05/15/1975 BOE - 00015299CONTINUATION OF THE BQARD OF EQUALIZATION MEETING OF MAY �, 1975 � PAGE 1
The annual Board of Equalizatton meeting was continued at 7:30 P.M. on May 15, 1975,
by Councilman &reider chair�ng the meeting in the absence of Mayor Nee.
ATTEN�ANCE
Present were Mayor Pro Tem Breider; Gouncilwoman Kukowski; Councilman Fitzpatrick; Marvin
Brunsell, Assistant City Manager; Mervin Nerrmann, City Assessor; Leon Madsen, Deputy
Assessor; Walter Mulcahy, City Appraiser; and Lou Johnson representing Anoka County.
�Councilman Starwalt entered the meeting at 7:33 P.M.
Mayor Nee was absent
Mayor Pro Tem Breider explained that questions raised by three property cwners regard�ng
various lots were continued until this time to allow the Assessing Department to re-
evaluate these properties and present any recommendations they might have regarding the
valuations Qn these properties to the Council at this time.
N0. 1--MR. �UANE NAROG, 1465 NORTH DANUBE (LOT 5, BLOCK 3, INN5BRUCK NORTH ADDITION,
PLAT 56353. PARCEL 240)
A review was made of this property on May 9, 1975, by the Assessing Department. It
was determined that errors made in const,ruction do have a negative effect on the property
value. Uue to the fact that the basement area of this home is quite useless except
for utility storage, it was the recommendation of the Assessing Department that this
structure be valued as though it were constructed over craw7 space rather than full
basement, reducing the 1975 value on the structure by $5,290.00, to a new value �f
$45,540.00. The Assessing Department felt that the land value should remain at $11,760.D0,
which results in a total 1975 value for taxes payable in 1976 of $57s3D0.00.
MOTION by Councilman Fitzpatrick to concur in the recommendat�on of the City Assessor
and reduce the 1975 valuation to $57,300.00. Seconded by Councilwoman Kukowski. Upon
a voice vote, all ayes, Mayor Pro Tem Bredier declared the motion carried unanimously.
�NO 2--MR. RANDY LFE HOFFA, 80CD EAST RIVER ROAD (LOTS 12 �ND 25, BLOCK 8, SPRING BROOK
PARK A�DITION, P�AT 59140, PARCEL 1540)
A review of this praperty was made by the Assessing Department. A number of �tems were
noted that they felt should be valued at less than the origlnal value_ The rate used
for the bedroom area m the basement, and the floor and ceiling tile in the laundry should
be reduced. The value for the bath in fihe basement sheuld be eliminated until the floor
drains are unplugged. The rate used on the garage should be reduced due Lo poor roof
construction. For these reasons, it was the recommendation of the City Assessor that
the land value of $4,320.00 remain the same, but ihat the structure value of $25,9U0.00
be reduced 6y $1,290.00 to a new structure value of $24,610.00, resulting in a new total
of $28,930.00 in the 7975 value for taxes payable in 1976.
Councilman Fitzpatrick questioned if the total 1975 value should not be reduced to
$26,0OO.OD, as this home was purchased so rer,ently for this sales pr�ce.
Mr. Herrmann pointed out that in discussion with the property owner, Mr. Hoffa had
stated that 7n purchasing his home it was a direct sale with no commission involved,
and that Mr. Hoffa felt his home x�as worth more than $26,060.G0.
MOTION by Councilman fitzpatr�ck to concur in the recommendat�on of the City Assessor
and reduce the 1975 valuation to $28,930.00. Seconaed by Councilman Starwalt. Upon
a voice vote, all ayes, Mayor Pro Tem Breider declared the motion carried unan�mously.
�N0. 3--MR. RICHARD HARRIS, 7701 MAIN STREET NORTHEAS7 AND VACANT LOT ADJACEIVT
(LOT 5, BLOCK3, EAST RANCH ESTATFS 2N� ADDITION WITH BUILDING. AND LOT 6, BLOCK 3,
EAST RANCH FSTATES 2N� A�DTTION. WHICH IS VACANT: PI_AT 55754. PARCELS 140 AN� 15d1
Mr. Herrmann stated that a representative from the County had made appraisals of all
structures on which the valuation was questioned as being too high by Mr. Harris, and
in each case the County's appraisal vaas h�gher than the original valuation set by
the City Assessor.
CONTINUATION OF T�E 60ARD OF EQUALIZATION MEETING OF MAY 8, 1975 PAGE 2
MAY 15. 1975
The City Assessor's recommendation on Lot 5, B7ock 3, East Ranch Estates 2nd Addition,
which has a structure on it, was that no reduction in valuation was recommended.
On Lot 6, Block 3, East Ranch Estates 2nd Addition, a vacant lot, a reduction has already
been allowed due to poor soi7 conditions, so the City Assessor also recommended no change
in valuation.
7710 AND 7720 MAIN STREET NORTHEAST (LOTS i-i0, �LOCK 8, ONAWAY ADDITION, PLAT 57189,
PARCEL ]830) �
Mr Herrmann stated that the Assessing Department has already allowed a credit on half
of the lots because of poor soil condi�ions, but the other lots fiave a structure, so no
change in land values is recommended. In placing a market value on the structure, an
increase of fifteen per cent was used �ust as on the land but only a nine per cent increase
should have been used. Also, the office was not built as large as indicated on the plans.
For these reasons, it was the recommendation of the City Assessor that the 1975 value on
the structure be reduced by $9,]00.00 and that the land value of $21,500.00 remain the
same, which results in a total 1975 value for taxes payable in 1976 of $104,700.OQ.
13-15-17--77TH 4JAY NORTHEAST (LOTS il AND 26-37, BLOCK 8, ONAWAY A�OITION, PLRT 57189,
PARCEL 20201
It was the recommednation of the City Assessor that no change be made in the valuation
of th�s property.
VACANT LOTS (LOTS 1-7, BLCOK 7, ONAWAY ADDITION, PLAT 57189, PARCELS 1420, 1430, 1440,
1450. 1460. 1470. AND 14801
Mr. Herrmann stated that Mr, Harris had given him a plat map of Onaway Addition dated
1911 wh�ch had a topography outline showing some low ground. On the basis of this map,
the City Assessor's recomme�dation was that the valuation on Lots 2 and 6 be reduced
by $400.00 each due to the fact thau part of these lots was poor, resulting in a 1975
value of $2,100.00 on each 7ot; and that the valuat�on on Lots 3 and 5 be reduced
by �800.00 each as they were fully within the boundaries of the low area, giving each �
of these lots a 1975 value of $1,700.00; and that the valuation of Lot 4 remain as is
because a reduction has already been allowed on this lot,
VACANT LOTS (LOTS 21, 22, AND 23, BLOCK l, ONAWAY ADdITION, PLAT 57189, PARCELS 210,
220, AND 230)
The old plat map of Onaway Addition showed no evidence of poor soil conditions on these
lots, so it was the recommendation of the C�ty Assessor that no change be made in the
valuation on these lots.
Some discuss�on was held between Mr. Harris and the various members of the Council.
Mr. Harris stated that he has come to some conclusions about the valuations on his
bu�ldings. He feels �f he had used more of these lots for actual structure and less
for parking, more actual cost would have been involved in the construction. Mayor Pro
Tem Breider pointed out that he does have room for expansion which would be an added
selling factor which many of our industrual buildings do not have.
Mr. Harris questioned if the valuat�on rate used is the same on metal and concreie
block buTldings. Mr Madsen replied that the square foat rate is less on metal buildings,
and that the life of a metal building is also considered shorter than that of a concrete
block building. Mr. Harris stated that he feels he is going to have to go with metal
structure rather than concrete block structure to save on building costs. Mr. Madsen
mer�ioned that the mater�als availa6le today for metal structures are much improved since
they f�rst started be�ng utilized. '
Mr Harris also stated that he feels he loses money every year on these commercial
buildings because he has to take into consideration the interest he has to pay, the
insurance, upkeep of buildrngs, etc. and yet feels he can only raise the rent so high
if he is to keep these buildings occupied. He said he is going to place his industrial
properties on the selling market because he feels there is no ob�ect �n buiTding
commercial properties unless there is some profit invo7ved.
CONTINUATION OF THE BOFlRD OF EQUALIZATION MEETING OF MAY 8, 1975 PAGE 3
I�AY 15, 1975
MOTION by Ccuncilman Fitzpatrick to concur in the recommendations of the Ctty Assessor
and reduce the valuation on Lot 2, Block 7, Onaway Addition, by $400.00, Lot 3, Bleck 7,
Onaway Addition, by $800.00; Lot 5, Block 7, Onaway Addition by $800.00; Lot 6, 41ock 7,
Onaway Addition, by $400 00; and on Lots 1-10, Block 8, Onaway Addition by $9,100.D0.
Seconded by Councilwoman Kukowski. Upon a voice vote, all ayes, P�ayar Pro Tem 6reider
declared the motion carried unanimously.
APPROVAL OF MIN�TES OF MEETING OF MAY 8, 1975:
�MOTION by Councilman Starwalt to approve the mtnutes of the Board of Equalization
Meeting of May 8, 1975, as one of the property owners present at the meeting on May 8, 1975,
had requested a copy of these minutes. Seconded by Councilman Fttzpatrick. Upon a
voice vote, all ayes, Mayor Pro Tem Breider declared the mot�on carried unanimously.
M�TION by Councilwoman Kukowski to ad�ourn the continuat�on of the meetin9 of the
Board of Equalization. 5econded by Councilman Fitzpatrick. Upon a vo�ce vote, all
ayes, Mayor Pro Tem Breider delcared the meet�ng of the Board of Equalizat�on ad�ourned
at 8:03 P.M., May 15, 1975.
Respectfully submitted,
r ,(�'� f�l,ns �v�2
Patricia Sykes ��
°Q'�so��d 7-7-75
�
'
William J. Nee
Mayor