessor by July 1, for treatment beginning in the following taxes payable year. (2) All personal property that is: (i) part of an electric generation, transmission, or distribution system; or (ii) part of a pipeline system transporting or distributing water, gas, crude oil, or petroleum products; and (iii) not described in clause (3), and all railroad operating property :�J , � r � r � II� ' Anoka County City of Fridley has a class rate as provided under clause (1) for the first tier of market value and the remaining market value. In the case of multiple parcels in one county that are owned by one person or entity, only one first tier amount is eligible for the reduced rate. (3) The entire market value of personal property that is: (i) tools, implements, and machinery of an electric generation, transmission, or distribution system; (ii) tools, implements, and machinery of a pipeline system transporting or distributing water, gas, crude oil, or petroleum products; or (iii) the mains and pipes used in the distribution of steam or hot or chilled water for heating or cooling buildings, has a class rate as provided under clause (1) for the remaining market value in excess of the first tier. (b) Employment property defined in section 469.166, during the period provided in section 469.170, shall constitute class 3b. The class rates for class 3b properry are determined under paragraph (a). Subd. 24a.[Repealed, 1 Sp2001 c 5 art 3 s 96] Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more units and used or held for use by the owner or by the tenants or lessees of the owner as a residence for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt under section 272.02, and contiguous property used for hospital purposes, without regard to whether the property has been platted or subdivided. The market value of class 4a properry has a class rate of 1.25 percent. (b) Class 4b includes (1) residential real estate containing less than four units that does not qualify as class 4bb, other than seasonal residential recreational properry; (2) manufactured homes not classified under any other provision; (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farrn classified under subdivision 23, paragraph (b) containing two or three units; and (4) unimproved properry that is classified residential as determined under subdivision 33. The market value of class 4b property has a class rate of 1.25 percent. (c) Class 4bb includes: (1) nonhomestead residential real estate containing one unit, other than seasonal residential recreational property; and (2) a single family dwelling, garage, and surrounding one acre of property on a nonhomestead farm classified under subdivision 23, paragraph (b). Class 4bb properry has the same class rates as class 1 a property under subdivision 22. Property that has been classified as seasonal residential recreational property at any time during which it has been owned by the current owner or spouse of the current owner does not qualify for class 4bb. (d) Class 4c property includes: (1) except as provided in subdivision 22, paragraph (c), real property devoted to temporary and seasonal residential occupancy for recreation purposes, including real properry devoted to temporary and seasonal residential occupancy for recreation purposes and not devoted to commercial purposes for more than 250 days in the year preceding the year of assessment. For purposes of this clause, properry is devoted to a commercial purpose on a specific day if any portion of the property is used for residential occupancy, and a fee is charged for residential occupancy. In order for a property to be classified as class 4c, seasonal residential recreational for commercial purposes, at least 40 percent of the annual gross lodging receipts related to the property must be from business conducted during 90 consecutive days and either (i) at least 60 percent of all paid bookings by lodging guests during the year must be for periods of at least finro consecutive nights; or (ii) at least 20 percent of the annual gross receipts must be from charges for rental of fish houses, boats and motors, snowmobiles, downhill or cross-country ski equipment, or charges for marina services, launch services, and guide services, or the sale of bait and fishing tackle. For purposes of this determination, a paid booking of five or more nights shall be counted as two bookings. Class 4c also includes commercial use real property used exclusively for recreational purposes in conjunction with class 4c property devoted to temporary and seasonal residential occupancy for recreational purposes, up to a total of two acres, provided the property 42 Anoka County City of Fridley is not devoted to commercial recreational use for more than 250 days in the year preceding the year of assessment and is located within two miles of the class 4c property with which it is used. Owners of real properry devoted to temporary and seasonal residential occupancy for recreation purposes and all or a portion of which was devoted to commercial purposes for not more than 250 days in the year preceding the year of assessment desiring classification as class 1 c or 4c, must submit a declaration to the assessor designating the cabins or units occupied for 250 days or less in the year preceding the year of assessment by January 15 of the assessment year. Those cabins or units and a proportionate share of the land on which they are located will be designated class 1 c or 4c as otherwise provided. The remainder of the cabins or units and a proportionate share of the land on which they are located will be designated as class 3a. The owner of properry desiring designation as class 1 c or 4c property must provide guest registers or other records demonstrating that the units for which class 1 c or 4c designation is sought were not occupied for more than 250 days in the year preceding the assessment if so requested. The portion of a property operated as a(1) restaurant, (2) bar, (3) gift shop, and (4) other nonresidential facility operated on a commercial basis not directly related to temporary and seasonal residential occupancy for recreation purposes shall not qualify for class 1 c or 4c; (2) qualified property used as a golf course if: (i) it is open to the public on a daily fee basis. It may charge membership fees or dues, but a membership fee may not be required in order to use the properry for golfing, and its green fees for golfing must be comparable to green fees typically charged by municipal courses; and (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d). A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with the golf course is classified as class 3a property; (3) real property up to a ma�cimum of one acre of land owned by a nonprofit community service oriented organization; provided that the property is not used for a revenue-producing activity for more than six days in the calendar year preceding the year of assessment and the properry is not used for residential purposes on either a temporary or permanent basis. For purposes of this clause, a"nonprofit community senrice oriented organization" means any corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, fraternal, civic, or educational purposes, and which is exempt from federal income ta�cation pursuant to section 501(c)(3), (10), or (19) of the Internal Revenue Code of 1986, as amended thcough December 31, 1990. For purposes of this clause, "revenue-producing activities" shall include but not be limited to property or that portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling alley, a retail store, gambling conducted by organizations licensed under chapter 349, an insurance business, or office or other space leased or rented to a lessee who conducts a for-profit enterprise on the premises. Any portion of the properry which is used for revenue-producing activities for more than six days in the calendar year preceding the year of assessment shall be assessed as class 3a. The use of the properry for social events open exclusively to members and their guests for periods of less than 24 hours, when an admission is not charged nor any revenues are received by the organization shall not be considered a revenue-producing activity; (4) postsecondary student housing of not more than one acre of land that is owned by a nonprofit corporation organized under chapter 317A and is used exclusively by a student cooperative, sorority, or fraternity for on-campus housing or housing located within two miles of the border of a college campus; (5) manufactured home parks as defined in section 327.14, subdivision 3; (6) real property that is actively and exclusively devoted to indoor fitness, health, social, recreational, and related uses, is owned and operated by a not-for-profit corporation, and is located within the metropolitan area as defined in section 473.121, subdivision 2; (7) a leased or privately owned noncommercial aircraft storage hangar not exempt under section 272.01, subdivision 2, and the land on which it is located, provided that: (i) the land is on an airport owned or operated by a city, town, county, Metropolitan Airports Commission, or group thereof; and (ii) the land lease, or any ordinance or signed agreement restricting the use of the leased Ck3 Anoka County City of Fridley premise, prohibits commercial activity performed at the hangar. If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be filed by the new owner with the assessor of the county where the properry is located within 60 days of the sale; (8) a privately owned noncommercial aircraft storage hangar not exempt under section 272.01, subdivision 2, and the land on which it is located, provided that: (i) the land abuts a public airport; and (ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement restricting the use of the premises, prohibiting commercial use or activity performed at the hangar; and (9) residential real estate, a portion of which is used by the owner for homestead purposes, and that is also a place of lodging, if all of the following criteria are met: (i) rooms are provided for rent to transient guests that generally stay for periods of 14 or fewer days; (ii) meals are provided to persons who rent rooms, the cost of which is incorporated in the basic room rate; (iii) meals are not provided to the general public except for special events on fewer than seven days in the calendar year preceding the year of the assessment; and (iv) the owner is the operator of the property. The market value subject to the 4c classification under this clause is limited to five rental units. Any rental units on the properry in excess of five, must be valued and assessed as class 3a. The portion of the property used for purposes of a homestead by the owner must be classified as class 1 a property under subdivision 22. Class 4c property has a class rate of 1.5 percent of market value, except that (i) each parcel of seasonal residential recreational properry not used for commercial purposes has the same class rates as class 4bb property, (ii) manufactured home parks assessed under clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal residential recreational properry has a class rate of one percent for the first $500,000 of market value, and 1.25 percent for the remaining market value, (iv) the market value of property described in clause (4) has a class rate of one percent, (v) the market value of property described in clauses (2) and (6) has a class rate of 1.25 percent, and (vi) that portion of the market value of property in clause (9) qualifying for class 4c property has a class rate of 1.25 percent. (e) Class 4d property is qualifying low-income rental housing certified to the assessor by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of the units in the building qualify as low-income rental housing units as certified under section 273.128, subdivision 3, only the proportion of qualifying units to the total number of units in the building qualify for class 4d. The remaining portion of the building shall be classified by the assessor based upon its use. Class 4d also includes the same proportion of land as the qualifying low-income rental housing units are to the total units in the building. For all properties qualifying as class 4d, the market value determined by the assessor must be based on the normal approach to value using normal unrestricted rents. Class 4d property has a class rate of 0.75 percent. Subd. 25a. Elderly assisted living facility property. "Elderly assisted living facility property" means residential real estate containing more than one unit held for use by the tenants or lessees as a residence for periods of 30 days or more, along with community rooms, lounges, activity rooms, and related facilities, designed to meet the housing, health, and financial security needs of the elderly. The real estate may be owned by an individual, partnership, limited partnership, for-profit corporation or nonprofit corporation exempt from federal income taxation under United States Code, title 26, section 501(c)(3) or related sections. An admission or initiation fee may be required of tenants. Monthly charges may include charges for the residential unit, meals, housekeeping, utilities, social programs, a health care alert system, or any combination of them. On-site health care may be provided by in-house staff or an outside health care provider. The assessor shall classify elderly assisted living facility property, depending upon the properry's ownership, occupancy, and use. The applicable class rates shall apply based on its 44 IJ I I� i � C� � �� �� Anoka County City of Fridley classification, if taxable. Subd. 26.[Repealed, 1987 c 268 art 6 s 53] Subd. 27.[Repealed, 1987 c 268 art 6 s 53] Subd. 28.[Repealed, 1987 c 268 art 6 s 53] Subd. 29.[Repealed, 1987 c 268 art 6 s 53] Subd. 30.[Repealed, 1988 c 719 art 5 s 81] Subd. 31. Class 5. Class 5 property includes: (1) unmined iron ore and low-grade iron-bearing formations as defined in section 273.14; and (2) all other property not otherwise classified. Class 5 property has a class rate of 2.0 percent of market value. Subd. 32.[Repealed, 1998 c 389 art 2 s 21] Subd. 33. Classification of unimproved property. (a) All real property that is not improved with a structure must be classified according to its current use. (b) Real property that is not improved with a structure and for which there is no identifiable current use must be classified according to its highest and best use permitted under the local zoning ordinance. If the ordinance permits more than one use, the land must be classified according to the highest and best use permitted under the ordinance. If no such ordinance exists, the assessor shall consider the most likely potential use of the unimproved land based upon the use made of surrounding land or land in proximity to the unimproved land. History: (1993) 1913 c 483 s 1; 1923 c 140; 1933 c 132; 1933 c 359; 1937 c 365 s 1; Ex1937 c 86 s 1; 1939 c 48; 1941 c 436; 1941 c 437; 1941 c 438,� 1943 c 172 s 1; 1943 c 648 s 1; 1945 c 274 s 1; 1945 c 527 s 1; 1947 c 537 s 1; 1949 c 723 s 1; 1951 c 510 s 1; 1951 c 585 s 1; 1953 c 358 s 1,2; 1953 c 400 s 1; 1953 c 747 s 1,2; 1955 c 751 s 1,2; 1957 c 866 s 1; 1957 c 959 s 1; 1959 c 40 s 1; 1959 c 338 s 1; 1959 c 541 s 1; 1959 c 562 s 3; Ex1959 c 70 art 1 s 2; 1961 c 243 s 1; 1961 c 322 s 1; 1961 c 340 s 3; 1961 c 475 s 1; 1961 c 710 s 1; 1963 c 426 s 1; 1965 c 259 s 1; 1967 c 606 s 1; Ex1967 c 32 art 1 s 2-4; art 4 s 1; art 9 s 1,2; 1969 c 251 s 1; 1969 c 399 s 49; 1969 c 407 s 1; 1969 c 417 s i; 1969 c 422 s 1,2,• 1969 c 709 s 4,5,• 1969 c 760 s 1; 1969 c 763 s 1; 1969 c 965 s 2; 1969 c 1126 s 2; 1969 c 1128 s 1,2; 1969 c 1132 s 1; 1969 c 1137 s 1; 1971 c 226 s 1; 1971 c 427 s 3-12,16,17; 1971 c 747 s 1; 1971 c 791 s 1; 1971 c 797 s 3,4; Ex1971 c 31 art 9 s 1; art 22 s 1,2,4,6,7,8; Ex1971 c 31 art 36 s 1; 1973 c 355 s 1,2; 1973 c 456 s 1; 1973 c 492 s 14; 1973 c 582 s 3; 1973 c 590 s 1; 1973 c 650 art 14 s 1,2; art 20 s 3; art 24 s 3; 1973c774s 1; 1974c545s3; 1974c556s 16; 1975c46s3; 1975c339s9; 1975c359s23; 1975 c 376 s 1; 1975 c 395 s 1; 1975 c 437 art 1 s 25,27,28; 1976 c 2 s 96,159-161,170; 1976 c 181 s 2; 1976 c 245 s 1; 1977 c 319 s 1,2; 1977 c 347 s 43,44; 1977 c 423 art 3 s 5-8; 1978 c 767 s7-11; 1979c303art2s 11-17; art 10s5,• 1979c334art 1 s25; 1980c437s5; 1980c562s 1; 1980 c 607 art 2 s 7-15; art 4 s 4; 1981 c 188 s 1; 1981 c 356 s 248; 1981 c 365 s 9; 1 Sp 1981 c 1 art2s 7-11; art5s2; 1Sp1981 c3s 1; 1Sp1981 c4art2s27; 2Sp1981 c 1 s6; 3Sp1981 c 1 art 1 s 2; 1982 c 523 art 6 s 1; art 14 s 1; art 23 s 2; 1982 c 642 s 9; 1983 c 216 art 1 s 43,44; 1983 c 222 s 11-13; 1983 c 342 art 2 s 9-18; art 8 s 1; 1984 c 502 art 3 s 9-14; art 7 s 1,2,� 1984 c 522 s 2; 1984 c 593 s 22-28; 1984 c 654 art 5 s 58; 1985 c 248 s 70; 1985 c 300 s 6; 1 Sp1985 c 14 art 3 s 5-12; art 4 s 45-56; 1986 c 444; 1 Sp 1986 c 1 art 4 s 18-21; 1987 c 268 art 5 s 4; art 6 s 18,20-23; 1987 c 291 s 208-209; 1987 c 384 art 1 s 25; 1988 c 719 art 5 s 13-19; 1989 c 277 art 2 s 28,29; 1989 c 304 s 137; 1 Sp 1989 c 1 art 2 s 1-8,11; 1990 c 480 art 7 s 7,• 1990 c 604 art 3 s 16-19; 1991 c 249 s 31; 1991 c 291 art 1 s 20-25; 1992 c 363 art 1 s 12; 1992 c 511 art 2 s 17,18; art 4 s 4,5; 1993 c 224 art 1 s 27; 1993 c 375 art 3 s 16; art 5 s 23-26; 1994 c 416 art 1 s 18,19; 1994 c 483 s 1; 1994 c 587 art 5 s 10,11; 1995 c 264 art 3 s 9,10; 1996 c 471 art 3 s 10-12; 1997 c 231 art 1 s 6-10; art 2 s 20,21; 3Sp 1997 c 3 s 28; 1998 c 254 art 1 s 74; 1998 c 389 art2 s 8-12; 1999 c 243 art 5 s 15-20; 1999 c 248 s 18; 1999 c 249 s 22; 2000 c 490 art 5 s 12,13; 1 Sp2001 c 5 art 3 s 32-36; 2002 c 377 art 4 s 16,17; art 10 s 6; 2003 c 127 art 2 s 13,14; art 5 s 17; 2003 c 128 art 3 s 45; 1 Sp2003 c 21 art 4 s 4; 2005 c 151 art 3 s 12; 1Sp2005c3art 1 s 15,16; 2006c259art4s 13; art5s 1,2 45 � ' ' � ' Anoka County 274.01 BOARD OF APPEAL AND EQUALIZATION. City of Fridley Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town board of a town, or the council or other governing body of a city, is the board of appeal and equalization except (1) in cities whose charters provide for a board of equalization or (2) in any city or town that has transferred its local board of review power and duties to the county board as provided in subdivision 3. The county assessor shall fix a day and time when the board or the board of equalization shall meet in the assessment districts of the county. Notwithstanding any law or city charter to the contrary, a city board of equalization shall be referred to as a board of appeal and equalization. On or before February 15 of each year the assessor shall give written notice of the time to the city or town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings must be held between April 1 and May 31 each year. The clerk shall give pu6lished and posted notice of the meeting at least ten days before the date of the meeting. The board shall meet at the office of the clerk to review the assessment and classification of property in the town or city. No changes in valuation or classification which are intended to correct errors in judgment by the county assessor may be made by the county assessor after the board has adjourned in those cities or towns that hold a local board of review; however, corrections of errors that are merely clerical in nature or changes that extend homestead treatment to property are permitted after adjournment until the tax extension date for that assessment year. The changes must be fully documented and maintained in the assessor's office and must be available for review by any person. A copy of the changes made during this period in those cities or towns that hold a local board of review must be sent to the county board no later than December 31 of the assessment year. (b) The board shall determine whether the taxable properry in the town or city has been properly placed on the list and properly valued by the assessor. If real or personal properry has been omitted, the board shall place it on the list with its market value, and correct the assessment so that each tract or lot of real property, and each article, parcel, or class of personal properry, is entered on the assessment list at its market value. No assessment of the property of any person may be raised unless the person has been duly notified of the intent of the board to do so. On application of any person feeling aggrieved, the board shall review the assessment or classification, or both, and correct it as appears just. The board may not make an individual market value adjustment or classification change that would benefit the property if the owner or other person having control over the property has refused the assessor access to inspect the properry and the interior of any buildings or structures as provided in section 273.20. (c) A local board may reduce assessments upon petition of the taxpayer but the total reductions must not reduce the aggregate assessment made by the county assessor by more than one percent. If the total reductions would lower the aggregate assessments made by the county assessor by more than one percent, none of the adjustments may be made. The assessor shall correct any clerical errors or double assessments discovered by the board without regard to the one percent limitation. (d) A local board does not have authority to grant an exemption or to order properry removed from the tax rolls. (e) A majority of the members may act at the meeting, and adjourn from day to day until they finish hearing the cases presented. The assessor shall attend, with the assessment books and r, r;� ' I� I , � Anoka County City of Fridley papers, and take part in the proceedings, but must not vote. The county assessor, or an assistant delegated by the county assessor shall attend the meetings. The board shall list separately, on a form appended to the assessment book, all omitted property added to the list by the board and all items of property increased or decreased, with the market value of each item of property, added or changed by the board, placed opposite the item. The county assessor shall enter all changes made by the board in the assessment book. (f) Except as provided in subdivision 3, if a person fails to appear in person, by counsel, or by written communication before the board after being duly notified of the board's intent to raise the assessment of the properry, or if a person feeling aggrieved by an assessment or classification fails to apply for a review of the assessment or classifica.tion, the person may not appear before the county board of appeal and equalization for a review of the assessment or classification. This paragraph does not apply if an assessment was made after the local board meeting, as provided in section 273.01, or if the person can establish not having received notice of market value at least five days before the local board meeting. (g) The local board must complete its work and adjourn within 20 days from the time of convening stated in the notice of the clerk, unless a longer period is approved by the commissioner of revenue. No action taken after that date is valid. All complaints about an assessment or classification made after the meeting of the board must be heard and determined by the county board of equalization. A nonresident may, at any time, before the meeting of the board file written objections to an assessment or classification with the county assessor. The objections must be presented to the board at its meeting by the county assessor for its consideration. Subd. 2. Special board; duties delegated. The governing body of a city, including a city whose charter provides for a board of equalization, may appoint a special board of review. The city may delegate to the special board of review all of the powers and duties in subdivision 1. The special board of review shall serve at the direction and discretion of the appointing body, subject to the restrictions imposed by law. The appointing body shall determine the number of members of the board, the compensation and expenses to be paid, and the term of office of each member. At least one member of the special board of review must be an appraiser, realtor, or other person familiar with properry valuations in the assessment district. Subd. 3. Local board duties transferred to county. The town board of any town or the governing body of any home rule charter or statutory city may transfer its powers and duties under subdivision 1 to the county board, and no longer perform the function of a local board. Before the town board or the governing body of a city transfers the powers and duties to the county board, the town board or city's governing body shall give public notice of the meeting at which the proposal for transfer is to be considered. The public notice shall follow the procedure contained in section 13D.04, subdivision 2. A transfer of duties as permitted under this subdivision must be communicated to the county assessor, in writing, before December 1 of any year to be effective for the following year's assessment. This transfer of duties to the county may either be permanent or for a specified number of years, provided that the transfer cannot be for less than three years. Its length must be stated in writing. A town or city may renew its option to transfer. The option to transfer duties under this subdivision is only available to a town or city whose assessment is done by the county. History: (2034) RL s 847; 1941 c 402 s 1; 1945 c 402 s 1; i949 c 543 s 1; Ex1967 c 32 art 8 s3; 1971 c434s3; 1971 c564s6; 1973c 123art5s7; 1973c 150s 1; 1973c582s3; 1975c 47 Anoka County City of Fridley 339 s 5; 1977 c 434 s 11; 1986 c 444; 1987 c 229 art 4 s 1; 1987 c 268 art 7 s 37; 1988 c 719 art 7 s 8; 1990 c 480 art 7 s 14; 1995 c 264 art 3 s 13; i997 c 231 art 2 s 23; 1998 c 254 art 1 s 77; 1999 c 243 art 5 s 25; 1 Sp2001 c 5 art 7 s 21; 2003 c 127 art 5 s 22; 1 Sp2005 c 3 art 1 s 18 48 Anoka County City of Fridley 274.014 LOCAL BOARDS; APPEALS AND EQUALIZATION COURSE AND MEETING REQUIREMENTS. Subdivision 1. Handbook for local boards. By no later than January 1, 2005, the commissioner of revenue must develop a handbook detailing procedures, responsibilities, and requirements for local boards of appeal and equalization. The handbook must include, but need not be limited to, the role of the local board in the assessment process, the legal and policy reasons for fair and impartial appeal and equalization hearings, local board meeting procedures that foster fair and impartial assessment reviews and other best practices recommendations, quorum requirements for local boards, and explanations of alternate methods of appeal. Subd. 2. Appeals and equalization course. Beginning in 2006, and each year thereafter, there must be at least one member at each meeting of a local board of appeal and equalization who has attended an appeals and equalization course developed or approved by the commissioner within the last four years, as certified by the commissioner. The course may be offered in conjunction with a meeting of the Minnesota League of Cities or the Minnesota Association of Townships. The course content must include, but need not be limited to, a review of the handbook developed by the commissioner under subdivision 1. Subd. 3. Proof of compliance; transfer of duties. (a) Any city or town that conducts local boards of appeal and equalization meetings must provide proof to the county assessor by December 1, 2006, and each year thereafter, that it is in compliance with the requirements of subdivision 2. Beginning in 2006, this notice must also verify that there was a quorum of voting members at each meeting of the board of appeal and equalization in the current year. A city or town that does not comply with these requirements is deemed to have transferred its board of appeal and equalization powers to the county beginning with the following year's assessment and continuing unless the powers are reinstated under paragraph (c). (b) The county shall notify the taxpayers when the board of appeal and equalization for a city or town has been transferred to the county under this subdivision and, prior to the meeting time of the county board of equalization, the county shall make available to those taxpayers a procedure for a review of the assessments, including, but not limited to, open book meetings. This alternate review process shall take place in April and May. (c) A local board whose powers are transferred to the county under this subdivision may be reinstated by resolution of the governing body of the city or town and upon proof of compliance with the requirements of subdivision 2. The resolution and proofs must be provided to the county assessor by December 1 in order to be effective for the following year's assessment. History: 2003 c 127art 2 s 16; 2005 c 151 art 5 s 25,26 � ' 49 ' Anoka County City of Fridley � ' LJ , � � � ' � � � I _I � � � � I' I ' Appraisal Terminology CLASSIFICATION The class that a type of property is assigned. A property's classification is based upon the existing use of the property. If the land is vacant and there is no identifiable use, the proper classification would be the most probable use of the land, which would most likely be determined by the zoning classification. CLASSIFICATION RATES The class rate assigned to a particular classification of property. Classification rates are established by the state legislature. Class rates are the same upon the same class of property throughout Minnesota. COEFFICIENT OF DISPERSION Average deviation of a group of numbers from the median, expressed as a percentage of the median. COEFFICIENT OF VARIATION Standard deviation expressed as a percentage of the mean. COMPARABLES (COMPARABLE SALES) Recently sold properties that are similar in important respects to a property being appraised to assist in estimating the value of a specific property. COST APPROACH That approach in appraisal analysis which is based on the proposition that the informed purchaser would pay no more than the cost of producing a substitute property with the same utility as the subject property. It is particularly applicable when the property being appraised involves relatively new improvements which represent the highest and best use of the land or when relatively unique or specialized improvements are located on the site and for which there exist no comparable properties on the market. DEPRECIATION A loss of utility and, hence, value from any cause. An effect caused by deterioration and/or obsolescence. Deterioration or physical depreciation is evidenced by wear and tear, decay, dry rot, cracks, encrustational or structural defects. Obsolescence is divisible into two parts, functional and economic. Functional obsolescence may be due to poor floor plan, mechanical inadequacy or over adequacy, functional inadequacy or over adequacy due to size, style, age, etc. It is evidenced by conditions within the property. Economic obsolescence is caused by changes external to the property, such as neighborhood infiltrations of inharmonious groups or property uses, legislation, etc. It is also the actual decline in market value of the improvement to land from time of purchase to the time of resale. ■ CURABLE DEPRECIATION Those items of physical deterioration and functional obsolescence which are economically feasible to cure and hence are customarily repaired or replaced by a prudent property owner. The estimate of this depreciation is usually computed as a dollar amount of the cost-to-cure. ■ INCURABLE DEPRECIATION Elements of physical deterioration or functional obsolescence which either cannot be corrected; or, if possible to correct, cannot be corrected except at a cost in excess of their contribution to the value of the property. 51 ' l7 � Anoka County City of Fridley PHYSICAL DEPRECIATION A reduction in utility resulting from an impairment of physical condition. For purposes of appraisal analysis, it is most common and convenient to divide physical deterioration into curable and incurable components. ■ PHYSICAL CURABLE DEPRECIATION Physical deterioration which the prudent buyer would anticipate correction upon purchase of the property. The cost of effecting the correction or cure would be no more than the anticipated addition to utility, and hence ultimately to value, associated with the cure. PHYSICAL INCURABLE DEPRECIATION Physical deterioration which in terms of market conditions as of the date of the appraisal is not feasible or economically justified to correct. The cost of correcting the condition or effecting a cure is estimated to be greater than the anticipated increase in utility, and hence ultimately in value of the property that will result from correcting or curing the condition. FUNCTIONAL DEPRECIATION Impairment of functional capacity or efficiency. Functional obsolescence reflects the loss in value brought about by such factors as overcapacity, inadequacy and changes in the art, that affect the property item itself or its relation with other items comprising a larger property. The inability of a structure to perform adequately the function for which it is currently employed. FUNCTIONAL CURABLE DEPRECIATION Functional obsolescence which may be corrected or cured when the cost of replacing the outmoded or unaccep-table component is at least offset by the anticipated increase in utility, and hence ultimately in value, resulting from the replacement. FUNCTIONAL INCURABLE DEPRECIATION Functional obsolescence that results from structural deficiencies or superadequacies that the prudent purchaser or owner would not be justified in replacing, adding or removing, because the cost of effecting a cure would be greater than the anticipated increase in utility resulting from the replacement, addition or removal. ECONOMIC OBSOLESCENCE Impairment of desirability or useful life arising from factors external to the property, such as economic forces of environmental changes which affect supply-demand relationships in the market. Loss in the use and value of a property arising from the factors of economic obsolescence is to be distinguished from loss in value from physical deterioration and functional obsolescence, both of which are inherent to the property. Also referred to as Locational or Environmental Obsolescence. EASEMENT A right held by one person to use the land of another for a specific purpose such as access to other property. EQUALIZATION The adjustment of estimated market valuation of real property in a particular area to establish a more equitable division of the total tax burden within the area. ESTIMATED MARKET VALUE Represents the assessor's estimate of the property's actual market value. Market value is defined as the most probable price that a well informed buyer would pay a well informed seller for a property without either party being unduly forced to buy or sell. In other words, what the property would likely sell for if it 52 ' � Anoka County City of Fridley were to be sold in an arm's length transaction. Although the sale price of a property often reflects the market value; market value and sale price are not always synonymous. GRADING OF PROPERTY The process used by an appraiser to identify the quality of construction in the physical structure. HIGHEST AND BEST USE That reasonable and probable use that will support the highest present value, as defined, as of the effective date of an appraisal. HOMESTEAD For property tax purposes, homestead is a tax benefit granted to property owners (or qualifying relatives) who are Minnesota residents and who own and occupy their home as their primary place of residence. Homestead is a fact question which may require the assessor to utilize a number of indicators to determine if it is being appropriately claimed. Although factors such as mailing address and drivers license may sometimes be useful indicators to determine where a person lives, in the final analysis, the question comes down to, "Is the residence occupied as the applicant's primary place of residence?" In other words, do they actually live there? If the answer is no, no amount of supporting documentation such as voter registrations or mailing addresses can alter the fact. IMPROVED LAND Land having either on-site improvements, off-site improvements or both. IMPROVEMENT A structure or building permanently attached to the land. INCOME APPROACH That procedure in appraisal analysis which converts anticipated benefits (dollar income or amenities) to be derived from the ownership of property into a value estimate. The income approach is widely applied in appraising income-producing properties. Anticipated future income and/or revisions are discounted to a present worth figure through the capitalization process. INDEX OF REGRESSION Mean assessment ratio divided by the sales weighted-aggregate ratio. LEGAL DESCRIPTION A statement containing a designation by which land is identified according to a system set up by law or approved by law. LIMITED MARKET VALUE A limitation which is imposed on how much the taxable value of certain classes of property (agricultural homestead or nonhomestead, residential homestead or nonhomestead, noncommercial seasonal recreational residential) can increase over the preceding year's value. This limit does not apply to an increase in your value due to improvement made to the property. MARKET APPROACH Traditionally, an appraisal procedure in which the market value estimate is predicated upon prices paid in actual market transactions and current listings, the former fixing the lower limit of value in a static or advancing market (price wise), and fixing the higher limit of value in a declining market; and the latter fixing the higher limit in any market. It is a process of analyzing sales of similar recently sold properties in order to derive an indication of the most probable sales price of the property being appraised. The reliability of this technique is dependent upon (a) the availability of comparable sales data, (b) the verification of the sales data, (c) the degree 53 � � , Anoka County City of Fridley of comparability or extent of adjustment necessary for time differences; and (d) the absence of non-typical conditions affecting the sale price. MASS APPRAISING A method used in revaluation of a community for tax purposes. As the term implies, it is a method of appraising a large number of properties at one time by adopting standard techniques, and giving due consideration to the appraisal process so that uniformity or equality of values may be achieved between all properties. MEAN ASSESSMENT RATIO Total of ratios divided by number of properties. MEDIAN ASSESSMENT RATIO Middle assessment ratio or the average of the two middle terms when the ratios are lined up from low to high. METES AND BOUNDS A description of a parcel of land by reference to the courses (bearings, that is, the angles East or West of due North and due South) and distances (usually feet or chains) of each straight line which forms its boundary, with one of the corners tied to an established point; that is, the bearing and distance from an established point, such as a section corner or to the intersection of the center lines of two roads, etc. If one part of the boundary is on a curve, this part is described by showing the number of degrees of the central angle subtended by the curve (arc), the length of the radius and the length along the curve. MODE Assessment-ratio that appears most frequently. NET TAX CAPACITY New for payable 1990. Is used to extend taxes in accordance to multiplying the market value by the appropriate class rate. OBSOLESCENCE One of the causes of depreciation. It is the impairment of desirability and usefulness brought about by new inventions, current changes in design and improved processes for production, or from external influencing factors, which make a property less desirable and valuable for a continued use. Obsolescence may be either economic or functional. PARCEL A piece of land, regardless of size in one ownership. PROPERTY CLASS The class that has been assigned to the property based upon the use of the property. PROPERTY IDENTIFICATION NUMBER A geographically related parcel numbering system. The number contains twelve digits made up of section, township, range, quarter-quarter and parcel. The first six digits, based on the public land survey, geographically locate the section in which the property is located. The next two digits will designate in which quarter-quarter the property is located. The ninth through twelfth digits indicate the parcel within the quarter-quarter. The parcels will be numbered consecutively beginning with 0001. When a division is made, the next consecutive available number(s) will be assigned, and the old number(s) will be retained for historical data. RANGE Difference between the high sales ratio and the low sales ratio. 54 i� ( � , ' J ' ' � Anoka County City of Fridley REVALUATION The mass appraisal of all property within an assessment jurisdiction to obtain equalization of estimated market values. Reappraisal of a former assessment. SALES ASSESSMENT RATIO The ratio derived by dividing the estimated market value by the selling price. AGGREGATE RATIO The ratio determined by dividing the total estimated market value of all sales by the total selling prices. AVERAGE MEAN The total of all the ratios in a given set divided by the number of items in the set. MEDIAN RATIO The value of the middle item where an odd number of items are arranged (arrayed) according to size, or the arithmetic average of the two central items if there is an even number of items. It is a positional average and is not affected by the size of extreme values. SALES WEIGHTED AGGREGATE RATIO Total of assessment values divided by total of selling price. SAMPLE SUFFICIENCY GAUGE Square root of half the range divided by the number of properties. SPECIAL ASSESSMENT A charge made by government against real estate to defray � the cost of making a public improvement adjacent to the property which, while of general community benefit, is of special benefit to the property so assessed. ' STANDARD DEVIATION Square root of total of squared deviations from mean divided by number of properties. ' � TAX CAPACITY RATE (Local Tax Rate): Determined by dividing a taxing district's property tax levy by the taxing district's total net tax capacity. The tax capacity rate is expressed as a percentage of net tax capacity. � � � � TOPOGRAPHY The contour of land surface, i.e., flat, rolling, mountainous, etc. TRUTH IN TAXATION Provides taxpayers with a preliminary property tax notifica-tion if any taxing district proposes to increase taxes through proposed budget increases. Included on the notification is the market value, classification, a proposed tax by taxing district, and time and place of taxing district budget hearings. UNIMPROVED LAND Land without buildings, in its natural state. VACANT LAND Land without buildings. May or may not have improvements such as grading, sewer, etc. � VALUE EXEMPTION FOR CERTAIN IMPROVEMENTS (THIS OLD HOUSE) Qualifying homes, 35 years or older, were previously eligible to receive a temporary exemption on all or a portion of the assessor's estimated value for certain newly � constructed improvements with an assessed value of $1,000 or more if a building permit was issued by June 30, 1999. Legislative action in 1999 amended this law effective July 1, 1999 that to qualify for exemption of improvements from the property tax, the property , ! � Anoka County City of Fridley must be 45 years of age or older at the time the improvements commence and the property must be receiving the homestead classification. The minimum assessed value must be $5,000 for eligible improvement. This includes properties classified as residential homestead (including duplexes and triplexes), blind/paraplegic veteran/disabled homestead and agricultural homestead. In addition, the owner must have taken out a building permit and file an application for the exemption with the assessor. This law has since expired and only improvements made prior to January 2, 2003 are eligible. 56 Anoka County Appeals Procedure City of Fridley Each spring Anoka County sends out a property tax bill (based on the prior year assessment) along with a notice of the new assessment. Three factors that affect the tax bill are: 1. The amount your local governments (town, city, county, etc.) spend to provide services to your community; 2. The estimated market value of your property; 3. The classification of your property (how it is used). The assessor determines the final two factors. You may appeal the value or classification of your property as described below. Informal Appeal � Property owners are encouraged to call the appraiser or assessor whenever they have questions or concerns about their market value, classification of the property, or the assessment process. • • • • Almost all questions can be answered during this informal appeal process. When taxpayers call questioning their market value, every effort is made to make an appointment to inspect properties that were not previously inspected. If the data on the property is correct, the appraiser is able to show the property owner other sales in the market that support the estimated market value. If errors are found during the inspection, or other factors indicate a value reduction is warranted, the appraiser can easily make the changes at this time. Local Board of Appeal and Equalization • • • • The Local Board of Appeal and Equalization is typically made up of city council members or township board members. The Board meets during late April and early May. Taxpayers can make their appeal in person or by letter. The assessor is present to answer any questions and present evidence supporting their value. County Board of Appeal and Equalization In order to appeal to the County Board of Appeal and Equalization, a properry owner must first appeal to the Local Board of Appeal and Equalization. �f� � Anoka County City of Fridley � , �� � i � The County Board of Appeal and Equalization follows the Local Board of Appeal and Equalization in the assessment appeals process. � Their role is to ensure equalization among individual assessment districts and classes of property. � The board meets during the Final ten working days in June. � A taxpayer must first appeal to the local board before appealing to the county board. Decisions of the Counry Board of Appeal and Equalization can be appealed to tax court. Minnesota Tax Court The Tax Court has statewide jurisdiction. Except for an appeal to the Supreme Court, the ' Tax Court shall be the sole, exclusive and final authority for the hearing and determination of all questions of law and fact arising under the tax laws of the state. There are two divisions of tax court: the small claims division and the regular division. ' The Small Claims Division of the Tax Court only hears appeals involving one of the following situations: • The assessor's estimated market value of the property is <$300,000 � • The entire parcel is classified as a residential homestead and the parcel contains no more than one dwelling unit. • The entire property is classified as an agricultural homestead. � • Appeals involving the denial of a current year application for homestead classification of the properry. � , � The proceedings of the small claims division are less formal and property owners often represent themselves. There is no official record of the proceedings. Decisions made by the small claims division are final and cannot be appealed further. Small claims decisions do not set precedent. The Regular Division of the Tax Court will hear all appeals, including those with the jurisdiction of the small claims division. Decisions made here can be appealed to a higher court. The principal office for the Tax Court is located in St. Paul. However, the Tax Court is a ' circuit court and can hold hearings at any other place within the state so that taxpayers may appear with as little inconvenience and expense to the taxpayer as possible. Appeals of property located in Anoka County are heard at the Anoka County Courthouse, with trials � scheduled to begin on Thursdays. Three judges make up the Tax Court. Each may hear and decide cases independently. However, a case may be tried before the entire court under certain circumstances. � � ' L The petitioner must file in tax court on or before April 30 of the year in which the tax is payable. The following page is a sample Valuation Notice. � Anoka County City of Fridley Notice of Valuation and Classification — County of Anoka - This is not a bill - This form is to notify you of the market value and dassification of your Properry Records and Taxation p�operty for assessmeM year 2007. The propeAy taxes you will pay in Michael R. Suthedand 2ppg will be based on lhis valuation and dassification. Moka County Assessor 2100 3b Avenue Anoka, MN 55303-2281 (763)323-5475 � y«, ��� yau �a�� �d �y dass are �rred, it is not pecessary to ca�tact yaur assessor or attend any Ii�etl meeting. If tt�e property ir�ormation is not correct, you cissacjree with tt� v�a�es, a you have �her quesdons about this notice, Please contact your assessor fi►st to disCUSS any questions or concems. OR� your �sues can tie resdved at this level. . ff yotmquesfians or cancerrts are not �afved� more fartnal appeat opiions are awa�able. Pfease read the badc � tt�s notice fpr importer� information about the farnal � P�. ' Prctpe�ty,lntomt8tion (legal tl�s�t9Ptio�ii" andfar pr�erEy acklr�} Parcel I.D.: _. �roperty Glassi#ication Assessment Year 2006 Assessment Year 2007 PropArt�i'Y�luati�ut : : .. . p� _ Assessment Year Assessment Year 2006 2007 Ta�cable Market Value Please read the back of this notice for important appeal information. 59 Anoka County Appealing the value or classification of your property Informaf appea! op#ions - Contaet your assessar If you disagree with the classification or estimated market value for your property for 2007, please contact your assessor's office first to discuss your concerns. Often your issues can be resolved at this level. Contact information for your assessor's office is on the other side of this notice. Some jurisdictions choose to hold open book meetings to allow property owners to discuss their concerns with the assessor. If this is an option available to you, the meeting time(s) and location(s) will be indicatetl on the other side of this notice. Eormal �ppeal t�ptions If your questions or concerns are not resolved after meeting with your assessor, you have two formal appeal options: Option 1- The Boards of Appeal and Equalization You may appear before the Boards of Appeal and Equalization in person, through a letter, or through a representative authorized by you. The meeting times and locations are on the other side of this notice. You must have presented your case to the Local Board of Appeal and Equalization BEFORE going to the County Board of Appeal and Equalization. Steu 1— Local Board of Aooeal and Eaualization If you believe your value or class'rfication is incorrect, you may bring your case to the Local Board of Appeal and Equalization. Please contact your assessor's office for more information. If your city or township no longer has a Local Board of Appeal and Equalization (as indicated on the other side of this notice) you may appeal directly to the County Board of Appeal and Equalization. Sten 2— Countv Board of Aoceal and Eaualization If the Local Board of Appeal and Equalization did not resolve your concerns, you may bring your case to the County Board of Appeal and Equalization. You must call in advance to get on the agenda. Please contact the county assessor's office to get on the agenda or for more information. Option 2- Minnesota Tax Court I Small Claims Division You may take your case direcUy to ihe Small Claims Division of Tax Court'rf: ■ The assessor's estimated market value of your property is less than $300,000; or ■ The entire parcel is class'rfied as a residential homestead (1 a or 1 b) and the parcel contains no more than one dwelling unit; or ■ The entire properry is class'rfied as an agricultural homestead (2a or 1 b); or ■ You are appealing the denial of a current year application for homestead classification of your properry, Reaular Division Regardless of your property type or the nature of your claim, you always have the option to file directly with the Regular Division of Tax Court. You have until April 30, 2008, to file an appeal with the Small Claims Division or the Regular Division of Tax Court for your 2007 valuation and class'rfication. For rrare information, contact the Minnesota Tax Court: 25 Rev. Dr. Martin Luther King, Jr. Blvd, Room 245, St. Paul, MN 55115 Phone: 651-296-2806 website: wvuw.taxcourt.state.mn.us For more infornuttion on appeals, check out the � City of Fridley Revenue website: http.//tcixes.state.mn.us � 0 TO: Mayor and City Council Members William Burns, City Manager Rick Pribyl, Finance Director FROM: Mary M. Smith, Assessor Lynn Krachmer, Appraiser DATE: April 5, 2006 SUBJECT: 2007 Pay 2008 Assessment This is to inform you and the members of the Council, sitting as representatives of the Board of Appeal and Equalization, of the procedures used to accomplish this year's assessment. The Board meeting is scheduled for April 9, 2007 at 7:00 P.M., in the Council Chambers. If items cannot be resolved at the meeting property owners may bring their case to the County Board of Appeal and Equalization. In conjunction with Anoka County, attached is a booklet explaining the Board of Appeal and Equalization process and authority, along with county wide sales, a map of the reassessment area, sales and ratio studies countywide along with other information pertaining to the assessment procedure. Residential A study by the County Assessor of 304 sales of single-family, townhomes, and double bungalows along with 13 condominium sales that took place from October 1, 2005 through September 30, 2006, had indicated that our sales ratio (our values compared to sales prices) had stayed in line with last years values. To bring the assessment within the County Assessor's recommended ratio of 94% to 95°/a (the State's ratio requirement is 90% — 105%) only one land zone in the city had to be adjusted. All other land zones remained the same. Primarily, basic residential structure values were unchanged. � Together, ali the adjustments made this year have caused changes of 0— 2% in overall residential and townhome market values. COMMERCIAU INDUSTRIAL There were four commercial/industrial sales this year that were considered arms-length sales. As a result of all sales within Anoka County rates on all types of commercial and industrial properties were increased. Increases were made to the rates used by the county's CAMA system dependent upon the property type (i.e. warehouse, light manufacturing etc.). The overall value increases in Fridley averaged between 5-10%. APARTMENTS This year there were five sales of apartment complexes within the city that were considered arms-length sales. As a result of these sales, and sales within Anoka County there were little or no changes required. Essentially, our values are where they should be according to state requirements. City of Fridley Notice of Board of Review Notice is hereby given, that the Board of Review of the City of Fridley, County of Anoka, Minnesota., will meet the City Hall Council Chambers in said City at 7:00 p.m., on Monday, April 9, 2007, for the purpose of reviewing and correcting the assessment of said city for the year 2007. All persons considering themselves aggrieved by said assessment, or who wish to complain that the property of another is assessed to low, are hereby notified to appear at said meeting, and show cause of having such assessment corrected. No complaint that another person is assessed to low will be acted upon until the person so assessed, or his agent, shall have been notified of such complaint. Given under by hand this 26th day of March, 2007. Debra A. Skogen, City Clerk (Published in the Fridley Sunfocus March 29, 2007 and Apri15, 2007.) , CASE NO. 1 WARREN STOCK 7710 MA1N STREET 02-30-24-33-0018 TYPE: IF CASE NO. 2 WARREN STOCK 7701 MAIN STREET 03-30-24-44-0065 TYPE: IF CASE NO 3 MARY ANDERSON 7300 UNIVERSITY AVE. 11-30-24-23-0019 TYPE: RETAIL CASE NO. 4 7685 MAIN STREET 11-30-24-22-0022 TYPE: IF CASE NO. 5 CURTIS BRITZ 137 CHRISTENSON CT 14-30-24-32-0289 TYPE: DTRS CASE NO. 6 RONALD CADIEUX 5466 W.BAVARIAN PASS 24-30-24-44-0099 TYPE: PTSF 2007 EMV 893,200 1,013,400 � 620,900 909,200 218,400 227,300 CASE NO. 7 SHIRLEY GRIFFITH 5297 MATTERHORN DRNE 297,100 24-30-24-43-0008 TYPE: RB CASE NO. 8 VINCENT GRIFFITH 7545 TEMPO TERRACE 11-30-24-11-0044 TYPE: RB 207,200 CASE NO. 9 JERRY FOSS/LEE OLSON 951 HILLWIND ROAD 431,700 24-30-24-32-0060 TYPE: OFFICE CASE NO. 10 RICHARD HARRIS 13 77� AVENLJE 807,900 03-30-24-44-0073 TYPE: IF CASE NO. 11 RICHARD HARRIS 6200 RNERVIEW TERRACE 395,100 15-30-24-43-0039 TYPE: RB • 7710 MAIN STREET �i� t-i �; • . . � ii c� u i� J A DIVISION OF KLINE iN?CRNA'fIONAI• �A1 Frr;mier Cornmercirrl Fl Residen�iu� Rcul Es1ule Yuluufion Scre�ices January 5, 2007 •; Dear Mr. Ferguson, At your request and authorization, The Appraisal Group has prepared a"Summary" appraisal for the following property: Reference: Warren Stock Industrial Building Property Type: An Industrial Building with a Gross Building Area of 23,884 SF and a Site Size of 57,992 SF A�dress: 7710 - 7790 Main Street NE, Fridley, MN 55432 � Our File #: 260965 In our opinion, the subject Industrial property has a most probable "As Is" Market Value of the Fee Simple Interest as follows: Appraisal Premise "As Is" _� Compiled by: The Appraisal Group Interest Appraised Fee Simple Type of Value i Date Inspected Date of Value Market Value � December 27, 20061 December 27, 2006 ---- -- -- - -- � --- - . _---- - Value Conclusion $1,000�000 The purpose of this appraisal is to estimate the Market Value of the property. The intended use of this report is to assist Blaine State Bank in evaluating the property for financing considerations. We have relied on our investigation and on information provided by the owner and other public and private sources to support this appraisal. This appraisal is intended to conform to the Uniform Standards of Professional Appraisal Practice (USPAP), Standard 2, in a"Summary" format. The appraisal is in compliance with OCC Bulletin 94-55. We have included in this valuation the real estate including land, site improvements, and building. This appraisal includes the real property only and does not include a valuation for any trade fixtures, equipment, or furnishings. The market period is estimated to be less than 12 months. Respectfully submitted, The Appraisal Group a � �-, _ __/�-. __ ,; 1f ` r. N,,, � l �r .r �..,;�'�i' ,; �? w-'� t C��,�` � : w,. �a'..:.....,.;,;_�..._..`.........�..._, ., , �`' ";�, '^if �.r'`ti ' {+'� ; � . : � ' , `.�., , I I'_I� Knth 1�rnu�� !\��rlli. `�iiilr 1. �l�iE�l�•(��i�t�•. ?,IN i,i�,�l � Yisll uUi wcU sllu al ;�„s.y:.._. i . � i '"� � �, � _ ,__ - � . �• � - �. - 3 Documents 4 Exempkions 5 Yalue Changes 6 Property TransFer Seg Merges 7 Le+�ies Summary_ Parkies Taxes Events 1 Receipts 2 Other -, - - �- i�: - ii - ii. ii ii , 11 Esk Mark.ei Land (MKLI �30,200 209,30CJ ' 136,�00 130.40Q . ,4lI Est Markek lmprovemei 783,200 754.2a0 704.Sa0 658.7�0 All EstMark�t(MI�TTLj 1,C173,�4�0 ��3,50Q 841,600 i$9.70� ` All Limiked Esk Markek Lan 0 Q ` 0 0 All Limited Markek Improve a 0 [l 0 �,11 Limited Ma�ket (MKTL', 0 0 0 0 �,If Assess�dValu�Regu6 1,073,40d 963,500 841,�00 789,100 �II Taxaale Niark�t [Th+IT4 1.073.400 963,500 841,BOQ 7$9.1�0 All G rass Local N�t T ax G 7 9,518 1$.520 1�,082 7 5,Q32 All Fiscal Gisparikies �xdj by G 5,627 4.783 "5.269 All Lac�I N T C(LhJ T Cj (TV 19.518 7�.89�' 11 r299 9.763 All Taxahle Contamirratian 0 0 0 0 All Contaminakian NTC �T( a 0 0 d All ReferendumMark�t(T ' 1,�73,400 963,50a 841,600 789,7a0 All Stake NTC (TVSJ 15.518 18,520 16,�82 15.d�2 � i � ��� � %l%A- /�lJ �� - Clase Help... �� All Values... Show r Certified Values r Compare Values • 7701 MAIN STREET � �701 MAIN STREET NE Subject Sale #1 Sale #2 Sale #3 Sale #4 'IN NO. 02-30-24-33-0018 7701 Main St 7685 Main St 7980 Ranchers Rd 4730 Quebec Ave 2831 - 2833 Anthony Ln Fridley Fridley Fridley New Hope St Anthony $750,000 $850,000 $1,150,000 $899,000 17,400 18,715 25,654 20,740 $43.10 $45.42 $44.83 $43.35 �roperty Rights Conveyed =inancing Terms �onditions of Sale Vlarket Conditions 4djusted Price/SF 0 0 � � p p 0 0 0 0 � � 7.25% 8.50% 3.00% 8.25% $46.23 $49.28 $46.17 $46.92 Jther Adiustments _ocation/AccesslExposure Avg/Avg/Avg Eq/Eq/Eq Eq/Eq/Eq Eq/Eq/Eq Eq/Eq/Eq 0% 0% 0% 0% 3ross Bldg Area (SF) 19,200 17,400 18,715 25,654 20,740 0% 0% -2% 0% 4ge/Quality /Condition 73-75/Avg/Avg 1980/EqlEq 1988/Eq/Sup 1973/Sup/Eq 1973/Eq/Eq 0% -10% -3% 0% Use/Office Ratio InduStrial / 13% Eq/17% Eq/35% Eq/16% Eq/15% 0% -10% 0% 0% Utility/WH Clear Hgt Avg/16' Inf/13' Inf/20' Inf/16' Inf/16' 2% -1% 1% 1% Land-to-Bldg Ratio 3:23:01 2.53:1 2.56:1 2.45:1 1.99:1 0% 0% 0% 0% Doors/Storage Mezz/Parking 0 Dk, 8 D'in/Yes/Eq 0 Dk, 5 D'in/Yes/?Eq 0 Dk, 2 D'in/No/Eq 4 Dk, 0 D'in/No/Eq 3 Dk, 0 D'in/Yes/Eq 1% 4% 3% 2% Total Adjustment 3% _27% -1% 3°/" Final Adjusted PricelSquare Foot $47.62 $38.93 $45.71 $48.33 Unadiusted Value Range Mean Adiusted Unit Values Range Mean Most similar Comparisons Most recent Sale Lowest Gross Adjustment Value Conclusion iiue tstimatE Subject Size 19200 taxes pay 46.17 49.28 47.15 38.93 48.33 $45.15 One One X uare Feet X Sas.00 PricelUnit $46.00 $693,600 $36.13 Median Median Closest In Proximity Lowest Net Adj $46.66 � $46.58 $46.66 One and two one (average of #1 & 3) Value $883,200.00 • 7300 UNIVERSITY AVENUE '300 UNIVERSITY AVENUE NE �IN NO. 11-30-24-23-0019 ADDRESS '730 UNIVERSITY AVE NE �RIDLEY. MN )15 HWY 10 NE ;LAINE , MN 3575 CENTRA� AVE NE 3LAINE , MN '550 BASS LAKE ROAD JEW HOPE, MN 1819 MAIN STREET iOPKINS, MN 305 MAIN STREET iOPKINS i427 PENN AVE SO. �ICHFIELD, MN i500 PENN AVE SO. �ICHFIELD, MN i800 PENN AVE SO. �ICHFIELD, MN 10900 NOBLE AVE N �HAMPLIN, MN 5111 EXCELSIOR BLVD ST.LOUIS PARK, MN 4201 MINNETONKA BLVD ST LOUIS PARK 4611 EXCELSIOR BLVD ST LOUIS PARK 6011 EXCELSIOR BLVD ST.LOUIS PARK, MN 5756 LAKELAND AVE NO CRYSTAL 765 53 Ave 6525 Central Ave ,2007 ESTIMATED MARKET VALUE DETERMINED VALUE 4.912 PIN# AGE SALE DATE SQ•FT• 02-30-24-33-0006 1973 112712006 4�254 31-31-23-44-0109 1982 2/7/2005 2,355 32-31-23-43-0066 1967 1/28/2005 4,570 05-118-21-32-0067 1983 12/28/2004 5,944 23-117-22-41-0134 1935 9/21/2006 2,750 24-117-22-42-0067 1970 3/15/2005 3,555 28-028-24-23-0009 1944 8/31/2005 6,670 29-028-24-14-0027 1970 2/13/2006 4,418 29-028-24-44-0009 1950 8�2�2004 2.�85 34-120-21-33-0011 1998 8/10/2004 2,756 21-117-21-32-0006 1912 4/14/2005 5,214 06-028-24-11-0063 1979 8/8/2005 4,670 07-028-24-12-0050 1970 4/26/2006 3,444 21-117-21-23-0100 1963 6/5/2006 2,640 04-118-21-32-0024 1968 11/15/2005 2�2�4 MEDIAN AVERAGE MEDIAN 23-30-24-44-0005 1985 4l28l2003 4,455 13-30-24-13-0047 1947 2/4(2003 3,108 $152,300 $468,600 $ 620; SALE /SF $715,000.00 $168.08 $285,000.00 $121.02 $438,000.00 $95.84 $600,000.00 $100.94 $300,000.00 $109.09 $455,000.00 $127.99 $850,000.00 $127.44 $1,185,000.00 $268.22 $351,000.00 $160.64 $460,000.00 $166.91 $705,000.00 $135.21 $800,000.00 $171.31 $845,000.00 $245.35 $730,000.00 $276.52 $450,000.00 $197.89 57 67 , �160 $164 $160 535000 120 295000 94 X $163.00 = $800,656 $163.00 /Sq Ft �, �Fil� ��it �fie� Toc�ls Topics UU'�rk Ar�as M� ��vc�rit�s Hep ', x C�' � � � R� i� � �! � C� � i Sear�h Griteria , „ - � Effective � °Prop�rtyNo. 11-30-24-23•0019 � Tax1'ear �— � Clear �, b > _ TaxYearC7ate t�' U.:e ��kart Date� Search �: �.s af Qak� 04109J2007 � ,4ssessmenkDake �- ��� � �. ���,� � � � i ���Use Er�d Gates � � _ ; �, I. � . - -� - �-: If � M, - - , , - ,- „ , � Sear�ch Results ' - Values - - • - - � � - �; -� - - �- �i; - i� - ii. - ti - �i ,, II Est Ma�ket Lend (MKLI 752.30� . 13$.500 110.800 105.400 � �� �k f�ll Esk Market improvemei 468,600 426,000 398,000 372A00 �� All Est Mark�k (h�KTTLj �6�0.900 564,500 5�8,$QO 477.�400 AIIValues... All Est Market Neu� Consti ` 'All Limiked E�k INarket Lan 0 0 L 0 Show ; - � � r Certified ,�II Limite�f M�rkek lmpraae � � � Values ,�II Limit�ed Markek{h�KTL�, d � � � ; �ili AssessedValue�ie�ul. 6��,90D 564.500 5q$.�ad 477,�1Oa r Compare A{i Taxable biark�k �TMT� 62Q.900 564.500 5Ll$.$00 �77,4d0 Values AU Gross Local Net Tax C 11.668 1 Q540 9.42� `$.7�$ �.il Fi�cal C1isp�ritie�s Adj by D 3.202 2.t304 , 3.08� ' o t�U Local NTC (LNTCj jT� � 1,66$ �.338 6.�22 5.714 ,�U Taxeble Conkamination q 0 � � -�,II Conkaminaki�n NTC (Tt 0 � � a All Peferendum Market [T' 62�,900 564.500 50$.5�0 �3i7.d0a " � � Clo�e Heip... • 7685 MAIN STREET m m 7685 MAIN STREET NE PIN N0.11-30-24-22-0022 Subject Sale #1 7701 Main St $735,000 17400 19,200 $38.28 Sale #2 Sale #3 Sale #4 7980 Ranchers Rd 4730 Quebec Ave 2831 - 2833 Anthony Ln New Hope St Anthony $850,000 $1,150,000 $899,000 18,715 25,654 20,740 $45.42 $44.83 $43.35 Property Rights Conveyed 0 0 0 0 Financing Terms 0 0 0 0 Conditions of Sale 0 0 0 0 Market Conditions 2.75% 8.50% 3.00% 8.25% Adjusted Price/SF 339.33 549.28 E46.17 346.92 Other Adjustments Location/Access/Exposure Avg/Avg/Avg Eq/Eq/Eq Eq/Eq/Eq Eq/Eq/Eq , Eq/Eq/Eq 0% 0% 0% 0% Gross Bidg Area (SF) 17,400 19,200 18,715 25,654 20,740 2% 1 % 6°/a 3% Age/Quality /Condition 1980/Avg/Avg 1973/Eq/Inf 1988IEq/Eq 1973/Eq/Eq 1973/Eq/Eq � �i% '�i% 4% 4% Use/O�ce Ratio Industrial / 17% Eq/13% Eq135% Eq/16% Eq/15% 0% -9% 0% 1 % UtilityNVH Clear Hgt Avg/16' Eq/16' Inf/20' Inf/16' Inf/16' 0% -1% 1% 1% Land-to-Bldg Ratio 2.93:1 3.23:1 2.56:1 2.45:1 1.99:1 0% 0°/a 1 % 2% Doors/Storage MezzlParking 0 Dk, 5 D'in/Yes/Eq 0 Dk, 8D'in/Yes/Eq 0 Dk, 2 D'in/No/Eq 4 Dk, 0 D'in/No/Eq 3 Dk, 0 D'in/Yes/Eq -1 % 4% 3% 2% Total Ad'ustment 5% -9% 15% 13% Final Adjusted Price/Square Foot $41.10 $44.84 $53.10 $53.02 Unadjusted Value Range $39.33 Median $46.55 $49.28 Mean $45.43 Adjusted Unit Values Range $40.71 Median $48.93 $52.17 Mean $48.02 Most similar Comparisons Most recent Sale One Closest In Proximity One and two Lowest Gross Adjustment One Lowest Net Adj one Value Conclusion 547.70 $47.74 Average of unadjusted and Adjusted I SUBJECT SIZE/SQUARE FTG PRICE/UNIT _ VALUE ROUNDED 17,400 X 547.70 b829,980.00 E830,000 2007 ESTIMATED MARKET VALUE 5147,400 3761,800 909 200 LAND STRUCTURE 552.25 VALUE DIFFERENCE 579,220 - . File E�Ji� �liev� To�is Tc�pics '�lc�rk Ar�as M� Far�c�rites He� ,-� �� � ��� � � � � ,Searrh Criteria Pro erk Nrt. � � � TaxYear �— Effectiue P Y 11-�0-24-22-00�2 � Cle�r �+ U a,:;tarr G�tF; TaxYear Date �s �f D,�ke Od109l2007 : ,qsses�ment Date �— Search �` Use End �.�tF:: �� - � � - �- ��- - -� ,- - SearcM Fi'esults - Values - - - � : � - -� - - �- ��: - ii ��. - ii - ii , il Est Market Land [MiKLI 14�,40t7 134,000 • 1�7.000 101.9a0 ,. �, � i = r`�,II EstMarketlmp�awem�i 761.$00 ?1�.8�0 67�t.700 537,9�a a'� All Est Market (MKTTLj 9�9,��� 846,$OD 721,7Q0 639,�0� AlI V�lues... All Limit�d Est Merk�t Lan p p p � * All Limite� Market)mprave 0 D 0 � Shaw ,. : �.II Limik�d Market ��iKTLt Q p � � r Certified o , , � � Values AU Ass�swed V�lue Regu6 909.2Q0 846,8D0 7�1:70� 639.80a ��,{I Taxalal� Markek (TMT1� '909,2t]� 8�6.80� 727;700 63'�.8�0 r �ompare ,411 Gross Lacal N�k Tax C 17,434 16,18F 13�684 12A46 Values t�U Fiscal D isp�rikies Adl �5 � �,97 7 �,p�0 �.222 r�ll Local NTG (LNTC) (T�' 7�,43�1 71.2�9 �.67 4 7,82d �° �II Taste6le Car�kaminatian p" p p p All Cdntaminati�n NTG (T( 0 � p p Al! Referendum Market �T 905.2�a $46.8�Q 721.�Q0 639.8Q0 All �take NTC (T'�SJ 17.d34 1 S,186 13.E84 12.�46 � �' � � ;� �� _ s , � ° � � Clase �� � H elp... �_ � ;" „�� � � • 137 CHRISTENSON COURT PID ADDRESS GLA STYLE STYLE ADJ YR BUILT AGE COND X-BATHS GRADE QUAL ADJ FPL AIR COND GARAGE BSMT/FIN FIN QUAL PCH/DECKS SALE AMT SALE DATE LAND VALUE STR VALUE TIME ADJUST. .OS/YR NO FPL AIR COND X BATHS GARAGE BFIN GRADE/QUAL PCH/DECKS STYLE 5IZE SIZE $ AGE ADJ TU/GAR TOTALS ►DJUSTED SALE AMOUNT - LOCATTON ADJUSTED TO SUBJECT SUBJECT 14-32-289 137 CHRI5TENSON CT FRIDLEY 1195 DTRS 1997 ( 1.0% PER YR) 1 VG/GOOD 1 $2,000 420 0 $0 $0 $37,100 REVIEW COMP #1 32-13-7 3570 232ND CT ST. FRANCIS 1140 DTRS 0.00% 2006 -9.00% 0 GOOD 5.00% 0 $2,000 500 0 $0 $1,200 $236,000 Oct-06 $50,600 $185,400 $1,557 $2,000 $0 $2,000 ($1,440) $0 $9,270 ($1,200) $0 55 $3,813 ($16,686) $0 ($686) $235,314 ($13,500) $221,814 COMP #2 23-24-95 1759 OJIBAY CENTERVILLE 1312 DTRS 0.00% 2000 -3.00% 0 VG/GOOD 0.00% i 52,000 529 0 $0 $0 $254,900 Nov-06 $50,100 $204,800 $860 $0 $0 $2,000 ($1,962) $0 $0 $0 $0 (117) ($8,ll 1) ($6,144) $0 ($13,357) $241,543 ($13,000) $228,543 GAR VALUE $lg FPLC VAL $2,000 AVERAGE AFTER ADJUSTMENTS BATH VAL $2,000 $ 218,698 *SIZE ADJUST PER S.F $6933 COMP #3 COMP #4 36-21-140 14-32-279 14035 ARGON ST l20 CHRISTSENSON CT RAMSEY FRIDLEY 1123 1195 DTRS DTRS 0.00% 0.00% 2001 1997 -4.00% 0.00% 1 1 GOOD VG/GOOD 5.00% 0.00% 0 Z $2,000 $2,000 418 420 0 p $0 $0 $7,000 $0 $200,000 $196,000 Apr-06 Oct-OS $25,000 $37,100 $175,000 $158,900 $5,880 $10,678 $2,000 ($2,000) $0 $0 $0 $0 S36 $0 $0 $0 $8,750 $0 ($7,000) $0 $0 $0 '12 0 $4,992 $0 ($7,000) $0 $0 $0 $7,658 $8,6'78 $207,658 $204,678 $12,100 $p $219,758 $204,678 V l W � r�^ V 1 ��/j I'—� I�I � � O � V � Or^ V 1 � W E� � � � � V O � 0 0 0 0 0 o a o 0 0 0 0 O a0 O) N �A V' N O O> � � h O �! �A �'i f0 Ih OD a0 OD Qi .CO 01 � Q1 � W � � O� � � � U� � � � � � � � N � � a M M M M M M M ('7 M C7 M N N N N N �N N N N N N O O O O O O O O O O O � O O O O O O O O O O O � � a0 M a0 M h � N cD V O1 W 00 41 N Of N a0 iA N 00 M V Q1 � OD f� h I� N N f� t� N fA fA Vi fi9 E9 d9 fA Vi tN V! f9 � � � � � � �o � � � � W o 0 0 0 0 0 0 0 0 0 0 F, o 0 0 0 0 0 0 0 0 0 0 Q N N �V N N N N N N N N 0 � h f� f� O W (O M � � N N � 0 N N � � � N � � tp M V N M O Q� N J O O �A O O O O O O O O O O � O O O O O O O O N� O O � � � O � O '7 O CO 00 N OO O ln N f0 N � (O N � � � � � N N � � N fA fA fi9 fA d9 Vi fA Vi Ei9 fA :A m co n ro n r� • co n ao n � ao >- rn rn rn rn rn rn rn rn rn rn rn � o v ao v v ao rn o v v rn M N f7 , N'� N M N N N � Q00 h (D T� IO (D O � f� (O O � � M n M h I� � � C7 I� � Y � � '- � J J J � � � � a a a a Q ooa00000ar�o LL p � .- .- O r +-� � O O � � o 0 0 0 0 0 0 0 0 0 0 � o 0 0 0 0 0 0 0 0 0 0 Q , N N m QO O O O O O O� N O O O� (' � V 'V Z CO 00 f� DO N CO O 00 N O �y, V 01 t0 � � N Q1 � m N N � (D 00 m m [� 00 m C� tL m m m � FV- t�V- H H H IV- � F�- H 1-V- H J Q. a a d a d � � d Q. � U J � N N � N N N N N N N N a � N N N N N N N N N N N � M M f7 M M M M (7 t") ('7 C'7 \° � (O � f0 W � � � � � � � � � � � M M O� N O m E�R E9 U U J U, U U U U U Z O O v�i O � O O O O � O Z Z w Z w Z Z 2 Z W Z F_ H N, f/� � N J ~ !� N N J N t� � � _ � � � � � � � � o U U M U c¢ U U U U cQn U Q � •n- � � N � �� � � N � N J W Q Q U � � N � a w o i > i Z Q Q Q u.. O N O1 (0 a n 0 0 N � .a Q T f0 V C LL -- — — -- . ��iie Edit �'i�rrv TQc�is Tc�pics t�+lc�rk r�reas My F�vc�rl�es Help � �� ,���� c� � �; � se�rch Cr�t�rta Praperky h�o. 7 4-30-24-32•0289 � Tax Year �! Effective �.s of Dste 04106J2007 .• '�' IJ�e Start Date; Tax Year Date �- Cl�ar �"' lJse End C� �tF:, Assessmenk (Jake �- Search �� - � � ,- ��- - - - - -� �- Search Results Yalues - - � : � - -, - a- ii: �� - ii, - �i ii , II Est �i�rket Land (MKLI 37.100 37,10a . 33.6L10 33.60Q �, , � All Est Mtarkek improvemei 181,3110 18Q�000 160,700 151,200 � _J r� � $: �,II Esk t�iatket (MKTTLj 218.�00 �77,100 194.�D0 784.800 All��lues... All Est t�arkek New C�nstr . All Limited EsfMarkek Lan 3?,1�0 37,100 33,600 33,300 Show �II Limited �iarket lmproue 7 87,30� i$0,000 7 60.700 150,Q�0 r Gerkified � � � � � � � �Values �� All Limiked Market [MKTLt 218.d00 217,10� 19�,�00 1$3,�00 � } All Asses�ed �alue Re ul, 9 2'18,400 217.100 19�,��0 183.300 r Campare All Taxable M�iarket (TMT'� 278,400 217,104 794,300 t$3,300 Values E ' All Gras� Lacal Net Tax C 2.184 �,171 1,9�13 7,833 m AI! Fiscai Di$parities Adj b5 0 p p � �.< All Local NTC (LNT�j (TV '2,1$4 2.177 1.943 1.8�'3 � All Taxable Gontaminakion p p � � � All Contaminatian NT� (T� p p � � �� ' ,411 Referendum Market (T' 218.�00 217,10a 194,3a0 183.30� � � ��:° 1 � i � � � �, . � �,� � � �"��� ., � Glose < �� H�ip... � � � � ��� • 5466 WEST BAVARIAN PASS S .� PID ADDRESS GLA STYLE STYLE ADJ YR BUILT AGE COND X-BATHS GRADE QUAL ADJ FPL AIR COND GARAGE BSMT/FIN FIN QUAL PCH/DECKS SALE AMT SALE DATE LAND VALUE STR VALUE TIME ADJUST. .OS/YR NO FPL AIR COND X BATHS GARAGE B FIN GRADE/QUAL PCH/DECKS STYLE SIZE SIZE $ AGE ADJ TU/GAR TOTALS ADJUSTED SALE AMOUNT - LOCATION ADJUSTED TO SUBJECT �vlEw SUBJECT COMP #1 24-44-99 24-44-80 5466 W.BAVARIAN PASS 1583 SBAVARIAN PASS FRIDLEY FRIDLEY 1625 1215 PTSF PTRB 0.00% 1977 1979 ( 1.0% PER YR) -2.00% 2 2 AVG/GD AVG/GD 0.00% 1 2 $2,000 $2,000 DBL DBL 405 597 $20 $20 $1,900 $1,600 $210,000 Apr-06 $53,100 $53,100 $156,900 $5,272 ($2,000) $0 $0 $0 ($3,840) $0 $300 $0 410 $25,719 ($3,138) $0 $22,313 $232,313 $0 $232,313 COMP #2 24-44-7Z 5482 MEISTER RD FRIDLEY 1716 PTCB 0.00% 1979 -2.00% 2 AVG/GD 0.00% 2 $2,000 DBL 336 $20 $0 $262,900 May-06 $53,100 $209,800 $6,168 ($2,000) $0 $0 $0 $1,380 $0 $1,900 $0 (91) ($5,708) ($4,196) $0 ($2,456) $260,444 $0 $260,444 GAR VALUE $18 FPLC VAL $2,000 AVERAGE AFTER ADJUSTMENTS BATH VAL $2,000 $ 250,353 *SIZE ADJUST PER S.F $62.73 COMP #3 24-44-108 1523 S.BAV.PASS FRIDLEY 1254 PTRB 0.00% 1981 -4.00% 2 AVG/GD 0.00% 2 $2,000 DBL 526 $20 $2,900 $244,900 Aug-06 $53,100 $191,800 $3,222 ($2,000) $0 $0 $0 ($2,420) $0 ($1,000) $0 371 $23,273 ($7,672) $0 $13,403 $258,303 $0 $258,303 O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O f� f0 1� O h O N N �A 00 O OD O � CO . � N N �T tn 1� I� 00 � � O O N (O f0 O QO Q1 � O1 O1 � � O) � � O) O O O O O V J W � �r^ V � � � O � � � O � � V � � W � z z �� � 0 N Q U a i � W w Q � W J Q y m } W � Q OD CO CO 00 GO 00 00 QO a0 W 00 W N o0 00 QO o0 M M M M M c`') ('7 ('7 ('7 M M M (h M M M M N N N N N N N N N N N N N N N N N O O O O O O O O O O O O O O O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 M f� (O N aO c'� � (D V N (O O O �A O !� � sf (O �f/ O O h f0 OO 00 O 00 I� t� (D (� t0 N (O (O f� 00 aO fD tn a0 f� (O f� cD I� N N N EA b9 b9 49 49 RH RH En EH Vi Vi fA fA ffl fA f19 � co �n cp ip � ip co � c� cD n cD � cn co co � 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N N N N N N N N N N N N N N N N N � O � I� V �A a0 a0 V 1� V e t0 c'` N ('\ M N N N M N N N N M (` r � �fl O 00 'Q M �A V M � � � 00 00 o O o rn O o 0 0 � o 0 0 0 0 0 o O O O O aO O O O O o O O o O O O O � � � tD .-- O O O V O Q� O O N �A O � N O V O lf) � (O ('M � � OO O a0 N h CO a0 (D OD V W h f� 00 Q1 (O � W I� (O fD � � N N N fA � 69 � � 49 � � d9 69 � fA � 69 E9 E9 � m O � l'7 � O � � 01 M � 00 O � I� � n oo ao n � n ao � n r� n � n oo � � � � � � O N (O a0 � O N N � O� �17 O� O O 00 1� N (� (O O� O� O� (O (O l0 N I� tD 1� t0 (O N N O O �A O N V O OD O h N aO a0 �A � � n � co r� � v ca � n v o v Y � N .- M N N � � � � � 3 a a n�. n�. a Q � � �❑� O 0 � L� ❑� � 0 �❑� � 0 � 0 LLN .- N � � O � � � � � N � .- .-- � � N o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 � o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Q M N fV m � v v °n � � � ° ° � � � o � ° � � � Z (O a0 (� M O a0 N M (O O � a0 f0 00 M M �y M N O OO (D Q1 O a0 M m 00 O O m ('7 f� N tn � � M tA M �A f� M !� � t!') J U J Q-' a C7 C7 U W � N y w � � a U f� � W U � (n ln W (� C.) � l� (n (� W W F- F- F- H H F- F- F- H H H- F- H H F- H H- a a a a a a a a a a a a a a a a a c� ao v o o rn � c� n o cD c� rn 1� N O � a0 M N OD O M c0 O O N � � N � � N � � �" v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v N N N N N N N N N N N N N N N N N Z N N � � � c�i� Q c�i> � � a a Q c�i� O ¢ a a N a o a z a v v z Z z a v z z Z a z � Q Z Z Q Q Q Q � Q Q � Q Q_' Q � � Q Q � Q U � Q Q C) Q Q� � � j � w w > > j � � j > > a Q j w > m > O O m m m > a m m.m � > m � m vi m z vi �� w m� vi � w� m w �N N u5 iA � N � M M � � � � N N � �h � �' � � � � � � � � � � � � N W J Q � LL O 0 z v ii � � w � w U � � a w a a � � 0 N N a � " . 0 0 � rn O � C9 a ^ 0 0 N to 0 .� Q � �o � �il� Edit �iev5r To�is ' TQpics ' lNork 1�reas �1� Fa�r�arltes Help d �� � ��y� � � u � 5e�ar�h Crikeria � T,�xYear r— Eff�ctiv� �lear l�rop�rty Nr�. 2� 30 z4 4� 0099 7ax Year Date � �.s af [�ate 04I06I2�07 � t� I_I F�,tart p�fes � Search �' Usr End bates Assessmenk Dake �� � � - �- ��- - -� - ,- - - S�arch Results Yalues - � � ' ' � . -: - - - -� - . - �- ii: . - �i . - ii. . - ii . - ti , II Est Ma�kek Land (MKLI 53,10a 53�1 q� 45,d00 45,400 . ,�II Est Merket Improvemei 1 r 4,200 175,5�0 773,000 153,600 �.11 Esk Markek [N1ICTTLj 227,300 �2$600 21�,�4aa 799,000 All ' Limiked Est Market Len 53,1t70 53,100 41,800 39.90Q All Limited Market Improve 17d,2t10 175.500 759,1�0 13d,$0� " r�fl Limited Mlarket CMKTLI �27,3�0 228,600 20a,90� 174,?00 All Assess�d �lalue Fiegul. 2�?,�00 228,6n0 200.900 1 r 4,7�0 AU Taxaale Market (TMT4 227.3�d ' 228.6�0 �00.9�0 77d.700 Ali Gross Lnca! Net Tax C �.273 2,286 2,009 7.7�37 All Fiscel Qisparikies,�;dj hy 0 0 0 0 ,�U Local NTC (LNTCj CTV 2,273 2.286 C.0�9 1�7�7 All TaKa61e Contaminatian 0 � 0 Q �II Contaminatian NTC (T( d 0 � d All Referendum Markek (T 227.300 228,600 200,900 174.r 00 t�ll State NTC (TV'S) D 0" D 0 � � - � All Values... Show r Certified 1�alues rCompare Values �I ► I Cl�se Help... , • 5297 MATTERHORN DRIVE 0 PID ADDRESS C LA STYLE STYLE ADJ YR QUILT AGE COND X-BATHS GRADE QUAL ADJ rr�, AIR COND GARAGE BSMTlFIN FIN QUAL PCH/DECKS SALE AMT SALE DATE LAND VALUE STR VALUE TIMF. ADJUST. .OS/YR NO FPL A1R COND X BATHS GARACE B FIN GRADE/QUAL PCH/DECKS STYLE SIZE SIT.E S ACE ADJ TU/GAR TOTA I�S 1DJUSTED SALF, AMOUNT - LOCATION ADJUSTED TOSUBJECT REVIEW SUBJECT COMP fil 24-43-8 24-43-3 5297 MATTERNORN DR 5353 MATTERIIORN CIR FRIDLF.Y FRIDLEY 1464 1170 RR RB 0.00% 1960 1961 ( 1.0% PER YR) -1.00% 2 1 AVG/GD AVG 5.00% 2 1 si,000 sz,00u 528 480 1193 500 $18 $18 $0 54,500 $275,000 Mar-06 $130,900 $127,500 $147,500 $S,S76 sz,non $0 $2,000 $864 $12,474 $7,375 ($4,500) SO 294 S 16,022 ($1,475) $0 540,336 5315,336 $3,400 $318,736 COMP #2 25-12-37 1527 TROLLf1AGEN FRIDLF,Y 1344 RB 0.00% 1961 -1.00% 2 AVC/GD 0.00% 2 sz,000 484 515 S18 $0 5323,000 Apr-06 $120,600 $202,400 $6,801 SO SO SO $792 $12,204 $0 $0 $0 120 56,540 ($2,024) $0 524,312 $347,312 $10,300 535�,612 GAR VALUE $18 FPLC VAL $2,000 AVERAGE AFTER ADJUSTMENTS I3A1'll VAL $2,000 $ 333,761 *SIZE ADJUST PER S.F $54.50 � COMP, #3 COMP #4 25-11-63 25-22-36 1527 WINDEMERE CIR 5250 TAYLOR STREET FRIDLEY FRIDLEY 1611 1846 RB RB 0.00% 0.00% 1968 1965 -8.00% -5.00% 2 2 AVG/GD AVG/GD 0.00% 0.00% 1 2 sz,000 sz,000 528 484 600 864 S18 $18 S 1,.500 53,700 $320,000 5309,000 Oct-06 May-06 $124,000 574,600 $196,000 $234,400 $1,646 $6,891 $2,000 $0 $0 $0 $0 $0 $0 $792 $10,674 $5,922 $0 $0 ($1,500) • ($3,700) $0 � $0 (147) (382) ($8,011) (520,818) (515,680) ($I 1,720) $0 $0 (510,871) ($22,633) $309,129 $286,367 $6,900 $56,300 $316,029 $342,667 i I � _ • s• � • Ie "� �� a _ _ - �. �. �� • - - �. - - 3 Documents 4 Exemptions 5 Yalue Changes 6 Property TransFer Seg Merges _7 Ler►ies '- Summary Rarties Taxes Events 1 ReceiPts 2 Uther -� - - �- ii: - i� ii. �i - �� , II Est �iarket Land (MKLI � 30.9�Q 89;��0 148,70� 102,�Q0 � ,41! Esk Markek Impr�vemei 1�6,200 168.200 160�100 152,50a All Est M�,rkek (h�1�TTLJ 297,100 257,400 268.$�0 255,200 A,If Limiked Est Markek Lan 13�,400 89,CQ0 104,Cp� 90.200 All Limik�ed Markeklmproue 165.60� 168.20Q 153,5D0 133,9d0 All ' Limited M1�rket (MKTL', 296,000 257.4D0 257,70a 22�.700 t�U As�sess�d �'alue Regu6 2�6.DOa ' 25�.4(]tl 257,700 224:� �D Afl Tastable Markek (TMT� 296.�00 25�.�100 257.70� 224.100 All Gros� Lacal Net Tax C �,960 2.574 2;577 2;241 AU Fiscaf Dispariti�s Adj by Q � d � All Local NTC (LNTCj (T'V 2.960 �.5�A 2.577 2.241 �.II Taxable Conkamin�tion -� 0 a 0 ;;. t�ll Cantaminakion IUTC [T( Q CJ Q � AU Refer�r�dum Mari�et (T' 296.OQ0 257.400 �5�7,700 224,10� All StateNTG(TVSj Q � Q 0 � � � Clase Help... � � �411 Values... Show � Certified ' Values r Compare Values • 7545 TEMPO TE1�:RACE 0 PID ADDRES5 GLA STYLE STYLE ADJ YR BUILT AGE COND X-BATHS GRADE QUAL ADJ FPL AIR COND GARAGE BSMT/FIN FIN QUAL PCH/DECKS SALE AMT SALE DATE LAND VALUE STR VALUE TIME ADJUST. .OS/YR NO FPL AIR COND X BATHS GARAGE BFIN GRADE/QUAL PCH/DECKS STYLE SIZE SIZE $ AGE ADJ TU/GAR TOTALS �DJUSTED SALE AMOUNT - LOCATION ADNSTED TO SUBJECT REVIEW SUBJECT COMP #1 COMP #2 COMP #3 COMP #4 11-11-44 11-13-SO 11-13-71 11-13-79 11-13-53 7545 TEMPO TERRACE 7425 CONCERTO CURVE7424 CONCERTO CURVE7429 CONCERTO CURVE 7380 MELODY DRIVE FRIDLEY FRIDLEY FRIDLEY FRIDLEY FRIDLEY 1160 1328 1160 1308 1176 RB RB RB RB RB 0.00% 0.00% 0.00% 0.00% 1966 1968 1968 1969 1963 ( 1.0% PER YR) -2.00% -2.00% -3.00% 3.00% 0 1 1 1 1 AVG/GD GOOD AVG/GD AVG/GD AVG/GD 2.50% 0.00% 0.00% 0.00% 1 1 0 1 2 $2,000 $2,000 $2,000 $2,000 $2,000 528 480 504 504 528 728 530 132 0 464 $18 $18 $18 $18 $18 $0 $1,500 $0 $700 $4,000 $72,500 $249,900 Apr-06 $72,500 $177,400 $5,961 $0 $0 ($2,000) $864 $3,564 $4,435 ($1,500) $0 (168) ($9,795) ($3,548) $0 ($2,020) $247,880 $0 $247,880 $248,150 Jul-06 $70,400 $177,750 $3,733 $2,000 $0 ($2,000) $432 $10,728 $0 $0 $0 0 SO ($3,555) $0 $11,338 $259,488 $2,100 $261,588 GAR VALUE $18 FPLC VAL $2,000 AVERAGE AFTER ADJUSTMENTS BATH VAL $2,000 $ 244�g16 *SIZE ADJUST PER S.F $58.30 $228,000 May-06 $72,500 $155,500 $4,572 $0 $0 ($2,000) $432 $13,104 $0 ($700) SO (148) ($8,629) ($4,665) $0 $2,114 $230,114 $0 $230,114 $237,000 Jun-06 $74,600 $162,400 $4,092 ($2,000) $0 ($2,000) $0 $4,752 $0 ($4,000) $0 (16) ($933) $4,872 $0 $4,784 $241,784 ($2,100) $239,684 Fife E�lit �`i�w Tc�ols Tc�pics Utilark ,�reas �Iy Far�orit�es He� c��� ��� �� u � Search Crikeria� � � � � � TaxYear �— � EFfective � � � Clesr� Propetty No. 11 30 24-11-0044 Tart Year Date �"., (+ USr �t,3ff �J�tF:> �s of Daie 04I06I20�7 � ' �^ Search �' Use End D�tFS Assessm�nt Dake �� - � � �- ��- - -� �- Search Fiesulis Yalues - - - ' � - �� All �}alues.., SMow r Certified Val�es r Compare ��lues . � , Close Help... • 951 Hillwind Road NE File Edit Vi�w Taols T�pics VWork A,reas My Favorl�s He!� 'd�i� ����� �� u � Search Criteria ' � TaxYear �! Effectit�e Glear Pr�perty h1o. �� 30 �4 3�-pp�0 Tax Year Dake �� A$ of a�ke 04l0912007 � � U�F ;rark D�tr,- t"' U�.e End D,�r�., Assessm�nt Date �- Saarch M� � � - �- ��- - -� - �- ' Search F���ults . • . - : ,.....Yalues .. � - '- - � � - � � -, - - �- i�: ii - ii. ii - ii AU Est Ma�kek Land (MKLI 150,900 1 a7,200 109,800 104,500 ,� Ali < Est Miarket)mRrovemei ' 28��800 255,200 238,5Q0 222,911l� All Esk �iark.et (�iKTT�J �i31:7Q0 ' 392,400 348.3Q0 327.400 �,Ii Limik�d E�t Market Lan tl 0 0 < � �II Limited M�rket ImRro�e 0 f 0 � All Limited Market (�1KTL1 �] � 0 Q AU AssessedValueRe�ui. 437.700 3�2�4�0 3�8.300 �27.4Q0 All Taxable Mark�t [TMT1, 431.7Q0 392.4�0 3�l$,3Qfl �27,400 �II Gros� Lacal Net Tax C 7.884 7A98 6;216 5,�98 All Fiscal Dispa�ities Adj by 0 2.7 5� 7.$49 2,032 All Lacai NTC (LhJTCJ (TV 7,884 4.942 4.367 3,766 Ail Taxable Gontaminatian �D Q Q 0 Ail ' Cor7taminatian NTC [Tf 0 0 0 0 All Ref�erendum Markek (T' 431,�Od 392,400 34$.3�0 32�.400 �,II Skake I�TG (TVSj ; 7.884 ?,�98 _ 6.�16 5.79� � ! ► CI_ase Help... �� AU Values... ' ghow r ' Cerkified �f alues rCompare 'Values April 9, 2007 Ms. Mary Smith City of Fridley Assessors Office RE: 951 Hillwind Rd. Re-evaluation of Property Taxes Our property taxes on the building at 951 Hillwind Rd are as follows: 2003 $8,214 2004 $9,878 2005 $9,855 2006 $10,360 2007 $11,237 Over a 4 year period this represents an increase of 27%. The lease on 951 Hillwind Road with Counselor Realty for the base rent on the building from March l, 2004 to March l, 2006 was $4833. COLA increases for years 2005 were 2.7 % and 3.4% for 2006. This resulted in an increase of $130 for 2005 which increased the rent to $4963. For 2006 the rent increase was $169 bringing the rent to $5132. The rent increases represent a 6% increase over a 5 year period. The owners of the building at 951 Hillwind are requesting a re-evaluation of our taxes based on the rent increase total of 6% over the 5 year period. Sincerely, ��r'`��� �-" .�� � Lee Olson, Gerald Foss, Partners Independence Ten Partnership SUPPLEMENT TO LEASE AGREEMENT DATED JANUARY 30, 2002 between Independence Ten Partnership, a Minnesota general partnership ("Lessor"), and Counselor Realty, Inc., a Minnesota corporation (the "Tenant"). The following items on the Original Lease Agreement are to be changed: Item #3 The ending date of the lease is the 28�` day of February 2005. The tenant is hereby exercising their option to extend the lease to the 28�' day of February 2007. Item #4 The Base Rent was $4833.33 per month. The base rent will be adjusted by 2.7% which is based on COLA for the year 2004. The new rent amount per month will be $4,963.83 from the 1 St day of Mar�h 2005 until the 1 st day of March, 2006. The amount of the rent starting on the 1 St day of March 1, 2006 to the 28�' day of February, 2007, will be adjusted according to Item SC in the original Lease Agreement. DATED � � �y d � LESSOR: INDEPENDEI�CE TEN,.�-ARTNERSHIP � By �''.�' y L'��'t�'�,� � ; �'��,Y•- . Its: ��..� % �-.�. �r .�:�Y__, Its: Sy Its sy Its • � r .,r_.�,:� .� TENANT: COUNSELOR REALTY INC. B � � y B .�`� �� `�� �`�" '"�- ..��` d� yw.� fi,-- � .�.� . _.� _.�� , ��F �l_ . LEASE AGREEMENT This Lease Agreement (the "Lease"), is made thi���day of -���'�� �(� i�i, 2002, between Independence Ten Partnership, a Minnesota general parinership (the"Lessor"), and C�ounselor Realty, Inc., a Minnesota corporation (the"Tenant"). BACKGROUND Lessor owns the building located at 951 Hillwind Road, Fridley, Minnesota 55432 (the "Building"). Lessor desires to lease to Tenant the Building and Tenant desires to lease the sanie from Lessor. Lessor shall use the leased premises for a real estate brokerage and related activity. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: 1. SUBMISSION OF LEASE. The submission of the Lease for examination does not constitute a reservation of or option for the Leased Premises, and this Lease shall becoine effective as a lease only upon execution and delivery thereof by Lessor and Tenant, and Guarantor, if any. 2. LEASED PREMISES. Lessor, subject to the terms and conditions hereof, hereby leases to Tenant the Building (the "Leased Premises"). The building plan is attached hereto as Exhibit A. 3. TERM. Tenant talces the Leased Premises from Lessor, upon the tenns and conditions herein contained, to have and to hold the same for the term ("Lease Term") of three (3) years commencing on the lst day of March, 2002 and ending on the 28th day of February, 2005. 4. BASE RENT. Tenant shall pay Lessor during the Lease Term a monthly Base Rent of $2,333.33 from March 1, 2002 until September 1, 2002, at which time the Base Rent shall increase to $4,666.67 per month through the 28th day of February, 2003. During the 2nd and 3rd years of the Lease the monthly Base Rent shall be $4,8�3 3-- commencing March 1, 2003 and terminating February 28, 2005. 5. OPTION TO EXTEND LEASE TERM. In addition to the Lease Term defined above, Tenant is hereby granted the right to extend the Lease Term for one (1) additional period of two (2) years (the "Extended Tenn") from March l, 2005 through February 28, 2007, upon satisfaction of the following ternzs and conditions: a. That, at the time of the exercise of such right to extend and at the tiine the Extended Term begins, Tenant shall not be in default in the performance of any of the terms, covenants and conditions herein contained; b. That this Lease shall not have been terminated during the Lease Term and shall be in full force and effect as of the date of such exercise of the right to extend and at the date the Extended Term begins; '� - � c. That such extension shall be upon the same terms, covenants and conditions contained in this Lease except for the Base Rent for such Extended Term shall be a monthly Base Rent of $4,833.33, plus any increase in Real Estate Taxes and COLA adjustments froin 2004. Also, Real Estate Tax and COLA increases will be added in the fifth year based upon increases from 2005, as above. All Base Rents above include Real Estate Taxes, and Insurance on the Building. 6. MAINTENANCE. Lessor shall perform all maintenance and repair of the Building, including, but not limited to, lawn and landscaping maintenance, snow removal, parlcing lot inaintenance and striping. Interior maintenance including plumbing, electrical, heat, air conditioning, etc. shall be the sole responsibility of Tenant. Tenant shall be responsible for the first Two Thousand and 00/100 Dollars ($2,000.00) per occurrence of an event requiring any repairs to the plumbing, electrical, heating or air conditioning systeins. Any amount in excess of the initial Two Thousand and 00/100 Dollars ($2,000.00) responsibility of Tenant shall be the responsibility of Lessor. Tenant must notify Lessor before repairs are made in all cases except in an emergency. Tenant may, at its option, employ subcontractors for repairs and deduct such payments from monthly rent ONLY if Lessor has not inade said repairs within thirty (30) days after written request for repairs by Tenant. Tenant shall provide a yearly maintenance contract from a licensed contractor to Lessor for inaintenance of the two �ve-ton Carrier rooftop heating and cooling units during the Lease Term. ,� �� 7. UTILITIES. Lessor shall provide mains and conduits to supply water, gas, electricity ��, and sanitary sewage for the Leased Premises. Tenant shall pay, when due, all charges � for sewer usage or rental, if separately inetered, garbage disposal, refuse removal, water, 9 � electricity, gas, teiephone andlor other utility services or energy source furnished to the \ Leased Preinises during the tern� of this Lease; or any renewal or extension thereof. 8. CARE AND REPAIR OF LEASED PREMISES. Tenant shall, at all tiines throughout the Lease, including renewals and extensions, and at its sole expense, keep and maintain the interior of the Leased Premises, in a clean, safe, sanitary and first class condition and in compliance with all applicable laws, codes, ordinances, rules and regulations. Lessor ;� shall manage all outside maintenance of the Leased Premises, including grounds and) � parlcing areas. 9. COVENANTS OF TENANT. Tenant agrees that it shall: a. Observe such rules and regulations as from time to tirne may be prescribed by Lessor for the general safety, comfort, and convenience of Lessor, occupants and tenants of the Building. b. Provide Lessor access to the Leased Premises at all reasonable times, without change or diininution of rent, to enable Lessor to examine the same and to make such repairs, additions and alterations as Lessor may deem necessary, and during the ninety (90) days prior to the expiration of the term, to exhibit the Leased Preinises to prospective tenants and to place upon the door or in the windows of the Leased Premises a usual or ordinary "For Lease" sign. Tenant shall allow Lessor access to the Leased Premises during the ninety (90) days prior to the expiration of the Lease Term or Extended Term in order to place a 4' x 8' free- standing sign advertising the Leased Premises for rent to be placed on the knoll west of the parlcing lot facing Interestate 694 and Highway 65. c. Maintain the Leased Preinises in good order and condition and replace all glass Uroken by Tenant with glass of the same quality as that brolcen, save only glass brolcen by fire and extended coverage rislcs, and coinmit no waste on the Leased Preinises. ( d. Pay for all electric lights, bulbs and ballasts used in the Leased Premises. � e. Upon the termination of this Lease for any reason whatsoever, remove Tenant's goods and effects and those of any other person claiming under Tenant, surrender the Leased Premises to Lessor peaceably and quietly in as good an. order and condition as the same are in at the commencement of this Lease; except reasonable wear and use thereof and repairs which are Lessor's obligation. Goods and effects not removed by Tenant at the tennination of the Lease shall be considered abandoned and Lessor may dispose of the same as it deeins expedient. All alterations and fixtures, except any trade fixtures of Tenant, shall become the property of Lessor at the termination of this Lease. f. Except for an assignment or subletting to an affiliate or wholly owned subsidiary of Tenant, Tenant may not assign this Lease, or sublet all or any part of said Leased Premises without Lessor's prior written consent which consent shall not be unreasonably withheld. Lessor reserves the right, should Tenant request such assignment or subletting, to release Tenant from the terms and provisions of this Lease and Lessor shall have thirty (30) days to inalce such determination. Should Lessor exercise this right, the Lease shall tenninate. Until� termination thereof, Tenant shall, however, reinain liable for the perfonnance of all the ternis and conditions hereof. If Tenanti assigns its interest in this Lease or sublets the Leased Premises for any rental amount in excess of rents due Lessor under the Lease, all said excess amounts shall become the property of Lessor and shall be paid to Lessor immediately. g. Not overload, dainage or deface the Leased Preinises or perform any act which may make void or voidable any insurance on the Leased Premises or the Building, or which inay result in increased premiums payable for insurance. h. Not place any additional locks on any doors without the written consent of Lessor. Lessor shall have the right to lceep pass keys to the Leased Preinises. i. Not make any alterations or additions to the Leased Premises without obtaining written approval of Lessor thirty (30) days in advance of any alterations and additions being made, and all alterations, additions or improvements (including carpeting or other floor covering which has been glued or otherwise affixed to the floor) which may be made by either of the parties hereto upon the Leased Preinises, except moveable office furniture and equipment, shall be the property 3 of Lessor, and shall reinain upon and be surrendered with the Leased Premises, as a part thereof, at the termination of this Lease. j. Cause to be perforn�ed by a competent service company, preventative maintenance of all HVAC units serving the Leased Premises, as recommended by the manufacturer. k. Tenant's obligations under the Paragraph Number 9 above to perform or not to perform a specified act shall extend to and include Tenant's obligations to ensure that Tenant's employees, agents and invitees shall do or shall not do such acts, as the case may be. 10. TENANT'S INSITRANCE. Tenant shall obtain and lceep in force, at Tenant's expense, for the term of this Lease, and any extension or renewal thereof, the following insurance: a. Such �re and casualty insurance as Tenant shall deen� necessary or desiraUle covering Tenant's stocic in trade, fixtures, furniture, files, documents, computers, equipment, signs, and all other installations, improvements and bettei-ments inade by or for Tenant, on or about the Leased Premises. . b. Comprehensive general liability insurance, with minimum limits of liability in respect ofbodily injuiy of One Million and 00/100 Dollars ($1,000,000.00) for each person, and One Million and 00/100 Dollars ($1,000,000.00) for each accident or occurrence, and in respect of property damage, One Million and 00/100 Dollars ($1,000,000.00) for each occurrence. Said policy shall name Tenant and Lessor as nained insureds; shall cover the Leased Premises; and shall cover contractual agreeinents. c. Said insurance required pursuant to the provisions of this paragraph shall be issued by an insurance company legally authorized to do business in the State of Minnesota, and shall provide for at least thirty (30) days' notice, by certified mail, return receipt requested, to Lessor before cancellation, ternlination, non- renewal or change of such insurance. Evidence of said insurance shall be provided to Lessor upon request and upon occupancy of the Premises. 11. CASUALTY LOSS. In case of damage to the Leased Premises or the Building by fire or other casualty, Tenant shall give immediate notice to Lessor, who shall thereupon cause the damage to be repaired with reasonable speed, at the expense of Lessor, subject to delays which may arise by reason of adjustment of loss under insurance policies and for delays beyond the reasonable control of Lessor, and to the extent that� the Leased Premises are rendered untenantable, the Base Rent shall proportionately abate, except in the event that such daiiiage shall be so extensive that Lessor shall decide not to repair or rebuild, this Lease shall, at the option of Lessor, terminate as of the date of such damage by written notice from Lessor to Tenant, and the Base Rent shall be adjusted to.the date of such damage and Tenant shall thereupon promptly vacate the Leased Premises. 12. CONDEMNATION. If the entire Leased Premises is taken by eminent domain, this Lease shall automatically terminate as of the date of talcing. If a portion of the Leased Preir�ises is taken by eminent domain, Lessor shall have the right to terminate this Lease as of the date of talcing by giving written notice thereof to Tenant within ninety (90) days after such date of talcing. If Lessor does not elect to terminate the Lease, it shall, at its own expense, restore the Leased Premises, exclusive of any improvement or other changes inade therein by Tenant, to as near the condition which existed immediately prior to the date of talcing as reasonably possible, and to the extent that the Leased Preinises are rendered untenantable, the Base Rent shall proportionately abate. All damages awarded for a talcing under the power of eininent domain shall belong to and Ue the exclusive property of Lessor, whether such damages be awarded as compensation for diminution in value of the leasehold estate hereby created or to the fee of the Leased Premises; provided, however, that Lessor shall not be entitled to any separate award made to Tenant for the value and cost of removal of its personal property and itxtures. 13. DELAY IN POSSESSION. If the Leased Premises on the scheduled date of coininencement of the Lease Term are not ready for occupancy by Tenant due to the possession of occupancy thereof by any person not lawfully entitled thereto, or because construction has not yet been completed, or by reason of any building operations, repair or remodeling to be done by Lessor, Lessor shall use due diligence to complete such construction, building operations, repair or remodeling and to deliver possession of the Leased Premises to Tenant. Lessor using such due diligence, shall not in any way be liable for failure to deliver possession of the Leased Premises to Tenant or to timely complete such construction, building operations, repair or remodeling, but the rental and other charges payable by Tenant hereunder shall be abated until the Leased Premises shall, on Lessor's part, be ready for the occupancy of Tenant, this Lease remaining in all other respects in full force and effect the Lease Tenn not thereby extended. 14. MUTUAL RELEASE/WAIVER OF SUBROGATION. Lessor and Tenant each hereby release the other from any and all liability or responsibility for any direct or consequential loss, injuiy or dainage to the Leased Preinises, or its contents, such fire or other casualty may have been caused by the negligence (but not the willful act) of the other party or one for whom such party may be responsible. Inasmuch as the above mutual waivers will preclude the assignment of any aforesaid claim by way of subrogation (or otherwise) to an insurance company (or by any other person), each party hereto agrees if required by said policies to give to each insurance company which has issued to it fire and other property insurance, written notice of the terms of said mutual waivers, and to have said insurance coverage by reason of said waivers. Tenant shall not carry any stocic of goods or do anything in or about said Leased Premises of the Building which will increase insurance rates on said Leased Premises or the Building in which the same are located. If Lessor shall consent to such use, Tenant agrees to pay as additional rent any increase in premiums for insurance against loss by fre or extended coverage rislcs resulting from the business carried on in the Leased Premises by Tenant. Tenant shall, at its own expense, coinply with the requirements of insurance underwriters and insurance rating bureaus and governmental authorities having jurisdiction. 15. DEFAULT. Tenant hereby agrees that in case Tenant shall default in malcing its payments hereunder or any of them or in performing any of the other agreements, terms and conditions of this Lease, then, in any such event, Lessor, in addition to all other rights and remedies available to Lessor by law or by other provisions hereof, may with 5 due process, re-enter the Leased Preinises as aforesaid. Tenant further agrees that in case` of any such tennination, Tenant shall indemnify Lessor against all loss of rents and other damage which Lessor incurs by reason of such termination, including, but not being limited to, costs of restoring and repairing the Leased Premises and putting the saine in rentable condition, costs of renting the Leased Premises to another tenant, loss of diminution of rents and other damage which Lessor may incur by reason of such termination, and all reasonable attorney's fees and expenses incurred in enforcing any of the tenns of this Lease. Neither acceptance of rent by Lessor, with or without lrnowledge of breach, nor failure of Lessor to take action on account of any breach thereof or to enforce its rights hereunder shall be deemed a waiver of any breach, and absent written notice or consent, said breach shall be a continuing one. 16. NOVATION IN THE EVENT OF A SALE BY LESSOR. In the event of the sale of the Leased Premises, Lessor shall be and hereby is relieved of all of the covenants and obligations created hereby and such sale shall result automatically in the purchaser assuming and agreeing to carry out all the covenants and obligations of Lessor herein; provided however, that Lessor shall not be released from any claim resulting fiom a default of Lessor occurring prior to the date of such sale. 17. NOTICES. All bills, statements, notices of communications which Lessor may desire or be required to give to Tenant shall be deemed sufficiently given or rendered�if in writing and either delivered to Tenant personally or sent by registered or certifed mail addressed to Tenant at the Leased Premises and the tiine of rendition thereof of the giving of such notice or communication shall be deeined to be the time when the same is delivered to Tenant or deposited in the mail as herein provided. Any notice by Tenant to Lessor must be served by registered or certi�ed inail, addressed to Lessor at the address where the last previous Base Rent hereunder was payable, or in case of subsequent change upon notice given, to the latest address furnished. 18. ACCORD AND SATISFACTION. No payment by Tenant or receipt by Lessor of a lesser ainount than the payments required to be paid by Tenant shall be deemed to be other than on account of the earliest rent and other charges required to be paid, nor shall any endorsement or statement on any check or similar payment be deemed an accord and satisfaction, and Lessor shall accept such checic or payinent without prejudice to Lessor's right to recover the balance of such rent or other required payment, or pursue any other remedy provided in this Lease. Accord and satisfaction, if any, shall be accomplished by a separate document executed by Lessor and Tenant: 19. DEFALTLT BY LESSOR. Lessor shall not be deemed to be in default under this Lease until Tenant has given Lessor written notice specifying the nature of the default which Lessor is obligated to cure, and Lessor does not cure such default within ten (10) days after receipt of such notice; provided however, in the case of a default which cannot be cured with due diligence, within a period of ten (10) days, Lessor shall have such additional tiine to cure such default as may be reasonably necessary, provided Lessor proceeds promptly and with due diligence to cure such default after receipt of said notice. � r 20. RELATIONSHIP OF THE PARTIES. Nothing contained in this Lease shall be deemed or construed by the parties hereto or by a third party to create the relationship of principal and agent or of partnership or of joint yenture or of any association whatsoever between Lessor and Tenant, it being expressly understood and agreed that neither the method of computation of rent, nor any other provisions contained in this Lease, nor any act or acts of the parties hereto, shall be deemed to create any relationship between Lessor and Tenant other than the relationship of Lessor and Tenant. 21. QUIET ENJOYMENT. Lessor agrees that Tenant upon paying the rentals and other payinents required herein fron� Tenant, and upon Tenant's perfornlance of all of the provisions, covenants and conditions of this Lease on its part to be lcept and performed, may quietly have, hold and enjoy the Leased Premises during the term of the Lease. 22. CORPORATE TENANT. If Tenant is a corporation, the persons executing this Lease on behalf of Tenant hereby covenant; represent and warrant: that Tenant is duly incorporated, is in good standing, and is duly qualified to do business in Minnesota; that each person executing this Lease on behalf of Tenant is an officer of Tenant, and that he, she or they, as such officer, are duly authorized to execute and deliver this Lease. 23. INVALIDITY. If any part of this Lease or any part of any provision hereof shall be adjudicated to be void or invalid, then the remaining provisions hereof not specifically so adjudicated to be invalid shall be executed without reference to the part or portion so adjudicated insofar as such remaining provisions are capable of execution. 24. GOVERNING LAW. This Lease shall Ue subject to and governed by the laws of the State of Minnesota, and all questions concerning the meaning and intention of the tenns of this Lease and concerning the validity hereof and questions relating to performance hereunder shall be adjudicated and resolved in accordance with the laws of that state, notwithstanding the fact that one or more of the parties now is or may hereafter become a resident of a different state. 25. HEADINGS. The headings of the paragraphs and subparagraphs of this Lease are for convenience of reference only and do not form a part hereof and shall not be interpreted or construed to inodify, liinit or amplify such paragraphs and subparagraphs. 26. PARTIES IN INTEREST. This Lease shall inure to the benefit of and be binding upon the heirs, executors, administrators, successors and assigns of Lessor; and shall inure to the benefit of and be binding upon the successors and assigns of Tenant. 27. SUBORDINATION. The riglits of Tenant shall be and are subject and subordinate at all times to the lien of any first mortgage now or hereafter in subordination this Lease to the lien of any such first mortgage as shall be requested by Lessor. 28. ESTOPPEL CERTIFICATE. Tenant shall at any time and froin tiine to time, upon not less than ten (10) days prior written notice from Lessor, execute, aclmowledge and deliver to Lessor and any other parties designated by Lessor, a statement in writing certifying: (a) that this Lease is in full force and effect and is unmodified, or if modified, stating the nature of such modifications, (b) the date to which the rental and other 7 charges payable hereunder have been paid in advance, if any, and (c) that there are, to ri enant's lrnowledge, no uncured defaults on the part of Lessor hereunder (�r specifying �.uch defaults if any are claimed). Any such statement inay be furnished to and relied t�pon by prospective purchaser, Tenant or encumbrancer of all or any portion of the Yroject. 29. I3INDING EFFECT. The word "Tenant" wherever used in this Lease shall be construed to mean tenants in all cases where there is more than one tenant, and the necessary �;rammatical changes required to make the provisions hereof apply to corporations, ��artnerships or individuals, men or women, shall in all cases be assumed as though in e:ach case fully expressed. Each provision hereof shall extend to and shall, as the case rnay require, bond and insure to the beneft of Lessor and Tenant and their respective lieirs, legal representatives, successors and assigns, provided that this Lease shall not inure to the bene�t of any heir, legal representative, transferee or successor of Tenant e;xcept upon the express written consent or election of Lessor. Lessor may assign its right, title and interest in this Lease and such assignment shall thence terminate all the I�essor's obligations. IN WITNESS WHEREOF, the respective parties hereto have cause this Lease to be executed the date and year first above written. This Lease is cor�tingent upon Lessor and Tenant reaching a satisfactory agreement of the build out of the existing space. LESSOl�: INDEPENDENI�E TEN PARTNERSHIP By: Its: By: Its: By: Its: By: Its: ��� ,� —��c� Comiselor(Final ). doc � � TENANT: COUNSELOR REALTY, INC. _�� �By .�.�..-.-_-�-�-� - It : �`�s� ..�� �.�, � , �.o By: �c�..-�, �'1� '�`�:2C�� Its: �,�e,�� TENANT: (Individuals) P:�Attomey�Saw�Documents�Independence 1-001-Lease • 13 77th Avenue NE � Smith, Mary From: Burns, Bill Sent: Monday, April 09, 2007 1:30 PM To: 'Richard Harris' Cc: City Council; Smith, Mary; Pribyl, Rick Subject: RE: Board of Appeal and Equaliztion Dick, I will forward this on to Council and to Mary Smith -----Original Message----- From: Richard Harris [mailto:baapal3@yahoo.com] Sent: Friday, April 06, 2007 3:56 PM To: Burns, Bill Subject: Board of Appeal and Equaliztion Dear Dr. Burns Please deliver this letter to the board appea equaliztion. I have just recieved the notice valuation on property at13 77 ave N.E. We disagree with the proposed valuation for the year 2007, set at 807,700. This about 47 dollars /sq. ft. We cannot sell the for this .The adjacent property sold in jan .of 2007 for 40 dollars /sq. sf. We have not yet recieved the valuation ofr the house at 6200 Riverview Terrace ,please include this property in the appeal process. Pin No. for 13 77 ave N.E. is03-30-24-44-0073 Pin. No. for 6200 Riverview Terrace is 15-30-24-0039 We wilbe unable to attend the april9 2007 meeting as we are out town. Thank you for cooperation Ricard Harris (baapal3@yahoo.com Expecting? Get great news right away with email Auto-Check, Try the Yahoo! Mail Beta. ,� 4/9/2007 � I';iE�G. I c�l' I . __ __ _ _ _ _I � ' • �- � 1- 1 1 � 11 � ❑ � , File Edit Vie�v Ta�i� Topics Ut�arl� Areas (�ip Favoribes H�Ip � �� � ��a� c� � [� � , s�arch Gric�r�a � Taitl'ear � Effeckive Clear Prnpertp No. 03 30 24 44-0073 Tek Year [7ake � �F � ,� t+ !_I�� Start Dakes Searoh � �ts of C�ate " 04J09J2007 # � � j C" IJs� Er�rJ C���tes Assessm�nt Clate �- — I M, - � � �- ��- - -� �- - - ' Search Resuiks - Yalues - � � -� - �- ii; i� - ��. - ii i� , II Est h�arket Land (t�KLI 182,2Qa . 202.7�0 . 132,50d 126:3�0 .. �,� � `` • � i �_ all EstMark�klmprovemei 6�5.rqD 581.600 523A00 466.1QO ,. -; All Est h�iarket (�11�TTLj 8Q7,9�0 784,300 655,5Da 592,400 ,�II'ValWes... � � � ,411 ��� Limiked�EstMark�tLan � � � 0 � � 0 ��� � � l ��� ��0 � � � ,�II Limit�d I�arket Improue � 0 0 � �M��' '~ r�ll Limited Markek (MKTLI 0 0 0 0 r Valulelsd All Assessed Value Regu6 807.900 784.3�� 655.5Q0 592.400 All Taxable M�arkeE(Th4T4 807,90� i�4,300 655,500 552,400 r Compare All Gros� Local Net Tax C 16.1�$ 15.686 73.170 11:$4$ Values Ali Fi$cai Disparikiss Adj 6y 0 �.�66 3.899 4,153 All Local fJTC [LNTCj (TV 16,158 10,920 9,211 7.695 All T�xable Contaminatian � 0 0 � � Ail Cantaminatian N T C�T [ 0 0 Q 0 Ail Referendum �iarkek (T' 807,900 784,300 655.50Q 592,400 �= All Skate NTC (T4�Sj 16.158 15.686 13.110 11.Sd$ •� � � F ,.-.. Close Help... • 6200 Riverview Terrace NE Page 1 of 1 Smith, Mary From: Burns, Bill Sent: Monday, April 09, 2007 1:30 PM To: 'Richard Harris' Cc: City Council; Smith, Mary; Pribyi, Rick Subject: RE: Board of Appeal and Equaliztion )ick, I will forward this on to Council and to Mary Smith -----Original Message----- From: Richard Harris [mailto:baapal3@yahoo.com] Sent: Friday, April 06, 2007 3:56 PM To: Burns, Bill Subject: Board of Appeal and Equalirtion Dear Dr. Burns Please deliver this letter to the board appea equaliztion. I have just recieved the notice valuation on property at13 77 ave N.E. We disagree with the proposed valuation for the year 2007, set at 807,700. This about 47 dollars /sq. ft. We cannot sell the for this .The adjacent property sold in jan .of 2007 for 40 dollars /sq. sf. We have not yet recieved the valuation ofr the house at 6200 Riverview Terrace ,please include this property in the appeal process. Pin No. for 13 77 ave N.E. is03-30-24-44-0073 Pin. No. for 6200 Riverview Terrace is 15-30-24-0039 We wilbe unable to attend the april 9 2007 meeting as we are out town. Thank you for cooperation Ricard Harris (baapal3@yahoo.com Expecting? Get great news right away with email Auto-Check. Try the Yahoo! Mail Beta. 4/9/2007